Retirement Benefit Distributions for California Educators

Distribution choices by individuals retiring from the California State Teachers’ Retirement System (CalSTRS) are examined for participants that retired between 2016 and 2023. Women are much more likely to select a member-only annuity while a larger proportion of men select a joint and survivor (J&S) annuity that provides survivor benefits. Being married is a dominant factor in the selection of J&S annuities. Greater final annual salary, older ages at retirement, and more years of service are associated with a greater probability of choosing a J&S annuity. We also find that benefit choices from the primary benefit plan are jointly determined with distributions chosen from the supplemental pension plan. Interestingly, about half of retirees select a lump sum distribution from the supplemental plan while receiving an annuity from their primary plan.