How are STRS Ohio pensions funded?
Retirement benefits, as well as survivor and disability benefits, are paid from STRS Ohio’s pension fund, which is a trust fund that can be used only for the payment of member benefits and related expenses. Members contribute a fixed amount into the fund — currently 10% of their salary. Employers also pay a fixed amount — 14% of their teacher payroll. Of this 14%, 13% goes into the pension fund and 1% goes into the separate Health Care Stabilization Fund. Historically, about 75 cents of every dollar paid in benefits comes from the third source of system income — investment returns.
