Mitigating Rate and Employer Contributions
Ohio State staff and faculty have access to one of two public retirement systems – the Ohio Public Employees Retirement System (OPERS) or the State Teachers Retirement System (STRS) – or, if eligible, the university’s Alternative Retirement Plan (ARP). Both you and the university contribute to your retirement account.
Ohio law (Ohio Revised Code Section 3305.06) requires a portion of the employer contribution for an ARP member go to the state retirement system to mitigate any negative financial impact of the ARP on the state retirement system. This portion is known as the mitigating rate. The mitigating rate is permanently retained by the applicable state system (OPERS or STRS) and is not applied to the employee ARP account.
In addition, OPERS and STRS have the authority to collect a mitigating rate from the employer contribution made on behalf of their members who elect their defined contribution or combined plan.
The chart below displays the employee and employer contribution rates, as well as the mitigating rate, for the various retirement plans:
Retirement Plan | Employee Contribution | Employer Contribution |
---|---|---|
Alternative Retirement Plan | 10% | 14% (11.76% to ARP plan; 2.24% to mitigating rate) |
OPERS Member-Directed Plan | 10% | 14% (7.5% to OPERS plan; 4% to your Retiree Medical Account; 2.24% to mitigating rate; 0.26% administrative fee) |
OPERS Combined Plan | 10% | 14% (10.5% to OPERS plan; 3.5% to mitigating rate) |
OPERS Traditional Plan | 10% | 14% |
Retirement Plan | Employee Contribution | Employer Contribution |
---|---|---|
Alternative Retirement Plan | 14% | 14% (11.09% to STRS plan; 2.91% to mitigating rate) |
STRS Defined Contribution Plan | ||
STRS Combined Plan | 14% | 14% |
STRS Defined Benefit Plan |
The mitigating rate is subject to fluctuation and may increase or decrease at any time based on current law.
Only the Ohio General Assembly has the ability to reduce the impact of the mitigating rate on plan participants. In 2016, House Bill 520 established a formula for calculating the mitigating rate and capped the maximum at 4.5% for all state retirement systems.
Manage Plans
The NetBenefits portal, sponsored by Fidelity, allows employees to enroll/manage 403(b) and 457(b) plans and change provider(s) for the university sponsored retirement plans.
A NetBenefits User Guide and NetBenefits How-To Video are available for assistance.
Trouble with the site? Contact the Fidelity Service Center at (800) 343-0860.
Ohio Deferred Compensation (ODC) elections/changes can be made at ohio457.org or by calling (877) 644-6457.