Pension Sense blog | October 10, 2024 | Melissa Jones-Ferguson

You may have some questions about your financial future.

But if you want to know about your pension, forget the crystal ball. Look to a calculator. 

It’s better than magic. It’s math!

Estimate your monthly CalSTRS benefit

To help plan for service retirement with CalSTRS, you can use the Retirement Benefits Calculator to estimate your monthly retirement benefit. You can also create an estimate using the Member-Only Benefit worksheet in the Member Handbook.

As a Defined Benefit Program member, your retirement benefit is based on the following formula, which yields a fixed percentage of your final compensation:

Service Credit x Age Factor x Final Compensation = Member-Only Benefit

Make sure you know the following before calculating your benefit:

• Are you under the CalSTRS 2% at 60 benefit structure? You can verify this in your Retirement Progress Report.
• The date you want to retire. It must be at least one day after your last day of work.
• Your date of birth.
• Years of service credit you expect to have at retirement. Service credit is the number of years, including partial years, for which you worked earned creditable compensation and made contributions under CalSTRS’ Defined Benefit Program.
• Years of other service credit, or nonqualified “air time,” you expect to have at retirement. For a detailed explanation of nonqualified service credit, refer to the Member Handbook.
• Sick leave credit: You’ll need both the number of your unused sick leave days and contract base service days. At retirement, you can convert your unused sick leave to additional service credit. For a detailed explanation of converting unused sick leave, see the Member Handbook.
• Whether you expect to receive a two-year service credit retirement incentive. If your school district offers the CalSTRS Retirement Incentive Program, you can receive two additional years of service credit if you meet the eligibility requirements. Retirement incentives are offered at your employer’s discretion, not CalSTRS’. More information on the Retirement Incentive Program is available in the Member Handbook and Retirement Incentive Program FAQ.
• Your annual salaries from your highest three consecutive years of work—unless you’re under the 2% at 60 benefit structure and have more than 25 years of service credit, in which case you only need your single highest annual salary. 
• Option beneficiary: If you elect an option beneficiary, your beneficiary will receive a monthly lifetime benefit after you die. The calculator gives you the option of electing no beneficiary or one. In the latter case, you need to specify your beneficiary’s date of birth and your relationship with them.  The calculator only provides estimates based on a single beneficiary. It is possible to provide for two or more option beneficiaries through the Compound Option. If interested in a Compound Option, contact CalSTRS by calling 800-228-5453 and selecting option 3 to request estimates based on the option you choose.

Once you’ve input all this information, your results will include an:

• Estimate of your monthly Member-Only Benefit, which is your highest monthly benefit possible. This benefit will continue after you retire until your death, and
• Estimate of your monthly modified benefit, if you elected an option beneficiary. The report will indicate how much your monthly benefit will be reduced based on whether you choose for your loved one to receive the 100% Beneficiary Option, 75% Beneficiary Option or the 50% Beneficiary Option.

Learn more about your beneficiary options by visiting CalSTRS’ electing an option webpage or by attending a benefits planning session.

A disclaimer

Remember that the estimates provided by the Retirement Benefit Calculator or Member-Only Benefit worksheet are non-binding.

To get a customized estimate with components not available in our online calculator, contact CalSTRS by calling 800-228-5453 and select option 3.

Whatever CalSTRS resource you use, we’re here to help take some of the mystery out of your financial future. No crystal ball needed.

For information on how to reach CalSTRS, visit the contact us webpage.