CalSTRS death and survivor benefits

Coverage A or Coverage B?

Members after October 15, 1992 are under Coverage B. Members on or before that date remain under Coverage A unless they elected Coverage B before April 1993 (election period October 16, 1992 to April 13, 1993). Returning after a refund puts you under Coverage B. Handbook p. 97, Coverage A or Coverage B

Before retirement: Coverage A

Spouse or registered domestic partner with eligible children: 40% of final compensation (actual earnings) plus 10% per eligible child up to 50% for five or more children; family maximum 90%. Children only: 10% each up to 50% total. Spouse with no eligible children may choose a refund of contributions and interest (less benefits paid) or a lifetime benefit equal to 50% of a projected benefit at age 60 (or sooner, actuarially reduced). Dependent parents may receive a benefit if there is no spouse or child. Reduced by benefits from other public systems (e.g., workers' comp, Social Security). Handbook p. 100, Under Coverage A, a monthly survivor benefit is payable to

Before retirement: Coverage B

Spouse or partner chooses a lifetime benefit or a refund of contributions and interest. The lifetime benefit is one-half of a modified benefit (as if you retired at normal retirement age naming your spouse under the 50% option), payable when you would have reached normal retirement age, or immediately at an actuarially reduced rate. Eligible children get 10% of final compensation each (up to 50%) until age 21, but only if the spouse takes the monthly benefit (or there is no spouse). Not reduced by other public-system benefits such as Social Security. Neither the longevity bonus nor the career factor is included. Handbook p. 103, Under Coverage B, a monthly survivor benefit may be paid to

After retirement

With an option, your option beneficiary receives the option benefit. With the Member-Only Benefit, nothing continues; your one-time death benefit recipient receives the one-time death benefit, the benefit accrued but unpaid in the month of death, and any contributions and interest not already paid out in benefits. Handbook p. 106, If you die after retirement: Coverage A and Coverage B survivor benefit

All survivor benefits are considered taxable income. Handbook p. 98, Your survivor benefits

What the handbook says

• Members after October 15, 1992 have Coverage B for survivor and disability benefits. Earlier members kept Coverage A unless they switched by April 1993.p. 97, Coverage A or Coverage B
• One-time death benefit (effective July 1, 2025): $7,288 under Coverage A or $29,152 under Coverage B if you die before retirement; $7,288 under both after retirement. The amounts may be adjusted.cover insert (PDF p. 1), One-time death benefit update
• The one-time death benefit before retirement requires at least one year of service credit and death while working or within set periods (such as four months after leaving).p. 99, If you die before retirement: Coverage A survivor benefit
• Coverage A family allowance: your spouse or partner gets 40% of final compensation plus 10% for each eligible child (children up to 50%), up to 90% in all. Children must be under 22.p. 100, Under Coverage A, a monthly survivor benefit is payable to
• Example: Rob, with $4,220 final compensation, a wife and three children: $1,688 + $1,266 = $2,954 a month.p. 101, Coverage A survivor benefit example
• Coverage A survivor benefits are reduced by benefits from other public systems such as workers' compensation or Social Security; Coverage B benefits aren't.p. 100, Benefit reductions
• Coverage B: your spouse or partner chooses a refund or a lifetime benefit equal to half of a benefit figured as if you retired at normal retirement age with the 50% option. It can start when you would have reached that age, or right away at a reduced rate. Children under 21 get 10% each (up to 50%).p. 103, Under Coverage B, a monthly survivor benefit may be paid to
• Example: Sharon (10 years, $3,220) left a spouse who could take $306.32 a month later or $191.05 now, plus $322 for each of three children.p. 105, Coverage B survivor benefit example (continued)
• A preretirement option election replaces these survivor benefits with a lifetime benefit for your option beneficiary.p. 99, Coverage A survivor benefit
• After retirement, a monthly benefit continues only if you chose an option. Otherwise your recipient gets the one-time death benefit, the unpaid benefit for the month of death, and any contributions left. Sanjay's recipient got $7,288 + $475 = $7,763.p. 106, If you die after retirement: Coverage A and Coverage B survivor benefit
• You can change your one-time death benefit recipient at any time without penalty. A divorce or partnership ending after January 1, 2002 voids a former spouse's designation.p. 98, Marriage dissolution or domestic partner termination may affect designation
• All survivor benefits are taxable income.p. 98, Your survivor benefits
• The basic disability benefit is 50% of final compensation (actual earnings) plus 10% for each eligible child, up to 90%.p. 9, CalSTRS programs at a glance

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