Retirement with SERS is a matter of eligibility. To qualify for a monthly, lifetime pension, you must meet specific age and service credit requirements. Eligibility for SERS retirement is separate from eligibility for Social Security, and the two programs follow different rules.
SERS offers two types of service retirement: unreduced service retirement and early service retirement with reduced benefits. With unreduced service retirement, you receive the maximum pension amount available to you, based on your total service credit and final average salary.
To qualify for a SERS pension, you must meet specific age and service credit requirements. SERS offers unreduced service retirement and early service retirement with reduced benefits.
SERS members may qualify for retirement based on their age and years of service credit. Unreduced retirement provides the maximum pension; early retirement reduces the benefit to cover a longer payment period.
Your effective retirement date is the first day of the month following the later of: your last day of paid SERS-covered employment, or the date you meet the required age and service credit combination.
Your SERS pension is calculated using three factors:
In some cases, delaying retirement by a short period may increase your pension. All service credit must be purchased before your retirement date. SERS Member Services staff can show you pension estimates for different retirement dates.
When you apply for retirement, you must select a plan of payment. This decision depends on personal factors including your health, finances, marital status, and other sources of income.
All plans provide a lifetime benefit to you. If you choose a plan that continues payments to a beneficiary after your death, your monthly benefit will be reduced. You may change your plan selection within 30 days of your first pension payment; after that, changes are only allowed under limited circumstances.
Regardless of the plan you choose, you are guaranteed the return of your employee contributions. If both you and your beneficiary die before your total contributions have been paid out, the remaining amount is paid to your estate.
Choosing a Joint Life Plan (Plans A, C, D, or F) may allow eligible beneficiaries to continue health care coverage after your death. Only your spouse and children may qualify for SERS health care coverage.
Health care premiums are deducted from monthly pension payments. Upon your death, eligible beneficiaries can continue SERS health care coverage as long as they pay the premiums. SERS reserves the right to change or discontinue any health plan or program.
SERS offers six retirement plans. Each provides a lifetime benefit to you. Plans that continue payments to a beneficiary after your death will result in a reduced monthly benefit. SERS staff can provide estimates for each plan.
Provides a lifetime benefit to your spouse equal to half of your monthly pension after your death.
Pays the highest monthly benefit to you, but ends at your death. Any unrecovered employee contributions are paid in a lump sum to your designated beneficiary. If you designate multiple beneficiaries, the amount will be distributed equally among them.
Allows you to designate a specific dollar amount or percentage to be paid to your beneficiary for life. This cannot exceed what you received; if a dollar amount is designated, the minimum must be $100 a month. Federal tax law may require a different minimum.
Pays your beneficiary the same monthly amount you were receiving at the time of death. Due to federal tax law, if there is too great a difference in age between you and your beneficiary (other than your spouse), this plan may not be available.
Guarantees beneficiary protection for a limited period (such as 5, 10, or 15 years). The gross monthly amount to your beneficiary is the same amount you were receiving at death. This plan cannot be changed after retirement.
Allows up to four beneficiaries to receive monthly benefits. Each additional beneficiary reduces your own pension. You must designate a percentage or flat dollar amount for each beneficiary; the amount for all beneficiaries cannot exceed 100%.
To retire and begin receiving a monthly pension, you must submit a Service Retirement Application. Submit your application at least 90 days before your intended retirement date to avoid delays.
At retirement, you may choose to receive part of your pension as a one-time lump sum through a PLOP. This option permanently reduces your lifetime monthly pension.
PLOP payments are typically issued 60 to 90 days after your effective retirement date once all required information is received.
If you are married and choose a plan of payment other than Plan A or Plan D (with your spouse as beneficiary), or select a PLOP, written spousal consent is required. This must be completed on the Service Retirement Application and signed before a notary public or SERS employee.
If consent is not provided, SERS will pay you according to the Plan A monthly amount. The spousal consent requirement may be waived if your spouse’s whereabouts are unknown, if he or she is medically unable to give consent, or if a guardianship has been established.
You can apply in two ways:
If you indicated you may be eligible to purchase additional service credit, SERS will mail you a cost statement. All service credit purchases must be completed before your effective retirement date.
Once SERS receives your application:
Your employer must certify your final contributions and last date of service. Each school district has its own policy regarding severance packages for retiring employees.
Before your first payment: Submit a written notice cancelling your initial application, then submit a revised application with your new selections.
After your first payment: Return the payment, submit a signed written notice cancelling your initial application within 30 days of the initial payment date, then submit a revised application with your new selections.
If you die before the effective date of your retirement, your retirement will not take effect. Your account will be processed as if you died while still employed, which may qualify your survivors for survivor benefits.
Planning for retirement doesn’t happen all at once. These ten steps are designed to help SERS members think through the key areas that can support a more secure and confident retirement.
Your SERS pension is based on your service credit, highest three years of earnings, and age at retirement. In many cases, working longer results in a higher monthly benefit. Request multiple estimates to compare retirement dates.
If you’ve worked in other public employment or contributed to another Ohio retirement system, you may be able to combine that service credit with your SERS account. Military service or previously refunded service credit may also be eligible for purchase.
It’s important to start saving and have a savings plan in place. Participate in annual programs like America Saves Week to learn more about preparing for retirement.
Tracking expenses, creating a budget, and planning ahead for major purchases can help you reduce financial stress both now and in retirement. Pay off as much debt as possible so you have fewer expenses in retirement.
Planning ahead can protect you and your loved ones. Taking time to create or update estate documents such as a will, trust, or power of attorney helps ensure your wishes are known and your affairs are handled as intended.
Staying healthy supports your quality of life and may reduce medical costs in retirement. Choose physical activities you enjoy, schedule regular checkups, and take advantage of preventive care. Health care needs and coverage often change at retirement.
Your SERS pension gives you a foundation, but you need more than one income source. Social Security, personal savings, and Ohio Deferred Compensation can help support your lifestyle in retirement.
Think about how you want to spend your days in retirement. Whether that includes travel, hobbies, volunteering, or part-time work, planning ahead can help you align your finances and goals with the lifestyle you envision.
When is the best time for you to retire? It’s a personal choice based on your budget, beneficiary, and health care needs. SERS can provide information on the options available to you.
Read SERS newsletters for information about your pension and health care. Follow us on Facebook and YouTube. Visit our website regularly to keep current with retirement news.
Once your retirement is processed, you will receive a verification letter and begin receiving monthly pension payments. Here is what to expect.
You may receive an estimated retirement payment if SERS receives your fully completed application and all required documentation at least 30 days before your effective retirement date.
After your initial payment, your retirement allowance is paid on the first of every month. Direct deposit is required for all SERS retirees. You can view detailed payment information, update tax withholding, and change direct deposit information through Account Login.
Members who begin receiving benefits on or after April 1, 2018, must wait until their fourth benefit anniversary to become eligible for a cost-of-living adjustment.
When COLA benefits resume, increases are based on the June-to-June change in the Consumer Price Index (CPI-W), with a cap of 2.5% and a floor of 0%.
If you want another person to manage matters related to your SERS retirement, you must provide SERS with either a General Power of Attorney or a Limited Power of Attorney. SERS pension payments may only be handled by authorized individuals.
A Limited Power of Attorney form is available upon request from SERS. This form also allows the designated individual to update the mailing address for your retirement payments.
If a retiree becomes unable to manage financial matters and has not designated a Power of Attorney, a probate court may appoint a guardian. A copy of the appointment of the guardian must be filed with SERS to ensure payments are processed correctly.
SERS is required to withhold federal income tax from your monthly pension unless you elect otherwise in writing using IRS Form W-4P. If you do not file this form, SERS withholds federal income tax as if you filed married with three exemptions.
Each year, SERS issues an IRS Form 1099-R by January 31 showing total pension payments, federal and state taxes withheld, and other required tax information. You can update federal withholding at any time through Account Login.
Your SERS pension may also be subject to state or local income taxes depending on where you live. For Ohio residents, your SERS pension is subject to Ohio state income taxes. SERS is not required to withhold Ohio taxes unless you submit a form specifying the amount you want withheld.
You should consult a tax advisor, the IRS, or state or local tax departments for advice on your specific tax questions. SERS cannot provide individual tax advice.
Your original SERS pension is not reduced during reemployment as long as you wait two months after your effective retirement date before returning to a public sector job. If you return to a public sector position before two full months have passed, you will forfeit pension payments for those two months only.
There is no limit on the number of days you can work or the amount you can earn during reemployment. You must contribute to SERS during reemployment but do not earn additional service credit. Any new benefit earned is paid separately as a single life annuity.
If you return to work after retirement and become eligible for medical and prescription coverage through your new employer, you may temporarily lose eligibility for SERS health care coverage. Eligibility is restored once reemployment ends.
You have 31 days after losing employer coverage to re-enroll in SERS health care coverage. Members enrolled in Medicare Parts A and B are not affected by reemployment.
Life changes can affect your SERS retirement account. Events such as marriage, the birth or adoption of a child, divorce, or death should be reported to SERS so your records stay accurate and your benefits continue as intended.
If you are single at retirement, select Plan B, and later marry, you may choose a new retirement plan that provides a continuing benefit for your spouse. This change must be made within one year of the marriage. Available plans include A, C, D, or F.
Please sign in to Account Login to update your family and beneficiary records.
Under Ohio law, retirement benefits earned during a marriage are considered marital property. If you elected a joint life plan with your spouse as beneficiary, divorce does not automatically change your plan. A retired member may only remove a former spouse as beneficiary with a court order or the written consent of the former spouse. Upon termination of marriage, a former spouse is no longer eligible for SERS health care coverage.
Your future pension payments, including any PLOP, may be subject to an Ohio Division of Property Order requiring you to pay a portion of your pension to a former spouse. Payments to a former spouse begin only after your pension payments begin, must be made in the same form you receive them, and the total amount deducted cannot exceed 50% of your original benefit.
If a court orders spousal or child support, SERS may be required to withhold a portion of your pension payments. Even if multiple support orders are received, the total amount withheld cannot exceed 50% of your original pension payment.
In some cases, a court may require you to select a retirement plan that provides a continuing benefit to a former spouse. The court order must be issued as part of divorce proceedings, specify the amount payable to the former spouse, and be received by SERS before your effective retirement date.
Your death: A $1,000 lump-sum death benefit will be paid to your designated beneficiary. Payment is issued only upon receipt of a death certificate and required documentation.
Death of your spouse: Please sign in to Account Login to update your SERS account information promptly.
Death of a beneficiary: If you selected Plan A, C, or D and your beneficiary dies before you, your benefit may be changed to Plan B with an adjustment to your monthly benefit.
