Service credit is the accumulated period of time, in years and partial years, during which you receive creditable compensation and make contributions to the Defined Benefit Program. In addition to credit for actual service, you may receive service credit for creditable compensation for certain employer-approved leaves of absence. Service credit may also be purchased under certain circumstances.
The age factor is the percent of final compensation you are entitled to for each year of service credit. This percentage is determined by the date you became a CalSTRS member and your age on the last day of the month in which your retirement is effective.
If you are a member under CalSTRS 2% at 60, and you retire with
25 or more years of service credit, CalSTRS uses your highest 12
consecutive months of average earnable compensation as the final
compensation component in your retirement calculation.
You may qualify for one or more benefit enhancements that will increase your monthly retirement benefit. You may use up to two-tenths of one year of unused sick leave credit to qualify for a benefit enhancement, but not to qualify for retirement.
You can elect an option to provide a lifetime monthly benefit to
someone after you die. An option allows you to distribute your
retirement benefit over your life and the life of your option
beneficiaries. Your option election is effective as of your
The California Public Employees’ Pension Reform Act of 2013
(Chapter 296, Statutes of 2012) made significant changes to the
benefit structure that primarily affect members first hired to
perform CalSTRS creditable activities on or after January 1,
2013. Three provisions also affect current members. As a result,
CalSTRS now has two benefit structures:
Electronic privacy is crucial for the ongoing success of the
Internet as a convenient means to provide customer service. Your
personal information will be used only to conduct CalSTRS-related
Your retirement benefit is based on a formula (Service Credit x
Age Factor x Final Compensation = Member-Only Benefit). How
confident are you in your understanding of how this formula
determines your Member-Only Benefit amount?