District Pension Plans

CalPERS members generally pay into Social Security. CalSTRS members do not pay into Social Security for teaching earnings. However, thanks to the Social Security Fairness Act signed in January 2025, the WEP and GPO penalties were officially repealed. If you earned Social Security from a prior private-sector job or through a spouse, your benefits will no longer be reduced.

Your guaranteed monthly allowance is based on: Service Credit × Age Factor × Final Compensation. The longer you work and the older you are at retirement, the higher your payout. See the CalPERS Benefit Factors or CalSTRS Benefit Calculation page for specific age factor charts.

If you were hired into a California public retirement system on or after January 1, 2013, you are generally a PEPRA member. Those hired prior are "Classic" members. This determines your age factor formula and contribution rates. Learn more: CalPERS PEPRA or the CalSTRS 2% at 62 (PEPRA) structure.

Yes, in many cases. You may be eligible to purchase service credit for prior military service, unpaid leave, or out-of-state teaching. Log into your portal to view your specific options and run cost estimates.

You can leave your funds in the system (they accrue standard interest), roll them into another qualified retirement account, or take a lump-sum refund. Refunds are subject to heavy taxes and early withdrawal penalties. See the CalPERS Refund rules or CalSTRS Refund guidelines for exact procedures.

No. Unlike a 403(b) or 457(b) voluntary savings plan, school district pension funds cannot be borrowed against. They are locked until you separate from service or reach retirement age.

When you fill out your retirement application, you'll choose a retirement option — either the maximum payout for your lifetime only (Unmodified Allowance), or a slightly reduced monthly amount so a designated beneficiary continues receiving payments after your death.

Yes. The vast majority of your pension is considered ordinary income and is subject to both federal and state income taxes in the state where you reside during retirement.

Yes. Both systems provide an annual COLA to protect your pension's purchasing power against inflation. Adjustments are based on the CPI, and you typically receive your first COLA in the second calendar year of retirement. See the CalPERS COLA guidelines or CalSTRS Inflation Protection rules.

To qualify for District Retiree Fringe Benefits, your age plus years of service should equal at least 75. Depending on your original hire date, the required years of District service are either 10 or 20 years.

You must retire within 120 days from your date of separation from employment to be eligible for continued health benefits through CalPERS. If you retire between 30 and 120 days after separation, it is your responsibility to proactively request coverage continuation.

Yes. The District reports your unused sick leave by days to STRS/PERS. The systems convert this to service credit based on classification: 175 days for faculty, 260 days for classified, and 220 days for academic supervisory.

There are strict rules for working after retirement. Both systems generally require a 180-day wait period before working at a covered public institution. After that, CalPERS retirees are limited to 960 hours per fiscal year. For CalSTRS retirees, the post-retirement earnings limit for 2025–2026 is $80,245.

CalPERS requires retirees who become eligible for Medicare to apply; failure to enroll results in cancellation of coverage. You must apply when eligible to maintain your health benefits.

Yes, provided you meet the requirements for District retiree medical benefits. The District may reimburse Medicare Part B premiums to eligible retirees and dependents enrolled in both Medicare Part A and B. Reimbursements are processed twice a year (June and December). Check with HR to confirm your exact eligibility.