DC Plan

Retirement income for members in the Defined Contribution Plan is driven by three variables: the performance of their investment choices, the amount of contributions deposited to their account — their member contributions and the amount of employer contributions added to their account — and market annuity rates in effect at retirement. Members may allocate their contributions among various investment choices managed by STRS Ohio. Benefits such as disability protection, survivor benefits and health care coverage in retirement are the member's responsibility; they are not provided by STRS Ohio.

The members’ current contribution rate of 14% of their annual salary will go into a defined contribution account. Currently, employer contributions of 9.53% of salary will also be deposited in the defined contribution account, meaning that an amount equal to 23.53% of the member’s salary will go directly into their account. These contribution rates are established by law and the State Teachers Retirement Board and are subject to change. If a member leaves teaching, the member can withdraw these funds — plus any investment gains or losses. Members are vested in their member contributions immediately. They are vested 20% per year in employer contributions.

Members who have credit in the Ohio Public Employees Retirement System or the School Employees Retirement System and select this plan may affect their future benefits from these systems.

Members who choose this plan have a chance to reselect their retirement plan in their fifth year of teaching.

What This Means for Members

With the Defined Contribution Plan, members have control over their retirement account. They have the ability to monitor and manage their account to meet their retirement goals. Click here to compare this plan with the other STRS Ohio retirement plan options.