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Upcoming Changes to Faculty Contributions to STRS and the STRS Mitigating Rate


The State Teachers Retirement System of Ohio (STRS) announced that there will be 1% increase to employee retirement contributions for work performed on or after July 1, 2016. This is the final year of the three-year phase-in period, increasing the member contribution rate to 14%.  

Any changes to retirement contributions enacted by STRS apply to both STRS plans and the Alternative Retirement Plan (ARP). The following serves to further clarify upcoming changes to retirement contributions for STRS and ARP plans.

Employee Contribution Changes:

  • Currently, faculty contribute 13% of their pay to their retirement plan.
  • As part of previously enacted pension reforms, faculty contributions to STRS plans and ARP plans will increase to 14% effective July 1, 2016.
  • The University will change faculty contributions automatically and faculty do not need to take any action regarding these changes.

The changes will be reflected in Faculty pay for any work performed on or after July 1, as follows:

STRS Table 1

The mitigating rate is set by Ohio Revised Code (ORC). The mitigating rate is currently set at 4.5% and will remain at that level unless further action is taken by STRS or the State Legislature, who review whether changes to the mitigating rate are warranted.  The mitigating rate reflects that portion of the University contributions that are directed to STRS to fund the liability associated with the defined benefit plan that is partially attributable to the creation and existence of the ARP and STRS defined contribution plan. 


Mitigating Rate

The mitigating rate applies to University contributions to the ARP plan and STRS defined contribution plan. 

The chart below reflects current and upcoming contribution changes:

STRS Table 2

This information was sent to all Ohio University faculty via direct email on June 9, 2016.

If you have questions or would like more information, please contact the Benefits Office at benefits@ohio.edu or 740-593-1636.