CalSTRS: Should Teachers Choose Member-Only or Option 2?

CalSTRS members face a decision that sounds simple and isn’t: take the Member-Only Benefit (the highest amount for you, stopping when you die) or choose a survivor option that protects a loved one in exchange for a lower monthly check.

The right answer is almost never about the numbers alone.

Member-Only Benefit - The highest monthly retirement benefit available to you. - Payments stop at your death (though a modest one-time death benefit is paid). - Works best when you’re single, or your spouse has their own pension or substantial savings.

Options 2, 3, 4, 5, 6, 7 and 8 Each of these adds a percentage of your benefit that continues to a named beneficiary after your death — at the cost of a reduction now. The larger the survivor percentage, the larger the reduction.

Option 2 continues 100%. Option 3 continues 50%. The others offer blends and special cases.

A useful mental shortcut Imagine the year after your death. If your spouse’s finances — without your pension — would still feel secure, Member-Only may be a smart choice. If not, choosing a survivor option may be one of the kindest things you ever do for them.

Common mistakes I see - Picking the highest benefit without asking your spouse. - Assuming life insurance alone will fix it (it sometimes does — but not at 75 or 80). - Not running the numbers side by side with your spouse’s Social Security and savings.

If the decision is coming up, let’s walk through it together. No pressure — just a calm, honest comparison.