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 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, 2023–June 30, 2024: $330,000
July 1, 2024–June 30, 2025: $345,000

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, 2023–June 30, 2024: $176,614
July 1, 2024–June 30, 2025: $182,266

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 2023, the dollar limit is $208,346 at age 65
For calendar year 2024, the dollar limit is $234,201 at age 65

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 2023, the limit is $37,200
For 2024, the limit is $38,400
For 2025, the limit is $39,591