Do Ohio Teachers Get Social Security?

Ohio teachers generally do not receive Social Security benefits from their public employment. This is because they participate in a state-specific retirement system instead of contributing to the federal Social Security system. This state-specific system provides a distinct framework for retirement, disability, and survivor benefits.

Social Security Coverage for Ohio Teachers

Ohio public school teachers typically do not have their wages subject to Social Security taxes, also known as Federal Insurance Contributions Act (FICA) taxes. This means neither the teacher nor the employing school district contributes to Social Security for the teaching service rendered. Consequently, earnings from teaching in Ohio public schools do not generate Social Security credits. While most private sector employees contribute 6.2% of their wages to Social Security, with employers matching that amount, Ohio teachers do not make these contributions for their public employment. This exemption is not unique to Ohio, as similar provisions exist in other states.

The State Teachers Retirement System of Ohio

The State Teachers Retirement System of Ohio (STRS Ohio) serves as the primary retirement plan for Ohio teachers, operating as a defined benefit pension plan. This system is designed to provide eligible members with a lifetime monthly income upon retirement, disability, or to their beneficiaries upon death. Contributions to STRS Ohio are made by both the employee and the employer, funding the system’s ability to pay out future benefits.

Currently, active STRS Ohio members contribute 14% of their earnable compensation, while employers also contribute 14% of the earnable compensation of their members. The system offers three main plan options: a Defined Benefit (DB) plan, a Defined Contribution (DC) plan, and a Combined plan, with the DB plan being the default choice.

Retirement Benefits

Eligibility for retirement benefits from STRS Ohio is determined by a combination of age and years of service credit. For an unreduced benefit, members may need 32 years of service at any age, or five years of service if they are at least age 65, with these requirements subject to change over time. A reduced benefit may be available for those with fewer years of service or who retire earlier, such as 27 years of service at any age, or five years of service at age 60.

Retirement benefits are typically calculated using a formula that considers the member’s years of service credit and their final average salary (FAS). The FAS is generally the average of the member’s five highest years of STRS Ohio earnings. For members in the Defined Benefit plan, the annual benefit is calculated by multiplying all years of service by 2.2% of the final average salary.

Disability Benefits

STRS Ohio also provides disability benefits for members who become incapacitated from performing their job duties due to a physical or mental condition. To be eligible, members who had service credit on account as of June 30, 2013, need at least five years of qualifying service credit. For those who did not have service credit on account as of June 30, 2013, at least ten years of qualifying service credit are generally required.

The benefit amount for eligible members in the Defined Benefit or Combined plans is often based on a percentage of their final average salary, typically ranging from a minimum of 45% to a maximum of 60% of their FAS, or 2.2% of FAS per year of service, whichever is greater. These benefits offer income protection to educators who can no longer work due to a qualifying disability.

Survivor Benefits

STRS Ohio offers survivor benefits to eligible beneficiaries upon the death of a member. For existing members as of June 30, 2013, survivor benefits may be available after 1.5 years of service credit. New members on or after July 1, 2013, generally need five years of qualifying service credit for their beneficiaries to be eligible for these benefits.

These benefits provide financial support to qualified family members, such as spouses or dependent children, after an educator’s death. The specific benefit amount can vary depending on factors like the deceased member’s service credit, earnings history, and the number of eligible dependents. Members also have options at retirement to provide a monthly benefit to a designated survivor should they pass away.

How Non-Covered Pensions Used to Affect Social Security

Historically, pensions received from employment not covered by Social Security, such as the pension from STRS Ohio, could impact any Social Security benefits an individual might have earned through other covered employment. This interaction was primarily governed by two provisions of Social Security law: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).

The Windfall Elimination Provision (WEP) was enacted to reduce a worker’s own Social Security retirement or disability benefit if they also received a pension from employment that did not contribute to Social Security. This applied even if the individual had sufficient Social Security credits from other jobs where FICA taxes were paid. The WEP aimed to prevent a perceived “windfall” for individuals who appeared to have low lifetime earnings under Social Security due to their non-covered employment, but who were also receiving a substantial pension from that non-covered work.

The Government Pension Offset (GPO) reduced or, in many cases, eliminated spousal or survivor Social Security benefits for individuals who also received a pension from non-covered government employment. This applied to benefits received based on someone else’s work record, typically a spouse’s or former spouse’s, if the individual also received a pension from their own non-covered public service. The GPO aimed to place individuals with non-covered pensions in a similar position to those whose government employment was covered by Social Security.

The Social Security Fairness Act, passed into law on January 5, 2025, officially repealed both the Windfall Elimination Provision and the Government Pension Offset. This legislative change means that these reductions no longer apply to Social Security benefits for individuals who also receive a pension from non-covered employment, such as an STRS Ohio pension.