CASH BALANCE PLAN Immediate Vesting 4% Employee Contribution 4% District Contribution into the employees account When finished teaching or ready to retire, you can either withdraw funds in lump sum, or if over $3500 in Cash Balance account, you can arrange to draw a monthly annuity. If under age 55 then a one year waiting period to receive funds. Convertible to Defined Benefit service credit. May off-set Social Security benefits. No STRS disability insurance. Does not have inflation guarantees. Cannot convert your accrued sick leave for credit. Typically for non-career teachers or those who work only sparingly.

DEFINED BENEFIT PLAN Five years full-time equivalent years to vest. 8% Employee required Contribution 8.25% District contribution to STRS Defined Benefit program When retiring you will receive a life-time pension with optional survivor benefits based upon the formula: service credit X age factor X final compensation. Once in the DB plan you may not choose to exit unless you leave the teaching profession and no longer work in a STRS school. [CSU and UC are not in STRS] May off-set Social Security benefits if you do not have 30 years of “substantial earnings”. Inflation guarantee of 80% purchasing power to retirement pension. Sick leave hours will be added to service credit at time of retirement. Required plan for all Full-time faculty. Beneficial plan for Part-time faculty who work more than 40% or in more than one district.