Bottom line
After eligible termination, STRS Ohio can pay an account withdrawal directly or send eligible funds to a qualified plan. A DB or Combined Plan withdrawal cancels the associated service credit and future pension rights.Key facts
- 30 days is the typical STRS Ohio processing window after a valid application or last payroll date, whichever is later.
- 3% is the current annual interest rate STRS Ohio lists on DB member contributions with at least 3 qualifying years.
- 50% is the additional amount tied to member contributions plus interest for DB members with 5 or more qualifying years under the current withdrawal schedule.
First confirm that STRS Ohio considers the employment relationship terminated
An account withdrawal is not available merely because a teacher stopped reporting to work. STRS Ohio says a member cannot withdraw while under a current or future teaching contract, including substitute teaching with an STRS Ohio employer, while on a leave of absence, or in several other active-status situations. DB members who left an STRS-covered job but are working for the same employer in an OPERS or SERS position also face a restriction. The system verifies termination before completing the application.
Once a valid withdrawal application and employment termination are established, STRS Ohio says payment is typically made within 30 days after receipt of the properly completed application or the last payroll date, whichever is later. Direct payments are deposited to the account specified on the online application. When funds are rolled to a qualified plan, STRS Ohio mails the payment to that qualified plan rather than paying the member first.
DB withdrawal value depends on qualifying service and the current interest schedule
For the Defined Benefit Plan, STRS Ohio currently describes the withdrawal amount as member contributions plus an additional amount determined by qualifying service. With at least five qualifying years, the system lists 3% compounded annual interest on member contributions and an additional amount equal to 50% of member contributions plus interest. With at least three but fewer than five years, the current listed interest rate is 3%; with fewer than three years, it is 2%.
Those rates are administrative rates that STRS Ohio says can change without notice, so a saved article should not substitute for the current account estimate. Ohio Revised Code §3307.563 sets statutory ceilings and the framework for adding interest or other amounts to withdrawn contributions. The member’s Online Personal Account can display the current withdrawal value, which is more useful than reconstructing years of contribution history from pay stubs.
A rollover changes tax handling, but it does not preserve STRS Ohio service credit
A direct rollover can move eligible retirement funds to another qualified plan or IRA without the same immediate federal withholding treatment that generally applies to a taxable cash distribution, but the pension consequence must be evaluated separately. For a DB or Combined Plan member, withdrawing the STRS Ohio account cancels the service credit and potential future benefits attached to that account. Rolling the money elsewhere does not keep the old STRS Ohio pension service alive simply because taxes were deferred.
Spousal consent can also be required. STRS Ohio says DB Plan members need spousal consent when they are eligible for a service retirement benefit. For DC and Combined Plan members, the FAQ identifies spousal consent when the member is age 50 or older and the account value is at least $5,000. These rules make the withdrawal application a benefit election, not just a bank transfer. Members should use the current application and system estimate before moving funds.
Make sure you are actually eligible to withdraw
STRS Ohio screens employment status before releasing an account. The FAQ says a member cannot withdraw while under a present or future teaching contract with an STRS Ohio employer, including substitute teaching, or while on a leave of absence. Several other active retirement-system situations can also block a withdrawal. A resignation letter alone is therefore not enough; the employer’s payroll and contract records must support the terminated status used in the application.
If a member left an STRS-covered position but immediately works for the same employer in an OPERS or SERS-covered job, the DB withdrawal restriction listed by STRS Ohio can also apply. Members moving between public positions should identify the retirement system attached to the new job before assuming funds are available. That check prevents a rollover plan from being built around money STRS Ohio cannot yet distribute.
| Situation | Withdrawal status |
|---|---|
| Current/future STRS teaching contract | Not eligible |
| Leave of absence | Not eligible |
| Receiving STRS service/disability benefit | Not eligible |
| Eligible terminated status | May apply, subject to plan rules |
Read the DB withdrawal estimate by service tier
STRS Ohio’s current DB schedule gives different additional amounts based on qualifying service. Five or more years receives the listed 3% compounded interest on member contributions plus an additional amount equal to 50% of member contributions plus interest. Three to fewer than five years receives 3% compounded interest, while fewer than three years receives 2% under the current published rates. STRS Ohio notes that the interest rates are subject to change.
Ohio Revised Code §3307.563 supplies the legal framework and maximum rates for these additions. The code and website should be read together: the statute authorizes the structure, while STRS Ohio publishes the current board-established rates used for an estimate. A member’s Online Personal Account withdrawal value is the practical figure for a transaction because it reflects posted contributions and the current administrative rate.
| Qualifying service | Current published treatment |
|---|---|
| 5+ years | 3% interest + additional 50% amount |
| 3 to <5 years | 3% interest |
| <3 years | 2% interest |
Choose direct payment or direct rollover with taxes in mind
A direct payment and a direct rollover can produce different immediate federal tax handling. STRS Ohio’s withdrawal materials allow eligible funds to be sent to a qualified plan, and the FAQ explains that rollover checks are mailed directly to the receiving qualified plan. A taxable payment made to the member can be subject to withholding and possible additional federal tax rules depending on age and circumstances. IRS guidance should be used for tax treatment.
Tax deferral does not preserve the STRS Ohio pension record. For DB and Combined members, a rollover is still an account withdrawal, so the associated service credit and potential future benefits are canceled. This distinction is easy to miss because “rollover” sounds like moving the pension intact. In reality, the money may remain tax-deferred while the STRS Ohio defined-benefit rights attached to the withdrawn service do not.
| Path | Tax/pension distinction |
|---|---|
| Cash payment | Current distribution; DB/CO service canceled |
| Direct rollover | Tax-deferred transfer may be available; DB/CO service still canceled |
| Leave account | No current distribution; service remains |
Before you make a decision
- Verify you are eligible to withdraw after termination.
- Download the current withdrawal-value estimate.
- Compare direct payment and direct rollover tax handling.
- Confirm whether spousal consent applies.
- Compare the withdrawal with any deferred pension before submitting.
Frequently asked questions
How soon does STRS Ohio pay an account withdrawal?
STRS Ohio says payment is typically made within 30 days after it receives a valid, properly completed application or after the member’s last payroll date, whichever is later. The system says it cannot expedite the process. Employment status and application completeness can therefore affect the practical timeline.
Can I roll my STRS Ohio refund directly to an IRA?
STRS Ohio allows eligible withdrawal funds to be rolled to a qualified plan, and its FAQ says the rollover check is mailed directly to the receiving qualified plan. Confirm that the destination accepts the rollover and review IRS rules for the specific distribution before submitting the STRS Ohio application.
Does a rollover preserve my STRS Ohio service credit?
No. For Defined Benefit and Combined members, taking an account withdrawal cancels the associated service credit and potential future benefits even if the money is rolled into another tax-qualified account. Tax deferral and pension-service preservation are separate issues. Leaving the STRS account intact is the route that preserves service.
How much interest is added to an STRS Ohio DB refund?
STRS Ohio currently lists 3% compounded annual interest for members with at least three qualifying years and 2% for fewer than three years. With five or more years, an additional 50% amount is also described. The system warns that interest rates can change, so use the current account estimate.
Do I need my spouse to approve an STRS Ohio withdrawal?
Sometimes. STRS Ohio says DB members need spousal consent if they are eligible for a service retirement benefit. For DC and Combined members, consent is required when the member is age 50 or older and the account value is at least $5,000. Follow the current application’s instructions.
Official sources
Sources were reviewed on September 2, 2026. Rules and member records maintained by the retirement system control.
STRS Ohio — Account WithdrawalOfficial source ↗STRS Ohio — FAQ Account WithdrawalOfficial source ↗Ohio Revised Code §3307.563Official source ↗This article provides general educational information. It is not a benefit determination or financial, tax, or legal advice. Confirm account-specific information with the retirement system.