Survivor Benefits

Types of Monthly Survivor Benefits
There are three types of monthly benefits available to your qualified survivors. The amount payable to qualified survivors depends on specific eligibility requirements. They are:

1. Dependent-based benefit,
2. Service-based benefit, and
3. Retirement-based benefit.

Qualified survivors are automatically eligible for the calculation that provides the greater survivor benefit. Use the STRS Ohio survivor benefits calculator for estimating monthly benefits for your eligible survivors.

Qualifying Survivors

Spouse
For dependent-based or service-based benefits, the spouse of a deceased member is a qualified survivor if the:

• Member had 10 or more years of credit; or
• Spouse cares for the deceased member’s qualified children; or
• Spouse is at least 62 years old; or
• Spouse is mentally or physically incapacitated.

For retirement-based benefits, the spouse of a deceased member is a qualified survivor if the member was eligible for service retirement before the date of death.

Children
Children (including legally adopted children) of a deceased member are qualified survivors if they are:

• Under age 18 and unmarried; or
• Under age 22, unmarried, and attending school on at least a two-thirds-of-full-time basis; or
• Unmarried and physically or mentally incapacitated before age 18 or while receiving survivor benefits.

Dependent Parent
A parent of a deceased member is a qualified survivor if the parent is at least age 65 and received at least one-half of his or her support from the member during the 12-month period before the member’s death.

Dependent-Based Benefit
The dependent-based benefit is payable to qualified survivors when the member dies after meeting the following member requirements:

• 1.50 years of service credit before death, and
• Earned a quarter of a year of service credit within the 30-month period preceding death, or was receiving a disability benefit at the time of death.

Provided the account has not been withdrawn, protection for qualified survivors under the dependent-based monthly benefit may continue for up to 27 months following the member’s last contributing service or while the member is receiving a disability benefit.

Monthly survivor benefits are determined according to the number of qualified survivors. These benefits are payable as a percentage of final average salary, which is the average of the member’s three highest fiscal years of earnings, regardless of when they occur.

The percentages are as follows:

Number of Qualified Survivors	Percentage of Final Average Salary
1	25%
2	40%
3	50%
4	55%
5 or more	60%

If contributions were made for fewer than three years, total compensation during such a period is divided by the total number of years of service credit in the member’s account to calculate the final average salary.

The surviving spouse receives 25% of the final average salary and the balance of the total survivor benefit is divided equally among the remaining qualified survivors. If there is no surviving spouse, the benefit is divided equally among the qualified survivors.

Service-Based Benefit
The service-based benefit is payable to qualified survivors when the member dies after meeting the following member requirements:

• 20 or more years of service credit before death, and
• Earned a quarter of a year of service credit within the 30-month period preceding death, or was receiving a disability benefit at the time of death.

Provided the account has not been withdrawn, protection for qualified survivors under the service-based monthly benefit may continue for up to 27 months following the member’s last contributing service or while the member is receiving a disability benefit.

Monthly survivor benefits are determined according to the number of years of service credit. These benefits are payable as a percentage of final average salary.

The percentages are as follows:

Years of Service	Percentage of Final Average Salary
20	29%
21	33%
22	37%
23	41%
24	45%
25	48%
26	51%
27	54%
28	57%
29 or more	60%

Retirement-Based Benefit
The retirement-based benefit is payable when the member dies after qualifying for service retirement (but before actually retiring with STRS Ohio) and there are no children who are qualified survivors.

If there are one or more children who are qualified survivors, the primary beneficiary must select between the dependent-based and the service-based benefit. However, once the children no longer qualify for benefits (due to age or marital status, for example), the primary beneficiary may change to the retirement-based benefit.

If a members dies after meeting service retirement eligibility, a retirement-based benefit is payable to a qualified survivor.

Eligibility requirements for service retirement are:

Age	Minimum Years of Service Credit
Any age	30
55	25
60	5

If a member had less than 30 years of service credit and had not reached age 65, there is an actuarial reduction in the benefit.

Note: If the member had between 29.01 and 30 years of service credit before death, the benefit may be calculated based on 30 years of credit.

Qualifying Survivors
The following individuals are eligible for a retirement-based benefit:

• A surviving spouse.
• A named financially dependent beneficiary. To qualify for benefits, this individual must have received at least one-half of his or her support from the member during the 12-month period before the member’s death. Proof of dependency must be substantiated before benefits are paid.
• A named qualified child who is designated as the member’s sole beneficiary following the termination of dependent-based or service-based survivor benefits.

Survivors receiving monthly benefits qualify for:

Cost-of-Living Adjustment (COLA)
Variable Supplemental Benefit Payment
Access to Optional Health Care Coverage
Access to Optional Dental and Vision Coverage

Survivors and Account Withdrawal
The primary beneficiary may withdraw the deceased member’s account in lieu of receiving monthly benefits if there are no children who are qualified survivors. If there are no qualified survivors, the primary beneficiary must withdraw the deceased member’s account.

If there is no spouse and only one qualified survivor age 18 or older, the survivor may forfeit rights to benefits and withdraw the account, which includes interest and 50% matching funds. If the survivor instead takes even one monthly benefit payment and becomes eligible for the balance of the account (for example, drops out of school or reaches age 22), the survivor receives only the remaining balance of the member’s contributions. No interest or 50% matching funds would be payable.

Withdrawal Amount
The withdrawal amount payable to a survivor consists of the deceased member’s contributions plus interest and, with 5.00 years or more of qualifying service credit,* 50% matching funds.

• With five or more years of qualifying service credit,* interest at a rate no greater than 6% compounded annually is payable on the teaching contributions and an additional amount equal to 50% of the sum of the teaching contributions, plus interest, is paid.

• With at least three years but less than five years of qualifying service credit,* interest at a rate no greater than 6% compounded annually is payable on the teaching contributions.

• With less than three years of qualifying service credit,* interest at a rate no greater than 4% compounded annually is payable on the teaching contributions.

*Qualifying service credit includes Ohio teaching service, restored withdrawn credit, purchased service for Ohio public teaching from which no STRS Ohio contributions were withheld, and credit obtained for leaves of absence as provided in Section 3307.77 of the Revised Code.

For current interest rates, contact STRS Ohio toll- free at 1-888-227-7877. Interest rates are subject to review and change without notice.

Interest for all years withdrawn begins to accrue in the fiscal year following deposit. For example, interest on 2007–08 contributions would begin July 2008 and be payable August 2008 or later.

The decision to withdraw the deceased member’s account must be made before receiving monthly survivor benefits. If a survivor who is receiving monthly benefits becomes ineligible for survivor benefits (because of age or death, for example), the withdrawal amount, if any, will be limited to the remaining account balance of the deceased member’s contributions. No interest or 50% matching funds would be payable.

If the member had ever received disability retirement benefits, the withdrawal amount does not include interest or 50% matching funds. The account balance is reduced by the benefits received for members who received disability retirement benefits.

Potential Benefits Forfeited
If the deceased member’s account is withdrawn, eligible survivors lose the opportunity to qualify for STRS Ohio benefits that could include:

• Monthly survivor benefit payments to qualified survivors, if eligible,

• Access to STRS Ohio-sponsored health care coverage,

• Annual cost-of-living adjustments to the monthly survivor benefit, and

• Variable board-approved supplemental benefit payments.

Items to Consider
The following questions should be answered before deciding whether to withdraw the account or to receive monthly survivor benefits:

• Is the monthly benefit guaranteed for life or will it terminate at a specified date?

• Is access to health care coverage from STRS Ohio available and, if so, will eligible survivors need it?
  

Beneficiaries

Statutory Succession of Beneficiaries
The statutory succession of beneficiaries applies if the member:

• Has not previously filed a beneficiary designation form with STRS Ohio, OPERS or SERS.

• Has not filed a beneficiary designation form after any one of the following:

  • Marriage;

  • Birth or adoption of a child;

  • Divorce, marriage dissolution, legal separation;

  • Withdrawal of account; or

  • Permanent retirement plan selection if a plan change was made.

• Is not survived by a named beneficiary.

• Designates statutory succession.

Under statutory succession, beneficiaries qualify in the following order:

1. Spouse

2. Qualified children

3. Nonqualified children (share and share alike)

4. Dependent parent

5. Parents (share and share alike)

6. Estate

Naming Beneficiaries
If the statutory succession of beneficiaries does not meet your needs, you may designate beneficiaries by name. Use the beneficiary designation form.

You may designate whom you wish to receive either monthly survivor benefits or a cash payment of the account when you die. Naming beneficiaries may jeopardize monthly survivor benefit protection to otherwise dependent survivors, so you should be cautious about naming a beneficiary who is not a spouse or dependent child or parent.

If you are also a member of either OPERS or SERS, the last beneficiary designation filed with any of the three retirement systems (STRS Ohio, OPERS or SERS) will apply in all three systems.

Regardless of whether a beneficiary is determined by statutory succession or by naming the beneficiary, all qualified survivors receive monthly dependent-based or service-based benefits if the member had any qualified children.