Age factor
The percent of final compensation you get for each year of service credit, set by your age on the last day of your retirement month.
These are the words in the CalSTRS Member Handbook and on these pages. To put them to work, try the CalSTRS calculator, or start with the age factor and which benefit structure you're in.
Annual benefit adjustment
An automatic yearly increase equal to 2% of your initial benefit, not compounded.
Assessment
A reduction applied to your benefit if you change or cancel a preretirement option election or your option beneficiary dies before you retire.
Career factor
For 2% at 60 members with 30 or more years of earned service credit, 0.2% added to the age factor, never above 2.4%.
Compensation earnable
The weighted average of what you would have been paid working full time in each assignment (annualized pay rate), plus remuneration in addition to salary.
Concurrent service retirement
Retiring from CalSTRS and CalPERS, UC, the San Francisco or Legislators' systems, or a 1937 Act county system, with no creditable service between the two retirement dates.
Coverage A / Coverage B
The two sets of disability and survivor benefits; Coverage B applies to members who joined after October 15, 1992.
Defined Benefit Supplement
A cash balance account for pay above one year of service in a school year, credited with guaranteed interest (4.48% through June 30, 2026) and any additional earnings credits.
Final compensation
Highest average annual compensation earnable during any 12 or 36 consecutive months.
Longevity bonus
For 2% at 60 members with 30 years by December 31, 2010, a set monthly amount ($200-$400) added to the benefit.
Member-Only Benefit
The highest monthly benefit at retirement, before any reduction for an option beneficiary.
Modified Benefit
The reduced benefit you take to provide a lifetime benefit to one or more option beneficiaries.
Normal retirement age
60 for 2% at 60 members; 62 for 2% at 62 members.
One-time death benefit
A lump sum paid after your death to the recipient you name (a person, trust, charity, estate or other entity).
Option factor
The actuarial factor that reduces your Member-Only Benefit when you choose an option.
Redeposit
Restoring refunded service credit by repaying the refund plus interest.
Reinstatement
Ending your retirement to return to a position requiring CalSTRS membership.
Retired member activities
Work in California public schools by a retiree, including substitute teaching, as an employee, contractor or third-party employee.
School year
The fiscal year, July 1 to June 30.
Service credit
Years and partial years of creditable service, based on your salary earnings divided by the full-time annualized pay rate; never more than 1.000 in a school year.
Vested
Having five years of service credit, which gives you a right to a Defined Benefit Program benefit.
No terms match. Try a shorter word.
Plain English, not the official wordingThese definitions put the CalSTRS Member Handbook into everyday words. They aren't CalSTRS's official definitions, and they aren't legal or financial advice. CalSTRS decides your benefit.
Source: CalSTRS Member Handbook, 2026 edition (Jan. 1, 2026 - June 30, 2027), pp. 22, 127, 128, 129, 132, 133, 134, 135, 136, 137. Last reviewed .