In Ohio, the retirement age follows federal guidelines, typically ranging from 65 to 67 based on the year of birth for non-government employees. Teachers and state workers may have different retirement age requirements due to their specific pension plans. A financial advisor can help you with your retirement plan options and create a personalized strategy to reach your goals.
State Retirement Systems in Ohio
Ohio offers several retirement systems for public employees, providing them with a secure way to save for their golden years. These systems include the Ohio Public Employees Retirement System (OPERS), the State Teachers Retirement System (STRS) and the School Employees Retirement System (SERS). Each system is designed to serve different groups of workers, such as government employees, teachers and school staff.
OPERS is the largest of Ohio’s systems, and the 11th-largest public pension fund in the country, covering state employees and local government workers. It provides retirement, disability and survivor benefits, allowing employees to contribute throughout their careers and receive a pension upon retirement. OPERS also offers different plan options to meet the needs of employees.
STRS is specifically for educators, including public school teachers and some college staff. This system offers benefits based on years of service and salary, allowing teachers to retire with financial stability. STRS also includes health care options for retired educators, which can be an important part of retirement planning.
SERS covers non-teaching school employees, such as bus drivers, cafeteria workers and administrative staff. It offers similar benefits to OPERS and STRS, helping school employees plan for retirement. Like the other systems, SERS is designed to ensure long-term financial security for those who serve Ohio’s public schools.
As with other retirement programs, public employees in Ohio contribute part of their salary throughout their careers. Once age and service requirements for retirement are met, they can start receiving monthly pension payments. These are generally based on their final salary and total years of service. Some systems may also offer cost-of-living adjustments (COLAs) to help manage inflation.
What Is the Retirement Age in Ohio?
Ohio’s retirement systems for public employees, like those in other states, have tiered retirement age requirements depending on when an employee was hired. Each system sets its own rules for retirement age and benefits, based on years of service and when the employee started their job.
OPERS members are categorized into three groups: A, B, and C. Each group has different retirement age and service requirements, benefit calculations and health care eligibility:
- Group A members can retire with 30 years of service at any age.
- Group B requires 32 years of service or 31 years at age 52.
- Group C members can retire with 32 years of service at age 55.
For Groups A and B, the retirement benefit is calculated by multiplying 2.2% of the final average salary (FAS) by the first 30 years of service, and adding 2.5% for each additional year. For Group C, the same formula applies but with 35 years of service.
To qualify for health care coverage, members must be receiving a retirement benefit, have at least five years of service, and meet the minimum salary requirement.
As a member of the defined benefit (DB) plan, you qualify for lifetime service retirement benefits after meeting one of the eligibility requirements: for an unreduced benefit, you need any age with 34 years of service, or age 65 with 5 years of service; for a reduced benefit, you need any age with 29 years of service, or age 60 with 5 years.
If you are in the defined contribution (DC) plan, you are eligible for retirement benefits the first day of the month after turning 50, the last day of employment in an STRS Ohio-covered position, or the month you apply.
In the CO Plan, the retirement date for the defined contribution portion is the first day of the month after turning 50, your last day of employment, or the month you apply, while for the defined benefit portion, it’s the first day of the month after turning 60 or the last day of employment.
Members who are grandfathered into the system with at least 25 years of service (as of August 1, 2017) can qualify for full retirement benefits at age 65 with five years or any age with 30 years. They can also retire early at 60 with five years or 55 with 25 years.
For those who are not grandfathered into older benefits, could receive full retirement benefits at 67 with 10 years or 57 with 30 years. Early retirement eligibility for this group begins at 62 with 10 years or 60 with 25 years.
If you leave your SERS job before reaching the eligible retirement age, you can still apply for retirement benefits later, such as at age 62 or 65, when filing for Social Security. However, it’s important to apply for retirement as soon as you are eligible since retroactive health care coverage is not available.
If you work multiple jobs with SERS employers, you can retire from your highest-paying position while continuing to work in a lower-paying job, as long as the positions are separate. This rule also applies if you work for OPERS or STRS in addition to SERS.
Your pension is calculated based on your age, service credit and salary, and it’s important to carefully consider your retirement date, as waiting until after your birthday or purchasing additional service credit could increase your pension.
OP&F calculates service retirements based on age, service credit, and average annual salary.
For members with 15 or more years of service as of July 1, 2013, the average annual salary is based on the highest three years of earnings, while members with less than 15 years use the highest five years. A maximum pension of 72% is available for those with 33 years of service.
The retirement formula varies by type. Normal retirement starts at age 48 (or 52 for those hired after July 1, 2013) with 25 years of service. Other types like commuted and actuarially reduced retirements have different age and service requirements.
What is your current age?
Bottom Line
Ohio’s retirement systems can offer a variety of options for public employees based on years of service and age, with specific plans for state workers, teachers, school employees, police officers and firefighters. These systems provide flexibility with retirement age requirements and benefit calculations, allowing employees to choose retirement dates that best suit their individual situations. Whether retiring early with reduced benefits or waiting for full benefits, Ohio’s public employees have access to secure pension plans designed to support their long-term financial security.
Retirement Planning Tips
- A financial advisor can help you create a personalized retirement plan for your needs. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- If you want to know how much your retirement savings could grow over time, SmartAsset’s free calculator can help you get an estimate.
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