Glossary
CalSTRS
CalSTRS (the California State Teachers' Retirement System) is the pension system for California's public school and community college educators, paying a lifetime benefit based on a formula of age, service credit, and final compensation.
Most members are in the 2% at 60 or 2% at 62 benefit structures, depending on hire date. A distinctive feature: most CalSTRS members do not pay into Social Security for their teaching service, so federal rules affecting non-covered pensions have historically shaped what they collect from any Social Security earned elsewhere.
Why it matters in practice
Because the pension may be a teacher's dominant retirement asset and Social Security coverage is limited, supplemental savings — typically a 403(b) or 457(b) — and the retirement-date and beneficiary elections carry unusual weight. The 403(b) vendor chosen matters too, since menus in school districts vary widely in cost.
Related terms: CalPERS · Pension · 403(b) · Defined Benefit Plan · Beneficiary