CalSTRS Defined Benefit Calculator
Estimate your California State Teachers' Retirement System monthly benefit
Estimated Retirement Benefit
Estimated Monthly Benefit:
Estimated Annual Benefit:
Age Factor Used: %
*This is a preliminary estimate based on standard age factors. Actual benefits depend on specific career details and options selected.
Understanding Your CalSTRS Benefit Calculation
The California State Teachers' Retirement System (CalSTRS) uses a specific formula to determine your monthly retirement benefit. Unlike Social Security, CalSTRS is a defined benefit plan, meaning your lifetime pension is based on a mathematical formula rather than the amount of money you contributed.
The CalSTRS Formula
Your retirement benefit is calculated using three primary factors:
- Service Credit: The total number of years (and fractions of years) you have worked in a CalSTRS-covered position.
- Age Factor: A percentage determined by your age on the last day of the month in which you retire.
- Final Compensation: Your highest average consecutive earnable compensation (usually over 12 or 36 months depending on your plan).
The Formula: Service Credit × Age Factor × Final Compensation = Monthly Benefit
2% at 60 vs. 2% at 62
| Feature | 2% at 60 Plan | 2% at 62 Plan |
|---|---|---|
| Membership Date | Before January 1, 2013 | On or after January 1, 2013 |
| Normal Retirement Age | 60 | 62 |
| Minimum Age to Retire | 50 (with 30 years) or 55 | 55 |
| Final Comp Period | Highest 1 or 3 years | Highest 3 consecutive years |
Example Calculation
If you are in the 2% at 60 plan and you retire at age 60 with 30 years of service credit and a final compensation of $8,000 per month:
30 (Years) × 2.0% (Age Factor) × $8,000 (Final Comp) = $4,800 per month.
Tips to Increase Your Benefit
1. Accumulate More Service Credit: Working longer is the most direct way to increase the multiplier. You can also purchase service credit for eligible activities like military service or out-of-state teaching.
2. Retire Later: The age factor increases for every quarter-year you age, up to a maximum cap (usually 2.4%).
3. Increase Compensation: Moving up the salary schedule or obtaining advanced degrees can increase your final compensation average.