Faye (CalSTRS 2% at 60), $6,500 a month
| Choice | Years | Age factor | Monthly | Handbook shows |
|---|---|---|---|---|
| Retire now, at 58 | 29 | 1.76% | $3,317.60 | $3,317.60 |
| Work to 60 | 31 | 2.2% | $4,433.00 | $4,443.00 Mismatch |
| Work to 62 | 33 | 2.4% | $5,148.00 | $5,148.00 |
Monthly = age factor × years × $6,500. Pay stays the same in each choice, as in the handbook. Handbook p. 66, Your retirement benefit
The handbook's example says Faye would get $4,443.00 a month at 60. Its own numbers (2.2% x 31 years x $6,500) come to $4,433.00.
We use the formula, so we show $4,433.00.
p. 66, Your retirement formula: How it worksWaiting from the first choice to the last adds $1,830.40 a month, for life.
Manuel (CalSTRS 2% at 62), $6,000 a month
| Choice | Years | Age factor | Monthly | Handbook shows |
|---|---|---|---|---|
| Retire at 62 | 32 | 2% | $3,840.00 | $3,840.00 |
| Retire at 65 | 35 | 2.4% | $5,040.00 | $5,040.00 |
Monthly = age factor × years × $6,000. Pay stays the same in each choice, as in the handbook. Handbook p. 66, Your retirement benefit
Waiting from the first choice to the last adds $1,200.00 a month, for life.
What the handbook says
- Ways to raise your benefit: work longer, buy service credit if eligible, build your Defined Benefit Supplement account with extra-pay assignments, or save in a Pension2 403(b) or 457(b).p. 65, Increase your retirement benefit
- Example (2% at 60): Faye, 58 with 29 years and $6,500 monthly pay, gets $3,317.60 retiring now (1.76% x 29 years) and $5,148.00 at 62 (2.4% x 33 years). At 60 she would have 2.2% (age factor plus career factor) x 31 years.p. 66, Your retirement formula: How it works
- Example (2% at 62): Manuel, with $6,000 monthly final compensation, gets $3,840.00 at 62 with 32 years (2%) or $5,040.00 at 65 with 35 years (2.4%).p. 66, Your retirement formula: How it works
- Reaching 25 years (2% at 60) switches final compensation from a 36-month average to your best 12 months; reaching 30 years adds the career factor.p. 67, CalSTRS 2% at 60 benefit enhancements
- Longevity bonus (2% at 60): if you had 30 years of qualified service credit by December 31, 2010, a set amount is added each month: $200 for 30 years, $300 for 31, $400 for 32 or more at retirement.p. 67, Longevity bonus
- Retiring midyear can lower one-year final compensation, because the 12 months may span two school years. Carmen's would be $5,625 a month retiring Jan. 1, 2026 versus $5,750 retiring in June.p. 64, Midyear retirement
- Your employer may offer the Retirement Incentive Program: two extra years of service credit. It doesn't count toward eligibility, one-year final compensation or the career factor.p. 46, Retirement Incentive Program
- Reduced Workload Program: from age 55 with 10 years (and five years full time in one position), you can work at least half time for up to 10 school years and still get full-time service credit, if your employer offers it.p. 45, Reduced Workload Program
Questions
How much does one more year add to a CalSTRS pension?
Two things go up: your years of service credit and, until you reach the maximum, your age factor. Faye's handbook example shows how fast that adds up. Use the calculator to see your own numbers.
Why do 25 and 30 years matter?
In CalSTRS 2% at 60, 25 years switches your final compensation to your best 12 months instead of 36, and 30 years adds the career factor (+0.2%). CalSTRS 2% at 62 has neither.
Source: CalSTRS Member Handbook, 2026 edition (Jan. 1, 2026 - June 30, 2027), pp. 45, 46, 64, 65, 66, 67. Last reviewed .