How to Read Your CalSTRS Retirement Estimate

Where to Get Your Estimate

CalSTRS provides an annual myCalSTRS Member Statement, released each September, and an online benefit estimate tool. The statement is a starting point for reviewing your service credit; the tool generates official benefit calculations for multiple retirement dates and payout options.

Use the annual statement to review your service credit, then run an official benefit estimate for the retirement date and payout options you want to compare.

Understanding the Retirement Progress Report

Use your annual report to review your service credit record, and use the online tool to generate benefit estimates.

Service credit total. This is the number of years and partial years of CalSTRS-creditable service on your record. Verify this number carefully against your own employment history. Missing years, unreported part-time service, or substitute teaching that was never credited will lower your projected benefit.

Benefit estimates. The myCalSTRS online estimate tool can generate official benefit calculations for multiple retirement dates and payout options.

Contribution totals. Your accumulated member contributions and interest matter if you choose the Member-Only Benefit — if you die before your total benefit payments exceed that amount, the remaining balance is paid as a lump sum to your designated recipient.

How to Calculate Your Benefit Yourself

The CalSTRS retirement formula is straightforward:

Service Credit × Age Factor × Final Compensation = Annual Benefit

If you have 28 years of service credit, plan to retire at age 60 (2.000% age factor under 2% at 60), and your final compensation is $92,000:

28 × 0.020 × $92,000 = $51,520 per year ($4,293 per month)

The same member retiring at age 62 (2.267% age factor under 2% at 60):

28 × 0.02267 × $92,000 = $58,398 per year ($4,866 per month)

That two-year delay adds $573 per month. Running these calculations at different dates is the core of retirement planning — the age factor changes with every month of age, so even a few months can shift your benefit meaningfully.

What the Estimate Does Not Show

Your retirement estimate can show different payout options. The Member-Only Benefit is the maximum monthly amount paid during your lifetime only, with no survivor continuation. If you elect a joint-and-survivor option (100%, 75%, or 50%), your monthly payment is reduced based on an actuarial calculation that considers your age and your beneficiary's age.

The estimate also does not account for:

• Tax withholding. Your gross monthly benefit will be reduced by federal and California state income tax withholding.
• Health premium deductions. If you set up direct deductions for health insurance premiums, those come out of your monthly check.
• Community property divisions. A Domestic Relations Order from a divorce may reduce your benefit by awarding a portion to your former spouse.

When to Request an Official Estimate

CalSTRS recommends requesting an official benefit estimate 12 to 9 months before your target retirement date. This gives you time to identify and fix service credit discrepancies, complete any service purchases or redeposits, and model your benefit under different retirement dates and payout options.

You can request estimates through myCalSTRS or by scheduling a session with a CalSTRS Benefits Counselor at a regional service center. The counselor can walk you through the estimate line by line and help you understand how different retirement dates and payout options affect your numbers.

The CalSTRS Retirement Guide includes worksheets for calculating your benefit at multiple retirement dates, comparing payout options side by side, and auditing your service credit record against district employment history before you request the official estimate.

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