A refund is a distribution of your total accumulated contributions and interest on
account with CalSTRS. A refund terminates your membership and you will not be eligible for any benefits from CalSTRS.
No. State law does not permit members to take a partial refund or borrow against their accumulated contributions and interest
on account with CalSTRS. The funds in your CalSTRS account are paid out in full upon refunding..
If your refund is paid directly to you, the direct payment will be subject to taxes. CalSTRS is required to withhold 20 percent for federal income tax. If you choose to have California state income tax withheld, CalSTRS will withhold at 10 percent of your federal income tax withholding (2 percent, if your federal withholding is 20 percent). State tax withholding is optional, but federal withholding is mandatory. Remember, there are penalties for not paying enough tax during the year, either through withholding or quarterly estimated tax payments.
If you receive your refund payment before age 59½, you may have to pay an additional 10 percent federal tax and an additional 2.5 percent state tax for early distribution.
Defined Benefit Account: Your Defined Benefit account refund typically will be processed in two checks. The initial
check for the contributions and interest posted to your account as of the date of the refund will be mailed within 30 days
of CalSTRS receiving your valid Refund Application.
If additional contributions and interest are posted to your account after
the initial refund check is issued, a second check will be mailed approximately four months later.
Defined Benefit Supplement Account: By state law, CalSTRS can distribute only one Defined Benefit Supplement termination
benefit within any five-year period. If you apply before five years have passed since payment of your last Defined Benefit Supplement
termination benefit, CalSTRS will not process your payment until the five years have elapsed.
Additionally, current law requires a mandatory six-month waiting period from the date of your last CalSTRS-covered employment to
the date a termination benefit can be paid. Your Defined Benefit Supplement funds will continue to earn interest while they remain
in your account. If you return to CalSTRS-covered employment within the six-month waiting period, you will not be eligible for a
Defined Benefit Supplement termination benefit.
Termination of employment means an action by you, such as submission of a resignation, or an action by your employer, such as dismissal or layoff. Termination does not automatically occur at the end of the school year. Your employer must sign your
Refund Application if you were employed within the last 12 months.
If you were employed within the last 12 months, you must terminate all CalSTRS-covered employment in the California public school
system and your date of termination must have passed to be eligible to apply for a refund. Substitute teaching, including part-time
substituting, qualifies as employment and must be terminated.
When you complete the Refund Application, you need to fill out the address to which you would like your check mailed. If you move, notify CalSTRS of your new address. You can change your address online if you are a registered myCalSTRS user or download
the Address Change Request form at CalSTRS.com and submit it to CalSTRS.
If you terminated employment within the last 12 months, send your application to your county superintendent's office, except for the following employers:
Los Angeles College District: Send it to the retirement division of the college.
Los Angeles City Unified School District: Send it to:
Accounting and Disbursements Division
Payroll Services Branch (ATTN: Refund Application)
P.O. Box 513307, Terminal Annex
Los Angeles, CA 90051-1307
Los Angeles County: Send it to:
Los Angeles County
9300 East Imperial Highway, Room 150
Downey, CA 90242
San Francisco Community College District: Send it to the retirement division of the college.
If you terminated employment more than 12 months ago, send your application directly to CalSTRS, P.O. Box 15275, MS 88,
Sacramento, CA 95851-0275.
