This document discusses retirement planning topics for Ohio STRS pension recipients, including pending changes that will increase retirement ages and contribution amounts while reducing cost of living adjustments. It recommends supplementing a pension with pre-tax contributions to a 403(b) tax-sheltered annuity. Choosing the right investment options like fixed indexed annuities can help maximize gains while avoiding losses. Key decisions like taking the full pension or joint survivor options can significantly impact the amount received. A PLOP allows rolling over a partial lump sum payment without tax consequences.

1. It’s never to early to think about Retirement Carl McClurg, Jr. 513-886-5009 www.saveandretire.net

2. Topics to Touch On Changes in Ohio STRS Supplementing your pension What is a 403(b) Tax Sheltered Annuity Saving with PRE-TAX Dollars Having the “Right 403(b)” Maximizing your pension PLOP

3. STRS Pending Changes Increasing retirement age Increasing total years of service Beginning August 1, 2015 you can retire at any age with 35 years of service, (currently it is 30 years) Can retire at 60 with 30 years of service (currently you can retire at any age with 30 years of service) Can retire earlier with an actuarially reduced benefit at age 55 with 30 years of service or at age 60 with 5 years of service.

4. STRS Pending Changes Increasing your contribution to 12.5% Reduced cost of living adjustment 1.5% Increase Final average salary years to 5 STRS needs you to work longer, contribute more and take less!

5. Supplement Your Pension You can take control of your destiny Contribute PRE-TAX to your own 403(b) Tax Sheltered Annuity (what is that?) You can contribute up to $16,500.00 this tax year

6. PRE-TAX Contributions Contribute $200.00 per month Only reduces your check by $144.00 (28% tax bracket)

7. The “RIGHT” 403(b) Plan FIA (Fixed Indexed Annuity) Account increases as the stock market rises Lock in your gains Does NOT loose value if stock market drops!

8. Maximize Your Pension 10 – 15 years from retirement Key choices can maximize your pension Do I take full pension? Do I select the joint survivorship option?

9. Pension Choices Final average salary $70,000.00 Based on 35 years of service under new guidelines = 78.5% = $4,580,00 per month full pension Joint Survivor option (reduced about 15%) = $3,893.00 per month

10. That is a reduction of $687.00 per month

11. What if ???? You select the Joint Survivor Option, take the reduction and your spouse dies before you, 10 years later?? You donated $82,440.00 of your pension to STRS.

12. What the Heck is a PLOP? Partial Lump sum Option Payment Up to 36 months of your pension Can be rolled over Without tax consequences Giving you full control over part of your pension dollars.

13. Where are you? Don’t have a plan and want to get started? Have a plan and want to review it. Getting close to retirement and want to talk about your options.

14. Carl McClurg, Jr. 513-886-5009 www.saveandretire.net Thank You!