If you are a member of the California State Teachers' Retirement System (STRS), you may increase your montly retirement benefit by buying permissive service credit before you retire.
Beginning July 1, however, the cost of purchasing permissive service credit is increasing substantially in order to more accurately reflect the actual cost of the benefit. To buy credit before the cost goes up, you must send a request form to STRS with a postmark before July 1.
Permissive service credit can be purchased for the time you were performing non-STRS work or for time you spent on employer-approved leave. Credit is available for part-time or substitute service in a California public school (before you joined STRS), out-of-state teaching in a public school system, sabbatical leave, maternity or paternity leave, certain military service, family care and medical leave. (For information on other activities eligible for permissive service credit, like time spent teaching at the university level, at schools for the deaf or blind, at schools for Indian children, at district child care centers or in the Job Corps, visit the CALSTRS website [http://www.calstrs.com/].)
The cost of permissive service credit depends on your highest earnable salary during the last three years. Beginning July 1, it will also depend on your age.
The retirement allowance calculation formula is set by law and multiplies three elements: your years of service credit; a percentage based on your age at retirement (called the age factor); and your highest average salary, generally for any period of three consecutive years (called final compensation).
Nonqualified service credit - If you have at least five years of STRS service credit, you can buy up to five years of nonqualified service credit unrelated to time worked. Although this credit is included in the retirement allowance calculation, it cannot be used for meeting eligibility requirements for any STRS benefit enhancements.
Redeposit - You can return STRS retirement funds withdrawn when you terminated your STRS-covered employment. You can redeposit your funds if you return to STRS membership or are a member of certain other California public retirement systems. You can also redeposit an amount equal to the contributions withdrawn by your former spouse as part of a community property settlement.
For more information, call (800) 228-5453 or write STRS, Attn: Member Services, P.O. Box 15275, Sacramento, CA 94851. Retirement status and earnings can also be calculated by phone.