yrs
Total CalSTRS credited service years
Enter 1–50 years
$/yr
Highest 12 or 36-month average salary
Enter annual salary ($20,000–$500,000)
Age factor increases with retirement age
Result
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How CalSTRS Retirement Benefits Work
CalSTRS (California State Teachers Retirement System) provides a defined-benefit pension for California public school teachers, community college instructors, and certain other educators. Your benefit is guaranteed for life and does not depend on investment performance.
The monthly benefit is calculated using three variables: your age factor (a percentage that increases with retirement age), your years of credited service, and your final average compensation. All three multiply together to produce your annual benefit, which is then divided by 12 for monthly payments.
Formula
Annual Benefit = Age Factor (%) × Years of Service × Final Compensation
Example: 2.0% age factor × 30 years × $85,000 salary = $51,000 per year ($4,250/month). The benefit is capped at 90% of final compensation. COLA of 2% simple interest is applied annually after retirement.
💡 Pro tip: Boosting your years of service is the most effective way to increase your CalSTRS benefit. Even one additional year at a 2.0% age factor adds 2% of your final salary to your annual pension for life.
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Frequently Asked Questions
Your benefit = Age Factor x Years of Service x Final Compensation. Example: 2.0% x 30 years x $80,000 = $48,000/year ($4,000/month).
The age factor is a percentage that increases with your retirement age. Under 2% at 62, it ranges from 1.4% at age 55 up to 2.4% at age 63 or older.
Final Compensation is the highest 12 consecutive months of creditable pay for members with 25+ years, or the highest 36-month average otherwise.
Under 2% at 62, full unreduced benefits start at age 62. Early retirement at 55 is allowed with a reduced age factor. Under the legacy 2% at 60 tier, full benefits begin at 60.
Yes. CalSTRS provides a 2% simple interest annual cost-of-living supplement. A supplemental benefit may also be applied in years of strong investment returns.
Yes — if you leave covered employment before retirement eligibility, you can request a refund of your DB contributions plus interest. However, you forfeit all employer contributions and service credit. If you return to CalSTRS-covered employment, you can restore service credit by repaying the refund with interest. For most members, taking a refund is financially disadvantageous compared to preserving the lifetime retirement benefit.