At Schuler Wealth Planning, education is part of who we are. In German, “Schuler” means student and “Schul” means school, which is fitting for a family with deep ties to teaching. We have many family members that have spent years in the classroom, so we understand the unique challenges educators face when planning for retirement. That’s why we’ve broken down the key points from the State Teachers Retirement System of Ohio (STRS Ohio) to help you understand your options and choose the plan that’s right for you.
What are my options?
As a new member, you have 180 days from your first day of paid service to select one of three retirement plans. If you don’t make a choice, you’ll automatically be placed in the Defined Benefit Plan, and that decision will be permanent.
Note: If you’re a Higher Education Faculty Member, you also have the option of choosing the Alternative Retirement Plan (ARP), which is a defined contribution plan, within the first 120 days.
Your Three Plan Options
1. Defined Benefit (DB) Plan
- Predictable Income:
- Unreduced Benefit – Formula-based using years of service multiplied by 2.2% and your final 5-year average salary (FAS).
- 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.
| Retirement Dates | Unreduced Benefit | Reduced Benefit |
| 6/1/2025 – 5/1/2030 | Any age and 32 years | Any age and 27 years |
| Age 65 and 5 years | Age 60 and 5 years | |
| 6/1/2030 – 5/1/2032 | Any age and 33 years | Any age and 28 years |
| Age 65 and 5 years | Age 60 and 5 years | |
| On or after 6/1/2032 | Any age and 34 years | Any age and 29 years |
| Age 65 and 5 years | Age 60 and 5 years |
- Example: 34 years of service × 2.2% × $80,000 = $59,840 annually.
- Features: Survivor and disability benefits, health care coverage (with 20 years of service), no investment decisions.
- Best For: Career educators seeking stability.
- Permanent Choice: No reselection option.
2. Defined Contribution (DC) Plan
- Flexibility & Control: You manage investments among 19 options.
- Funding: 14% member contributions + 11.09% employer contributions.
- Portability: Ideal if you may leave Ohio teaching.
- Considerations: No STRS health care coverage; no disability or survivor benefits.
- Best For: Those comfortable with investment decisions.
- Reselection: Available before your fifth year.
3. Combined Plan
- Hybrid Approach: Part defined benefit, part defined contribution.
- Defined Benefit Portion: 1% × years of service × FAS.
- Features: Survivor and disability benefits, health care coverage (with 20 years of service).
- Best For: Educators who want both security and flexibility.
- Reselection: Available before your fifth year.
Comparison Chart
| Feature | Defined Benefit (DB) | Defined Contribution (DC) | Combined Plan |
| Predictable Monthly Benefit | Yes | No | Yes (DB portion) |
| Investment Control | No | Yes | Yes (DC portion) |
| Health Care in Retirement | Yes (with 20 yrs) | No | Yes (with 20 yrs) |
| Survivor & Disability | Yes | No | Yes |
| Portability | Moderate | High | Moderate |
| Reselection Option | No | Yes | Yes |
Common Scenarios
- Michael (24, first teaching job): Unsure about staying in Ohio, wants flexibility → Defined Contribution Plan may fit best.
- Emily (30, single mom): Wants security and family benefits, no time for investments → Defined Benefit Plan may be best.
- Jennifer (50, second career): Experienced investor, values flexibility but wants some guarantees → Combined Plan could be ideal.
Key Deadlines & Tips
- 180-Day Deadline: Make your selection online at www.strsoh.org.
- Reselection Opportunity: Available only for DC and Combined Plans before your fifth year.
- Health Care Eligibility: Requires 20 years of service for DB and Combined Plans.
Cost of Living Adjustments (COLA)
New STRS Ohio-defined benefit recipients are eligible to receive a cost-of-living adjustment beginning on the fifth anniversary of their retirement date. The State Teachers Retirement Board periodically evaluates COLA. If it is granted, you will receive it on your retirement date anniversary.
Ready to Make Your Choice or about to Retire?
Choosing the right STRS Ohio plan is a personal decision based on your career goals, risk tolerance, and family needs. Coordinating your retirement plan with Social Security, Medicare, and other retirement plans once you retire can be extremely complex. At Schuler Wealth Planning, we specialize in helping educators align these choices with their broader financial plans.
Want to learn more about maximizing your STRS benefits? Contact us for a personalized consultation and financial plan.
Source: www.strsoh.org
IMPORTANT DISCLOSURE INFORMATION:
Past performance is not indicative of future results. All investments involve risk, and there is no guarantee that the strategies or investments discussed by Schuler Wealth Planning, LLC (“SWP”) will be profitable, match prior performance, be appropriate for your individual circumstances, or achieve intended outcomes. This content is for informational purposes only and does not constitute personalized financial, legal, or tax advice. SWP is not a law firm or accounting firm, and no portion of this content should be interpreted as legal or accounting guidance. Please consult with a qualified financial, legal, or tax advisor before making any financial decisions. A copy of SWP’s current written disclosure brochure describing our advisory services and fees is available upon request. Schuler Wealth Planning makes no representations regarding the accuracy, timeliness, or completeness of third-party content linked or referenced, and assumes no responsibility for errors or reliance on such information. If you are an SWP client, please notify us in writing of any changes to your financial situation, investment objectives, or account restrictions so we may update your plan accordingly.
