| A | B
| C | D | E |
F | G | H | I
| J | K | L | M | N
| O | P | Q |
R | S | T | U
| V | W | X | Y | Z
A
Academic or Administrative Employee
Academic or administrative employee means any full-time employee
who is a member of the faculty or administrative staff of a public
institution of higher education serving in a position in the unclassified
civil service pursuant to Section 124.11 of the Ohio Revised Code
and is not receiving any benefit, allowance or other payment from
a state retirement system.
Allowance
The maximum dollar amount determined by a health care plan as payable
for a specific service.
Annual Compensation
All salary, wages and other earnings paid to a member for employment,
including supplemental contracts paid during STRS Ohio’s fiscal
year.
Annuity Portion
The amount of the benefit funded with only member contributions,
with interest, from the fiscal year of the deposit.
Attending Physician’s Report
A report received from an applicant’s personal physician that
is used to determine eligibility for disability benefits.
B
Beneficiary
A person designated by a member to receive a cash payment of a deceased
member’s account or monthly benefit payments from STRS Ohio.
Borrowing
A method of calculating final average salary used when the member
or beneficiary becomes a benefit recipient before the end of the
school year. This procedure enables STRS Ohio to pay the highest
benefit possible by using the money earned in the last partial year
if it is one of the three highest years of earnings.
C
Calculated Earnings
STRS Ohio determines your earnings for service rendered within
the fiscal year by dividing your reported contributions (taxed
and tax-deferred) by the respective contribution rate. Earnings
that appear to be incorrect should be verified with your treasurer
or payroll officer before contacting STRS Ohio.
Check Replacement Form
A form initiated by request from a benefit recipient when a check
has been lost.
Coinsurance
The percentage of covered charges you must pay after you have met
your annual deductible.
Combined Plan
A retirement option offered by STRS Ohio that includes features
of the Defined Benefit and the Defined Contribution Plans. Member
contributions go into a defined contribution account, while employer
contributions go to fund the defined benefit portion of the plan.
Retirement benefits are based on years of service
and final average salary for the defined benefit portion of the
benefit, and the performance of investment options for the defined
contribution portion of the plan.
This retirement plan can be chosen by new members
(who start employment on or after July 1, 2001) and members with
less than 5.0 years of service credit as of June 30, 2001.
While members in this plan have access to health
care coverage and survivor and death benefits in retirement through
STRS Ohio, they do not have access to Cost-of-living adjustments
and supplemental benefits.
For detailed plan information,
click here.
Commercial Health Maintenance Organization
(Commercial HMO)
A health care plan that provides comprehensive medical care for
a fixed annual fee in a specific geographical area. With the exception
of emergency care outside the HMO’s service area, most services
must be provided by the HMO’s doctors, hospitals and other providers
to be covered under the HMO plan. Physicians and other providers
are paid a salary or have a contract with the HMO to provide services.
Consumer Price Index (CPI)
The index of inflation for the previous year as released each January
by the U.S. Bureau of Labor Statistics.
Continuation of Employment
Member has been in a public position at least 60 consecutive days
before the effective date of the service or disability retirement
benefit. The 60 days do not need to be in the two months before
retirement
Contributing Service Credit
Service credit that contributes toward the enhanced benefit and
includes service for which contributions were made to STRS Ohio,
OPERS or SERS during your employment. Service credit that has been
restored in any of those systems is also included. Service credit
purchased in STRS Ohio for the following categories also contributes
toward the enhanced benefit:
- military service,
- police, fire and state highway patrol service,
- resignation due to pregnancy,
- leaves of absence purchased under 3307.77 R.C. and former section
3307.512 R.C.
- other Ohio public service after July 1, 1978, purchased under
3307.72 R.C. and former section 3307.73 R.C.
Coordination of Benefits
A term used to describe the provision that limits benefits for enrollees
with multiple group insurance to 100% of the covered expenses and
designates the order in which the multiple plans will pay benefits.
Copayment
A cost-sharing arrangement in which the enrollee pays a fixed amount
for a specific service, such as $15 for a prescription drug. Also
called a copay.
Cost-of-living Adjustment (COLA)
Beginning Feb. 1, 2002, a cost-of-living increase of 3% is granted
each year once a member retires. The COLA is paid in the first anniversary
month of your retirement benefit, which also establishes the date
for future increases. Future increases are calculated on the original
benefit and are not compounded over the previous year. The cost-of-living
increase is added to the regular monthly benefit.
Cost of Annuity
The amount of after-tax dollars in the member’s retirement
account including after-tax contributions and purchased service
credit. A member may deposit money to his/her retirement account
as an additional annuity.
D
Deductible
The annual amount an enrollee pays before the plan covers health
care costs.
Defined Benefit Plan
A comprehensive retirement option offered by STRS Ohio that bases
retirement income on a calculation that uses your age, years of
service and final average salary.
This is the retirement plan most members participate
in, and is managed by STRS Ohio investment professionals.
Members in this plan also have access to health care
coverage, cost-of-living adjustments and death and supplemental
benefits in retirement through STRS Ohio, as well as, survivor and
disability benefits while teaching.
For detailed plan information,
click here.
Defined Contribution Plan
A retirement option offered by STRS Ohio where retirement income
is based solely on the performance of investment choices you select.
You may allocate your contributions among various investment options
managed by STRS Ohio.
This retirement plan can be chosen by new members
(who start employment on or after July 1, 2001) and members with
less than 5.0 years of service credit as of June 30, 2001.
Members in this plan do not have access to health
care coverage, cost-of-living adjustments and death and supplemental
benefits in retirement through STRS Ohio, nor, survivor or disability
benefits while teaching.
For detailed plan information,
click here.
Dependent
For survivor benefit calculations, a spouse or named qualified beneficiary
and any qualified dependent children and parent. To qualify as a
dependent, children must be under age 18 and unmarried or must be
unmarried, financially dependent and attending school full time
until age 22. A parent must be 65 or older and receive at least
one-half of his or her support from an STRS Ohio member during the
12 months prior to the member’s death.
Dependent-Based Benefit
A survivor benefit calculation that is based on the number of qualified
dependents of the decedent.
Direct Bill
The method of billing for STRS Ohio health care coverage when the
recipient or beneficiary is entitled to health care but the benefit
payment is not large enough to deduct for health care.
Direct Pay
When the individual pays the health care plan administrator directly
for health care coverage.
Disability Retirement Review Committee
A subcommittee of the State Teachers Retirement Board that reviews
denied and terminated disability cases. It can override the recommendation
of the Medical Review Board. The committee meets monthly except
July.
District
The employer code for where you worked or an explanation of transactions
other than contributing service. If service before 1966 is shown,
this code will read “DFLT” which stands for default. It
means that the district code number for those years is not available
on your Annual Statement.
E
Earned Ohio Service Credit
Also referred to as contributing service credit.
Early Retirement Incentive
Credit purchased by the employer to enhance the retirement benefit
or to encourage early retirement.
Electronic Funds Transfer (EFT)
A monthly benefit payment electronically transferred to the bank
account of the recipient. It is also known as CRAFTS, Central Regional
Automatic Funds Transfer System, Inc.
F
Final Average Salary (FAS)
The average of the three highest years of earnings, regardless of
when they occur.
Financial Dependent
A beneficiary who relied upon a deceased member for at least half
of his or her financial support during the 12 months before the
member’s death.
Fiscal Year
The reporting period for member accounts. STRS Ohio fiscal years
are :
| Prior to 1974-75 |
September through August |
| 1974-75 |
September through June |
| 1975-76 to present |
July 1 through June 30 |
The Ohio Public Employees Retirement System (OPERS)
fiscal year is January through December. The School Employees Retirement
System (SERS) fiscal year is July through June.
Formulary
A list of commonly prescribed medications that are preferred or
allowed to be dispensed to enrollees. A prescription drug plan that
has an open formulary allows coverage for both formulary and nonformulary
medications. A plan that has a closed formulary limits coverage
to those drugs on the formulary. Depending upon the prescription
drug plan, some exceptions to coverage under a closed formulary
may be made.
If a drug is excluded from a closed formulary, an
alternative drug deemed to be equally effective by the pharmacy
benefit administrator is covered under the formulary.
Full-Time Employment
Employment for the full normal workday of the employing agency,
beginning on the first day of the school year.
H
Health Care Effective Date
For service or survivor benefit recipients, coverage is effective
the first of the month following the date your benefit application
is received and approved by STRS Ohio or on the effective date of
retirement, whichever is later. You must indicate your interest
to enroll in an STRS Ohio health care plan in the health care section
of the service retirement application or the survivor benefit application.
For disability benefit recipients, coverage is effective
the first of the month following the date your application is received
by STRS Ohio or the first of the month after the State Teachers
Retirement Board approves your benefits, whichever is later. You
must indicate your interest to enroll in an STRS Ohio health care
plan in the health care section of the disability application.
Health Maintenance Organization (HMO)
A health care plan that provides comprehensive medical care for
a fixed annual fee in a specific geographic area. With the exception
of emergency care outside the HMO’s service area, most services
must be provided by the HMO’s doctors, hospitals and other providers
to be covered under the HMO plan. Physicians and other providers
are paid a salary or have a contract with the HMO to provide services.
Hospital Admission Charge
The amount the patient pays for an inpatient hospital stay under
the indemnity or preferred provider organization (PPO) plans administered
by Aetna Healthcare and Medical Mutual.
I
Indemnity Plan
A health care plan in which any provider can be used. The enrollee
is reimbursed for expenses or assigns the reimbursement to the provider.
Also called a traditional or fee-for-service plan.
Independent Retirement
Retirement benefit based only on service credit and earnings in
STRS Ohio even though there are credit and earnings in OPERS or
SERS.
Individual Retirement Account (IRA)
A qualified retirement plan into which an individual may contribute
pretax dollars and keep the money tax-free until retirement age.
The individual may withdraw the money without penalty anytime between
ages 59-1/2 and 70-1/2.
Inpatient Care
Care received while you are an admitted patient in a hospital, skilled
nursing facility, hospice or a mental health/substance abuse facility.
L
Leave of Absence (LOA)
Leave of absence is a period off work that may be paid, partially
paid or unpaid. Leaves may be for sickness or other reasons.
Lifetime Maximum
The total amount of benefits payable by the plan for an enrollee
during his or her lifetime.
M
Maintenance Care
Service and supplies furnished primarily to maintain rather than
improve a level of physical or mental function.
Medical Eligibility
The State Teachers Retirement Board determines a member’s
eligibility for disability based upon medical evidence. The disability
may be for a physical or mental condition.
Medical Review Board
A group of five State Teachers Retirement Board-appointed physicians
who review disability cases to make a recommendation concerning
disability benefits.
Medicare Health Maintenance Organization
(Medicare HMO)
A health care plan in which the federal government reimburses the
plan to provide the enrollee basic Medicare coverage and other benefits,
such as coverage for routine physical exams, help with the cost
of certain prescription drugs and low copayments for office visits.
An enrollee is required to use providers who participate in the
HMO, while the standard Medicare enrollee can receive care from
any health care provider.
Medicare Parts A & B
A nationwide, federally administered health insurance program that
covers the cost of hospitalization, outpatient care and physician
care for eligible individuals, usually age 65 and older. Medicare
has two parts: Part A covers inpatient hospital costs and Part B
covers outpatient medical and physician costs.
Medicare HMO plans
An option for Medicare-eligible retirees to choose how their Medicare
coverage will be provided. The Health Care Financing Administration,
which administers Medicare, contracts with various types of plans
to provide either coverage or care for Medicare beneficiaries. For
example, Medicare-eligible retirees may choose to receive coverage
or care from a managed care plan, a provider-sponsored organization,
a medical savings account or a private fee-for-service plan.
Member
An educator who contributes to STRS Ohio for service in an Ohio
public educational institution.
Money-Purchase
A type of benefit calculation for service retirement in which a
member’s lifetime contributions plus interest are matched
by employer funds to provide an annuity reserve. The annuity reserve
is divided by an annuity value, which is a factor that considers
the payments over a member’s life expectancy minus the interest
accrual on the remaining reserve and future cost-of-living adjustments.
Interest is calculated at 6.5% through June 1982, 7.75% from July
1982 through June 30, 1994, 6.0% from July 1, 1994 through June
30, 1999 and 5.0% beginning July 1, 1999. Interest rates are subject
to change without notice.
Municipal Retirement System
A retirement system for employees of a certain city. Cincinnati
is the only active municipal plan in Ohio.
N
Named Qualified Beneficiary
An individual named by an STRS Ohio member as the primary beneficiary
on the beneficiary designation form and who received at least one-half
of his or her support from the member during the 12 months prior
to the member’s death.
Noncontributing Service Credit
Service credit that does not contribute toward the enhanced calculation.
Noncontributing service credit is calculated at 2.2% of the final
average salary. A reduction factor is applied if the member retires
before age 65 and with less than 30 years of service.
Nonformulary
Prescription medications that are not included on a pharmacy benefit
administrator’s list of formulary (preferred) drugs. Nonformulary
medications are either excluded completely from coverage under the
prescription drug plan or are available at a higher cost to the
enrollee. Depending upon the prescription drug plan, some exceptions
to coverage for nonformulary medications may be made.
Non-Ohio Valued Service
Service that may be used toward retirement eligibility only. This
service is not used in the calculation of the benefit. Eligible
service that may be purchased includes: civilian service with the
U.S. Government; active military service; other public employment
in another state, territory, possession of the United States or
the District of Columbia; teaching service in public schools in
another state, territory, possession of the United States; and private
school teaching in the United States for members with 10 years of
total service credit with STRS Ohio.
Non-PPO
Providers and/or services rendered by providers who do not participate
in a PPO. Non-PPO services are reimbursed at a lower rate than PPO
services. Out-of-pocket maximums are also higher when non-PPO providers
are used.
O
Open Enrollment
A period of time each fall when STRS Ohio benefit recipients have
an opportunity to change their health care plan for the following
year or to enroll for the first time.
Out-of-Pocket Maximum
The amount an enrollee must pay for coinsurance in a calendar year
before the plan covers remaining expenses for that year at 100%.
P
Participating Provider
A provider who has contracted with a health care plan, such as an
HMO or PPO, to provide medical services to the health care plan’s
enrollees. The provider has contracted to accept the terms and conditions
set forth by the health care plan.
Picked Up Contributions
Contributions sent to STRS Ohio by the employer before taxes are
deducted.
Plan Administrator
An organization STRS Ohio contracts with to administer health benefits
to enrollees. Under the various health care plan types offered,
a plan administrator could be responsible for claims processing,
medical necessity review and maintenance of provider networks, depending
upon the type of health care plan offered (i.e., HMOs, PPOs, indemnity
plans).
Plan of Payment
The method by which retirement benefits are paid to the retiree
and possibly the beneficiary. Selected by the member at retirement
from among three different, actuarially equivalent plans, a plan
of payment provides lifetime retirement benefits. Each plan varies
in the protection provided to survivors.
Precertification
A process that evaluates the necessity of certain procedures or
recommended treatment plans before the service is performed. To
obtain maximum benefits under some plans, precertification must
be completed before treatment begins. Also referred to as prior
authorization, prior approval or preauthorization.
Preferred Provider Organization (PPO)
A health care plan that contracts with select providers who agree
to offer health care services to enrollees at contractually set
reimbursement levels. In return, these providers receive patients
and prompt payment from the PPO. PPOs allow enrollees to receive
health care services outside the PPO network, usually in exchange
for a higher copayment or coinsurance amount. Enrollees receive
benefit incentives if PPO providers are used.
Premium
The monthly amount benefit recipients pay for health care coverage
for themselves and their covered dependents. The amount is deducted
from the monthly STRS Ohio benefit or billed if the benefit is not
large enough to cover the cost. Also referred to as a premium rate.
Primary Care Physician
A physician who has direct contact with a patient without referral
from another physician and who is responsible for providing and
coordinating all the patient’s health care needs. Also referred
to as a PCP.
Prior Authorization
A process involving review and approval by a health care plan administrator
in advance of a recommended treatment plan, procedure or prescription
medication. Among considerations for coverage approval by a plan
administrator are the plan of benefits, the medical necessity of
the recommended therapy and the enrollee’s health status. Also referred
to as prior approval, preauthorization or precertification.
Projected Credit
Service credit between the disability date and the first of the
month following age 60 used in the disability retirement calculation.
Credit is based on a 12-month year. No more than 1.00 year of service
credit is given per fiscal year.
Provider
A physician, hospital or other person, entity or facility licensed
to provide a health care service.
Public Institution of Higher Education
Public institution of higher education means a state university
as defined in Section 3345.011 of the Ohio Revised Code, the Medical
University of Ohio, the Northeastern Ohio Universities College
of Medicine, or a university branch, technical college, state community
college, community college or municipal university. Click here to view a complete list of Ohio’s public institutions of higher education.
Purchased Service Credit
Service credit purchased to increase retirement income or allow
earlier retirement.
Q
Qualified Children
Children of a deceased member who 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.
Qualified Plan
Tax-sheltered plan that can accept funds from STRS Ohio without
a tax liability to the member or beneficiary.
R
Recipient
An STRS Ohio member, the survivor of a member or a person on disability
who is receiving monthly benefits from STRS Ohio. Also called benefit
recipient.
Reemployed Retiree
A person who begins teaching after retiring from one of the five
public retirement systems in Ohio: State Teachers Retirement System
of Ohio, Ohio Public Employees Retirement System, School Employees
Retirement System, State Highway Patrol Retirement System and Ohio
Police & Fire Pension Fund.
Regular Employment
A consistent pattern of employment for 12 or more consecutive weeks
by the same employer.
Retirement-Based Benefit
A type of survivor benefit payment payable when the member dies
after qualifying for retirement with STRS Ohio but before actually
retiring.
Retroretirement
Actual service or disability retirement that precedes the date the
retirement application was received.
Reversion
An option that allows a retiree who chose a joint-survivor plan
of payment to change to a single life annuity if the selected survivor
annuitant dies before the retiree.
Routing Number
The federal reserve identification number for a bank or other financial
institution. This number can be obtained from the financial institution
and is printed on all checks.
S
Salary-Related
A benefit that is calculated by multiplying the first 30 years of
contributing service credit and all non-contributing service credit
(including Ohio-valued purchased credit) by 2.2% of the final average
salary (average or your three highest years of Ohio public earnings).
The 31st year of contributing service credit is multiplied
by 2.5% of the final average salary. An additional one-tenth of
a percent is added to the calculation for every year of contributing
service over 31 years (2.6% for the 32nd year, 2.7% for the 33rd
year and so on) until 100% of the final average salary is reached.
For STRS Ohio members with 35 or more years of contributing
service credit, the benefit is calculated by multiplying the first
30 years of contributing service by 2.5% of the final average salary.
All non-contributing service is multiplied by 2.2% of the final
average salary. Contributing service credit over 30 years continues
to be calculated at the escalating formula above. A member with
35 years of contributing service credit will receive 88.5% of the
final average salary.
Service-Based Benefit
A type of survivor benefit payment based upon years of service and
final average salary. This calculation can be used if the member
had at least 20 years of service at death.
Service Credit
The number of years earned through contributing service or purchased
under the provisions of the plan. It helps determine the amount
of your monthly retirement benefit. Service credit is calculated
by your employer and reported to STRS Ohio as of June 30 of each
year. All service credit reported is subject to audit prior to retirement.
Even if you have multiple employers, you cannot earn more than one
year of credit during a one-year period.
Single Life Annuity (SLA)
A service retirement plan of payment that provides the maximum amount
of monthly benefit for the lifetime of the retiree but does not
provide benefits to a beneficiary after the death of the retiree.
Sponsored Dependent
A blood relative residing in the home of a benefit recipient or
a blood relative not residing with the benefit recipient but receiving
one-half of his or her financial support from the benefit recipient.
A sponsored dependent also can be a person living in the household
of a benefit recipient who is not related but who is receiving one-half
of his or her financial support from the benefit recipient or any
one person living in the home of an unmarried benefit recipient.
State Teachers Retirement Board
STRS Ohio is governed by a Retirement Board consisting of five elected contributing
teacher members; two elected retired teacher members; an investment expert appointed
by the governor; an investment expert appointed jointly by the speaker of the
House and the Senate president; an investment expert designated by the treasurer
of state; and the superintendent of public instruction or her designated investment
expert.
Teacher members are elected to a four-year term by members of the retirement
system. Retired teacher members are elected to a four-year term by retirees
receiving benefits from STRS Ohio.
Board members serve without compensation other than actual, necessary expenses.
Stop Payment Form
A form initiated by request from a benefit recipient when a check
has been lost.
T
Tax-Deferred Contributions
Includes employee contributions on earned compensation during
the STRS Ohio fiscal year that were tax-deferred by your employer.
Also included are tax-deferred payments to STRS Ohio to purchase
credit. These contributions are not taxed during your employment.
This amount is refundable and is subject to federal and state
taxation if you withdraw your account or when you begin receiving
retirement benefits.
Tax Exclusion Amount
A specified dollar amount each month that is tax-free, representing
the return on previously taxed contributions. The remainder of the
benefit is fully taxable. When the tax-free amount has been recovered,
all of the monthly benefit is taxable.
Taxed Contributions
Includes employee contributions on earned compensation during
the STRS Ohio fiscal year that were taxed by your employer. Also
included are taxed payments to STRS Ohio to purchase credit. This
amount is refundable if your account is withdrawn and is not subject
to federal, state or local taxation. Any interest credited to
your account before Sept. 1, 1959, is subject to federal and state
income tax.
Temporary Disability
Short-term disability expected to last less than 12 months.
Temporary Employment
A period of less than a full contract year with no written documentation
for continuation of employment beyond the original period.
Total Accumulated Member Contributions
Includes the sum of your taxed contributions, your tax-deferred
contributions and your total payments for purchased credit. The
total amount is refundable if your STRS Ohio account is withdrawn.
U
Unfunded Liability
The amount of funds or time (commonly measured in years) needed
to pay for improvements over the years for present members and retirees
who formerly contributed at a lower contribution rate for a lesser
program.
Usual, Customary and Reasonable (UCR) Fees
The charges for services and supplies that a plan administrator
has determined to be the prevailing levels in the geographic area
where they are furnished.
V
Vested
The rights members of a retirement plan acquire by length of service
needed to receive benefits.
Violation Periods
The time during which a reemployed retiree has exceeded the limits
of reemployment.
W
Workers Compensation
A state-government system designed to address work-related injuries.
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