STRS Ohio Plan of Payment Options

The Choice That Cannot Be Undone

For a Defined Benefit Plan benefit or the defined benefit portion of a Combined Plan, your Plan of Payment election becomes final on the 15th day of the month of your first regular benefit payment. After that, the monthly pension amount and beneficiary structure are generally locked. A limited exception allows a member who marries after retirement while receiving a Single Life Annuity to convert to a Joint and Survivor benefit within one year.

STRS Ohio offers three main categories, each with sub-options that trade monthly income for beneficiary protection.

Plan I: Single Life Annuity

The highest possible monthly payment. Benefits end entirely when you die — no ongoing monthly pension goes to anyone. Your estate receives only the remaining balance of your own accumulated contributions (typically exhausted within two to three years of retirement).

Spousal consent is required if you're married, because choosing Plan I means your spouse receives nothing monthly after your death.

Plan II: Joint and Survivor Annuity

This is the category most retirees spend their time analyzing. It has four options:

Option 1 (100% to beneficiary): Your monthly benefit is reduced during your lifetime. When you die, your named beneficiary receives 100% of that reduced amount for the rest of their life.

Option 2 (50% to beneficiary): A smaller monthly reduction than Option 1. Your beneficiary receives 50% of your reduced monthly benefit for life after your death. This is the statutory default — if you're married and either fail to submit an application or withhold spousal consent, STRS Ohio assigns this option automatically.

Option 3 (custom percentage or dollar amount): You set a specific percentage or flat dollar amount (minimum $50/month, up to 100%) for one beneficiary. Spousal consent is required if your spouse receives less than 50%.

Option 4 (multiple beneficiaries): Split survivor benefits among up to four people, by percentage or flat dollar. The total cannot exceed your monthly benefit. Each beneficiary receives their designated share for life.

The Reversion Question

Every Joint and Survivor option comes in two versions:

With Reversion: If your beneficiary dies before you, your monthly benefit "pops up" to the full Single Life Annuity amount. You stop paying the actuarial cost of survivor protection you no longer need.

Without Reversion: If your beneficiary dies before you, your monthly benefit stays at the reduced level permanently. The upside is that your initial reduction is smaller than the "with reversion" version, since STRS isn't pricing in the possibility of restoring your benefit.

The trade-off is straightforward: "with reversion" costs more per month now but protects you against overpaying if your beneficiary predeceases you. "Without reversion" costs less per month but locks in the reduced payment regardless of what happens.

Plan III: Annuity Certain

A guaranteed payout for a fixed term — typically 5, 10, or 15 years. If you die within the term, your beneficiary receives the remaining payments. If you outlive the term, your benefit continues for life at the same amount, but nothing goes to a beneficiary after the guaranteed period ends.

This option requires spousal consent for married members. It's designed for retirees who want to guarantee a specific window of income to a beneficiary without the open-ended commitment of a Joint and Survivor plan.

Plan I vs Plan II: What You're Really Choosing

The gap between a Single Life Annuity and a 100% Joint and Survivor benefit can be several hundred dollars per month, depending on your age and your beneficiary's age. The wider the age gap (especially with a younger beneficiary), the larger the reduction, because STRS Ohio expects to pay that survivor benefit for more years.

You're not choosing between "more money" and "less money." You're choosing between maximum monthly income with no survivor protection and reduced monthly income with lifetime survivor protection. Each household's math is different based on other income sources, life insurance, savings, and whether a surviving spouse has their own pension or Social Security.

Timing and the Election Deadline

You select your Plan of Payment when you submit your Service Retirement Application, ideally three to twelve months before your retirement effective date. You can change your election any time before the 15th of the month of your first regular benefit payment. After that deadline, it is permanent.

Our STRS Ohio Retirement Guide includes a payout comparison worksheet that lays out the monthly income difference across all plan options using your projected benefit, so you can see exactly what each choice costs before the deadline arrives.

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