Can I take my Defined Benefit Supplement (DBS) distribution while on service retirement pending disability?
Upon Service Retirement, you will choose how to receive your DBS funds under existing eligibility criteria (see Defined Benefit Supplement FAQ’s for further details). Because your DBS payout is affected by option choices, the payout amount may differ if you are approved for a disability benefit. If you are approved for a disability benefit, any DBS payout under Service Retirement must convert to a DBS payout under disability and may require the return to CalSTRS of previously paid DBS funds. The returned DBS funds would then be redistributed according to the laws governing the distribution of the DBS under disability. There are tax and rollover considerations that could impact your choices in this matter; please see CalSTRS publication Tax Considerations for Rollovers for more information.
