CalSTRS Pension2 Plan

And that includes making sure we have the income we’ll need in retirement. As one-third of the CalSTRS hybrid retirement system, CalSTRS Pension2 is designed to help you fill the gap between what you’ll receive from your CalSTRS retirement benefit and the income you’ll need to reach your retirement goals.

Pension2 is a voluntary, employer-sponsored supplemental savings program that allows you to enhance your retirement income through pre and post-tax payroll deductions. Pension2 offers four types of retirement accounts: 403(b), 457(b), Roth 403(b) and Roth 457(b) plans. Not all plans are available in all school districts, so you will want to check with your payroll office before enrolling in a plan.

By contributing to Pension2 now, you’ll be taking a great step toward bridging your retirement income gap.

Give yourself a tax break with available pre-tax 403(b), 457(b) and post-tax Roth 403(b) and Roth 457(b) plans¹. If you elect to contribute to a Pension2 403(b) or 457(b) account on a pre-tax basis (that is, before taxes are taken out of your paycheck), every dollar you save reduces your current taxable income by a dollar. This means you end up paying less in taxes today. It’s almost like you’re saving for your future at a discount. You pay taxes on your savings and earnings when you withdraw your funds.

You also have the option, if offered by your employer, of making Roth 403(b) contributions, which are deposited to your account after being taxed. With Roth contributions, you pay no additional taxes—even at withdrawal.

¹ Not all plans are available in all school districts. Check with your payroll office before enrolling in a plan.

² Based on hypothetical $60,000 annual salary. For illustration purposes only. Assumes a flat 25% tax bracket without the standard deduction. Does not include state and local taxes. Systematic investing does not ensure a profit nor guarantee against loss. Investors should consider their financial ability to continue their purchases in up as well as down markets. Taxes are generally due upon withdrawal of tax-deferred assets and early withdrawal penalties may apply to withdrawals taken prior to age 59½.

	Before-tax	After-tax
Annual pay	$60,000	$60,000
Before-tax contribution (6%)	-3,600	N/A
Income subject to tax	56,400	60,000
Federal taxes²	-14,100	-15,000
Net income	42,300	45,000
After-tax contributions (6%)	N/A	-3,600
Spendable income	$42,300	$41,400

There are many reasons why you should start saving today!

Here are five ... just for starters.

	Web – Pension2.com
	Mobile – Voya mobile app
	Plan Information Line – Call toll-free 888‑394‑2060

There are many reasons why you should start saving today!

Here are five ... just for starters.

5 REASONS TO START SAVING TODAY

5 REASONS TO START SAVING TODAY

Reduce Your Taxable Income Today

5 REASONS TO START SAVING TODAY

5 REASONS TO START SAVING TODAY

If you start saving $200 a month for:

5 REASONS TO START SAVING TODAY