Bottom line
A CalSTRS redeposit can restore all or part of Defined Benefit service lost after a refund, but the cost grows with interest and does not recreate every feature of the original membership date.Key facts
- CalSTRS allows eligible members to redeposit all or part of service credit represented by a prior Defined Benefit refund
- The redeposit cost is the refunded amount being restored plus compounded regular interest calculated by CalSTRS
- Refunded Defined Benefit Supplement contributions and interest cannot be redeposited to restore that account
What a CalSTRS redeposit actually restores
When a member takes a refund of CalSTRS Defined Benefit contributions, the related service credit and membership rights tied to that account are canceled. A redeposit is the process of buying back all or a portion of the service credit represented by that refund. CalSTRS permits a redeposit after the person returns to CalSTRS membership or, in certain cases, while the person belongs to another California public retirement system.
Redepositing is narrower than reversing history. It can restore the refunded Defined Benefit service credit, but CalSTRS says it does not re-establish the earlier membership date or every benefit feature that existed before the refund. Defined Benefit Supplement amounts are also different: refunded DBS contributions and interest cannot be redeposited. Read the old refund record and the current membership structure together before assuming a full reset.
How the redeposit cost grows after the refund
CalSTRS states that the cost equals the original refund amount being restored plus the interest that money would have earned had it remained in the account. For multiple refunds, CalSTRS calculates compounded regular interest from each refund date. On a request, the interest period runs through 20 days after CalSTRS receives the request, then the separate refund costs are combined into the total redeposit amount.
That structure explains why waiting can materially increase the bill even when the amount of service being restored does not change. A partial redeposit is allowed, so the member can request less than the full refunded service. The system still determines how much service corresponds to the amount purchased. Use the official billing statement because the interest history and exact refund dates are account-specific.
| Item | Redeposit treatment | What to confirm |
|---|---|---|
| Defined Benefit service credit | All or a portion may be restored | Service represented by the refund |
| Cost | Refunded amount plus compounded regular interest | Official billing statement |
| Defined Benefit Supplement refund | Cannot be redeposited | Separate DBS history |
| Earlier membership date | Not generally re-established | Current membership record |
How to check eligibility after returning to teaching
After the most recent refund, CalSTRS generally requires a member to earn at least one year of new service credit and have at least five years of service credit before becoming eligible for retirement benefits, unless concurrent-retirement rules with another California public system apply. The refund page also explains that a returning member is covered under Coverage B for survivor and disability benefits even if the earlier membership had Coverage A.
Before requesting a redeposit, confirm the date of each refund, the service credit lost, the date you returned to CalSTRS-covered work and the service earned since returning. Then compare the current account with the refund history. The redeposit must be paid in full before retirement, so a member close to retirement should not wait for the final application month to start reconstructing old refund records.
Partial redeposits can restore only part of the lost service
CalSTRS expressly allows a partial redeposit. That flexibility can matter when the full cost has become large after years of compounded interest. A partial purchase does not simply refund a chosen dollar amount into the account; it restores the portion of service that CalSTRS associates with the payment. The member should ask the billing statement to show the service amount being restored so the pension effect can be evaluated accurately.
For multiple prior refunds, CalSTRS combines the calculated costs after applying interest from each individual refund date. A member can then redeposit all or part of the total. This makes old paperwork especially useful: two refunds of similar dollar size may have very different current costs when the dates are far apart. Do not use a single assumed interest period for a multi-refund history.
| Question | Why it matters | Official record |
|---|---|---|
| How much service was lost? | Defines the maximum restorable credit | Refund/service history |
| When was each refund paid? | Affects compounded interest | Refund dates |
| How much will be redeposited? | Determines restored portion | Billing statement |
| When is retirement effective? | Sets practical payment deadline | Retirement record |
The refund can change survivor and disability coverage history
The effect of a prior refund is not limited to the retirement formula. CalSTRS states that a returning member is covered under Coverage B for survivor and disability benefits even if the person previously had Coverage A. A later redeposit does not simply erase that transition. This is one reason the restored service amount and the current benefit-coverage record should be reviewed separately.
The refund page also preserves an important benefit-structure exception: a person first hired to perform CalSTRS creditable activities before January 1, 2013 remains under CalSTRS 2% at 60 after returning, even though the membership-date mechanics change. These rules are account-sensitive, so ask CalSTRS to confirm the benefit structure and survivor/disability coverage shown on the current record.
Financing the redeposit and completing it before retirement
CalSTRS permits financing methods that can include eligible rollovers and payroll-deduction installment plans. The financing page explains that rollovers are completed first, after which a billing statement can show the remaining amount available for payroll deductions. The interest rate used for the purchase is tied to the cost-calculation date and is locked for the duration of the purchase once established.
Even with financing, the refund page states that the redeposit purchase must be paid in full before the retirement date. A member planning retirement should therefore compare the installment schedule with the retirement calendar well in advance. If the billing statement arrives late or employment ends sooner than expected, contact CalSTRS to determine what payment options remain available before the effective date.
Before you make a decision
- Locate the date and amount of every prior CalSTRS refund.
- Confirm the service credit lost with each refund and the service earned since returning.
- Request an official redeposit billing statement showing the current cost and restorable service.
- Compare a full redeposit with any partial amount you are considering.
- Check your current benefit structure and Coverage B survivor/disability status after the refund.
- Finish the redeposit before the retirement date if you want the restored credit included.
Frequently asked questions
What does a CalSTRS redeposit buy back?
A redeposit restores all or part of the Defined Benefit service credit lost when you took a refund of your CalSTRS account. It does not generally recreate the old membership date or every former benefit feature. The amount of service restored is determined from the official CalSTRS billing record.
How much does a CalSTRS redeposit cost?
CalSTRS says the cost is the original refunded amount being restored plus compounded regular interest representing what the money would have earned in the account. Because refund dates differ, especially with multiple refunds, use the official billing statement instead of applying one simple interest estimate.
Can I make only a partial CalSTRS redeposit?
Yes. CalSTRS allows a member to redeposit a portion rather than all of the refunded service. The statement should identify the amount due and service credit restored. A partial redeposit can be compared with the projected retirement effect, but the final pension calculation remains with CalSTRS.
Can I redeposit my old Defined Benefit Supplement refund?
No. CalSTRS states that refunded Defined Benefit Supplement contributions and interest cannot be redeposited. The redeposit process discussed here restores eligible Defined Benefit service credit. Review the DBS account separately if the refund included both Defined Benefit and Defined Benefit Supplement balances.
Do I have to finish the redeposit before CalSTRS retirement?
Yes. CalSTRS states that the redeposit purchase must be paid in full before the retirement date. If you are using installments or a rollover, compare the payment schedule with your planned retirement effective date and confirm any final-payment requirement directly with CalSTRS.
Official sources
Sources were reviewed on September 1, 2026. Rules and member records maintained by the retirement system control.
CalSTRS — Refund of contributionsOfficial source ↗CalSTRS — RedepositsOfficial source ↗CalSTRS — Financing a service-credit purchase or redepositOfficial source ↗This article provides general educational information. It is not a benefit determination or financial, tax, or legal advice. Confirm account-specific information with the retirement system.