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 charts below displays the employee and employer contribution rates, as well as the mitigating rate, for the various retirement plans:

Staff Plans – Employee and Employer Contribution Rates
Retirement Plan Employee Contribution Employer Contribution
Alternative Retirement Plan 10% 14%

Breakdown:
11.76% to ARP plan;
2.24% to mitigating rate
OPERS Member-Directed Plan 10% 14%

Breakdown:
7.50% to OPERS plan;
4.00% to retiree medical account;
2.24% to mitigating rate;
0.26% administrative fee
OPERS Combined Plan 10% 14%

Breakdown:
10.50% to OPERS plan;
3.50% to mitigating rate
OPERS Traditional Plan 10% 14%
Faculty Plans – Employee and Employer Contribution Rates
Retirement Plan Employee Contribution Employer Contribution
Alternative Retirement Plan 14% 14%

Breakdown:
11.09% to STRS plan;
2.91% to mitigating rate
STRS Defined Contribution Plan 14% 14%

Breakdown:
11.09% to STRS plan;
2.91% to mitigating rate
STRS Combined Plan 14% 14%
STRS Defined Benefit Plan 14% 14%

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.

Visit the OPERS website or STRS website for additional information.