Items to Consider
The monthly benefit reduction due to the PLOP is permanent. Future benefit enhancements and cost-of-living increases, if eligible, will be calculated on the reduced benefit. Members should carefully consider the reduced benefit that they will receive after taking the lump-sum payment to be sure they can still meet future financial obligations. Remember, the monthly benefit will be further reduced by federal and state taxes. If applicable, the following will also be deducted from the monthly benefit: health care premium (for STRS Ohio Health Care Program enrollees), dental and vision premiums and additional death benefit deductions.

The decision to take a lump-sum payment at retirement is a serious one and should be made with great care. Before considering a lump-sum payment, it is important to estimate how much it will reduce the monthly retirement benefit.

Before electing a PLOP, an individual counseling session with an STRS Ohio benefits counselor is strongly recommended.