/ CalSTRS & CalPERS

CalSTRS Defined Benefit Supplement (DBS Account)

The Defined Benefit Supplement (DBS Account) is a hybrid cash balance plan specifically for Defined Benefit Members. It provides additional savings and supplemental income for retirement.

Defined Benefit Supplement accounts can receive funds from two sources:

Earnings in Excess of One Year of Service Credit – Beginning on July 1, 2002, employees who earn more than one year of service credit in a school year will have their contributions and most of their employers' contributions from their earnings in excess of one year credited to the Defined Benefit Supplement account.

Special Limited-Term Payments or Retirement Incentives – Beginning on July 1, 2002, members under the CalSTRS 2% at 60 benefit structure will have their contributions and most of their employers’ contributions on these payments credited to their Defined Benefit Supplement account.

From January 1, 2001 through December 31, 2010, all Defined Benefit Program members contributed 8 percent of their CalSTRS-covered salary toward retirement. 25 percent of this contribution, or 2 percent of salary, went to the Defined Benefit Supplement account. 75 percent of this contribution, or 6 percent of salary, went to the Defined Benefit account. Beginning on January 1, 2011, the entire contribution is now credited to the Defined Benefit account. You have the ability to build your Defined Benefit Supplement account by taking on extra-pay duties like teaching during summer school or serving as a choir/band director.

The Defined Benefit Supplement account earns interest at a rate that is set at the beginning of each plan year, which runs from July 1 through June 30. It is set by the Teachers’ Retirement Board and is based on the average 30-year Treasury rate. This rate cannot be less than the rate for your Defined Benefit account. It is important to note that the Defined Benefit Supplement Program is a separate benefit structure within the Teachers’ Retirement Plan. It will invest contributions in internally pooled portfolios, with portfolios reflecting market fluctuations on a daily basis.

CalSTRS and CalPERS Plans