CalSTRS PEPRA Survivor Benefits: How the 2% at 62 Tier Affects Families

Two Tiers, Different Calculations

CalSTRS has two distinct benefit structures, and the tier affects how survivor benefits are calculated:

CalSTRS 2% at 60: Members hired before January 1, 2013. Normal retirement age is 60. Final compensation can be based on the highest 12 consecutive months (with 25+ years of service) or 36 consecutive months.

CalSTRS 2% at 62 (PEPRA): Members hired on or after January 1, 2013, under the California Public Employees' Pension Reform Act. Normal retirement age is 62. Final compensation is always based on the highest 36 consecutive months, and creditable compensation is capped annually ($187,369 for FY 2025–26).

PEPRA members are also ineligible for career factor enhancements and longevity bonuses that can boost the benefit formula for pre-2013 members.

How the Tier Affects Survivor Benefits

For active member deaths under Coverage B, if the member had at least one year of creditable service, the surviving spouse receives 50% of the member's projected retirement benefit — calculated as if the member had reached normal retirement age and accumulated service credit to that point. The tier changes three inputs to that projection:

Normal retirement age. A PEPRA member's benefit is projected to age 62, not 60, with service credit projected to that point. The age factor at 62 may differ from the factor at 60.

Final compensation formula. PEPRA always uses the 36-month average. A pre-2013 member with 25+ years of service credit uses the higher 12-month average, which typically produces a larger final compensation figure.

Compensation cap. PEPRA members' creditable compensation is capped at a statutory limit, updated annually. High-earning PEPRA educators may have a lower final compensation for benefit calculation purposes than their actual salary.

The net effect: PEPRA survivor benefits are often lower than equivalent pre-2013 benefits for high-earning, long-career educators. For educators earlier in their careers, the difference may be smaller.

After Retirement: The Tier Stops Mattering

Once a member retires and selects a payout option, the tier has already been baked into the monthly benefit calculation. The survivor receives the designated percentage (100%, 75%, or 50%) of whatever the retiree's monthly benefit was — regardless of which tier produced that number.

One-Time Death Payments Are the Same

Both tiers receive the same one-time death payment amounts. Coverage type (A or B), not the benefit tier, determines the lump sum. Active member deaths: $7,488 (Coverage A) or $29,952 (Coverage B) for FY 2026–27. Retiree deaths: $7,488 under both.

Verify the Member's Tier

If you're not sure which tier the deceased member was under, check the Retirement Progress Report on myCalSTRS or ask CalSTRS directly. The tier is determined by the member's first hire date — not their most recent employment.

The CalSTRS Survivor Benefits Guide covers both tier structures and shows how the benefit formulas apply to each type of survivor claim.

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