Ohio · STRS Ohio · Plans of payment

STRS Ohio plans of payment and the PLOP

When you retire, you choose how your benefit is paid: for your life only, or with money continuing to someone else. You can also take part of it as a lump sum.

Plan I: Single Life Annuity

The largest monthly benefit, for your life only. If you die before your payments add up to your contributions, the rest of your contributions go to your beneficiary. If you marry later, you can switch to a Joint and Survivor Annuity for your new spouse within the first year of the marriage.

Plans of Payment, pp. 8-11, Plan I

Plan II: Joint and Survivor Annuity

A reduced lifetime benefit; after your death your primary beneficiary gets, for life: the same amount (Option 1), one-half (Option 2), or a dollar amount or percent you choose of at least $50 a month and up to 100% (Option 3). Option 4 covers up to four primary beneficiaries, each at least 10% of your benefit. Options 1-3 come with or without reversion (going back to the Single Life amount if your beneficiary dies first or the marriage ends).

Plans of Payment, pp. 10-13, Plan II

Plan III: Annuity Certain

Payments for life; if you die before a guaranteed number of years you choose, your beneficiary gets the same monthly benefit for the rest of that period. You can't change plans later, but you can name a new beneficiary.

Plans of Payment, pp. 12-15, Plan III

Partial Lump-Sum Option Plan (PLOP)

A lump sum at retirement of 6 to 36 times your monthly Single Life Annuity, in $1,000 steps (unless you take the minimum or maximum), together with Plan I, II or III. Your monthly benefit is permanently reduced, and future increases are figured on the reduced benefit.

Plans of Payment, pp. 14-15, Partial Lump-Sum Option Plan (PLOP); Plan Summary, pp. 16-17
Survivor plan factors aren't published Check with STRS Ohio

Choosing a survivor plan or a guaranteed period lowers your monthly benefit by an amount STRS Ohio works out from your and your beneficiary's ages. STRS Ohio doesn't print those factors.

We show the Single Life Annuity and the PLOP cost (which STRS Ohio does publish), but no dollar figure for survivor plans.

Plan Summary, pp. 22-23; Plans of Payment, pp. 30-31

The PLOP: what a lump sum costs

The PLOP must be 6 to 36 times the monthly Single Life Annuity, in $1,000 increments unless you take the minimum or maximum. It's paid 91 days after your retirement date or when your benefit is finalized, whichever is later. The law also says what's left can't be under 50% of the Single Life Annuity. Plans of Payment, pp. 14-15; Plan Summary, pp. 16-19; ORC 3307.60(B) (50% floor)

Worked example (STRS Ohio)At 57, a $25,000 PLOP costs $7.03 for each $1,000: $175.75 a month less, for life. Plans of Payment, pp. 14-15
Monthly benefit reduction for each $1,000 of PLOP, by age at retirement.
Age at retirementMonthly cut per $1,000Age at retirementMonthly cut per $1,000
53$6.7860$7.26
54$6.8461$7.35
55$6.9062$7.45
56$6.9663$7.55
57$7.0364$7.67
58$7.1065$7.79
59$7.18
Plans of Payment, pp. 14-15, PLOP Cost Factor Table; Survivor Benefits, pp. 14-15

In the Combined Plan, a PLOP on the pension part at 60 costs $181.50 a month for $25,000. Plans of Payment (Combined), pp. 16-17

A PLOP paid to you has 20% federal withholding and may have a 10% penalty, unless you're 59 1/2 or left service in or after the year you turned 55. Roll it over to defer tax. Plans of Payment, pp. 14-17 The full tax rules are on the taxes page. A PLOP also lowers the base on which any future COLA is figured.

Spousal consent and changes

If you're married on your benefit date, your spouse must consent, before a notary, if you choose a Single Life Annuity, a survivor plan paying your spouse less than one-half or naming someone else, an Annuity Certain, or any PLOP. Without consent you get a Joint and Survivor Annuity paying one-half to your spouse (with reversion) and no PLOP. Plans of Payment, pp. 16-17, Spousal consent; ORC 3307.60(I)

A change to the plan you picked must reach STRS Ohio, signed, by the 15th of the month after your benefit is finalized. Plans of Payment, pp. 8-9; ORC 3307.60(D)

What the brochures say

Questions

What is the STRS Ohio PLOP?

The Partial Lump-Sum Option Plan: a lump sum at retirement of 6 to 36 times your monthly Single Life Annuity, in exchange for a smaller monthly benefit for life. At 57, $25,000 costs $175.75 a month.

Which plan of payment pays the most each month?

Plan I, the Single Life Annuity. Survivor plans and the Annuity Certain pay less so that payments can continue after you die.

Does my spouse have to agree?

If you're married, yes, for a Single Life Annuity, a survivor plan paying your spouse less than half, an Annuity Certain, or any PLOP.

See the PLOP for your benefit → Survivor benefits

Source: STRS Ohio, Understanding Your STRS Ohio Benefits: Plan Summary, 2026|2027 (form 20-101, Aug. 2026), pp. 16-17, 16-19, 22-23. Also: STRS Ohio Service Retirement and Plans of Payment (Defined Benefit Plan), 2026|2027 (form 15-126, 6/26), pp. 8-11, 8-9, 8-15, 10-13, 12-15, 14-15, 14-17, 16-17, 30-31. Also: STRS Ohio Survivor Benefits (Defined Benefit Plan), 2026|2027 (form 16-100, 6/26), pp. 12-13, 14-15. Also: STRS Ohio Service Retirement and Plans of Payment (Combined Plan), 2026|2027 (form 20-643, 6/26), pp. 16-17. Background: Ohio Revised Code Chapter 3307. Last reviewed .