The State Teachers Retirement System of Ohio board approved a one-time, 3% cost of living adjustment for eligible retirees starting July 1.
Retirees who retired before July 1, 2018 will receive the boost on the anniversary of their retirements. It'll be 3% of their base pension check.
Under the current system, teachers can retire at any age after 34 years of service, but in 2026 the requirement was scheduled to be 60 years old and 35 years of service. The Ohio STRS board eliminated the 60 years old requirement.
It marks the first improvements to benefits for Ohio's second-largest public pension system after several years of austerity measures.From 2013 to 2017, the pension fund cut theannual cost of living adjustments until it finally eliminated them altogether.
Teacher Julie Sellers and retiree Elizabeth Jones said in a written, joint statement that "A one-time COLA is a step in the right direction, but falls short of what STRS retirees need and deserve. Likewise, elimination of the age threshold for full retirement benefits is a positive change but the result is that it's still harder to retire today than it was 10 years ago."
STRS saidreforms made in 2012 and strong investment returns mean the system can afford to make the benefit improvements.
STRS has roughly$98 billion invested on behalf of 500,000 Ohioans. Public employees in Ohio do not participate in Social Security so the retirement systems are their main pension resource.
Collectively, the state's five pension fundshold more than $218 billion invested for675,000 government employees, 1.1 million inactive members and 485,000 beneficiaries.
Laura Bischoff is a reporter for the USA TODAY Network Ohio Bureau, which serves the Columbus Dispatch, Cincinnati Enquirer, Akron Beacon Journal and 18 other affiliated news organizations across Ohio.
In fiscal year 2023, STRS Ohio paid more than $7.5 billion in service retirement, disability and survivor benefits to just over 156,000 individuals including $376 million for health care coverage. STRS Ohio operates under the guidelines of Chapter 3307 of the Revised Code (R.C.) as enacted by the Ohio General Assembly.
Board approved a one-time 1% cost-of-living adjustment (COLA)* for eligible benefit recipients effective July 1, 2023. An increase of 1% will be added to the base benefit on the retirement date anniversary and each month thereafter.
These new STRS Ohio retirees receive on average an annual pension benefit of about $69,000. FACT 2: About one in five retiring educators elect to receive a Partial Lump-Sum Option Plan (PLOP) payment immediately upon retirement. The average PLOP paid to these new retirees was approximately $157,000.
In May 2023, the State Teachers Retirement Board approved a 1% cost-of-living adjustment (COLA) to eligible benefit recipients effective July 1, 2023. New STRS Ohio benefit recipients are eligible to receive a COLA beginning on the fifth anniversary of their retirement date.
Ohio residents can receive both SERS benefits and Social Security benefits if they qualify for both. That answer sounds confusing, but being dual eligible means you contributed to both the state-based program and the federal one. School Employees Retirement System of Ohio. You will know if you have paid into SERS.
Of course, the average retirement age varies by profession. University professors retire later than teachers, for example. The average retirement age for teachers hovers around 59. In general, wealthier folks with high levels of educational attainment are more likely to continue working past the normal retirement age.
01The five best states for new teachers to enroll in a retirement plan are South Carolina,Tennessee, South Dakota, Oregon, and Michigan. Three of these states offer a hybrid plan (TN, SD, OR), while the other two offer a choice between a pension plan or a DC plan (SC, MI).
The WEP reduces the Social Security benefits of certain retired or disabled workers who are also entitled to pension benefits based on earnings from jobs that were not covered by Social Security—and thus not subject to the Social Security payroll tax.
A cost-of-living adjustment (or COLA) is an increase in the benefits or pay a person receives to offset the pressure of inflation. If a person's income stays stable, they have less purchasing power as the prices of goods and services increase.
Keep in mind, your OPERS benefit will not be reduced by any Social Security benefit you may receive. The GPO may also affect you if you are eligible for Social Security benefits through your spouse. The GPO is a reduction of Social Security benefits by two-thirds of your OPERS benefit.
Can you collect Social Security and a pension at the same time? You can retire with Social Security and a pension at the same time, but the Social Security Administration (SSA) might reduce your Social Security benefit if your pension is from a job at which you did not pay Social Security taxes on your wages.
The Windfall Elimination Provision (WEP) was enacted in 1983 as a modified benefits program for employees who receive a pension for their public service. Under the WEP, public employees can have their Social Security earning potential lowered by up to 50% due to also earning a public pension.
As a public employee in the state of Ohio, you do not pay into Social Security and do not earn qualified service toward Social Security. In place of Social Security, you contribute 10% of your pay to SERS in return for a lifetime pension, which is earned after meeting certain age and service requirements.
Studies have found that the median retirement account balance for workers aged 55 to 64 pre-COVID was $144,000. The NEA estimates that 200,000 teachers retire each year and the average teacher retirement age is 59.
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