State Teacher Plans for California

Many teachers do not have access to low-cost choices in their 403(b) plans. Of the 965 district 403(b) plans that we have graded so far in California, 2 districts have an A rating, 0 districts have a B rating, 902 districts have a C rating, 43 districts have a D rating, and 18 districts have an F rating.

If you are a teacher in California, here are the state teacher plan options that are available to you.

California CalSTRS

Most states still offer a traditional formula-based pension. Under this type of arrangement an educator would receive a percentage of their final year's salary until death that is based on some combination of years worked, age, and salary. Some states have made pension plans less generous to new hires, and some states have replaced traditional pensions with 401(k)-type plans.

More information about the California CalSTRS plan is available directly from the pension website, and Karl Fisch's book on the California pension is available here. Pension plan information for other states is also available for reference through this state pension search tool. This data is shared with us by Karl Fisch, and it is current as of January 1, 2025.

Applicable to All Teachers

Social Security

California teachers do not pay into Social Security

Administrative Fee for Supplemental Plans

0.25% for 403b and 457

New Teachers Hired On or After 1/1/2024

Defined Benefit

Employee: 10.205%; Employer: 19.1%

Multiplier

2% at age 62
1.16% to 2.4% depending on age

Average Salary

Highest 36 months

Normal Retirement

Age 55 with 5 years of service

Cost-of-Living Adjustment (COLA)

2% of base not compounded

Veteran Teachers Hired Prior to 1/1/2001

There are no additional benefit tiers between the new teacher and veteran teacher tiers compared here. The exact transition date between these tiers is not relevant to this comparison.

Defined Benefit

Employee: 10.25%; Employer: 19.1%

Multiplier

2% at age 60
1.1% to 2.4% depending on age and years of service

Average Salary

Highest 36 months or 12 months if more than 25 years of service

Normal Retirement

Age 50 with 30 years of service
Age 55 with 5 years of service

Cost-of-Living Adjustment (COLA)

2% of base not compounded

California 457(b)

Every state operates a 457(b) plan that serves governmental workers like police, fire, and state government officials. These plans are generally excellent, and in many cases they are superior to the 403(b) offerings available in school district plans. Most states allow educators to participate in these plans; unfortunately, about a dozen do not.

Find out more about how we rate state 457(b) plans and view plans in other states.

Green CalPERS

California teachers are eligible to contribute to this plan.

Fees

0.23% admin fee, $0 account fee, and a low index fee

Record Keeper

Voya

Target Date Fund

Custom CIT TDF

Green CalSTRS Pension2 457(b)

California teachers are eligible to contribute to this plan.

Fees

0.25% admin fee, $0 account fee, and a low index fee

Record Keeper

Voya

Target Date Fund

Custom Risk-Based TDF

Back to search