Leave it with CalSTRS
- If you leave your money in, you keep your service credit, your accounts keep earning interest, and you can get a monthly benefit at 55 with at least five years.p. 25, Benefits of leaving your contributions with CalSTRS
California specificsYou're vested at 5 years of service credit. Vested members who leave their money in can take a lifetime benefit later (see when you can retire). A refund paid to you has at least 20% federal and 2% California tax withheld (see taxes) and ends your service; come back and you can redeposit. Estimate the benefit you'd keep in the calculator.
Take a refund
- A refund pays back your own contributions plus interest. Employer and state contributions aren't refundable, and partial refunds aren't allowed.p. 26, Taking a refund
- Taking a refund ends your membership and your right to a CalSTRS retirement benefit, and cancels your beneficiary designations.p. 25, Consequences of receiving a refund
Withholding on a refund paid to you
At least 20% federal and 2% California. At least 20% federal withholding on payments made directly to you; California 2% unless you elect not to or are a nonresident. Additional taxes may apply before age 59 1/2 if not rolled over. Handbook p. 26, Taking a refund
Coming back later: redepositing
Interest equals the actuarially assumed rate of return on CalSTRS investments, currently 7%. You may redeposit all or a portion; service credit is proportional to the amount paid. Handbook p. 27, Cost to redeposit
Worked example (handbook)$10,000 withdrawn on May 1, 1999 for 3 years of service would cost $50,145 to redeposit on January 1, 2026. Paying half restores 1.5 years.Handbook p. 27, Cost to redeposit
Not in the handbook Check with CalSTRS
The handbook says redeposit interest is 'currently 7%', but its own example costs less than 7% a year would.
We don't estimate redeposit costs. Ask CalSTRS for a bill.
p. 27, Cost to redepositEverything the handbook says
- If you leave CalSTRS-covered work, you can leave your money with CalSTRS until you're eligible to retire, take a refund, or wait until the federal required minimum distribution age.p. 24, Refunding
- If you leave your money in, you keep your service credit, your accounts keep earning interest, and you can get a monthly benefit at 55 with at least five years.p. 25, Benefits of leaving your contributions with CalSTRS
- A refund pays back your own contributions plus interest. Employer and state contributions aren't refundable, and partial refunds aren't allowed.p. 26, Taking a refund
- Taking a refund ends your membership and your right to a CalSTRS retirement benefit, and cancels your beneficiary designations.p. 25, Consequences of receiving a refund
- On a refund paid to you, CalSTRS withholds at least 20% federal tax and 2% California tax (unless you opt out of state tax or live elsewhere). Extra taxes may apply before 59 1/2 unless you roll it over.p. 25, Consequences of receiving a refund
- The handbook suggests a refund may make sense if you have fewer than five years, don't plan to return to teaching, and aren't eligible for concurrent retirement.p. 24, Know the consequences of a refund
- If you return, you can redeposit refunded contributions plus interest (currently 7%, the assumed investment return) to restore the service. You can redeposit all or part; service is restored in proportion.p. 26, Redepositing to restore service credit
- Example: $10,000 withdrawn May 1, 1999 for three years would cost $50,145 to redeposit on January 1, 2026; paying half restores 1.5 years.p. 27, Cost to redeposit
- Your Defined Benefit Supplement balance is paid as a termination benefit after six months without creditable service. It can't be redeposited, and only one is allowed in five years.p. 26, Taking a refund
- Coming back after a refund puts you under Coverage B for survivor and disability benefits, even if you had Coverage A before.p. 25, If you return to CalSTRS membership after taking a refund
Questions
Should I take a CalSTRS refund when I leave teaching?
A refund gives back only your own contributions plus interest, and ends your right to a CalSTRS pension. The handbook suggests it may make sense only if you have fewer than five years, don't plan to return, and can't use concurrent retirement. Leaving your money in keeps your service credit.
Can I get the service back if I return?
Yes. You can redeposit the refund plus interest (currently 7%) to restore the service credit, all at once or in part.
Source: CalSTRS Member Handbook, 2026 edition (Jan. 1, 2026 - June 30, 2027), pp. 24, 25, 26, 27. Last reviewed .