Bottom line
This guide assumes your CalSTRS record already shows 2% at 62 and focuses on PEPRA-era limits, contributions and final-compensation rules rather than comparing the two benefit structures.At a glance
- CalSTRS 2% at 62 generally covers members first hired for creditable activities on or after January 1, 2013
- The age factor is 2% at age 62 and reaches a maximum of 2.4% at age 65
- The 2% at 62 compensation cap is $191,866 for fiscal year 2026–27
Who the PEPRA-era 2% at 62 rules apply to
California’s Public Employees’ Pension Reform Act of 2013 created the newer CalSTRS benefit structure for members first hired to perform CalSTRS creditable activities on or after January 1, 2013. CalSTRS calls this structure 2% at 62. The name refers to the age factor: at age 62, the standard factor is 2% of final compensation for each year of service credit. Membership history, not the member’s current age, determines which structure applies.
CalSTRS 2% at 62 has retirement eligibility beginning at age 55 with at least five years of service credit, subject to the system’s concurrent-retirement provisions in special cases. Retiring before 62 means a lower age factor. Waiting beyond 62 raises the factor until it reaches a maximum of 2.4% at age 65. Unlike the older 2% at 60 structure, 2% at 62 does not offer the career-factor enhancement.
How the age factor changes the retirement formula
The CalSTRS Defined Benefit formula combines service credit, an age factor and final compensation. For 2% at 62, the official age-factor table shows 1.16% at age 55, 2.00% at age 62 and 2.40% at age 65 and later. That makes retirement age an explicit multiplier, not merely an eligibility gate. A member who qualifies to retire at 55 can receive a benefit, but the factor is materially lower than it would be at the normal retirement age.
For an illustration, 25 years of service multiplied by a 2% age factor equals 50% of final compensation before considering other account-specific details. The same 25 years at a 1.16% age factor would produce 29% in the same simplified multiplication. Those percentages are examples of the formula mechanics, not individual benefit quotes; CalSTRS service records, final compensation and the effective retirement date control the actual result.
| Retirement age | Age factor | Meaning |
|---|---|---|
| 55 | 1.16% | Earliest standard eligibility age with 5 years |
| 62 | 2.00% | Normal 2% at 62 factor |
| 65+ | 2.40% | Maximum age factor |
How to verify your PEPRA-era record
Check myCalSTRS for your benefit structure, service-credit total and current compensation history. Do not infer 2% at 62 solely because you changed districts after 2013; the relevant question is when you first became eligible through CalSTRS creditable activity and how any prior California public retirement service affects your record. The benefit-structure label shown by CalSTRS is more reliable than reconstructing the history from current employment dates alone.
Then review the features that differ from 2% at 60: a 36-month final-compensation period, no career factor and a lower pensionable compensation cap. For fiscal year 2026–27, CalSTRS lists the 2% at 62 compensation cap at $191,866. The member contribution rate for 2% at 62 is 10.205% of creditable earnings for 2026–27. Recheck annual limits before using them in a future-year projection.
How to confirm you are really PEPRA
The line is your first day of CalSTRS-covered service. Any covered work before January 1, 2013 — including a semester of substitute teaching or a part-time assignment — generally places you in 2% at 60, not PEPRA, even if your full-time career started later.
If your Retirement Progress Report says 2% at 62 but you think you worked earlier, gather pay records or CalSTRS account history from before 2013 and ask CalSTRS to review. The two structures produce meaningfully different pensions for the same career.
Before you make a decision
- Confirm your benefit structure on your Retirement Progress Report.
- Request estimates at ages 62 and 65.
- Watch whether your total pay is nearing the PEPRA cap.
- Redirect extra savings to Pension2 or a district plan if pay is capped.
- Keep documentation of your first CalSTRS hire date.
Frequently asked questions
Who is in CalSTRS 2% at 62?
Members whose first CalSTRS-covered position began on or after January 1, 2013. Anyone with earlier CalSTRS membership is generally in 2% at 60 instead.
What is the CalSTRS PEPRA compensation cap?
For CalSTRS 2% at 62 members, the cap is $191,866 for fiscal year 2026–27 (July 1, 2026 through June 30, 2027). CalSTRS adjusts this limit annually. Pay above the cap is not subject to CalSTRS contributions and does not increase the defined benefit.
Does 2% at 62 have a career factor for long service?
No. The 0.2% career factor for 30+ years applies only to 2% at 60. Under 2% at 62, long service helps only by adding years to the formula.
Where this comes from
Sources were reviewed on October 9, 2026. Rules and member records maintained by the retirement system control.
CalSTRS — Two Benefit StructuresOfficial source ↗CalSTRS — LimitsOfficial source ↗CalSTRS — ContributionsOfficial source ↗This page is general educational information, not a benefit determination, and not financial, tax, or legal advice. Check account-specific details directly with the retirement system.