STRS Ohio Update for Reporting Employers
STRS Ohio Employer News
Retirement Board Approves Benefit Plan Changes for Active Educators
At the March meeting of the State Teachers Retirement Board, the board approved two benefit changes for active members. Over the past three years, the board has provided benefit improvements for active and retired members totaling more than $3.8 billion.
The following approved changes take effect on June 1, 2024:
- The current retirement eligibility rule requiring 34 years of service for an unreduced retirement has been made permanent. The minimum requirement for unreduced benefits was previously scheduled to increase to 35 years of service in August 2028.
- Eligibility for a reduced retirement benefit has been lowered from 30 years of service to 29 years of service. The current eligibility for reduced retirement at age 60 with 5 years of service remains the same.
These changes were reviewed by the board’s actuarial consultant, Cheiron, which is required by law to determine whether proposed benefit changes will materially impair the fiscal integrity of the system.
The Retirement Board reviews benefits annually as part of its sustainable benefit enhancement plan. The board and its actuary will review benefits again, no later than spring 2025, to evaluate whether additional benefit plan design changes may be made in accordance with the laws in effect at that time.
New Professional Development Requirements in Science of Reading
House Bill 33 establishes new professional development requirements in the science of reading. Under H.B. 33, districts and schools must require all teachers and administrators to complete the Ohio Department of Education and Workforce’s science of reading professional development course by June 30, 2025. Any teacher who has previously completed similar training, as determined by the Department, is not required to complete the course.
Under Ohio law, employers must pay a stipend to each teacher who completes the Department’s professional development course as follows:
- $1,200 stipend for each of the following:
— A teacher of grades kindergarten through 5.
— An English language arts teacher of grades 6 through 12.
— An intervention specialist, English learner teacher, reading specialist or instructional coach who serves grades prekindergarten through 12.
- $400 stipend to each teacher who teaches a subject area other than English language arts in grades 6 through 12.
Member and employer contributions must be submitted to STRS Ohio for all stipend amounts paid to teachers.
Employers are responsible for developing ways to verify teachers’ course completion for the purposes of stipend reimbursement. They are also responsible for paying the stipend to teachers who complete the course. Employers may apply to the Department for reimbursement of the cost of stipends. The Department will not pay stipends directly to teachers.
Further guidance on professional development requirements under H.B. 33 can be found in this guidebook issued by the Ohio Department of Education and Workforce. You can also visit the Department's website for more information.
Incomplete Contracts Can Affect Final Average Salary
We are sometimes asked, “Does it matter if a retiring member doesn’t plan to work through the last day of his or her contract?”
Yes, not completing the contract can affect a retiring member’s final average salary (FAS). While it may not seem like missing a day or two would decrease a member’s monthly benefit payment, it can because it results in the member not earning the full contract amount. Earning less than the full contract amount alters the FAS calculation slightly, but it may be more than expected.
If you are aware of a member who doesn’t plan on working through the last day of his or her contract, please tell the member to call STRS Ohio’s Member Services Center toll-free at 888‑227‑7877 to discuss their plans with a benefits counselor before retirement.
Annual Financial Reports 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 2023 (July 1, 2022–June 30, 2023). You can also call STRS Ohio’s Member Services Center toll-free at 888-227-7877 to request a copy.
Also see the Summary Annual Financial Report for a reader-friendly look at STRS Ohio’s most recent fiscal year including investment, financial, funding and economic impact information.
Administrative Code Rule Updates
No 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.
Reporting Requirements
Get Ready for Annual Reporting; Reports Due Aug. 2
Did you know annual reporting season starts in June? Here’s important information to keep in mind as you prepare your report.
Key Reminders
- Your report is due to STRS Ohio by Aug. 2, 2024.
- 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 3. 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.
- 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.
ESS Payroll Reporting for New Fiscal Year
Employers submitting payroll reports in ESS may encounter error messages for the first payroll of the new fiscal year. After closing out your 2023–2024 reporting in June, your first payroll of the 2024–2025 fiscal year will likely be on or around July 5 for biweekly reporters.
When you create your first payroll report of the new fiscal year, you will need to adjust the start and stop date on the newly created file. The start date will need to be changed to “07/01/2024” and the stop date will need to be changed to the correct payroll date.
These date adjustments are only needed on the first payroll of each fiscal year. All future payrolls will populate correctly based on the pay date calendar you provide to STRS Ohio. Employers submitting payroll files by secure file upload or methods other than ESS will not encounter this error.
For further assistance, call us toll-free at 888‑535‑4050 and ask for your STRS Ohio payroll representative.
Have You Sent Us Your Salary Schedules?
If you haven’t already done so, please submit your salary schedules for the 2023–2024 and 2024–2025 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 7
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 7, 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 2024–2025
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 2024–2025 compensation limits for Defined Benefit and Combined Plan members are:
- $345,000 for new members on or after July 1, 1996, and
- $505,000 for members before July 1, 1996.
The IRS has not yet released 2024–2025 limits for Defined Contribution Plan members. (The current amount is $275,010.) 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 live webinars, workshops and training sessions to help you meet STRS Ohio reporting requirements. 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 22, 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 begins May 13.
Employer Basics 101: Account Withdrawal
May 30, 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 20.
Employer Basics 101: Annual Reporting
June 5 and June 13, 10 a.m.
Join us to get all the information you need to prepare and submit your annual report. During this webinar 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 28.
Annual Reporting for ESS Users
June 18, 10 a.m.
Join us for detailed information on submitting your annual report using Employer Self Service (ESS). During this 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 10.
Quarterly Coffee Break
June 26, 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 17.
What’s Ahead
View a complete list of annual processes and due dates.
June 3
Annual reporting resources are available on our website.
June 7
Pay date calendars are due.
July 1
- 2024–2025 fiscal year begins.
- Annual reports are available in ESS.
Aug. 2
Annual reports are due.
Aug. 22
Service credit verification reports are due.
Sept. 27
Accrued verification reports are due.