STRS Member Contribution Increase

Email to Faculty members from Colleen Bendl, CHRO:

State Teachers Retirement System (STRS) recently announced the member contribution rate will increase 1% from 11% to 12% for work performed on or after July 1, 2014. This increase is part of the pension reform legislation that was passed in September 2012 to strengthen Ohio’s statewide retirement systems. These changes to STRS Ohio’s benefit plan design were previously communicated in 2012 (https://www.strsoh.org/_pdfs/legislation/20-663.pdf) and involve an increase in member contributions of 4%, phased in 1% per year beginning July 1, 2013 through July 1, 2016. Absent legislative changes, members will contribute 14% of their salary to STRS Ohio beginning July 1, 2016. 

Legislation is also pending to freeze the percentage of an alternative retirement plan (ARP) participant’s compensation paid by a public institution of higher education to STRS to mitigate any financial impact of an ARP on STRS at 4.5% effective until July 1, 2015. The chart below shows the current, as well as future rates, but notes the mitigating rate freeze is pending legislative approval. 

STRS - ARP Retirement Contributions

 
STRS
Defined
Benefit &
Combined Plans
ARP & STRS
Defined
Contribution
Plan
  Current
Employee
Contribution
11% 11%
Ohio University
Contribution
14% 9.5%
Mitigating Rate   4.5% to STRS

 
July 2014
Employee
Contribution
12% 12%
Ohio University
Contribution
14% 9.5%
Mitigating Rate   4.5% to STRS
  July 2015
Employee
Contribution
13% 13%
Ohio University
Contribution
14% 9.5%
Mitigating Rate   4.5% to STRS
  July 2016
Employee
Contribution
14% 14%
Ohio University
Contribution
14% 9.5%
Mitigating Rate   4.5% to STRS

 * Pending legislation may freeze the STRS mitigating rate at 4.5% through July 1, 2015

If you have any questions about this information, please contact either Greg Fialko (740.593.1639 or fialko@ohio.edu) or Krista Antle (740.593.9360 or antlek@ohio.edu).

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