In preferences, tick "Prevent computer from sleeping automatically when the display is off". You can now turn off the display without the laptop sleeping.
Closing the lid still causes the laptop to sleep, which is what I want.
This option is only available under "When Connected to Power Source" for portable Macs.
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Check your security and privacy in preferences. Is require password checked?
Yes, I do have a password set up through Security & Privacy, but there is no option under Energy Saver preferences that allows me to toggle requiring a password.
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No, they don't if you have your power settings configured to prevent sleep.
Also, you don't need to waste a hot corner to put the display to sleep. A keyboard shortcut exists by default: control-shift-eject (or power button if you do not have eject)
I find the hot corner more convenient, but that's just personal preference. Either way, I am still prompted to enter my passphrase upon wake.
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I think its because the current chipsets from Intel go into low power mode on their own and so a full sleep setting in OS X is not needed.
Basically, we have less choice because of the advances in power consumption at the chip level. That's my opinion based on various stuff I read when I was searching around on why there was only one slider on my new iMac
This could be the culprit. I used to be able to use a hot corner to put the display into sleep, but leave the system running on my '12 MBP. It would not prompt me for my system passphrase when I "woke" the screen back up. However, Menu > Sleep would put the whole system into sleep and lock my MBP. This is what I want. Something definitely changed though.