1. An educational presentation by Becker Brothers Insurance Services STRS Retirement for State Teachers Financial Strategies for the Educational Professional Securities offered through Great American Advisors - Member NASD & SIPC. Becker Brothers & Great American Advisors are separate and unaffiliated companies. Preferred Provider of CRTA
2. 2004 S Street Sacramento, CA 95811 800-791-4443 916-929-1120 Becker Brothers STRS Benefits
4. STRS Age Factors 30 & Out Early Retirement Standard Early Retirement Normal Retirement Full Retirement *Age factors are not increased by golden handshake agreements, “airtime” repurchases, or accumulated sick leave. Under 30 Years Over 30 Years
5. $ 4,074 $ 2,619 $ 63 32 2.40% 77% 62,093 $ 62,093 $ 3,974 $ 400 $ 4,374 $ 2,919 $ The Cost of Early STRS Retirement Jane Smith - STRS Member Age 55 With 24 Years STRS Credit Current Salary $52,996 - Annual 2% Increase Salary To Standard Extra Total Increase Total STRS Use For Monthly Longevity Monthly Over Service Age Income Final STRS STRS Monthly STRS Age Age Credit Factor Percent Salary Benefits Benefit Bonus Benefit 55 55 24 1.40% 34% 52,996 $ 51,964 $ 1,455 $ - $ 1,455 $ - $ 56 25 1.52% 38% 54,056 $ 54,056 $ 1,712 $ - $ 1,712 $ 257 $ 57 26 1.64% 43% 55,137 $ 55,137 $ 1,959 $ - $ 1,959 $ 504 $ 58 27 1.76% 48% 56,240 $ 56,240 $ 2,227 $ - $ 2,227 $ 772 $ 59 28 1.88% 53% 57,364 $ 57,364 $ 2,516 $ - $ 2,516 $ 1,061 $ 60 29 2.00% 58% 58,512 $ 58,512 $ 2,828 $ - $ 2,828 $ 1,373 $ 61 30 2.33% 70% 59,682 $ 59,682 $ 3,476 $ 200 $ 3,676 $ 2,221 $ 62 31 2.40% 74% 60,876 $ 60,876 $ 3,774 $ 300
6. The Key is Working Longer, Not Harder Jane could work full time until age 59 (a 28 year career), and have a monthly (unmodified) retirement benefit of $2,516. However, if she were able to work 1/2 time from age 55, she would receive almost $1,000 more retirement income per month at age 63.
7. STRS Retirement Benefit Options Retirement benefits estimate for John & Jane Smith, retiring at Jane’s age 63; John’s age 65. Jane would have 32 years of service and a final (12 month average) compensation of $5,174.
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9. The Value of Pre-Selecting a Modified Option By pre-selecting an STRS “modified” option as early as age 55, John & Jane are eligible to receive significantly more income than if they delayed their decision until Jim’s actual retirement date.
10. Retirement Income Gap - Unmodified Option During Retirement While Working Even if John & Jane are able to select the unmodified option, they will still need to supplement their STRS retirement income. The following chart contrasts their current income, their retirement income and their retirement income needs. Assumes 3.1% inflation and 2% retirement COLAs.