Retirement Worksheet for STRS Defined Benefit

(Click for [rtf], [pdf], or [Word] file)


Find current STRS statements, district pay stub & SS statement

 

1.   How much SC do you have to-date?                                                        __________
(based upon current STRS statement, not impairment)

2.   At what age do you want to retire?                                                          __________

3.   Based upon teaching trends how much more service
credit do you expect to earn before retirement?                                       __________

4.   How much sick leave do you have and then expect to
have by the time you retire?                                                                     __________
(In our district that is 1 hour sick leave for 9 hours taught.
Convert those hours into SC according to current standards)
[6 hours = 1 day; take total days and divide by your FTE = SC]

5.   Project your final compensation at time of retirement.                            __________
(To do that take your current yearly gross, inflate it somewhat
[maybe by 10%] and then divide by your usual workload percentage.)
Example:  $25,000 div. By 60% = $41,666

 

With the above information you can project your STRS Defined Benefit monthly retirement pension based upon current law.

 

SC years  X   age factor  X  final comp. div. By 12 = unmodified benefit

 

______            X         _____              X  $_____________/ 12 =                  ___________

 

Example:

10 SC    X   2.0   X  $3472.16 ($41,666/12) = $694.43

 

SC = SC on STRS DB report + sick leave hours div. 1050 [current law]

 

Example:         9.5 SC

525 sick leave hours / 1050 = .5 SC

10 total SC

 

 

age factors:                  55    =  1.4

60    =  2.0

62+  =  2.4 (max.)

 

[If you were part of STRS DB before 1998 in CCC district you will need to find old statements that tell you your SC up to 1998.]

That formula will be:

SC before 1998 + ½ SC after 1998 + sick leave/1050 X age X final comp.

 

Cash Balance:

 

If you are on Cash Balance you will receive total of money and interest from employer and employee contributions.  That money can come lump sum or rolled into an annuity.

 

You may opt to convert CB money to DB service credit.

To do this multiply ÒFTE earnableÓ X 16.497% = $________

[Earnable = FTE hours X current hourly rate of pay]

Take your total CB account $ _________ div. By above figure $ ________

that will give you the service credit the CB account will buy.

Once requested by STRS they will tell you the total SC you can purchase, how much the CB account will purchase and options to purchase the remainder [lump sum transfer from an IRA or similar or on payment plan].

 

Defined Benefit to Cash Balance:

You may not do the reverse.  DB money can be cashed out [but ONLY the portion you deposited + interest]. If you cash out YOUR portion of the DB money, you will then lose the SC associated with it AND the district portion of the contributions.

 

Remember Cash Balance is designed for Pters who teach very little and do not expect to vest under the DB plan.   

 

Defined Benefit is designed for Pters who teach a significant amount or teach as a major form of their income. You may choose to join Defined Benefit at any time;  BUT once in you cannot opt out.  So know your plans for the future.

 

Once in Cash Balance or Social Security you can still move to DB.