When can I return to public employment in Ohio?
To be eligible for service retirement, there must be a minimum one-day break in service between the last day of employment as an active STRS Ohio member and the first day of employment as a reemployed retiree in an STRS Ohio-covered position. This one day must be the last workday of the month before the service retirement date or the first workday of the retirement month. The one-day break must be a normal workday and cannot be a Saturday, Sunday or holiday. For example, if your service retirement date is July 1 and your last paid workday is on or before June 29 and you do not work on June 30 (if a normal workday), you can begin reemployment on July 1. If your last paid workday is June 30 and you do not work July 1 (if a normal workday), you can begin reemployment on July 2.
The one-day break in service does not apply if your reemployment is with an employer other than the employer you retired from. It also does not apply to employment covered by Ohio Public Employees Retirement System (OPERS) or School Employees Retirement System (SERS).
Is there a penalty for reemployment after the one-day break is satisfied?
If you are employed by only one Ohio public employer at the time of retirement, you must wait two months after your retirement date to return to public employment. Public employment in Ohio during the first two months will result in the loss of one or two months of retirement benefits. Private employment or out-of-state employment during the first two months of retirement would not be a violation.
What if I have more than one Ohio public employer at the time of retirement?
If you are employed at the time of retirement by more than one employer covered by STRS Ohio, OPERS or SERS, you may retire with the highest paying (primary) employer and continue to work with one or all of the lower paying (secondary) employers with no waiting period. To be eligible to continue to work with a secondary employer with no waiting period or penalties, you must have worked and earned compensation from that employer for each of the 12 months before and in the month of retirement.
A secondary employer is defined as any STRS Ohio, OPERS or SERS employer with which you earned less compensation than you earned with your highest paying employer (in that fiscal year or in the previous 12-month period) and you are continuing employment with that employer in the first month of retirement.
If you are DB Plan member and your secondary employer is covered by OPERS or SERS, then you must combine that account with your STRS Ohio account at retirement to avoid a forfeiture of benefits. You may have more than one secondary employer. The “one-day break in service” referenced above does not apply to employment with a secondary employer.
Can I volunteer?
If you are reemployed within the first two months of retirement or continue in the same position as a nonpaid volunteer, you will be in violation of the two-month waiting period and will forfeit monthly benefits for any month in which you are in violation. However, other nonpaid volunteer service in the first two months of retirement would not be a violation, so long as you never receive pay for the service.
What benefits do I forfeit if I’m reemployed in the first two months of retirement?
If you return to Ohio public employment in the first two months of retirement, you will forfeit retirement benefits for the months worked. The amount forfeited is equal to the Single Life Annuity benefit amount before any reduction for a Joint and Survivor or Annuity Certain plan of payment and a Partial Lump-Sum Option Plan (PLOP) payment. The difference between the actual plan of payment selected and the Single Life Annuity (or pre-PLOP Single Life Annuity) will be deducted from future monthly benefits.
Am I eligible for health care coverage if I am reemployed?
Medical coverage is limited for individuals not eligible for Medicare who are employed in a public or private position. Employed retirees without Medicare are eligible for only secondary medical coverage through STRS Ohio’s Aetna Basic Plan when they:
- Are eligible for medical and prescription coverage through their employer; or
- Hold a position for which other similarly situated employees are eligible for medical and prescription coverage.
Does my reemployment fund a new account or add to my existing retirement benefit?
Your reemployment will fund a new account, completely separate from your original service retirement account. Members continuing public employment after retirement and their employers both contribute to the applicable Ohio public retirement system. These contributions fund a benefit that you may collect as a lump-sum payment the first of the month following your last day of service or 12 months after the payment of a previous reemployed retiree benefit payment, whichever is later. Before benefits are payable, you must terminate employment.
Will I receive an Annual Statement of my reemployment account?
Yes. Each fall, an Annual Statement of Account is provided to reemployed retirees and reflects account information as of the preceding June 30. This statement is available through your Online Personal Account and reflects your total account balance and account withdrawal value.
When can I withdraw my reemployed retiree account?
You may apply to withdraw your account after you terminate your employment. If a previous reemployed retiree payment was issued, you must wait at least 12 months before you can withdraw your reemployed retiree account funds.
How do I apply for payment from my reemployment account?
When you terminate employment, you can apply online for reemployed benefits in the Reemployed section of your Online Personal Account. If you are a retiree of another Ohio retirement system (e.g., OPERS or SERS), you must complete a printable copy of the application.
What are my payment options?
If you elect a reemployment benefit before age 65, a lump-sum payment is your only option. If you elect a reemployment benefit at age 65 or after, you may elect to receive the benefit as a lump-sum payment or a monthly annuity, provided the annuity is $25 or greater. Lump-sum payments can be paid directly to you or rolled over to a qualified plan.
How is my reemployment payment calculated?
If you elect a reemployment benefit before age 65, you will receive your contributions and interest on your contributions through your last day of service. Interest begins to accrue in the fiscal year (July 1–June 30) following deposit and would be payable the following August or later. If you elect a reemployment benefit at age 65 or after, you will receive your contributions and interest on your contributions, and possibly a matching amount and interest depending on when the work was performed. Interest terminates at age 65 or your last day of service, whichever is later. For example, if you stop working at age 63 and leave the account for a payment at age 65, interest will be included through age 65. Matching funds are included for payments with member contributions made before July 1, 2013. Member contributions made before July 1, 2005, are matched at 100%. Member contributions made July 1, 2005, through June 30, 2013, are matched at 50%.
When can I expect to receive payment of my reemployed retiree account?
Typically, reemployed retiree payments are issued within two to three weeks from receipt of the completed application. Payment is dependent on your previous employer providing contribution and termination of employment information.
Will you withhold taxes on a payment paid directly to me?
Your payment will be taxed in the year in which it is issued. STRS Ohio will withhold federal tax at a rate of 20%. Lump-sum payments rolled over to a qualified plan will not have taxes withheld.
Will I receive a 1099-R tax form?
Yes. A 1099-R form will be sent to you in January following the year in which you receive monthly payments. If you elect a lump-sum payment, the 1099-R form will be mailed to you three to five days after the payment is made.
Is there a penalty for withdrawing my account?
If you receive the payment before age 59-1/2, you may have to pay a 10% tax penalty for an early withdrawal. Contact a qualified tax consultant for more details on taxation of benefits.
Will a required minimum distribution (RMD) apply to my reemployment account?
Federal law requires you to take a RMD from your retirement plan by April 1 of the year that follows the latter of: the year in which you reach age 73 or the calendar year in which you stop working in an Ohio public position. If you do not apply for a payment from your reemployment account by the required beginning date, a lump-sum payment will automatically be made to you effective Jan. 1 of the year following the year you reach age 73.
Will my check be direct deposited?
Lump-sum payments not rolled over will be direct deposited to the same bank account as your service retirement benefit. If you are not an STRS Ohio retiree, the check will be mailed to the address on your application. Monthly payments will be direct deposited to the same bank account as your service retirement benefit. If you are not an STRS Ohio retiree, complete a Direct Deposit form to have your payments sent via direct deposit.
What happens if I die before receiving the funds in my reemployment account?
Upon your death, survivors will receive a lump-sum payment of any unpaid funds. It is important to keep your beneficiary information updated.