The latest update from the State Teachers Retirement System of Ohio (STRS) March 2026 Board meeting highlights incremental, but important, changes for current and future retirees.
- 1.6% Cost-of-Living Adjustment (COLA) Approved
The STRS Board approved a 1.6% COLA to eligible benefit recipients effective July 1, 2027.
Who is eligible?
- If you started receiving STRS benefits on June 1, 2022, or earlier.
- Eligibility begins on the fifth anniversary of your retirement date.
How COLA is applied
- The 1.6% permanent adjustment is calculated on your base benefit.
- It takes effect on the anniversary date of your retirement date.
- Your regular monthly payment will reflect the increase from that date forward.
- It is added to your current gross benefit and the federal taxes (if applicable will be automatically adjusted.
- Retirement Eligibility Changes Extended
The Board extended the current, more favorable eligibility rules for an additional five years to May 1, 2035. This provides short-term flexibility for educators near retirement. Retirement eligibility is now:
| Retirement Dates | Unreduced Benefit | Reduced Benefit |
| June 1, 2025 – May 1, 2035 | Any age and 32 years: or age 65 and 5 years | Any age and 27 years; or age 60 and 5 years |
| June 1, 2035 – May 1, 2037 | Any age and 33 years; or age 65 and 5 years | Any age and 28 years; or age 60 and 5 years |
| On or after June 1, 2037 | Any age and 34 years; or age 65 and 5 years | Any age and 29 years; or age 60 and 5 years |
Unreduced Benefit – Formula-based using years of service multiplied by 2.2% and your final 5-year average salary (FAS).
Example: 34 years of service × 2.2% × $80,000 = $59,840 annually.
Reduced Benefit – The same formula as above with an actuarial reduction factor based on your age that lowers the monthly payment to account for the longer period the system will be paying out benefits.
- Approved Framework to Achieve Long-Term Goals
STRS continues to balance benefit improvements, funding health, and investment performance.
- Goal to make permanent Unreduced Benefits at 32 years of service
- Goal to provide a permanent 1% COLA for retirees.
If you’re approaching retirement and wondering how STRS eligibility, COLAs, and timing decisions impact your plan, Schuler Wealth Planning can help you make confident, informed decisions so you can retire on your terms.
Sources:
https://www.strsoh.org/newsroom/2026/march-board-news.html
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