Installment Payment Interest Rate Increases July 1, 2010

On July 1, 2010, the interest rate for new service credit purchases and redeposits financed through cash installments or payroll deductions changes to mirror the CalSTRS assumed rate of return on investments.

Prior to July 1, 2010 the current interest rate of 4.75 percent changes to the new rate set by the Teachers' Retirement Boardand goes in to effect as of July 1, 2010. The new rate can be as much as 8 percent.

Lock In The Lower Interest Rate

To qualify for the current interest rate of 4.75 percent:

• Postmark your service credit purchase request by June 30, 2010.
• Respond and establish your purchase within 35 days of the due date.
• For example: a bill date of January 20, 2010 must be postmarked by February 24, 2010.

A table of CalSTRS rate of return on investments is available in the Investments section of the Comprehensive Annual Financial Report.

Contact CalSTRS if you have questions.