On Sept. 26, 2012, Governor Kasich signed STRS Ohio’s pension reform bill into law. The Ohio Legislature passed pension reform bills to improve the financial condition of all five Ohio pension systems, including STRS Ohio. The STRS Ohio bill, Substitute Senate Bill 342, was based on the reform plan approved unanimously by the State Teachers Retirement Board on April 19, 2012. The bill went into effect Jan. 7, 2013.

Sub. S.B. 342 increases age and service requirements for retirement; calculates pensions on a lower, fixed formula; increases the period for determining final average salary; increases member contributions to the system; reduces the cost-of-living adjustment (COLA); defers the COLA for future retirees; and calls for no COLA to be added in fiscal year 2014.

The bill also provides the Retirement Board the authority to make future adjustments to the member contribution rate, retirement age and service requirements, and the COLA as the need or opportunity arises, and depending on the funding progress. In addition, eligibility for survivor and disability benefits increased to five and 10 years, respectively, for all new hires.

For more information about how pension reform changes affect employers, select a topic below:

Preparing for July 1, 2014

How Legislation Impacts Employers

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