Ohio SERS Retirement Options: Payments, PLOP, Refund, Buyback

Updated October 2, 2026. Quick answer: The School Employees Retirement System of Ohio (SERS) offers six payment plans. Plan B pays the highest monthly benefit and ends at death, and any plan that continues payments to a beneficiary reduces the monthly benefit. A partial lump sum option payment (PLOP) can equal 6 to 36 months of the unreduced pension, cannot cut the pension by more than 50%, and is available only at retirement. A refund pays employee contributions with no interest and permanently gives up retirement, disability and survivor benefits, while contributions may instead stay on deposit. Service credit must be purchased before retirement.

More on public pension systems, topic by topic: Ohio SERS reemployment after retirement, Ohio SERS disability benefits and Ohio SERS purchasable service credit.

Ohio state troopers belong to a separate state system with its own rules: Ohio Highway Patrol Retirement System decisions.

Cincinnati city employees belong to a separate city system with its own rules: Cincinnati Retirement System decisions.

What this page covers and what it is built on

This page reads four documents from the School Employees Retirement System of Ohio (SERS): the Steps Toward Retirement page, the Refunds page, the Service Credit page, and the Member Benefits Guide PDF. The guide’s web address sits in a 2018 upload folder, so it is used only for what it states and is named as the guide wherever it is quoted. Where the guide and the newer web pages differ, the web pages are followed and the difference is noted. Nothing here describes any other Ohio retirement system.

Who can retire, and when the pension starts

SERS ties the pension to eligibility, not to a single age. “To qualify for a SERS pension, you must meet specific age and service credit requirements.” SERS also separates a full pension from a reduced one: “Early service retirement will be reduced to cover the cost of providing a pension over a longer period of time.”

The age and service combinations come from the guide. For retirement after August 2017 it lists unreduced retirement at “Age 57 and 30 years, or Age 67 and 10 years” and reduced retirement at “Age 60 and 25 years, or Age 62 and 10 years”. A separate grandfathered group, “Members with at least 25 years of service as of August 1, 2017”, has its own chart. The statute keys the newer tier to the member’s service on that date, not to the retirement date. R.C. 3309.34(A)(2)(a) says: “Except as provided in division (A)(1)(c) of this section, a member who on August 1, 2017, has less than twenty-five years of total service credit is eligible for service retirement under this division if the member:” It lets the board change those combinations. R.C. 3309.34(A)(2)(b) says: “The board, by rule adopted under division (D) of this section, may adjust the retirement eligibility requirements of division (A)(2)(a) of this section if the board’s actuary, in its evaluation under division (C) of this section, determines that an adjustment is necessary to ensure that the retirement system meets the thirty-year amortization period requirement of section 3309.211 of the Revised Code.” It also gives a second route into the older tier. R.C. 3309.34(A)(1) says: “A member is eligible for retirement under division (A)(1)(a) of this section if as of August 1, 2017, the member will have less than twenty-five years of total service credit but, not later than that date, pays to the retirement system an amount equal to the additional liability to the system resulting from the member’s retirement under this division.” Timing matters too: “Even a short delay can affect your monthly benefit, eligibility for health care coverage, and the timing of your first payment.”

The six plans of payment

The first required choice is the plan. “When you apply for retirement, you must select a plan of payment.” The statute does not make the election compulsory for every applicant. R.C. 3309.46(B)(1)(a) says: “A member eligible to elect to receive a retirement allowance under a plan of payment other than “plan A” because the member is unmarried who fails to make an election on retirement shall receive a retirement allowance under “plan B.”” The election on the application applies only to a member eligible to elect a plan, as R.C. 3309.46(A) puts it: “If the member is eligible to elect a plan of payment under this section”. “This decision is important and depends on personal factors, including your health, finances, marital status, and other sources of income.” Every plan pays the member for life, and the difference is what continues afterward: “If you choose a plan that continues payments to a beneficiary after your death, your monthly benefit will be reduced.” “The amount of the reduction depends on the plan selected and the ages of those involved.” The general trade-off is covered in single-life versus joint-and-survivor pension.

The statute words three of these plans more narrowly than the table. For Plan C, R.C. 3309.46(B)(3)(b) says: “”Plan C,” which shall consist of the actuarial equivalent of the member’s retirement allowance determined under section 3309.36 or 3309.381 of the Revised Code in a lesser amount payable for life and one-half or some other portion of the allowance continuing after death to the member’s sole surviving beneficiary designated at the time of the member’s retirement, provided that the amount payable to the beneficiary does not exceed the amount payable to the member;”

For Plan E, R.C. 3309.46(B)(3)(d) says: “”Plan E,” which shall consist of the actuarial equivalent of the member’s retirement allowance determined under section 3309.36 or 3309.381 of the Revised Code in a lesser amount payable for a certain period from the member’s retirement date as elected by the member and approved by the retirement board, and on the member’s death before the expiration of that certain period, the member’s lesser retirement allowance continued for the remainder of that period to, and in such order, the beneficiaries as the member has nominated by written designation and filed with the retirement board.” It adds: “If all beneficiaries die before the expiration of the certain period, the present value of all such payments yet remaining in such period shall be paid to the estate of the beneficiary last receiving.”

For Plan F, R.C. 3309.46(B)(3)(e) says: “”Plan F,” which shall consist of the actuarial equivalent of the member’s retirement allowance determined under section 3309.36 or 3309.381 of the Revised Code in a lesser amount payable to the member for life and some portion of the lesser amount continuing after death to two, three, or four surviving beneficiaries designated at the time of the member’s retirement.” It adds: “The total of the portions allocated shall not exceed one hundred per cent of the member’s lesser allowance.”

Plan D carries an age condition: SERS says that “if there is too great a difference in age between you and your beneficiary (other than your spouse), this plan may not be available”.

What a survivor plan costs, and what is guaranteed either way

SERS does not publish a reduction percentage for each plan on the pages read. It says only that the reduction depends on the plan and on the ages involved, and that its staff can provide an estimate for each plan. The reduction therefore has to come from a personal SERS estimate.

A computed example from an assumed $1,800 monthly pension after a Plan A reduction, not a SERS figure: SERS says Plan A pays the spouse half of the monthly pension after the member’s death. If the member’s reduced monthly pension under Plan A were an assumed $1,800 a month, the spouse’s benefit would be a computed $900 a month, calculated as the assumed reduced pension multiplied by 50 and divided by 100. The reduction itself is assumed, because SERS states no factor.

One protection applies whichever plan is chosen. “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.” The statute sends an unrecovered balance, under every plan, to the beneficiary named under R.C. 3309.44(D). R.C. 3309.46(D) ends: “then the difference between the total amount of the allowances paid and the accumulated contributions and other deposits shall be paid to the beneficiary provided under division (D) of section 3309.44 of the Revised Code.” Under R.C. 3309.44(D), with no designation on file the order of precedence is: “If no such designation has been filed, such amount shall be paid, except as otherwise provided in section 3309.45 of the Revised Code, in the following order of precedence to the annuitant’s:” The estate is the last of those payees, not the first.

Spousal consent

A married member cannot simply pick any plan. “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.” The statute asks for consent to any plan other than Plan A and names no Plan D exemption. R.C. 3309.46(B)(1)(b) says: “The member is not married or either the member’s spouse consents in writing to the member’s election to a plan of payment other than “plan A” or the board waives the requirement that the spouse consent;” “This must be completed on the Service Retirement Application and signed before a notary public or SERS employee.” The default if the spouse does not sign is stated plainly: “If consent is not provided, SERS will pay you according to the Plan A monthly amount.” SERS lists limited exceptions: “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 for your spouse.” The statute’s waiver list is open. R.C. 3309.46(B)(2) says: “The board may waive the requirement of consent if the spouse is incapacitated or cannot be located or for any other reason specified by the board.” It also says: “That consent is irrevocable once notice of consent is filed with the board.” A member who wants Plan B, or a PLOP, while married therefore needs the spouse’s signature, and processing waits for it. The wider issue of what a spouse gives up is discussed in spousal consent to waive a joint-and-survivor annuity.

What can be changed, what cannot, and the deadlines

The newer SERS page sets a short window after the first payment: “You may change your plan selection within 30 days of your first pension payment.” “After that, changes are only allowed under limited circumstances, such as marriage, divorce, or the death of a beneficiary.” The statute’s own text sets an earlier cutoff. R.C. 3309.46(C) says: “Until the first payment of any retirement allowance is made, as provided in sections 3309.36 or 3309.381 of the Revised Code, a member may change the member’s election of a payment plan if the election is made in accordance with and is consistent with division (B) of this section.” For a later marriage, R.C. 3309.46 says: “If the marriage or remarriage occurs on or after June 6, 2005, the election must be made not later than one year after the date of the marriage or remarriage.” The 30-day window after the first payment is not in the statute text read; rule 3309-1 of the Ohio Administrative Code was not read. Before the first payment, a change means this: “Submit a written notice cancelling your initial application, then submit a revised Service Retirement Application with your new selections.” After the 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 Service Retirement Application with your new selections.”

Two points are in tension and should be confirmed with SERS before signing. Plan E carries the statement “This plan cannot be changed after retirement.” The guide lists this among the PLOP’s features: “Is irrevocable”. The newer web page, in contrast, lets a member change the plan or PLOP within 30 days of the first payment by returning that payment. The pages read do not reconcile these statements, so a choice made at application is safest treated as final.

Deadlines are stated plainly. “Submit your application at least 90 days before your intended retirement date to avoid delays.” “If you die before the effective date of your retirement, your retirement will not take effect.”

The partial lump sum option payment (PLOP)

The PLOP is the one-time payment taken from the pension at retirement. “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.” The limits are listed on the same page: “Available only at retirement”; “May equal 6 to 36 months of your unreduced pension” (the statute measures the lump sum against the monthly amount under the plan of payment elected: R.C. 3309.46(B)(4)(b) says “The lump sum amount designated by the member shall be not less than six times and not more than thirty-six times the monthly amount that would be payable to the member under the plan of payment elected under this section had the lump sum not been elected and shall not result in a monthly benefit that is less than fifty per cent of that amount.”); and “Cannot reduce your pension by more than 50%”. The guide adds that “The amount of the reduction in your monthly allowance is based on your age at retirement.” On spouses, the guide lists: “Is available to a member who is married only if the member’s spouse consents to the PLOP”.

SERS publishes a worked example on the Steps Toward Retirement page, starting from “Without a PLOP amount: $780.31”. Taking 6 months as a PLOP gives “$4,681.86” and a reduced pension of $745.12; taking 36 months gives “$28,091.16” and a reduced pension of $569.18. The page does not say which age or plan produced those figures, so the example shows how a PLOP trades monthly income for cash, not what any given member would see.

A computed example recomputed from the SERS example figures, not an assumed amount: 6 months of $780.31 is a computed $4,681.86 and 36 months is a computed $28,091.16, matching the lump sums SERS prints. The monthly cost is the difference between the unreduced and reduced pension: a computed $35.19 a month for the 6-month PLOP and a computed $211.13 a month for the 36-month PLOP. Dividing each lump sum by its monthly reduction gives about 133 months in both cases, a little over 11 years of reduced payments before the lost income equals the cash received. That arithmetic is this page’s, ignores interest, taxes and inflation, and rests on a single SERS example. The wider comparison is the subject of pension lump sum versus monthly annuity break-even.

On tax and timing, SERS lists the PLOP as “Subject to 20% federal taxes unless rolled over”, and says “Ohio state taxes are not automatically withheld but a withholding form can be requested”. “PLOP payments are typically issued 60 to 90 days after your effective retirement date once all required information is received.” Rollover and the IRS rules are covered below.

Refund or leave the contributions with SERS

A member who leaves SERS-covered work before retiring has two paths. “When you leave a SERS-covered job, you may be eligible to receive a refund of your employee contributions and any amounts you paid to purchase service credit.” “Employer contributions are not refundable.” The other path is just as clearly stated: “You are not required to take a refund when you leave employment.” “You may choose to leave your contributions on deposit with SERS.” Which is better depends on age, years of service and other plans, discussed in general in pension refund versus leaving it.

SERS lists what keeping the account preserves: “You may retain eligibility for disability benefits or survivor protections” (the statute attaches conditions: R.C. 3309.39 says “The school employees retirement system shall provide disability coverage to each member who has at least five years of total service credit.” and the application for a disability benefit “Application for a disability benefit must be made within two years from the date the member’s contributing service terminated”, with an exception for conclusive medical records), and “your SERS service credit may be combined for a larger retirement benefit”.

The costs of a refund are stated bluntly. “No interest is paid on refunded contributions”. The statute pays a refund as the member’s accumulated contributions. R.C. 3309.01 says: “”Accumulated contributions” means the sum of all amounts credited to a contributor’s account in the employees’ savings fund together with any regular interest credited thereon at the rates approved by the retirement board prior to retirement.” That definition counts only interest the board actually credits, at rates the board approves. SERS says it pays no interest on refunded contributions. “SERS does not allow partial refunds or loans against your account.” The statute allows one narrow refund before retirement. R.C. 3309.47 says: “The additional deposits may be refunded to the member before retirement, and shall be refunded if the member withdraws the member’s refundable amount.” “Refunds are not issued until at least three months after employment ends”. And the permanent loss: “Once a refund is paid, you permanently give up” The statute cancels the credit and lets a returning member restore it. R.C. 3309.42(C) says: “Payment of a member’s accumulated contributions under this section cancels the member’s total service credit in the school employees retirement system.” The page lists retirement benefits, disability benefits, and survivor benefits for dependents. The pages read give no vesting period for the refund itself, only the age and service combinations for a pension.

SERS’s own example is a member named Mary, age 40, who leaves after 12 years and remains eligible for “A reduced lifetime pension at age 62” or “A full lifetime pension at age 67”. SERS adds: “Because Mary is under age 59½, choosing a refund would also result in an additional 10% federal income tax for early distribution, unless the funds are rolled over into an eligible retirement account.”

A computed example from the SERS example figure, not a SERS tax statement: if all of $24,091 were paid directly to Mary, 20 percent withholding would be a computed $4,818.20 and the 10 percent additional tax, if it applied, a computed $2,409.10. Whether either applies to a real refund depends on the member’s facts.

For a member who already meets the age and service rules, “If you are eligible for an age and service retirement, spousal consent is required before a refund can be processed.” The statute reaches a member who is married at the time of application. R.C. 3309.42(A)(2) says: “A member described in division (A)(1) of this section who is married at the time of application for payment and is eligible for age and service retirement under section 3309.34, 3309.36, or 3309.381 of the Revised Code or would be eligible for age and service retirement under any of those sections but for a forfeiture ordered under division (A) or (B) of section 2929.192 of the Revised Code shall submit with the application a written statement by the member’s spouse attesting that the spouse consents to the payment of the member’s accumulated contributions.” Service credit can come back later: “If you later return to public employment, you may be able to restore refunded SERS service credit.” The cost is stated: “you may restore refunded SERS credit by repaying the refunded amount plus interest”. The pages read do not state the interest rate. The statute does. R.C. 3309.26(C) says a member with at least one and one-half years of contributing service credit after the withdrawal “may restore such service credit by redepositing in the employees’ savings fund the amount withdrawn with interest at a rate to be determined by the board, compounded annually, from the first of the month of withdrawal to and including the month of redeposit.” It adds: “If the accumulated contributions were withdrawn under section 3309.43 of the Revised Code, service credit may be restored only if the member or former member accrued one and one-half years of service credit after the withdrawal of the accumulated contributions.”

Buying service credit

Service credit raises the pension, and SERS lists what it counts toward, including “When you are eligible to retire or qualify for disability benefits” and “The amount of your monthly retirement payment”. Buying more is conditional. “Once you earn at least 1.50 years of contributing service credit, you may qualify to purchase additional service credit.” “SERS will provide a statement outlining the cost of the service credit available to you.”

The deadline is firm: “All service credit purchases must be completed before you retire.” On payment, SERS says that “once you choose payroll deduction, that payment method cannot be changed until the full purchase is complete”. “In some situations, you can recover the cost of a purchase in two or three years by receiving a higher pension amount.” Whether a purchase is worth it is treated generally in the pension buyback calculator.

Costs vary by type of service. For exempt service: “The cost for each year of service credit is 20% of your most recent year’s compensation.” A computed example from an assumed $48,000 of most recent annual compensation, not a SERS figure: one year of exempt service would cost a computed $9,600, calculated as the assumed compensation multiplied by 20 and divided by 100. For other government or school service, SERS caps the total: “The maximum service credit that may be purchased is the lesser of five years or your total Ohio service credit”. The pages read give no single cost formula for every kind of credit, so the cost statement SERS sends is the figure to rely on.

The cost-of-living adjustment

A COLA does not start at once. “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, SERS says “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%”. The statute makes the increase discretionary and lets the board change it. R.C. 3309.374(B) says the board “Effective January 1, 2018, the retirement board may annually increase each allowance, pension, or benefit payable under this chapter by the percentage increase, if any, in the consumer price index, not to exceed two and one -half per cent” R.C. 3309.374(G) says: “Before granting an increase under division (B) of this section, the retirement board may adjust the percentage of any increase if the board’s actuary, in its annual actuarial valuation required by section 3309.21 of the Revised Code, or in other evaluations conducted under that section, determines that an adjustment does not materially impair the fiscal integrity of the retirement system or is necessary to preserve the fiscal integrity of the retirement system.” The guide describes the same fourth-anniversary timing. The pages read do not state the rule for members who began benefits before April 1, 2018. The statute words the start date and the number of anniversaries differently. R.C. 3309.374(C) says: “The first increase is payable to all persons becoming eligible after June 30, 1971, upon such persons receiving an allowance, pension, or benefit for twelve months, except that a recipient of an allowance, pension, or benefit that commences on or after January 1, 2018, is eligible for an increase under division (B) of this section on and after the number of anniversaries of the allowance, pension, or benefit determined by the retirement board.”

What the IRS adds on tax

A refund or lump sum from a public pension is a distribution, so the IRS rules apply on top of SERS’s own. On withholding, the IRS says that a taxable eligible rollover distribution paid to you “is subject to mandatory income tax withholding (generally at a rate of 20%), even if you intend to roll it over later”, and that if you roll it over yourself “you’ll have to add funds from other sources equal to the amount withheld”. SERS says a rollover into an eligible plan such as an IRA, 403(b) or 457(b) means no taxes are withheld at the time of rollover, and the IRS rules below apply to a taxable distribution paid to the member. The rollover clock, if the money is paid to you: “you have 60 days from the date you receive it to roll it over to another eligible retirement plan”.

On early distributions the IRS says “the law imposes a 10% additional tax on certain early distributions from certain retirement plans”. Its list of exceptions includes “Distributions made to you after you separated from service with your employer after attainment of age 55” and “Distributions made to a qualified public safety employee from a governmental plan”. Whether an exception fits a particular refund depends on your own plan and facts, so confirm it with a tax preparer before you take one.

What this page could not settle

• The reduction for each plan of payment. The pages read say it depends on the plan and the ages involved and give no factors, so no option comparison is computed here beyond the labelled Plan A example.
• The age and plan behind SERS’s PLOP example, and the PLOP reduction factors by age. The guide says the reduction depends on age at retirement, but the pages read give no table.
• Whether a PLOP can be cancelled after the first payment. The guide calls the PLOP irrevocable, while the newer web page allows a plan, PLOP or date change by returning the first payment within 30 days. The pages read do not reconcile the two.
• Whether Plan E can be changed within the 30-day window. The page says the plan cannot be changed after retirement and separately describes the 30-day window.
• The vesting rule for a refund, and a refund’s effect on a pension that has not been drawn. The pages read give the ages and service for a pension, not a separate vesting period.
• The interest rate or method used when restoring refunded service credit.
• How the COLA applies to members whose benefits began before April 1, 2018.
• Which age and service group (grandfathered or not) a given member belongs to. The guide’s eligibility chart is read here as stated, and a SERS estimate decides the case.
• Ohio state tax treatment of a refund or PLOP beyond the withholding statements quoted. See the linked Ohio tax pages for the state rules.

Ohio SERS topic pages

Each row links to the page that reads one topic in the Ohio SERS member documents: the topic, then the summary that page carries.

Common mistakes

• Assuming the plan can be reopened at will: SERS allows a change within 30 days of the first payment, then only limited circumstances such as marriage, divorce or the death of a beneficiary.
• Choosing Plan B or a PLOP while married without the spouse’s consent: without consent SERS pays the Plan A monthly amount.
• Treating a PLOP as free money: it permanently reduces the lifetime monthly pension, and it is available only at retirement.
• Taking a refund without counting what is given up: no interest is paid, employer contributions are not refundable, and retirement, disability and survivor benefits are permanently surrendered.
• Waiting until after retirement to buy service credit: SERS says all purchases must be completed before the retirement date.

Related on this site: Ohio retirement taxes, does Ohio tax pensions, single-life versus joint-and-survivor pension, pension refund versus leaving it and public pension retirement decisions by system.

Sources

• School Employees Retirement System of Ohio, Steps Toward Retirement: https://www.ohsers.org/members/ready-to-retire/step-toward-retirement/
• SERS of Ohio, Member Benefits Guide: https://www.ohsers.org/wp-content/uploads/2018/01/Member-Benefits-Guide.pdf
• SERS of Ohio, Refunds: https://www.ohsers.org/members/working-members/refunds/
• SERS of Ohio, Service Credit: https://www.ohsers.org/members/working-members/service-credit/
• IRS, Topic no. 413, Rollovers from retirement plans (irs.gov): https://www.irs.gov/taxtopics/tc413
• IRS, Topic no. 558, Additional tax on early distributions from retirement plans other than IRAs (irs.gov): https://www.irs.gov/taxtopics/tc558

Sources: the primary documents linked above, read on October 2, 2026. General information from each system’s own published materials, not legal, tax or financial advice. Your own member statement and the system’s current rules decide your benefit, and a pension counsellor at the system or a fee-only adviser is the right place to confirm anything consequential.