Applying for Benefits

Eligibility Requirements

As a Combined Plan member, your effective retirement date for the defined contribution portion of your account is the first day of the month following the latter of:

Month in which you become age 50,
Last day of actual employment in an STRS Ohio-covered position, or
Month in which you apply.

For the defined benefit portion, your effective retirement date is the first of the month following the latter of:

Month in which you become age 60, or
Last day of actual employment in an STRS Ohio-covered position.

Partial Lump-Sum Option Plan (PLOP) Information

STRS Ohio offers a Partial Lump-Sum Option Plan (PLOP) for new retirees in the Defined Benefit and Combined Plans. See the topics below to learn more about this feature.

This information is a summary and is not intended to provide complete information about the Partial Lump-Sum Option Plan. For more information contact STRS Ohio toll-free at 888‑227‑7877.

PLOP Definition

The Partial Lump-Sum Option Plan (PLOP) allows you to take an amount from six to 36 times the monthly Single Life Annuity (SLA) benefit in a lump sum at retirement. The PLOP must be elected in $1,000 increments, unless the minimum or maximum amount is selected. Monthly benefits still begin with your retirement date and are payable for life, but they are reduced to reflect the amount taken up front in a single payment. A plan of payment for your lifetime retirement benefits — Single Life Annuity, Joint and Survivor Annuity or Annuity Certain — must be selected for determining the remainder of your lifetime benefit. The PLOP payment may only be selected when annuitizing the defined benefit portion of your account.

Member Cost

The table below shows the amount a monthly benefit is reduced for each $1,000 of lump-sum payment. For example, a Combined Plan participant who retires at age 60 and receives a $25,000 lump-sum payment would have his or her benefit reduced $181.50 a month for life ($7.26 x 25 = $181.50).

Combined Plan PLOP Cost Factor Table
Age	Reduction per $1,000
60	$7.26
61	$7.35
62	$7.45
63	$7.55
64	$7.67
65	$7.79
66	$7.92
67	$8.07
68	$8.23
69	$8.41
70	$8.60

Estimating PLOP Cost

A sample Partial Lump-Sum Option Plan (PLOP) Payment estimate appears below.

A 60-year-old member in the Combined Plan with a $2,000 per month Single Life Annuity (SLA) elects to take a partial lump-sum payment at retirement. This member is eligible to choose a lump-sum payment from $12,000–$72,000 (six–36 times the monthly SLA benefit). For this example, the member chooses a $25,000 lump-sum payment.

The cost per $1,000 of lump-sum payment for a member retiring at age 60 is $7.26 per month. This member’s monthly cost for a $25,000 payment is 25 x $7.26 or $181.50.

To determine the adjusted benefit, subtract $181.50 from the original $2,000 SLA. In this case, the member would receive $1,818.50 per month after the lump-sum payment. This member could then take a further reduction to provide survivor benefits through a Joint and Survivor Annuity or Annuity Certain. The member must choose a plan of payment which will be used to finalize the lifetime retirement benefit.

PLOP Estimate Worksheet — Combined Plan Participant
Retirement age of member in example: 60 Retirement date: July 1, 2024	Example: $30,000 PLOP
I. Calculate PLOP range
1. Single Life Annuity (SLA)	$2,000.00
2. SLA times 6 (minimum PLOP)	$12,000.00
3. SLA times 36 (maximum PLOP)	$72,000.00
4. Your PLOP amount (must be within minimum and maximum range)	$30,000.00
II. Calculate cost of PLOP
5. PLOP reduction factor based on age at retirement (from PLOP cost factor table)	$7.26
6. PLOP amount divided by $1,000	$30.00
7. Monthly cost of PLOP (line 5 x line 6)	$217.80
III. Calculate PLOP-adjusted benefit
8. Single Life Annuity (SLA)	$2,000.00
9. Cost of PLOP from line 7	$217.80
10. PLOP-adjusted SLA (line 8 - line 9)	$1,782.20
11. Plan of payment option rate — the percent of SLA used to determine a Joint and Survivor Annuity or an Annuity Certain plan of payment^*	90.2%
12. PLOP-adjusted plan of payment amount (line 10 x line 11)	$1,607.99

^*The plan of payment option rate may be found on retirement estimates you received from STRS Ohio.

Payment

Payment of Monthly Retirement Benefits

STRS Ohio issues retirement benefits on the first banking day of each month. Most service retirees who file a Service Retirement Application at least 30 days before their effective retirement date receive a partial monthly benefit payment on the date of their retirement.

Monthly retirement benefits are paid through direct deposit to the financial institution listed on the member’s Service Retirement Application.

Payment of Lump Sum

The PLOP payment will be paid 91 days after your retirement date or the date all necessary information is received and your retirement benefit is finalized, whichever is later.

A PLOP payment from STRS Ohio can be processed three ways:

All of the PLOP payment paid by direct rollover to an IRA (an individual retirement account or individual retirement annuity) or an employer plan (a tax-qualified plan, section 403(b) plan or governmental section 457(b) plan of the Internal Revenue Code) to defer the immediate tax withholding and possible penalty.
All of the PLOP payment paid through direct deposit. The payment will be subject to any federal taxes, state taxes and penalties due.
Some portion paid as a rollover with the remaining amount paid through direct deposit.

The PLOP payment will be electronically deposited to the same financial institution listed to receive the monthly benefits, unless you elect to roll over the PLOP payment to a qualified plan. If you are married and elect to take a PLOP payment, spousal consent is required on your Service Retirement Application.

Items to Consider

Before considering a lump-sum payment, it is important to estimate how much it will reduce the monthly retirement benefit.

The monthly benefit reduction due to the PLOP is permanent. Future benefit changes, if applicable, will be calculated on the reduced benefit. Members should carefully consider the reduced benefit they will receive after taking the lump-sum payment to be sure they can still meet future financial obligations. Remember, the monthly benefit will be further reduced by federal and state taxes and, if applicable, health care, dental and vision premiums, and deductions for the optional retiree-funded death benefit.

Before electing a PLOP, a benefits counseling session with an STRS Ohio benefits counselor is strongly recommended.

Employment After Retirement and a PLOP Payment

Employment in a public position in Ohio is restricted during the first two months following retirement. If you are employed by only one public employer at the time of retirement, you must wait two months after your date of retirement to return to public employment.

Retirees who return to public employment within two months after their retirement date must forfeit their monthly benefit for each month worked during the violation period. The amount a retiree forfeits by violating the two-month waiting period is the Single Life Annuity monthly benefit calculated before the reduction for a PLOP payment and a Joint and Survivor Annuity or Annuity Certain, if selected. The difference between the actual monthly benefit amount and the pre-PLOP Single Life Annuity benefit will be deducted from future monthly benefits.

Special Tax Provisions

Before selecting a PLOP payment, it is important to understand the tax implications of receiving a lump sum at retirement as well as the restrictions on rollovers. Under federal tax laws, lump-sum payments paid directly to you that are eligible for rollover are subject to a mandatory 20% federal tax withholding. In addition, funds may be subject to a 10% penalty for early withdrawal. This penalty does not apply if the lump sum is withdrawn after age 59-1/2, or you have separated from service and have taken payment in or after the year in which you turned age 55. If you are age 73 or older, you may be subject to the required minimum distribution rules established by the Internal Revenue Code and will not be eligible to roll over the entire PLOP amount.

A PLOP payment is also subject to Ohio income tax for residents of the state and may be taxable in the state of residence for non-Ohio residents. Upon request, STRS Ohio will withhold Ohio income tax from your PLOP payment. STRS Ohio is unable to withhold income tax for any other state. For further information regarding special tax provisions, consult your tax advisor. STRS Ohio cannot provide tax advice.

If a PLOP payment is elected and you have not opted out of receiving paper copies, a 1099-R form will be mailed in January of the year following the PLOP payment or can be accessed online via an Online Personal Account.

Sixty-day Rollover Option

A PLOP payment paid directly to you may be rolled over to a qualified plan up to 60 days after the PLOP payment is received. All or part of the PLOP payment may be rolled over to an eligible employer plan that accepts rollovers. The rollover will need to be done by you, not STRS Ohio. The portion of the payment rolled over will not be taxed until it is taken out of the qualified plan.

Up to 100% of the eligible rollover distribution (subject to IRS required minimum distribution regulations) may be rolled over, including an amount equal to the 20% of the taxable portion that was withheld for federal tax. If you choose to roll over 100%, other funds must be found within the 60-day period to contribute to the qualified plan to replace the 20% that was withheld. Conversely, if only 80% of the payment is rolled over, you will be taxed on the 20% that was withheld for federal tax.

Purchasing Service Credit & PLOP

Many members are eligible to purchase service credit that will increase their monthly benefit. The availability of a PLOP can be a useful tool to help determine if purchasing credit is worthwhile.

Example:

Assume you are planning to retire on or before July 1, 2024, at age 60 with 31.00 years of STRS Ohio credit and a final average salary (FAS) of $50,000. Also assume you have 3.00 years of withdrawn STRS Ohio service credit which you can restore at a cost of $20,000.

Without the purchased credit, your monthly Single Life Annuity benefit (with 31.00 years of service credit) would be $2,841. The benefit is calculated by multiplying the 31.00 years of contributing service credit^* by 2.2% of the FAS.

Single Life Annuity Benefit (Without the Purchased Credit)
2.2% x 31 68.2%

$50,000 x 68.2% $34,100

$34,100 ÷ 12 $2,841

With the purchase of 3.00 years of withdrawn service credit, your monthly Single Life Annuity benefit (with 34.00 years of credit) increases by $275 for a total of $3,116.

Single Life Annuity Benefit (With the Purchased Credit)
2.2% x 34 74.8%

$50,000 x 74.8% $37,400

$37,400 ÷ 12 $3,116

If you plan to purchase credit, you may wish to use a PLOP payment to replenish funds used to buy the service credit. This may be more advantageous if the increase in the monthly benefit resulting from the purchase is more than the monthly reduction to the benefit for the PLOP payment. For example, the PLOP reduction for the 60-year-old Defined Benefit Plan member (retiring July 1, 2024) is $7.26 for each $1,000 of PLOP payment. Therefore, a $20,000 PLOP payment would result in a $145.20 (20 × $7.26) monthly reduction. As noted above, the purchase of this member’s three additional years of service credit resulted in a monthly increase of $275. After taking a $20,000 PLOP payment, this member would have a net monthly increase of $129.80 ($275 – $145.20).

A member may not want to take a PLOP payment if the minimum payment is considerably larger than the cost of the service, and the monthly benefit after the PLOP payment will be lower. For example, a member may be eligible to purchase one year of service that would increase the monthly benefit by $90; however, the minimum PLOP payment may cause a $150 reduction, resulting in a net decrease of $60.

Single Life Annuity Benefit (Without the Purchased Credit)
2.2% x 31	68.2%
$50,000 x 68.2%	$34,100
$34,100 ÷ 12	$2,841

Single Life Annuity Benefit (With the Purchased Credit)
2.2% x 34	74.8%
$50,000 x 74.8%	$37,400
$37,400 ÷ 12	$3,116

If you are purchasing service credit, all purchasable service must be certified and a cost statement issued before your retirement date. The service must be purchased within three months after your retirement date. PLOP payments will be paid 91 days after your retirement date or the date all necessary information is received and your retirement benefit is finalized, whichever is later.

Because credit must be purchased before the PLOP payment is issued, you must use funds from some other source to purchase credit and use the PLOP payment to replenish those funds. There are two ways you can use the PLOP payment to replenish funds used to purchase credit:

You can roll money from an IRA, qualified plan or eligible employer plan to purchase credit and take a PLOP payment to cover the amount needed to replenish the account.
You can take a PLOP payment to pay yourself back directly for any service credit purchased. You will need to request a PLOP payment amount that also covers the taxes that will be withheld on payments paid directly to you.

If you plan to purchase credit, please review the Purchasing Service Credit brochure and talk to an STRS Ohio benefits counselor for further details on purchasing service credit, certification of credit and payment options.

Payout Options

Combined Plan participants have several payment options available to them when they end their teaching career in Ohio for their defined contribution and defined benefit accounts. Further details about plan of payment options are provided below and also in the Understanding Your Retirement Plans of Payment Options video.

Defined Benefit Account

If you elect monthly benefits at retirement, you will select a plan of payment from among several different actuarially equivalent plans. For your defined benefit and defined contribution payments, you may elect a different plan of payment and beneficiary for each benefit. All plans provide you with lifetime benefits but vary in the benefits provided to survivors. If you are married, please review the spousal consent requirement below.

If a court order requires you to leave a continuing monthly benefit to a former spouse or spouses upon your death, you must submit a copy of the court order to STRS Ohio with your Service Retirement Application. Any amounts payable due to court orders must remain in place during the lifetime of that beneficiary.

There are three basic plans of payment and a Partial Lump-Sum Option Plan.

Plan I — Single Life Annuity
Plan II — Joint and Survivor Annuity
Plan III — Annuity Certain
Partial Lump-Sum Option Plan

Plan I — Single Life Annuity

The Single Life Annuity plan provides maximum monthly benefits for your lifetime. This plan does not provide any payment to a survivor upon your death from either the defined benefit portion or the defined contribution portions of the account.

For the defined contribution portion, your account balance is converted to a lifetime annuity. There is no refundable amount even if the total annuity payments are less than the defined contribution account balance that was converted to an annuity. For the defined benefit portion, there is no refundable amount even if the total annuity payments are less than the total member contributions.

If you choose a Single Life Annuity plan at retirement and later marry, you may change your plan to a Joint and Survivor Annuity with your new spouse as beneficiary within the first year of your marriage. This is the only circumstance in which you may change a Single Life Annuity plan.

A copy of your marriage certificate must accompany the application to change to a Joint and Survivor Annuity. The new selection is effective on the date the application is received by STRS Ohio and the new benefit amount is paid beginning on the first of the next month.

Plan II — Joint and Survivor Annuity

Under the Joint and Survivor Annuity, you will receive a reduced lifetime monthly benefit. Upon your death, one or multiple primary beneficiaries receive lifetime monthly benefits. There are four options under this plan of payment:

Options 1, 2 and 3 apply to a single primary beneficiary (see below).
Option 4 applies to multiple primary beneficiaries (see below).

Upon electing a Joint and Survivor Annuity, your defined contribution account balance is converted to a lifetime annuity for you and your primary beneficiary(ies). There is no refundable amount even if the total annuity payments are less than the defined contribution account balance that was converted to an annuity.

Single Primary Beneficiary

Option 1: Upon your death, the primary beneficiary receives the same monthly benefit you received.
Option 2: Upon your death, the primary beneficiary receives one-half the monthly benefit you received.
Option 3: Upon your death, the primary beneficiary receives a specific dollar amount or percentage that you designate. The amount you designate must be at least $50 per month and cannot exceed 100% of your benefit.

If the primary beneficiary is not your spouse, the Internal Revenue Service may limit the percentage of the benefit that you can designate to this person. Contact STRS Ohio for additional information on these limitations.

Under these three Joint and Survivor Annuity options, there are two basic choices.

With reversion: If you select this choice, you may revert to the Single Life Annuity plan of payment if:

Your beneficiary dies before you. A copy of the death certificate must accompany the application to revert to the Single Life Annuity plan. The effective date of the new benefit amount is the first day of the month following the beneficiary’s death.
Your marriage to the beneficiary terminates, provided that you have written consent from your former spouse or the appropriate court documentation authorizing such a change. The new selection is effective on the latter of the date the application is received by STRS Ohio or the date of divorce. The new benefit amount is paid the first of the next month.

Also, if a Joint and Survivor Annuity with reversion is selected and a non-spouse is named at retirement and you later marry, you may reselect your spouse as the new beneficiary within the first year of your marriage.

Without reversion: With this choice you may never revert to a Single Life Annuity payment. Neither the plan of payment nor the primary beneficiary may be changed after retirement. You maintain this plan of payment even if your beneficiary dies or your marriage to the beneficiary terminates.

With Options 1 and 2 you can select a guarantee feature that provides benefits to a secondary beneficiary for a specific number of years from your retirement date. A guaranteed period is provided at no cost based on the age of both you and your beneficiary. You may extend the guaranteed period by taking a reduction in your monthly benefit amount. The guaranteed period may be any number of years up to an actuarially determined maximum and is selected when applying for retirement.

If both you and your primary beneficiary die before the end of the guaranteed period, a monthly benefit is paid to the secondary beneficiary for the remainder of the guaranteed period. If you name more than one secondary beneficiary, a lump-sum payment representing the present value of the remaining payments is divided equally and paid to the beneficiaries.

If the secondary beneficiary is a legal entity such as a trust, charity or church, a lump-sum payment of the present value of any remaining payments will be made.

If you or your primary beneficiary outlive the guaranteed period, benefits continue for your lifetime and the lifetime of your primary beneficiary, but the secondary beneficiary would not receive benefits.

Multiple primary beneficiaries

Option 4: Members may elect to provide continuing lifetime benefits for up to four primary beneficiaries under a Joint and Survivor Annuity from the defined benefit portion of their account. You may specify percentages of your benefit or a flat dollar amount for each beneficiary; however, the total amount payable to all beneficiaries cannot exceed the amount payable to you.

For example, upon your death, one beneficiary could continue to receive 30% of your benefit, while a second could continue at 20%, and a third and fourth could continue at 10% each. Your benefit will be reduced based on the ages of the beneficiaries and the amount of the benefit provided to each beneficiary. The percentages designated to beneficiaries do not have to equal 100%.

Unless directed by a court order, you cannot provide a benefit that is less than 10% of the benefit you will receive. If a beneficiary is not your spouse, the Internal Revenue Service may limit the percentage of the benefit that you can designate to this person.

At your death, monthly benefits will be paid to the beneficiaries you designated at retirement. If a beneficiary dies before you, contact STRS Ohio to increase your monthly benefit by the amount of the reduction taken for that beneficiary. Benefit amounts payable to the other beneficiaries after your death will not change.

If you select this choice, you may change your plan of payment only if:

One of the beneficiaries is your spouse and your marriage terminates, provided you have written consent from your former spouse or the appropriate court documentation authorizing such a change. The new selection is effective the latter of the date the application is received by STRS Ohio or the date of divorce. The new benefit amount is paid the first of the next month.
All beneficiaries are non-spouses and you get married after retirement. Within the first year of marriage, you may reselect a plan of payment with your new spouse as beneficiary. You may retain up to three beneficiaries you selected at retirement; however, the total monthly amount payable to all beneficiaries at your death cannot exceed the monthly benefit paid to you.

Plan III — Annuity Certain

The Annuity Certain plan provides monthly benefits for your lifetime. In addition, your beneficiary receives benefits for a specific number of years from your retirement date. The guaranteed period may be any number of years up to an actuarially determined maximum and is selected when applying for retirement.

If your death occurs before the guaranteed period ends, your beneficiary receives the same monthly benefit until the guaranteed period expires. If you name more than one person as beneficiary, a lump-sum payment, representing the present value of the remaining payments, is divided equally and paid to the beneficiaries.

If the beneficiary is a legal entity such as a trust, charity or church, then a lump-sum payment of the present value of any remaining payments will be made.

If you outlive the guaranteed period, benefits continue for your lifetime but the named beneficiary would not receive benefits.

If you choose the Annuity Certain plan at retirement, you cannot reselect a different plan after retirement. However, you may name a different beneficiary for the remaining years on the guaranteed period.

Partial Lump-Sum Option Plan

The Partial Lump-Sum Option Plan (PLOP) allows you to take an amount from six to 36 times the monthly Single Life Annuity (SLA) benefit based on the defined benefit portion of the account only in a lump sum at retirement. The PLOP must be elected in $1,000 increments, unless the minimum or maximum amount is selected. Monthly benefits still begin with your retirement date and are payable for life, but they are reduced to reflect the amount taken up front in a single payment. A plan of payment for your lifetime retirement benefits — Single Life Annuity, Joint and Survivor Annuity or Annuity Certain — must be selected for determining the remainder of your lifetime benefits. The PLOP payment may only be selected when annuitizing the defined benefit portion of your account.

Click here for more information on the Partial Lump-Sum Option Plan.

Spousal Consent

If you are married on your benefit effective date, your spouse must consent to your selection if you have chosen one of the following:

Plan I — Single Life Annuity
Plan II — Joint and Survivor Annuity:
- Providing your spouse with less than one-half of the benefit, or
- Providing benefits for a non-spouse beneficiary.
Plan III — Annuity Certain
Partial Lump-Sum Option Plan:
- Any plan that includes a PLOP payment.

Your spouse may consent to your selection of any of these plans by signing the spousal consent on the Service Retirement Application before a notary public.

Without spousal consent, you will receive a Joint and Survivor Annuity with one-half to beneficiary (with reversion) and no PLOP payment.

Spousal consent is not required if:

You are required to elect a plan of payment pursuant to a court order and your current spouse is also a beneficiary under that plan to receive a survivor annuity of at least 50% of the remaining available survivor benefit if less.
You are required to provide an amount to a former spouse or spouses pursuant to a court order or orders that is the maximum amount payable in a Joint and Survivor Annuity plan of payment.

Defined Contribution Account

Combined Plan participants have several payment options available for the defined contribution portion of their account when they end their teaching career in Ohio.

Members who are age 50 or older may withdraw the entire defined contribution portion of their account and retain the defined benefit portion. They may withdraw the defined benefit portion only if they are also withdrawing the defined contribution portion.

Important Note for Members Who Have Selected the STRS Total Guaranteed Return Choice as an Investment Option

Members who leave teaching and elect to “withdraw” their STRS Total Guaranteed Return Choice account before the end of a five-year term will be assessed an early-term withdrawal penalty of 10% of their net asset value (NAV) on all funds that did not go to term.

Life Annuity

Under an annuity plan, your monthly benefit is based on life expectancy factors and the amount you annuitize. There are three basic plans of payment:

Plan I — Single Life Annuity
Plan II — Joint and Survivor Annuity
Plan III — Annuity Certain

Plan I — Single Life Annuity

The Single Life Annuity plan provides maximum monthly benefits for your lifetime. This plan does not provide any payment to a survivor upon your death. Upon electing a Single Life Annuity, your defined contribution account balance is converted to a lifetime annuity.

There is no refundable amount even if the total annuity payments are less than the defined contribution account balance that was converted to an annuity.

Plan II — Joint and Survivor Annuity

Options 1, 2 and 3 apply to a single primary beneficiary.
Option 4 applies to multiple primary beneficiaries.

Single Primary Beneficiary

Option 1: Upon your death, the primary beneficiary receives the same monthly benefit you received.
Option 2: Upon your death, the primary beneficiary receives one-half the monthly benefit you received.
Option 3: Upon your death, the primary beneficiary receives a specific dollar amount or percentage that you designate. The amount you designate must be at least $50 per month and cannot exceed 100% of your benefit.

Under these three Joint and Survivor Annuity options, there are two basic choices.

With reversion: If you select this choice, you may revert to the Single Life Annuity plan of payment if:

Your beneficiary dies before you. A copy of the death certificate must accompany the application to revert to the Single Life Annuity plan. The effective date of the new benefit amount is the first day of the month following the beneficiary’s death.
Your marriage to the beneficiary terminates, provided that you have written consent from your former spouse or the appropriate court documentation authorizing such a change. The new selection is effective on the latter of the date the application is received by STRS Ohio or the date of divorce. The new benefit amount is paid the first of the next month.

If the second beneficiary is a legal entity such as a trust, charity or church, a lump-sum payment of the present value of any remaining payments will be made.

Multiple Primary Beneficiaries

Option 4: Members may elect to provide continuing lifetime benefits for up to four primary beneficiaries under a Joint and Survivor Annuity from the defined benefit portion of their account. You may specify percentages of your benefit or a flat dollar amount for each beneficiary; however, the total amount payable to all beneficiaries cannot exceed the amount payable to you.

For example, upon your death, one beneficiary could continue to receive 30% of your benefit, while a second could continue at 20%, and a third and fourth could continue at 10% each. Your benefit will be reduced based on the ages of the beneficiaries and the amount of the survivor benefit provided to each. The percentages designated to beneficiaries do not have to equal 100%.

If you select this choice, you may change your plan of payment only if:

One of the beneficiaries is your spouse and your marriage terminates, provided you have written consent from your former spouse or the appropriate court documentation authorizing such a change. The new selection is effective the latter of the date the application is received by STRS Ohio or the date of divorce. The new benefit amount is paid the first of the next month.
All beneficiaries are non-spouses and you get married after retirement. Within the first year of marriage, you may reselect a plan of payment with your new spouse as beneficiary. You may retain up to three beneficiaries you selected at retirement; however, the total monthly amount payable to all beneficiaries at your death cannot exceed the monthly benefit paid to you.

Plan III — Annuity Certain

If the beneficiary is a legal entity such as a trust, charity or church, then a lump-sum payment of the present value of any remaining payments will be made.

If you outlive the guaranteed period, benefits continue for your lifetime but the named beneficiary would not receive benefits.

Lump-Sum Withdrawal (Including Rollovers to Traditional IRAs or Other Employer Plans)

Your total account balance is paid in one payment. This includes rollovers to traditional IRAs or other employer plans. This is your only option if you are under age 50.

Members participating in the Combined Plan who are age 50 or older may withdraw the entire defined contribution portion of their account and retain the defined benefit portion with STRS Ohio for a monthly benefit payable at age 60 with five years of service credit. They may withdraw the defined benefit portion only if they are also withdrawing the defined contribution portion.

Important Note for Members Who Have Selected the STRS Total Guaranteed Return Choice as an Investment Option

Spousal Consent

If you are married on your benefit effective date, your spouse must consent to your selection if you have chosen one of the following:

Plan I — Single Life Annuity
Plan II — Joint and Survivor Annuity:
- Providing your spouse with less than one-half of the benefit, or
- Providing benefits for a non-spouse beneficiary.
Plan III — Annuity Certain
Partial Lump-Sum Option Plan:
- Any plan that includes a PLOP payment.

Your spouse may consent to your selection of any of these plans by signing the spousal consent on the Service Retirement Application before a notary public.

Without spousal consent, you will receive a Joint and Survivor Annuity with one-half to beneficiary (with reversion) and no PLOP payment.

Spousal consent is not required if:

You are required to elect a plan of payment pursuant to a court order and your current spouse is also a beneficiary under that plan to receive a survivor annuity of at least 50% of the remaining available survivor benefit if less.
You are required to provide an amount to a former spouse or spouses pursuant to a court order or orders that is the maximum amount payable in a Joint and Survivor Annuity plan of payment.

Spousal Consent on Account Withdrawals

If you are married, at least age 50 and are eligible to withdraw a balance of at least $5,000, you can withdraw your account only if your spouse consents to the withdrawal by signing the withdrawal application before a notary public. If your spouse does not consent, your application for withdrawal shall be considered an application for service retirement paid as a Joint and Survivor Annuity with one-half to beneficiary.

Legislation effective Jan. 1, 2002, authorizes a court in the State of Ohio that grants a termination of marriage to issue a division of property order (DOPO) to STRS Ohio. A DOPO requires STRS Ohio to pay a portion of a retirement benefit or refund that is payable now, or in the future, to a member’s former spouse at the time payment is made to the member. If you have questions about how this new law relates to a termination of your marriage, please contact your attorney.

Taxation of Retirement Benefits

Federal Income Tax

Beginning with the first payment, STRS Ohio retirement benefits are taxable. STRS Ohio will withhold federal taxes from your benefits unless you direct otherwise. If federal taxes are not withheld, you will be responsible for filing federal quarterly estimates.

If you paid taxes on some of your contributions, a small percentage of your benefit will be tax-free until your taxed contributions are exhausted. For example, if you paid taxes on $25,000 of contributions and the IRS determines these contributions are to be spread over 25 years, $1,000 of your retirement benefits will be tax-free for the first 25 years of your retirement. Information regarding any amount excludable from tax will be sent to you after your retirement account is finalized and will be reflected on your 1099-R form.

Under federal tax laws, a Partial Lump-Sum Option Plan (PLOP) payment that is eligible for rollover, but is paid directly to you instead, is subject to a mandatory 20% federal tax withholding. In addition, you may be subject to a 10% penalty for early withdrawal. This penalty does not apply if you withdraw the lump sum after you reach age 59-1/2, or you have separated from service and have taken payment in or after the year in which you turned age 55.

Ohio Income Tax

The taxable portion of a retirement benefit or a PLOP payment paid directly to you is subject to Ohio income tax for Ohio residents. On request, we will withhold Ohio income taxes.

Income Tax — Other States

If you are a resident of another state, your state tax liability is governed by the laws in that state. STRS Ohio cannot withhold tax for states other than Ohio.

Local or Municipal Taxes

STRS Ohio retirement benefits are exempt from local or municipal taxes in Ohio.

School District Income Tax

STRS Ohio retirement benefits may be subject to local school district income taxes in Ohio. Some districts in Ohio have a provision where the school district income tax applies to earned income only.

Click here to view more information on taxes and your STRS Ohio benefit including federal and Ohio tax tables.

Taxable Income

Following the end of the calendar year, benefit recipients who have not opted out of receiving paper copies will be mailed a 1099-R form for monthly benefits showing annual gross benefits and taxable amount as computed by STRS Ohio. You will receive a separate 1099-R form for a PLOP payment if elected. The 1099-R form is also made available in your Online Personal Account.

If you elect a PLOP payment, a 1099-R form will be mailed to you in January of the year following your PLOP payment.

For more details about taxation of benefits, contact the Internal Revenue Service, the Ohio Department of Taxation or a qualified tax consultant. STRS Ohio cannot provide tax advice.

Important Tax Considerations for Lump-Sum Withdrawals

If you choose to withdraw your STRS Ohio account, there are important tax implications.

If you choose to have your withdrawal paid directly to you:

Your payment will be taxed in the year it is issued.
STRS Ohio will withhold federal tax at a rate of 20%.
If you receive the payment before age 59-1/2, you may have to pay a 10% tax penalty for an early withdrawal.

You may roll over your withdrawal amount to an eligible retirement account that will accept your rollover and:

Your payment will not be taxed in the current year and no income tax will be withheld.
The funds rolled over will be taxed when removed from the account to which they were deposited.

Beginning in the year you reach age 73 or terminate employment, whichever is later, a certain portion of your payment cannot be rolled over because it is a “required minimum payment” that must be paid to you. STRS Ohio can tell you if your payment includes amounts that cannot be rolled over.

There are other tax implications if you withdraw your STRS Ohio account. Review our brochure titled Account Withdrawal and consult a professional tax advisor for more information. STRS Ohio cannot provide tax advice.

How to Apply for Service Retirement Benefits

To apply for service retirement, complete a Service Retirement Application using your Online Personal Account. To access the application, log in to your Online Personal Account, select “Member Information” from the top menu and then “Apply for Service Retirement” under Useful Links. To register for or log in to your online account, click here. The application offers step-by-step instructions, can be completed at your own pace and allows you to view and print a summary of your selections. You can also save your progress and return later to complete and submit the application, allowing you to make changes prior to submitting.

There are separate applications for the defined benefit and defined contribution portions of your account and you must file a separate application for each portion. The account(s)/portion(s) you are eligible to submit a retirement application for will be shown on the initial screen of the application. You will have the option to complete both online applications (if eligible) one after the other, or to complete one application and complete the other application at a later date.

The application should be completed at least three months, but no more than 12 months, before your retirement date. Your employer will be notified of your retirement the latter of when you submit your application or two months before your retirement date. If your fully completed application is received by STRS Ohio at least 30 days before your retirement date, STRS Ohio may issue a benefit payment on your retirement date. Please see “Payment of Benefits. ”

The defined benefit portion of your benefit is final on the 15th of the month of the first regular benefit payment. The defined contribution portion is final on the retirement date.

If you are eligible to enroll in the STRS Ohio Health Care Program, you have 31 days to request enrollment from the latter of: your retirement date for the defined benefit portion or the first of the month following receipt of your retirement application. Coverage will begin on your retirement date or the first of the month following receipt of your retirement application, whichever is later.

STRS Ohio recommends the following guidelines be used when applying for retirement:

Six to 12 Months Before Retirement

Schedule a benefits counseling appointment.
Request a recalculation of your service retirement estimate.
Schedule meetings with your personal retirement planning advisors.
View the Retirement Benefits presentation.

Three to 12 Months Before Retirement

Read the Service Retirement and Plans of Payment brochure.
Complete and submit a Service Retirement Application.
Finalize plans to to purchase service credit.
Review STRS Ohio reemployment guidelines.
Notify your employer of your intent to retire.

For additional information, or if you have questions, contact STRS Ohio via email or toll-free at 888‑227‑7877. Email submissions on this site are unsecured. Please only include your name, the last four digits of your Social Security number or STRS Ohio account number with your message.

How to Apply for Disability Benefits

To qualify for disability benefits, an STRS Ohio member must:

Meet either of the following:
— Existing members on June 30, 2013, must have at least 5.00 years of qualifying service credit^* on account with STRS Ohio and submit a completed application packet within two years of the last date of earned service.

— New members on or after July 1, 2013, must have at least 10.00 years of qualifying service credit^* on account with STRS Ohio and submit a completed application packet within one year of the last date of earned service.
Have not withdrawn any portion of the account.
Not be receiving service retirement benefits.

In lieu of receiving monthly disability benefits from STRS Ohio, members may terminate employment and withdraw their defined benefit and/or defined contribution portions.

^*Qualifying service credit includes earned credit with STRS Ohio and interrupted teaching due to military service.

Medical Criteria

The medical criteria for a disability benefit are:

A disabling medical condition prevents the individual from performing his or her most recent job duties; and
The condition is expected to last at least 12 continuous months from the date STRS Ohio receives the completed Disability Benefit Application; and
The disability must have occurred since membership began or, if you previously withdrew your account, since you returned to covered service with STRS Ohio. If your condition existed at the time you became a member, it must have increased in severity since that time as to make the condition disabling under the criteria above.

Applying for Disability Benefits

If you qualify for a disability benefit contact STRS Ohio toll-free at 888‑227‑7877 to have a disability application packet sent to you.

The member should apply for disability benefits in a timely manner to avoid exhausting sick leave before the application process is complete. Due to the number of different review processes, members should allow approximately four to six months for consideration of a disability application. Listed below is a summary of the steps to follow when applying for disability benefits.

The member contacts STRS Ohio to request a Disability Application Packet, which includes the following:
- Disability Benefit Application
- Report by Employer
- Attending Physician’s Report
- Disability Benefit Application Checklist
- Questions and Answers booklet
All forms included in the packet must be completed and received by STRS Ohio before processing of your application begins. The Report by Employer should be returned to STRS Ohio by the employer with a copy of your most recent official job description.
For a condition to be evaluated as part of the disability application process, a current report from your treating physician (M.D. or D.O.) must be received with the application packet. The physician must certify on the report that the condition is and will continue to be disabling for at least 12 months from the date the application is received by STRS Ohio.

Note: The member’s spouse or a person acting on the member’s behalf may also file the application. The member must complete the Authorization for Release of Retirement Account Information form and submit it to STRS Ohio before the disability application can be discussed with a family member or any other individual representing the member.
The member is examined by an independent medical examiner chosen by STRS Ohio. Most STRS Ohio examiners are located in the Columbus, Ohio, area. STRS Ohio pays the examiner’s fee, but not the member’s travel expenses.
STRS Ohio’s Medical Review Board may recommend a period of medical treatment for up to six months before a recommendation is made to the State Teachers Retirement Board.
The Medical Review Board evaluates the applicant’s medical records and makes a recommendation to the Retirement Board.
If the Medical Review Board recommends approval of the application, the member must stop working by the end of that month.
The Retirement Board determines whether the application for disability benefits is approved.
STRS Ohio notifies the member of the Retirement Board’s decision.
If the disability application is approved, STRS Ohio requests final average salary and service credit information from the member’s employer to calculate the benefit payments. (Allow at least 90 days from the approval date to receive the first benefit payment.)
If the disability application is not approved, information about the appeal process is mailed to the applicant.

For additional information about the disability process, or if you have questions, contact STRS Ohio via email or toll-free at 888‑227‑7877. Please note that email submissions on this site are unsecured, so only include your name, the last four digits of your Social Security number or STRS Ohio account number with your message.

How to Apply for Survivor Benefits

Qualified survivors of STRS Ohio members may be eligible for monthly survivor benefits from STRS Ohio. Existing members as of June 30, 2013, must have at least 1.50 years of qualifying service credit before death. New members on or after July 1, 2013, must have at least 5.00 years of qualifying service credit before death. Please contact STRS Ohio toll-free at 888‑227‑7877 to apply for survivor benefits.