STRS Ohio Retirement Payout Options Explained

Three Categories, Multiple Combinations

STRS Ohio Defined Benefit and Combined Plan members choose from three Plan of Payment categories at retirement. Each category adjusts your monthly pension differently and carries different consequences for your beneficiaries.

Plan I — Single Life Annuity. Maximum monthly check. No monthly survivor benefit to anyone. When you die, monthly payments stop. Your estate receives only the remaining balance of your accumulated contributions, which is typically depleted within two to three years of retirement. Requires notarized spousal consent if you're married.

Plan II — Joint and Survivor Annuity. Your monthly check is reduced during your lifetime. When you die, your named beneficiary receives a continuing monthly benefit for their life. Four options: 100% to one beneficiary (Option 1), 50% to one beneficiary (Option 2, the statutory default for married members), a custom percentage or dollar amount to one beneficiary (Option 3), or a split among up to four beneficiaries (Option 4).

Plan III — Annuity Certain. Guaranteed monthly payments for a fixed term (5, 10, or 15 years). If you die within the term, your beneficiary receives the remaining payments. If you outlive the term, payments continue for life but nothing goes to a beneficiary. Requires spousal consent if married.

The Monthly Income Gap

The difference between Plan I and Plan II Option 1 (100% survivor) can be several hundred dollars per month. The exact reduction depends on your age, your beneficiary's age, and whether you choose "with reversion" or "without reversion."

Younger beneficiaries mean larger reductions, because STRS Ohio prices in more expected years of survivor payments. A retiree at 58 naming a 55-year-old spouse pays a smaller percentage reduction than the same retiree naming a 45-year-old spouse.

Reversion: The Hidden Variable

Every Joint and Survivor option comes in two flavors:

With reversion — if your beneficiary dies before you, your monthly benefit pops back up to the full Single Life Annuity amount. You pay a higher reduction upfront for this protection.

Without reversion — if your beneficiary dies before you, your benefit stays at the reduced level permanently. Lower initial reduction, but no recovery if circumstances change.

The reversion question often gets overshadowed by the Plan I vs Plan II decision, but it can significantly affect your lifetime income. A healthy 58-year-old retiree with a slightly older spouse might rationally choose "without reversion" for the lower monthly cost, while the same retiree with a much younger spouse might prefer "with reversion" as insurance.

Layering a PLOP

You can combine any Plan of Payment with a PLOP (6 to 36 times your unreduced Single Life benefit, in $1,000 increments). The PLOP creates a second permanent reduction on top of your plan's actuarial adjustment.

Example: if Plan II Option 1 reduces your $4,200 Single Life benefit to $3,600, and a $25,000 PLOP at age 57 reduces it by another $175.75, your actual monthly check is $3,424.25. The PLOP reduction is permanent. The Joint and Survivor reduction can revert to the Single Life amount if you chose reversion and your beneficiary dies before you; a PLOP also reduces the base used for future COLAs.

What the Statutory Default Gives You

If you're married and file your application without making an election — or your spouse refuses to sign the consent form — STRS Ohio assigns Plan II Option 2 (50% Joint and Survivor with reversion) and no PLOP. This guarantees your spouse half your reduced benefit for life and costs you less monthly than the 100% option, but it provides less long-term protection for a surviving spouse who has no other income.

Making It Concrete

The only way to evaluate these options is with your actual numbers. Pull your STRS Ohio retirement estimate, which shows projected monthly amounts under each Plan of Payment. Then layer on any PLOP reduction using the age-based actuarial factors.

The question isn't which option pays the most — Plan I always does. The question is whether the monthly income difference is worth the trade-off in survivor protection, household financial resilience, and long-term security.

Our STRS Ohio Retirement Guide includes payout comparison worksheets that calculate the monthly and lifetime cost of each option using your projected benefit, so the trade-offs are visible in real dollars before your election deadline.

See more Ohio guides →