Is it true that STRS Ohio members can “spike” their retirement benefit upward by manipulating the income that gets included in their final year of compensation?
No. STRS Ohio is protected from members’ “spiking” their final average salary by Section 3307.501 of the Ohio Revised Code, which limits the amount of earnings used in calculating final average salary under certain conditions. Basically, if the percentage increase in a member’s compensation in the highest two years exceeds the highest percentage increase in the three preceding years, the excess percentage is not included when calculating the final average salary. The limit may affect either or both of the two highest years.
Related Questions
- Can you describe the survivor and disability protection that is offered under the STRS Ohio Defined Benefit and Combined Plans?
- Can you describe the optional health care coverage that is offered under the STRS Ohio Defined Benefit and Combined Plans?
- What are typical pensions for STRS Ohio members and how do they compare to private sector employees?
