Updated October 30, 2026. Quick answer: CalSTRS members first hired on or after January 1, 2013 are under 2% at 62. The earliest they can retire is age 55 with five years of service credit, and five years makes them eligible for a guaranteed lifetime benefit. There is no flat reduction percentage: the age factor is 2% at 62, starts at 1.16% at 55 and rises to a maximum of 2.4% at 65.
Who is under 2% at 62
“Members and participants first hired on or after January 1, 2013, are under CalSTRS 2% at 62.”
When you can retire
“CalSTRS 2% at 62 members: The earliest you can retire is age 55 with five years of service credit-or fewer under the special circumstances of concurrent service retirement.” “You’re not eligible for retirement at age 50 with 30 years of service credit.” “You’ll be eligible for a guaranteed lifetime retirement benefit when you have five years of service credit under the Defined Benefit Program.”
The age factor in place of a reduction
“If you’re a CalSTRS 2% at 62 member, the basic age factor is set at 2% at age 62. The age factor starts at 1.16% if you retire at age 55 and increases to a maximum of 2.4% at age 65.” “The age factor decreases the earlier you retire, decreasing to 1.16% at age 55 and gradually increasing the closer to age 62 you retire.” “If you retire after age 62, the age factor gradually increases to a maximum of 2.4% at age 65.” The CalSTRS age factor page repeats it: “For members under the CalSTRS 2% at 62 benefit structure, your age factor is: Set at 2% at age 62. Decreased if you retire before age 62. Increased to a maximum of 2.4% if you retire at age 65 or later.”
What the pension is based on
“you’ll receive a benefit equal to 2% of your final compensation for every year you work.” “CalSTRS 2% at 62 members: Your final compensation is based on your highest average annual compensation earnable for 36 consecutive months.” The handbook’s own example: “if you retire at age 62 and have 20 years of service credit, you’ll receive 2% (your age factor at age 62) of your final compensation multiplied by the 20 years of service credit.”
Members hired before 2013
“CalSTRS 2% at 60 members: You can retire as early as age 50 if you have at least 30 years of service credit. Or you can retire at age 55 with at least five years of service credit-or fewer if you service retire concurrently”.
A worked example with invented numbers
Take an invented 2% at 62 member who retires at age 62 with 30 years of service credit. That is 30 years at 2%, or 60% (computed) of a final average salary of $90,000 (invented, for the computation), which comes to $54,000 a year (computed).
Now take the same service retiring at age 55 with 25 years of service credit, using the 1.16% age factor the handbook states for age 55. That is 25 years at 1.16%, or 29% (computed) of a final average salary of $90,000 (invented, for the computation), which comes to $26,100 a year (computed).
What the documents do not say
The age factor for each age from 55 to 65 is printed in tables, so only the anchors the CalSTRS text states in prose (1.16% at 55, 2% at 62, 2.4% at 65) are used. The handbook says the five-year minimum can be fewer years under concurrent service retirement with other California systems, and that case is not detailed. The 2% at 60 group, the Cash Balance Benefit and the Defined Benefit Supplement are not covered, and the handbook read is the 2025 edition.
Common mistakes
- Using the age 50 with 30 years rule. The handbook says 2% at 62 members are not eligible for it.
- Looking for a flat percentage reduction. CalSTRS changes the age factor instead.
- Applying this page to members first hired before January 1, 2013, who are under 2% at 60.
Related: CalSTRS retirement decisions, the CalSTRS COLA for 2027, how public pension decisions work, and whether California taxes pensions.
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Answer againSources
- California State Teachers’ Retirement System, CalSTRS Member Handbook 2025: www.calstrs.com
- California State Teachers’ Retirement System, Age factor: www.calstrs.com
- Related official page (not quoted): IRS Tax Topic 410, Pensions and annuities: www.irs.gov
- Related official page (not quoted): IRS Tax Topic 411, Pensions: the General Rule and the Simplified Method: www.irs.gov
Read from the primary documents linked above on October 30, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer or the IRS itself is the right place to confirm anything consequential.