Retirement Incentive Plan
Employers may establish a Retirement Incentive Plan to purchase
service credit for eligible employees who are presently contributing
to STRS Ohio. Eligible employees who choose to participate in
the plan may retire earlier than anticipated.
Requirements
Eligibility requirements for participating members are:
- The employer has adopted the Retirement Incentive Plan in
accordance with Section 3307.54 of the Revised Code (R.C.)
- The member must either be eligible for service retirement
or qualify for service retirement with the purchase of retirement
incentive credit.
| Eligibility Requirements for Service
Retirement With Retirement Incentive Credit |
| Age |
Years of Service Credit |
| 50* |
30 |
| 55 |
25 |
| 60 |
5 |
If a member retires with less than 30 years of service credit
and before age 65, there is an actuarial reduction in the benefit.
Full benefits are paid when the member retires with 30 years
of service credit or is age 65.
- The member and employer must complete the Notice to Employer
of Intent to Participate in Retirement Incentive Plan and
return it to STRS Ohio. STRS Ohio must receive this
from before the anticipated retirement date; the form should
be completed and sent as early as possible. The effective
date of retirement may be up to 90 days after the plan end
date, or as designated by the employer, whichever is earlier.
- Member must actually retire from that employer on the agreed-upon
date.
- The member cannot continue employment
in a position with an employer that pays less than
the primary employer and also participate in a Retirement Incentive
Plan adopted by that lower-paying employer under Section 3307.54,
R.C.
Access to Optional Health
Care Coverage
Access to STRS Ohio optional health care coverage is available
to members retiring under a Retirement Incentive Plan provided
all other health care enrollment eligibility requirements have been met. (Currently, members must have at least 15 years of service credit to have access to the STRS Ohio Health Care Program.) Members
who retire with retirement incentive credit must pay the full
cost of their health insurance until they attain retirement eligibility
without the use of the retirement incentive credit.
STRS Ohio will not provide any subsidy toward the optional health
care coverage during this time.
Once a member qualifies for optional health care benefits without
the employer-purchased retirement incentive credit, the credit
is used in the premium subsidy calculation.
For example: If a 52-year-old member with 29.00 years of service
retires under a one-year Retirement Incentive Plan, he or she
will pay the full cost of the health insurance coverage until
age 55. Age 55 is the first point at which retirement eligibility
would have been met with 29.00 years of service credit. If you
are considering participating in a Retirement Incentive Plan offered
by your employer, it is important that you contact STRS Ohio toll-free
at 1-888-227-7877 to review the full cost of optional health
care coverage.
