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.

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 were first hired to perform CalSTRS creditable activities and your age on the last day of the month in which your retirement is effective.

Compensation may be limited by federal or state law. Compensation in excess of these limits is not considered creditable compensation.

You can retire at age 55 with at least five years of service credit. Members under CalSTRS 2% at 60 also have the option to retire at age 50 with at least 30 years of service credit.

Your CalSTRS retirement benefit has two built-in protections against inflation, but it’s important to leverage your assets and income to ensure your quality of living is as high in the future as it is today.

You may qualify for one or more benefit enhancements that will increase your monthly retirement benefit. 

To provide a lifetime monthly benefit to someone when you die, you can elect an option at retirement. An option allows you to distribute your retirement benefit over your life and the life of your option beneficiaries.

Learn about the following limits: Compensation cap, Section 415(b), postretirement earnings limit, and disability earnings limit for Coverage B.