Limits

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Learn more about these limits in the Member Handbook.

Compensation cap for the Defined Benefit and Cash Balance Benefit programs

CalSTRS 2% at 60 members

Internal Revenue Code section 401(a)(17) limits the amount of compensation CalSTRS can base a retirement benefit on. You and your employer do not contribute to CalSTRS for pay you receive above these fiscal year compensation caps: 

  • July 1, 2020–June 30, 2021: $285,000
  • July 1, 2021–June 30, 2022: $290,000

CalSTRS 2% at 62 members

You and your employer do not contribute to CalSTRS for pay you receive above fiscal year compensation caps that are adjusted each July based on changes in the Consumer Price Index for All Urban Consumers: U.S. City Average:

  • July 1, 2020–June 30, 2021: $151,837

Section 415(b)

International Revenue Code section 415(b) limits the dollar amount CalSTRS can pay for a retirement benefit, indexed for inflation. 

For calendar year 2021, the dollar limit is $230,000 at age 60. 

The limit is lower below age 60 and higher above it.  

Postretirement earnings limit

If you work while receiving a CalSTRS retirement benefit, you’re subject to fiscal year earnings limitations: 

  • July 1, 2020–June 30, 2021: $47,713
  • July 1, 2021–June 30, 2022: $48,428

Learn about other important limitations when working after retirement on the Working After Retirement fact sheet. 

Disability earnings limit: Coverage B

You can earn income after receiving a Coverage B disability benefit but earnings from all your employment, including self-employment, are subject to this limit unless you’re participating in an approved CalSTRS rehabilitation plan. 

The calendar year earnings limit is determined each year.

  • For 2020, the limit is $32,400.
  • For 2021, the limit is $32,850.

If you’re receiving a disability benefit under Coverage A, contact us for your current year limits.