Major Benefit Improvements Approved in 2000

In the 1990s, many public pension funds, including STRS Ohio, experienced strong financial performance due in part to favorable economic conditions. As a result, in 2000 the state legislature approved the following benefit improvements for both benefit recipients and teachers in the classroom:

1. A recalculation of the base benefit for age and service retirees using a larger multiplier for each year of service.
2. A one-time increase for benefit recipients restoring 85% of their original purchasing power.
3. For educators in the classroom, a 2.2% multiplier and an escalating benefit formula for those with more than 30 years of service. A new retiree with 35 years of service received 88.5% of final average salary.