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
As its name implies, your retirement income is “defined” by a calculation that uses your age, your years of service and your final average salary. You also have survivor ad disability protection while you teach. Access to optional health care coverage* is provided to retirees who meet the necessary qualifications — currently, 15 years of service credit.
*Benefits under the STRS Ohio Health Care Program are not guaranteed. STRS Ohio hopes to continue the program indefinitely, but reserves the right to change or discontinue all or part of the program for all or a class of eligible enrollees.
Defined Contribution Plan
In this plan, your retirement income is based on the performance of investment choices you select for the contributions made by you and your employer. You may allocate your contributions among various investment options managed by STRS Ohio. Retirement, survivor and disability benefits are limited to the value of your account. Access to STRS Ohio health care coverage upon retirement is not provided. This plan is comparable to the ARPs offered by private vendors.
Comparison With ARPs
Reselection Option — If you choose the 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
This plan allows you to create a portion of your retirement income through the performance of investment choices you select for your contributions, while contributions from your employer pay for a combination of service retirement, disability and survivor benefits. Access to optional health care coverage* is provided to retirees who meet the necessary qualifications — currently, 15 years of service credit.
*Benefits under the STRS Ohio Health Care Program are not guaranteed. STRS Ohio hopes to continue the program indefinitely, but reserves the right to change or discontinue all or part of the program for all or a class of eligible enrollees.
