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Hi, I'm Kristen.
You may have seen the CalSTRS Pension2 plan advertised, or heard a co-worker talking about it and wondered what it is,
and how it can potentially benefit you. Well, you've come to the right place.
As one-third of the CalSTRS hybrid retirement system, Pension2 is designed to help you fill the gap between what you'll receive,
from your CalSTRS Defined Benefit and the income you'll need to reach your retirement goals.
CalSTRS' Pension2 is a voluntary, employer-sponsored supplemental savings plan.
Allowing you to enhance your retirement income through pre- and post-tax payroll deductions.
There are three types of retirement accounts: 403(b), Roth 403(b) and 457 plans.
Not all plans are available in all school districts so you'll want to check with your payroll office before enrolling in a plan.
As you may have seen in other CalSTRS videos, the CalSTRS retirement hybrid system is made up of three parts.
The CalSTRS Defined Benefit Program, a traditional Defined Benefit Plan, The CalSTRS Defined Benefit Supplement Program,
a Cash Balance Plan, and Pension2. A defined Contribution plan.
Although Pension2 is completely voluntary, it's just as important to understand how it works.
Pension2 allows you to invest in a number of carefully selected funds that will help provide you additional retirement income.
The Pension2 program provides a retirement account with: tax advantages, no commissions or surrender charges,
easy investment options, low administrative fees, loan options, and easy fund access in retirement.
Now you have a good basic understanding of Pension2; but there's more to learn.
In part two, we'll explain the difference between a: 403(b), a Roth 403(b) and a 457 plan.
Part three, we'll cover the process of enrolling in one of those plans and how to make investment choices within the funds' lineup
In part four, we'll look at rolling over, or transferring, another account into a Pension2 plan.
We encourage you to watch each section to get a full understanding of this great program.
Thanks.