Ways To Increase Your Retirement Benefit

• Purchase service credit
• Buy nonqualified service credit
• Redeposit service credit you lost
• Purchase "nonmember" service for part-time or substitute work
• Benefit enhancements

The more service credit you have, the larger your monthly retirement benefit. Remember your retirement benefit formula is:

Service credit x Age factor x Final compensation = Your retirement benefit.

So any increase in service credit increases your final benefit. It's cheaper to buy service credit early in your career.

For more information read:

• Member Handbook
• Purchase Additional Service Credit

Permissive Service Credit

Purchase service credit for performing non-CalSTRS work activities or for service credit you would have earned while on an employer-approved leave. These activities include:

• Nonmember Service
• Out-of-State Teaching
• Sabbatical Leave
• Maternity or Paternity Leave
• Family Care and Medical Leave
• Other Types of Permissive Service Credit
• Contribution Rates - Frequently Asked Questions
• Permissive Service Credit Cost Calculator

Nonqualified Service Credit

Nonqualified service credit is not related to teaching. It is also known as "air time." You must have five years of regular service credit in order to be eligible to purchase up to five years of nonqualified service credit. Calculate the cost to purchase nonqualified service credit.

Redeposit Service Credit

Purchase service credit you lost if you left public education, took a refund and returned to CalSTRS membership. Calculate the cost to purchase redeposit service credit.

Benefit Enhancements

Benefit changes provide incentives for members who retire with over 25 and 30 years of service credit.

• Career Factor
  • Retire with 30 or more years of service credit.
  • Add 0.2 percent to the age factor.
  • Maximum allowable combine age factor and career factor of 2.4 percent.
• One-Year Final Compensation
  • Retire with 25 or more years of service credit.
  • Your highest one year of earnable compensation is used in your retirement benefit calculation.
  • Review Purchase Additional Service Credit for details.