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Highlights of the STRS Ohio Plans
No two individuals are alike. As you review the retirement plan features, consider
what is most important to you — now and in retirement.
Below is a brief summary of the key benefits of each STRS Ohio retirement
plan. For more information contact STRS Ohio toll-free at 1-888-227-7877.
Defined Benefit Plan
With the STRS Ohio Defined Benefit Plan, you receive a monthly benefit payment
in retirement and, upon meeting eligibility requirements, access to optional
health care coverage.* Benefits while you are teaching include survivor benefits
and disability protection.
If you retire with 30 years of service under the current formula, you will
receive 66% of your final average salary as an annual retirement benefit. With
35 years, you will receive 88.5% of your final average salary.
Once started, your monthly benefit payment is guaranteed and cannot be outlived
— it does not depend on investment performance.
Defined Contribution Plan
With the STRS Ohio Defined Contribution Plan, your retirement income is based
on the performance of investment choices you select for the contributions made
by you and your employer. You can plan for your retirement by developing an
investment portfolio that balances your long-term needs with the opportunities
and risks of the financial markets. You also have the ability to monitor and
update your account as often as you choose to meet your retirement goals.
Comparison With ARPs
Reselection Option — If you choose the STRS Ohio Defined Contribution Plan now, you will have a second and final opportunity to choose a plan during your fifth year of membership. At that time, you can choose to remain in the same plan or transfer to one of the other two STRS Ohio plans. If you choose an ARP now, your decision will be final — unless you change employers.
Competitive Fees — Administrative costs for the STRS
Ohio investment choices compare favorably with those charged by ARPs.
Account Withdrawal Value — Members with less than
one year of membership receive their contributions, plus any gains or losses on those contributions.
Members with more than one year of membership receive both their contributions
and allocated employer contributions, plus any gains or losses on those contributions.
STRS Total Guaranteed Return Choice — With this option,
the risk of loss is borne by STRS Ohio, not you. If you choose this option,
your defined contribution account will be credited with the guaranteed rate
of interest even if the underlying investments should actually
decrease in value. If you are considering a fixed-return investment offered
by an ARP, be sure to compare its rate of interest with this investment choice.
Retirement Board Commitment to Members — As an STRS
Ohio member, you will participate in electing Board members who, like you,
believe that Ohio educators deserve comprehensive benefits and quality service
from their retirement system during their careers and in retirement. It is
the Retirement Board that provides the direction, fiduciary oversight and
polices that enable STRS Ohio to fulfill its goal of helping assure financial
security for current and future retirees.
Combined Plan
Participation in the STRS Ohio Combined Plan provides you a monthly payment
in retirement similar to, but less than, the Defined Benefit Plan and control
of your contributions as with the Defined Contribution Plan. In short, the Combined
Plan offers the security of the Defined Benefit Plan with the flexibility and
choice of the Defined Contribution Plan.
If you retire with 30 years of service under the current formula, you will
receive 30% of your final average salary as an annual retirement benefit, starting
at age 60. You can also select from several payment options for the defined
contribution portion of your account.
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