Benefits

Benefits

OPERS

Pension Plan Proposed Changes

All of Ohio’s public pension systems have been asked by the Ohio Retirement Study Council (ORSC) to look at a number of options that could help contain costs and strengthen their funds. Read more.

OPERS is the state retirement program for staff.

Staff contribute 10% of their salary each pay period to the retirement plan, which is deducted on a pre-tax basis. The university also contributes to the staff member's retirement plan based on 14% of his or her salary. Ohio Revised Code Section 3305.6(d) allows OPERS to withhold a portion of the employer's contribution to offset any negative financial impact the OPERS Traditional Plan may experience by the offering of alternative retirement plan options. More information is available here.

If you are unsure whether or not you are eligible for this benefit, go to Benefit Eligibility.

OPERS/ARP Distribution Rate Change Quick Facts

According to state law, OPERS may annually determine if the alternative retirement plans offered (OPERS Member-Directed Plan, OPERS Combined Plan, and the Alternative Retirement Plan (ARP)) have had a negative financial impact on the OPERS Traditional Plan. If a negative impact exists, then OPERS may require a percentage of the employer contributions be redirected to the OPERS Traditional Plan in order to compensate for the loss.

Staff members contributing to OPERS Member-Directed, Combined Plans, or the ARP have .77% of the employer contribution directed to this off-set effective January 2008.

  • Ohio Revised Code Section 3305.6(d) allows OPERS to appropriate up to 6% of the employer contribution. The mitigating contribution can range from 0% to 6%. The mitigating rate will be determined by the OPERS Board each year.

The amount the university contributes to retirement plans is 14.00%.

  • Beginning in January 2008, the university's contribution will be distributed as follows - 13.23% will go to ARP accounts and .77% will be redirected to OPERS.
  • The .77% is directed to the OPERS Traditional Plan to help fund the plan. It does not go to individual accounts.
  • No additional contribution will be added by the university to account for the mitigating rate. OPERS is able to prove a percentage of the employer contribution is needed and therefore, all universities must abide by that ruling.
  • Faculty contribute 10% of their salary to the retirement plan. The university contributes 10.5% of the faculty member's salary to his or her retirement plan, and is required to contribute 3.5% of salary to STRS to finance unfunded liabilities.

 

For a history of retirement contribution rate changes, see hr.osu.edu/benefits/retirerates.pdf. (.pdf)

For some Frequently Asked Questions, see hr.osu.edu/benefits/arpchangefaq.pdf (.pdf)

More information on ARP benefits is available here.

More information on STRS benefits is available here