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Employers Manual
Survivor Benefits
Account Withdrawal
Eligibility Requirements
The primary beneficiary may withdraw the deceased member’s account
in lieu of receiving monthly benefits. If there are qualified children
under the Defined Benefit Plan, they must receive monthly survivor benefits
if the member’s account is eligible for monthly benefits. If there
are no qualified survivors, the primary beneficiary must withdraw the
deceased member’s account.
Withdrawal Amount
The withdrawal amount payable to a Defined Benefit Plan survivor consists
of the deceased member’s contributions plus interest, and in some
cases, 50% matching funds.
- If the deceased member had five or more years of qualifying service credit, interest* at a rate not to exceed 6% compounded annually and an additional amount equal to 50% of the sum of the teaching contributions, plus interest, will be included in the withdrawal amount.
- If the deceased member had at least three years but less than five years of qualifying service credit, interest* at a rate not to exceed 6% compounded annually will be included in the withdrawal amount.
- If the deceased member had less than three years of qualifying
service credit, interest* at a rate not to exceed 4% compounded annually
will be included in the withdrawal amount.
*Interest rates are established by the Retirement Board in accordance with Section 3307.563, Revised Code. The interest rates noted are the maximum allowed by law. Actual interest rates may be lower and are subject to change without notice.
Interest for all years withdrawn begins to accrue in the fiscal year following deposit. For example, interest on 2007–2008 contributions began July 2008 and is payable August 2008 or later.
The withdrawal amount payable to a Combined Plan survivor is the value of the defined contribution portion of the account and the net present value of the defined benefit portion of the account.
The decision to withdraw the deceased member’s account must be made prior to 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 deceased member’s contributions less monthly survivor benefits received. No additional funds would be payable.
If the member was receiving (or had ever received) disability benefits, the withdrawal amount would consist only of the deceased member’s contributions less monthly benefits received. No additional funds would be payable.
Potential Benefits Forfeited
If the deceased member’s account is withdrawn, eligible survivors
will lose the opportunity to qualify for STRS Ohio benefits including:
- monthly survivor benefit payments;
- opportunity to enroll in an STRS Ohio-sponsored health plan if they meet certain eligibility requirements;
- annual cost-of-living adjustments to the monthly survivor benefit; and
- variable board-approved supplemental benefit payments (Defined Benefit Plan members only).
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?
- Will the monthly benefit be reduced as children become older?
- Are the survivors eligible for and do they need health care coverage through STRS Ohio?
Tax Implications
There are important tax implications concerning the withdrawal of an
STRS Ohio account. Members should review withdrawal brochures available
from STRS Ohio.
