STRS Ohio Update for Reporting Employers
STRS Ohio Employer News
Benefit Plan Improvements Approved for Active and Retired Members
At the March meeting of the State Teachers Retirement Board, the board approved benefit plan improvements that have been in the planning and review stages for the past several months. The following changes, which benefit both active and retired members, will take effect July 1, 2022.
For retired members: A one-time 3% cost-of-living increase (COLA) will be paid to eligible benefit recipients. The COLA will be implemented as applied under current Ohio statute — that is:
- An increase of 3% of base benefit will be added to the monthly payment in fiscal year 2023 for benefit recipients who began receiving benefits on June 1, 2018, or earlier, and will apply to future monthly payments.
- The date of the increase is the anniversary date of retirement, which always falls on the first of the month. For example, any teacher who retired effective July 1 (2017 or earlier) will receive a COLA on July 1, 2022. A teacher who retired effective June 1 (2018 or earlier) will receive a COLA on June 1, 2023.
- Members who retired July 1, 2018, or later are not eligible for a COLA at this time (must have received benefits for 60 months to be eligible for COLA).
For active members: The age 60 requirement for retirement age and service eligibility that was set to take effect in 2026 will be eliminated. Now, the final change to the phased-in age and service requirements will be made Aug. 1, 2023, when 35 years of service will be required for an unreduced retirement.
July 2022 ARP Reports Must Reflect New 2.91% Mitigating Rate
Alternative retirement plans (ARPs) were originally offered as an alternative to the STRS Ohio Defined Benefit Plan in 1997. At that time, Ohio law deemed a percentage of the employer contribution (known as the mitigating rate) is necessary to mitigate any negative financial impact of ARPs on the state retirement systems. State law requires that the rate be reviewed every five years.
As a result of the most recent review, the mitigating rate paid by college and university employers on behalf of ARP participants will change to 2.91% from 4.47% effective July 1, 2022.
Employers must implement the necessary changes to ensure that 2.91% of employer contributions for ARP participants are remitted to STRS Ohio for earnings on or after July 1, 2022. Employer ARP reports must reflect the new rate starting with the July 2022 report, which is due to STRS Ohio by Aug. 15, 2022.
If you are submitting a report that includes both June and July earnings, you have two options: (1) submit two files — one at 4.47% rate and the other at the 2.91% rate, or (2) submit one file that accurately states the amount of mitigating rate contributions. Each member can only be listed once per file.
Online Personal Accounts Are Valuable for New Members
When you hire educators who qualify for STRS Ohio membership, please encourage them to sign up for an STRS Ohio Online Personal Account. This valuable online tool will help members manage their STRS Ohio account throughout their career as well as in retirement.
To assist you, we have prepared a one-page information sheet, Online Personal Account for STRS Ohio Members, that provides helpful information about online account features and instructions for setting up an account. Please share this information with members upon employment.
When you hire a new STRS Ohio member, it is important to submit a new hire notification to STRS Ohio as soon as possible. When educators become members of STRS Ohio, they receive information about the various retirement plan options. To ensure members receive timely information to make an informed decision, employers must notify STRS Ohio within 10 business days of the educator’s first day worked. Notification is also required if the educator is returning to service after an extended leave or previous termination. View information about new hire reporting.
Automated Emails for Electronic File Upload Errors
Employers submitting electronic file uploads will now receive automated emails for payroll reports, new hire notifications, reemployed retiree notifications and backpostings when a file error occurs while uploading.
Possible errors may include missing names and Social Security numbers, record formatting errors, fiscal year errors and more. To make corrections, please fix the errors listed in the email and resubmit the file to STRS Ohio. If you need further assistance, please contact STRS Ohio toll-free at 888‑535‑4050.
Record layouts can be found on our website in the Publications section as well as on the Secure File Upload page.
Annual Financial Report Available
View the Annual Comprehensive Financial Report for a detailed look at STRS Ohio’s investment activities, plus financial, actuarial and statistical information for fiscal year 2021 (July 1, 2020–June 30, 2021). You can also call STRS Ohio’s Member Services Center toll-free at 888‑227‑7877 to request a copy.
For your convenience, we have highlighted some interesting member and employer facts from the report. View details.
Administrative Code Rules Updated
The following Administrative Code Rules have been amended during the past 12 months. You can view all Administrative Code Rules in the Publications section of the employer website.
Effective May 5, 2022
3307-1-02 Notice of meetings
3307-2-01 Nomination and election of members of the retirement board
3307-2-02 Election of successor member when vacancy occurs on the retirement board
3307-4-01 Membership and contribution
3307:1-2-01 Service credit
3307:1-6-01 Determination of temporary supplementary benefit fund
3307:1-11-04 Health care service – health care assistance program
Effective July 1, 2021
3307:1-3-06 Contributions during non-teaching periods
3307:2-4-02 Military service
3307:2-4-03 Combined plan participant leaves of absence
Effective June 3, 2021
3307:1-7-01 Disability benefits – definitions
3307:1-7-02 Disability – medical review board
3307:1-7-03 Disability – medical evidence and appointments
3307:1-7-05 Disability benefits – denials and terminations
3307:1-7-07 Disability benefits – earnings and employment statements
3307:1-7-08 Disability – coordination of state retirement systems
3307:1-7-09 Disability – appeal of terminations due to teaching service
3307:1-8-01 Survivor benefits
3307:1-8-02 Active member beneficiary designation
3307:1-11-01 Health care services – establishment of program and definitions
3307:1-11-03 Health care services – medical plan
3307:1-11-04 Health care services – health care assistance program
3307:1-11-05 Health care services – Medicare Part B reimbursement
3307:1-11-09 Health care services – long-term care insurance
3307:1-13-02 Retirement of a member pursuant to section 3307.351 of the Revised Code
Reporting Requirements
Annual Reports Due Aug. 5
Key Reminders
- Your report is due to STRS Ohio by Aug. 5, 2022.
- Reports must be submitted electronically via ESS or secure file upload.
- If you use ESS, your report will be available on July 1.
- If you use secure file upload, submit a text file (.txt) formatted as described in the Annual Reporting Record Layout.
What You Need to Know
- No extensions will be granted to the deadline, so please plan to have staff available to complete the report or coordinate its submission to STRS Ohio.
- You can access annual reporting instructions and other helpful resources on our website beginning June 1. We will also offer these live webinars in June to assist you: Employer Basics 101: Annual Reporting and Annual Reporting for ESS Users. You will receive an email when registration begins.
- Use only one method to submit your report (ESS or secure file upload). If you want to change the method, please contact your annual reporting representative before submitting your report.
- If you use ESS, your report will be available on July 1.
- If you use secure file upload, you must submit a text file (.txt) formatted as described in the Annual Reporting Record Layout.
- You may be asked to verify service credit and/or accrued contributions for members after your annual report has been processed. If verification is required, you will be notified when service credit verification and accrued verification reports are available for completion in ESS. View the online tutorials showing you how to complete these reports.
Thank you for your efforts to complete the required annual reporting processes on time. This information is necessary to update member accounts and prepare actuarial information. If you have questions about annual reporting, please contact your employer advisor.
Send Us Your Salary Schedules
If you haven’t already done so, please submit your salary schedules for the 2021–2022 and 2022–2023 fiscal years as soon as possible.
Why does STRS Ohio need salary schedules?
This information is necessary for STRS Ohio to accurately determine retirement benefits, specifically if a member’s final average salary is limited by Ohio law. When processing retirement reports, STRS Ohio may need to contact you to collect any unreported salary schedules. Depending on the fiscal year in need, this information may be difficult for you to locate. Providing salary schedules now will ensure we have the necessary information to process future retirements.
What if salary schedules are not used?
If teacher salary schedules are not used, please provide the average salary increase applicable to all STRS Ohio contributing members for each of the requested fiscal years. If your school was on a salary freeze, please notify STRS Ohio that the salary schedule was frozen for the appropriate fiscal year.
Pay Date Calendars Due June 3
Each spring STRS Ohio asks employers to send their pay dates for the upcoming fiscal year. This allows us to alert you when we haven’t received an expected payroll report.
Pay date calendars, which are due by June 3, must be submitted in ESS. You can access your calendar by logging in to ESS and clicking on "Pay Date Calendar" in the Additional Tools menu or Outstanding Reports section.
For step-by-step instructions on completing your calendar, see the ESS Instructions or view a brief three-minute tutorial.
Compensation Limits Set for 2022–2023
The Internal Revenue Service places annual limits on the amount of compensation on which contributions can be remitted for STRS Ohio members. Any payment to a member that exceeds the compensation limit is excluded from compensation for retirement purposes. The 2022–2023 compensation limits for Defined Benefit and Combined Plan members are:
- $305,000 for new members on or after July 1, 1996, and
- $450,000 for members before July 1, 1996.
The IRS has not yet released 2022–2023 limits for Defined Contribution Plan members. (The current amount is $243,125.) View a complete list of annual compensation limits.
Compensation limits are presented for your information only. STRS Ohio does not require you to track the retirement plans your employees participate in. We will monitor contributions and compensation for each STRS Ohio member and notify you if contributions reported are within $2,500 of the limit or exceed the maximum contributions allowed by the IRS. If limits are exceeded, we will refund excess contributions and ask you to stop submitting contributions for affected members through the end of the fiscal year.
Employer Education
Upcoming Education Opportunities
STRS Ohio offers webinars and training sessions to help you meet STRS Ohio reporting requirements. Currently, all education opportunities are being held virtually. You will receive an email from STRS Ohio when registration is available.
A selection of upcoming webinars is listed below. View the Calendar of Events for a complete list of programs. You can also access our collection of ESS tutorials and recorded webinars for additional training.
Employer Basics 101: Calculating Service Credit Using Days
May 18, 10 a.m.
This webinar will explain the impact of correct service credit calculation and demonstrate how to use the “days method.” We will provide examples and help you locate the web resources available as you calculate service credit for active STRS Ohio members. We will also explain the service credit calculation for part-time employees. Registration began May 9.
Employer Basics 101: Account Withdrawal
May 25, 10 a.m.
Inactive STRS Ohio members and reemployed retirees may choose to withdraw their accounts. What is the employer’s responsibility when this occurs? Attend this webinar to learn the basics of STRS Ohio account withdrawal and how to complete the required forms. Registration began May 9.
Employer Basics 101: Annual Reporting
June 7 and 16, 10 a.m.
Join us to get all the information you need to prepare and submit your annual report. We will offer helpful tips to resolve issues you may encounter when your annual report doesn’t balance and discuss what to expect after your annual report has been submitted. Registration begins May 23.
Annual Reporting for ESS Users
June 22, 10 a.m.
Join us for detailed information on submitting your annual report using Employer Self Service (ESS). During this live webinar we will provide ESS tips for calculating your annual report, tools to use in ESS and processing and submitting the annual report. This webinar is designed to help those employers who process annual reports using ESS only. Registration begins June 13.
Quarterly Coffee Break
June 29, 10 a.m.
We understand your time is valuable. Attend a short webinar break to catch up on current STRS Ohio employer news. Coffee Break webinars are designed to share information you need to know when you need to know it. These 15–20 minute webinars are presented quarterly and include an opportunity for you to ask questions. Registration begins June 20.
What’s Ahead
View a complete list of annual processes and due dates.
June 1
Annual reporting resources are available on our website.
June 3
Pay date calendars are due.
July 1
- 2022–2023 fiscal year begins.
- Annual reports are available in ESS.
- Mitigating rate changes to 2.91% for ARP participants.
Aug. 5
Annual reports are due.
Aug. 25
Service credit verification reports are due.
Sept. 28
Accrued verification reports are due.