DB Plan

The Defined Benefit Plan is a plan that provides benefits during an STRS Ohio member’s career and in retirement.

Under the Defined Benefit Plan, retirement income is determined by a calculation that uses a member’s:

  • Age,
  • Years of service, and
  • Final average salary (FAS) — the average of their five highest salary years.

Members’ benefits are created by three sources:

  • Their contributions during their career — they currently contribute 14% of their annual salary.
  • Their employer’s contributions during their career.
  • Investment earnings resulting from those contributions.

Contribution rates are established by the State Teachers Retirement Board and are subject to change.

STRS Ohio maintains a diversified portfolio strategically allocated among stocks and fixed income, real estate, international and alternative investments. STRS Ohio investment professionals manage these funds so that benefits are there for members at retirement.

What This Means for Members

Their monthly benefit is predictable — it does not depend on investment performance. Click here to compare this plan with the other STRS Ohio retirement plan options.