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Limits

Learn more about these limits in the Member Handbook.

Compensation cap for the Defined Benefit and Cash Balance Benefit programs

CalSTRS 2% at 60 and 2% at 62 members

Internal Revenue Code section 401(a)(17) limits creditable compensation that may be counted toward a CalSTRS retirement benefit for all persons who became a CalSTRS Defined Benefit member or Cash Balance participant on or after July 1, 1996. You and your employer do not contribute to CalSTRS for pay you receive above these fiscal year compensation caps: 

  • July 1, 2024–June 30, 2025: $345,000
  • July 1, 2025–June 30, 2026: $350,000

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, 2024–June 30, 2025: $182,266
  • July 1, 2025–June 30, 2026: $187,369

Section 415(b)

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

Calendar year 2025:

  • The dollar limit is $203,383 at age 60
  • The dollar limit is $238,397 at age 65

Calendar year 2026:

  • The dollar limit is $210,622 at age 60
  • The dollar limit is $246,847 at age 65

These limits serve as general guidelines because the limits are lower or higher depending on age. There are other considerations that could make a member subject to section 415(b) provisions.

Postretirement earnings limit

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

  • July 1, 2023–June 30, 2024: $50,655
  • July 1, 2024–June 30, 2025: $74,733
  • July 1, 2025–June 30, 2026: $80,245

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 2025, the limit is $39,591
  • For 2026, the limit is $40,767

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