STRS Ohio Death Benefit: The $1,000 Statutory Benefit and Optional Coverage

The Statutory Benefit: $1,000, Automatic, Tax-Free

Every STRS Ohio Defined Benefit (DB) service or disability retiree has a system-funded $1,000 death benefit that pays to the designated death benefit beneficiary upon the retiree's death. This benefit exists regardless of which Plan of Payment the retiree selected and is completely separate from any monthly survivor annuity under Plan II or Plan III.

Key facts about the statutory death benefit:

• Funded by STRS Ohio, not by the retiree — no premiums or deductions were taken from the retiree's pension to fund this benefit.
• Classified as a nontaxable life insurance benefit under ORC 3307.661. It does not appear as taxable income on IRS Form 1099-R.
• Paid to the designated death benefit beneficiary, which may be a different person than the Plan of Payment beneficiary. The retiree names the death benefit beneficiary on a separate form.
• Not available for DC Plan members. The $1,000 statutory death benefit is a Defined Benefit Plan feature. Members who participated only in the Defined Contribution Plan do not have this benefit.

When STRS Ohio processes the death notification, the $1,000 benefit is included in the Survivor Benefit Packet workflow. Follow the packet instructions for any information or forms STRS Ohio needs to verify the beneficiary and issue payment.

Optional Retiree-Funded Death Benefit

At retirement or at age 65, STRS Ohio retirees had the option to purchase additional death benefit coverage at their own expense. Two coverage levels were available: $1,000 or $2,000 of additional coverage.

Retirees who elected this optional coverage paid premiums through deductions from their monthly pension payment. The coverage remained in effect as long as premiums were paid.

Unlike the statutory benefit, the optional retiree-funded death benefit is fully taxable as ordinary income to the beneficiary. It's reported on IRS Form 1099-R in the year received.

Who Gets the Death Benefit

The death benefit beneficiary is named on a separate Beneficiary Designation form — not the same designation that controls the Plan of Payment survivor annuity. A retiree could name:

• Their spouse as the Plan II survivor beneficiary (for continuing monthly payments)
• An adult child as the death benefit beneficiary (for the $1,000 statutory benefit and optional coverage)

This is a detail many families miss. When confirming what benefits are available after a death, ask STRS Ohio about both the Plan of Payment beneficiary and the death benefit beneficiary — they may be different people.

If no death benefit beneficiary is on file, contact STRS Ohio to learn which default-beneficiary rule applies and what documentation it needs.

Death Benefits for Active Member Deaths

The $1,000 statutory death benefit applies to service and disability retirees, not active members. When an active teacher dies, the available benefits are the qualified survivor benefits (monthly annuity options or lump-sum refund of contributions) under ORC 3307.66.

Active members may have separate life insurance coverage through their school district, the Ohio Education Association, or private policies. These are distinct from STRS Ohio benefits and must be claimed through the issuing organization.

Claiming the Benefit

The death benefit claim is processed as part of the standard post-death workflow:

1. Report the death to STRS Ohio at 888-227-7877 or online
2. Receive the Survivor Benefit Packet
3. Complete and return the claim forms with a certified death certificate
4. STRS Ohio verifies the beneficiary designation and processes payment

The statutory $1,000 benefit is typically disbursed faster than the monthly survivor pension setup, since it doesn't require benefit formula calculations or plan election decisions.

The STRS Ohio Survivor Benefits Guide includes the complete document checklist and claim tracker for both the death benefit and the monthly survivor pension process.

See more Ohio guides →