STRS Ohio Plan of Payment After Death: What Survivors Receive

The Retirement Decision That Governs Everything

When an STRS Ohio service retiree dies, the surviving family doesn't get to choose between benefit options. That decision was made once — at retirement — when the member selected a Plan of Payment on their Service Retirement Application. The plan chosen determines whether monthly payments continue, how much the beneficiary receives, and for how long.

If you're unsure which plan your family member selected, STRS Ohio can confirm it over the phone at 888-227-7877 once they verify your identity as a claimant.

Plan I: Single Life Annuity

Plan I pays the highest possible monthly benefit to the retiree during their lifetime. The trade-off is straightforward: when the retiree dies, monthly payments stop permanently. No continuing monthly pension goes to a spouse, child, or anyone else.

There is one potential payout. If the total monthly benefits the retiree received over their lifetime are less than the member's accumulated contributions to the system, STRS Ohio pays the difference — the unexhausted balance — as a lump sum to the designated beneficiary. This amount is often modest or zero for retirees who lived many years past retirement.

The designated beneficiary of a DB service retiree also receives the separate $1,000 statutory death benefit, regardless of Plan of Payment.

Plan II: Joint and Survivor Annuity

Plan II reduces the retiree's monthly benefit during their lifetime in exchange for continuing payments to one or more beneficiaries after death. There are four options:

Option 1 (100% Continuation): The beneficiary receives the same monthly amount the retiree was receiving. This produces the largest reduction to the retiree's lifetime benefit but the most for the survivor.

Option 2 (50% Continuation): The beneficiary receives half of the retiree's monthly amount. The reduction to the retiree's benefit during their lifetime is smaller than Option 1.

Option 3 (Designated Percentage or Amount): The retiree chose a specific percentage or fixed dollar amount (minimum $50 per month, up to 100%) for the beneficiary. This option allows customization — for example, setting the survivor benefit at 75% or at a flat monthly figure.

Option 4 (Multiple Beneficiaries): The benefit is divided among up to four primary beneficiaries. Each receives their designated share after the retiree's death.

The Reversion Feature

When selecting Plan II, retirees could choose the option "With Reversion" or "Without Reversion."

With Reversion means that if the named beneficiary dies before the retiree, the retiree's monthly payment increases — potentially all the way back up to the Plan I Single Life Annuity amount. This protects the retiree from permanently reduced payments when the person they were protecting is no longer alive.

Without Reversion locks in the reduced benefit permanently, regardless of whether the beneficiary dies first. Once selected, the retiree's monthly amount never changes.

The reversion feature only matters while the retiree is alive. After the retiree's death, the surviving beneficiary's monthly amount is fixed by the option that was chosen.

Plan III: Annuity Certain

Plan III guarantees payments for a specific number of years — typically 3, 5, 10, or 15 — starting from the retirement date. If the retiree dies before the guaranteed period expires, monthly payments continue to the designated secondary beneficiary for the remaining years.

Once the guarantee period ends, payments stop — even if the beneficiary is still alive. If the retiree lives beyond the guaranteed period, payments continue for the retiree's lifetime but nothing continues to a beneficiary after death (beyond the $1,000 statutory death benefit).

For example, a retiree who selected a 10-year guarantee and died seven years into retirement would leave three years of monthly payments to their beneficiary. A retiree who selected the same guarantee but died 12 years after retiring would leave no continuing payments.

How PLOP Affects Survivor Benefits

Retirees who elected a Partial Lump-Sum Option Plan (PLOP) at retirement received an upfront cash payment in exchange for permanently reduced monthly benefits. Survivor benefits under Plan II or Plan III are calculated from the reduced amount, not the original pre-PLOP figure.

If the retiree took a PLOP of $50,000 and their monthly benefit dropped from $3,200 to $2,700, the surviving beneficiary's monthly payment under Plan II Option 1 would be based on $2,700, not $3,200.

What This Means for Families

The practical impact is significant. A surviving spouse under Plan II Option 1 may receive a monthly payment that funds a stable retirement. A surviving spouse under Plan I receives nothing monthly — only the unexhausted contribution balance and the $1,000 death benefit.

If you're navigating a Plan of Payment that provides no continuing benefit, explore whether Social Security survivor benefits may partially fill the gap. The STRS Ohio Survivor Benefits Guide includes benefit comparison worksheets to help map out what each income source provides.

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