1. & California Public California State Employees’ Teachers’
Retirement System
(CalPERS)
California State
Teachers’
Retirement System
(CalSTRS)
&
An overview of your retirement benefits and options
Foresters Financial Services, Inc. does not work for any state or school.

2. Who We are Erica Cordova Financial Services Representative
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3. Foresters Financial Services, Inc.
Provide everyday families and individuals with financial solutions, guidance and tools, to meet their needs across all life stages
Offer personalized service combined with a solid, long-term approach and fresh thinking, to help you
Part of Foresters™ an international financial services provider that gives back to the community and cares deeply about family well-being. Each year Foresters organizes thousands of community activities, providing financial contributions and hands-on volunteerism in support of charitable partners that make a meaningful impact in local communities.
Invest and save for life’s priorities
Protect the ones you love
Create retirement income strategies
Maximize social security benefits
Establish a college savings plan
Understand your rollover options

4. Explanation of your retirement benefit
Eligibility for retirement
Hired Pre-2013 vs. Post-2013
Terms used
Benefit estimates
Income options

5. Eligibility rules for retirement
CalPERS
CalSTRS
Normal Retirement
Hired Pre-2013 – Age years service credit or Age years service credit
Hired Post-2013 – Age years service credit
Reduced benefit election – Age years service credit
Normal Retirement
Hired Pre-2013 – Age years service credit
Hired Post-2013 – Age years service credit

6. A look at your statement
CalPERS
CalSTRS
Annual Member Statement shows years of service credit you’ve accumulated

7. How to estimate your contributions
CalPERS
CalSTRS
CalPERS members contribute 7% of their annual pay
Example: If your annual pay was $60,000, your contribution for that year would be $4,200
Prior to July 2014: 8.00%
: %
: %
: %
Example: If your pay was $60,000, your contribution for that year would be $5,520

8. How to calculate your defined benefit retirement
CalPERS
CalSTRS
Formula:
Service Credit x Age (Benefit) Factor x Final Compensation
Service Credit Factors:
Full vs. Part-time - Sick Leave Credit
- Multiple Positions - Excess Service - Additional Duties
Ability to Purchase Service Credit

9. How to calculate your defined benefit retirement (continued)
CalPERS
CalSTRS
Final Compensation
Highest consecutive 12 month compensation
Final Compensation
Over 25 years of service, your highest yearly salary
Less than 25 years of service, average of highest 3 consecutive years

10. How to calculate your defined benefit retirement – Hired Pre-2013 (cont’d)
CalPERS
CalSTRS
CalPERS Age Factors: Age 55
CalSTRS Age Factors: Age 60
Example – if Age 60, 28 years service credit and final compensation of $60,000
28 (Service Credit) x 2.31% (Age Factor) x $60,000 (Final Compensation) = $38,808/year or $3,234/month
Example – if Age 60, 28 years service credit and final compensation of $60,000
28 (Service Credit) x 2.00% (Age Factor) x $60,000 (Final Compensation) = $33,600/year or $2,800/month

11. How to calculate your defined benefit retirement – Hired Post-2013 (cont’d)
CalPERS
CalSTRS
CalPERS Age Factors: Age 62
CalSTRS Age Factors: Age 62
Example – if Age 60, 28 years service credit and final compensation of $60,000
28 (Service Credit) x 1.8% (Age Factor) x $60,000 (Final Compensation) = $30,240/year or $2,520/month
Example – if Age 60, 28 years service credit and final compensation of $60,000
28 (Service Credit) x 1.76% (Age Factor) x $60,000 (Final Compensation) = $29,568/year or $2,464/month

12. Career factor for CalSTRS Members hired pre-2013
With 30 years service credit, you get an additional 0.2% added to your Age Factor (maximum still at 2.4%)
Example: Member is 62 years old with 30 years service credit and final compensation of $60,000.
30 (service credits) x 2.4% (age factor 2.27% + career factor 0.2% = max 2.4%) x $60,000 (final compensation) = $43,200/year or $3,600/month

13. Choosing your CalPERS Retirement Payment Plan Option
Unmodified Allowance – Maximum to retiree: lifetime; nothing for survivors
Option 1 – lump sum payment of remaining member contributions payable to beneficiary after death
Option 2 (100%), 2W, 3 (50%), 3W or 4 – provides lifetime monthly benefits to your designated beneficiary (Results in a reduction to retiree’s monthly allowance)
Example: Member is Age 60, has 28 years service credit and $60,000 final compensation.
If Unmodified allowance is $3,234/month:
Option 1: $3,135 retiree Option 2: $2,812 retiree / $2,812 Bene Surv (Age 60)
Option 3: $3,008 retiree / $1,504 Bene Surv (Age 60)

14. Choosing your CalSTRS Retirement Payment Plan Option
Member – Only Benefit
Maximum to retiree: lifetime; lump sum payment of remaining member contributions payable to beneficiary after death
100%, 75% or 50% Beneficiary Options – provides lifetime monthly benefits to your designated beneficiary (results in a reduction to retiree’s monthly allowance)
Compound Option
Example: Member is Age 60, has 28 years service credit and $60,000 final compensation.
If Member-only benefit is $2,800/month:
100% Option: $2,502 retiree / $2,502 Bene Surv (Age 60) % Option: $2,592 retiree / $1,944 Bene Surv (Age 60)
50% Option: $2,665 retiree / $1,332 Bene Surv (Age 60)

15. Inflation adjustment calculations
CalPERS
CalSTRS
Non-compounding 2%
Will maintain at least 85% of purchasing power
Defined benefit supplement (DBS) account
Maximum of 2% compounding – based on the CPI (consumer price index)
Will maintain at least 75% of purchasing power

16. How CalPERS & CalSTRS affect your Social Security benefits
Does not contribute to Social Security
WEP (Windfall Elimination Provision)
GPO (Government Pension Offset)
Does contribute to Social Security
40 quarters to be eligible (10 years full-time)
When should you apply for your benefits?

17. Supplemental Retirement Programs
403(b)
457(b)
Traditional IRA
Roth IRA
Which option(s) are best for you?

18. Excerpt from sample TRAK report

19. ?
Questions

20. Next Steps
Complete an RFI
Set up an appointment

21. Foresters™ and Foresters Financial™ are the trade names and trademarks of The Independent Order of Foresters (a fraternal benefit society, 789 Don Mills Rd., Toronto, Canada M3C 1T9) and its subsidiaries, including Foresters Financial Services, Inc. All securities, life insurance and annuity products are offered through Foresters Financial Services, Inc. Insurance products are issued by Foresters Life Insurance and Annuity Company or The Independent Order of Foresters.
This material has been prepared for informational purposes only and is not tailored toward any particular individual’s investment objectives or financial situation. This material should not be construed as a recommendation, or an offer to buy or sell any mutual fund, variable and/or insurance product. Mutual funds and variable products are offered for sale by prospectus only. Foresters Financial Services representatives are not registered to sell mutual funds or variable products or licensed to sell insurance products in every jurisdiction. In addition, our mutual funds and insurance products are not registered or approved for sale in every state. This presentation is not intended to be an offer or solicitation to purchase a security or insurance product where the product is not registered or approved for sale or where the representative is not registered or licensed to sell the product.
For more information about First Investors funds from Foresters Financial Services, Inc. you may obtain a free prospectus by contacting your representative, writing to the address below, calling or visiting our website at forestersfinancial.com. You should consider the investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other information, and should be read carefully before you invest or send money. An investment in a fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.

22. Foresters Financial Services, Inc
Foresters Financial Services, Inc. (“Foresters Financial”) is a broker-dealer engaged in the sale of investment and insurance products. Foresters Financial does not work for any state, state agency, city, county, or PERS. Foresters Financial is the sole sponsor of this seminar. You must consider all of the information presented during the seminar before making any investment decisions.
Illustrations and examples in this presentation are hypothetical and not intended to reflect anyone’s specific or individual circumstances. Nothing herein is intended to be a recommendation of any investment strategy or securities product.
Neither Foresters Financial Services, Inc. nor any of its affiliates provide legal, tax or estate planning services. Should you require such services, you should consult a legal, tax or estate planning professional.
Foresters Financial Services, Inc. 40 Wall Street, New York, New York Member FINRA and SIPC.

23. Let’s prepare for your future. It begins now!
Thanks for coming
Foresters Financial Services, Inc. | 40 Wall Street | New York, NY | forestersfinancial.com