Retirement Benefits for New Full-Time Staff
As a new full-time staff (75% FTE or greater) member or existing staff member who moved to a full-time role, you have the opportunity to select between Ohio Public Employees Retirement System (OPERS) and the Alternative Retirement Plan (ARP) for your mandatory retirement contributions. Earnings from your Ohio State employment are not covered under Social Security. Instead, you contribute to a mandatory retirement plan. Your retirement contributions will be sent to the OPERS defined benefit plan until an election is made.
Step 1: Learn About Your Plan Options
As an eligible staff member, you may elect one of the two OPERS plan options or the university-sponsored ARP.
Review key plan features of your retirement plan options
ARP Defined Contribution Plan
University-sponsored plan
Eligibility: 75-100% FTE
- Investments selected by you
- You choose a provider from an approved list
- Immediate vesting
- Portable upon termination
- Potential for gain and loss
OPERS Traditional Pension (Defined Benefit) Plan
State-sponsored plan
Eligibility: 1-100% FTE
- Predictable monthly pension benefit
- May have survivor and death benefits during career
- Least portable option
- May have access to health care in retirement
OPERS Member-Directed (Defined Contribution) Plan
State-sponsored plan
Eligibility: 1-100% FTE
- Investments selected by you
- Portable upon termination
- Phased vesting on employer contributions
- Potential for gain or loss
Step 2: Compare the Plans
When choosing your plan, review the differences between these three options.
Review the below summary and access the OPERS side-by-side comparison of key plan features.
Alternative Retirement Plan
You may consider this plan if:
- Are uncertain about teaching in Ohio their entire career or long enough to qualify for an OPERS benefit.
- Want to direct investments and select a provider from an approved list.
- Seek flexibility and choice.
- Desire plan portability.
- Do not need potential retirement benefits through OPERS (i.e. access to health care in retirement, if eligible and available).
OPERS Traditional Pension (Defined Benefit) Plan
You may consider this plan if:
- Intend to contribute over a career to OPERS or long enough to be eligible for a OPERS benefit.
- Want predictable monthly retirement benefits.
- Desire potential retirement benefits through OPERS such as access to health care, if eligible and available.
OPERS Member-Directed (Defined Contribution) Plan
You may consider this plan if:
- Are uncertain about working in Ohio their entire career or long enough to qualify for an OPERS benefit.
- Want to direct investments.
- Seek flexibility and choice.
- Desire plan portability.
- Do not need potential retirement benefits through OPERS (i.e. access to health care in retirement, if eligible and available).
Step 3: How and When to Make Your Decision
You have 120 days from, and including, the effective date of your eligible appointment to make your selection between OPERS and the ARP, if eligible. If you decide to contribute to OPERS, you will have an additional 60 days (a total of 180 days) to select one of the two retirement plans at OPERS. If OPERS does not receive your plan selection within 180 days, you will remain in the defined benefit plan, and this will be your retirement plan for the duration of your OPERS membership.
Select between OPERS and the ARP
Full-time staff members have 120 days from, and including, the effective date of your eligible appointment to make your selection between OPERS and the ARP. Your enrollment will remain in place until you have a 365-day break in service at which time you may be eligible (based on appointment and FTE) to make a new mandatory retirement plan selection.
To make your election, review the ARP deadline calendar and complete the Retirement Program Election form within 120 days of your eligibility date and submit it using the submission instructions on the form.
If you choose the ARP:
Your account will be opened for you after your election is processed by Ohio State. You may open your account early by contacting your provider directly (note: this is not available to Fidelity participants).
After your account is opened, choose your investments and name your beneficiaries directly with your provider. If no investment selection is made, you will default to an age-appropriate Target Retirement Date fund based on your date of birth.
Retirement contributions will be taken as early as your first check and will be sent to OPERS and applied to the defined benefit plan. Any contributions sent to OPERS during your election period, minus the mitigating rate, will automatically be transferred to your ARP account by OPERS. No action is required by you.
If you choose or default to OPERS:
Make your OPERS plan choice online via the OPERS website. Click Account Login. If you have not established an account, click “Need an Account?” to begin.
If OPERS does not receive your plan selection within 180 days, you will remain in the defined benefit plan, and this will be your retirement plan for the duration of your OPERS membership.
Step 4: Explore Additional Plans
In addition to the mandatory retirement plans, Ohio State offers supplemental savings options to help faculty and staff plan for retirement.
All Ohio State employees are eligible to participate in the 403(b) and 457(b) Supplemental Retirement Accounts (SRA). These plans allow you to enhance your retirement savings through two available contribution types (pretax and Roth) to a 403(b) plan and/or 457(b) plan account. Learn more about the SRA.
Step 5: Education and Support
Ohio State recognizes the importance of your retirement plan choice. Additional resources are available to assist in your decision.
Webinars
Register for a live retirement webinar with Human Resources staff. Recorded presentations are also available if you are unable to attend one of the monthly live webinars.
Phone
Connect by phone to discuss plan features or your specific questions with an OPERS representative and/or an approved retirement provider.
Frequently Asked Questions
How do I enroll in OPERS?
Staff employees are automatically enrolled in the OPERS defined benefit plan, from your date of hire. You may remain in the defined benefit plan at OPERS or select the member-directed plan within 180 days from your date of hire. Contact OPERS to select a plan or you can do so from your OPERS online account. Log in to your account within your 180 day plan selection window and select, “Make My Retirement Plan Selection Now”.
What happens if I opt to stay in OPERS and don’t select a plan?
Under Ohio law, members who do not select a plan within 180 days will automatically be placed in the OPERS Traditional Pension Plan (defined benefit). You can only change your plan once during your career.
I want to opt out of OPERS and enroll in ARP. How do I elect the ARP?
You have 120 days from, and including, your eligible appointment date to select between ARP and OPERS. See the ARP Deadline Calendar and research ARP providers. Complete and submit the Retirement Program Election form.
I haven’t selected a retirement plan yet. Why do I have an OPERS deduction on my paycheck?
Upon hire, you were automatically enrolled in OPERS based on your appointment classification. If the ARP is elected, contributions as of your ARP eligibility date will be transferred automatically to your chosen ARP provider by OPERS. Please allow 2-4 weeks for OPERS to transfer your applicable contributions. The contributions that are sent to your ARP provider are subject to the mitigating rate.
Can I change the amount I contribute to OPERS?
No. The contribution rates are based on state retirement system mandates. If you wish to contribute additional funds to retirement, Ohio State employees are eligible to participate in the 403(b) and 457(b) Supplemental Retirement Accounts.
What is the maximum amount I can contribute to OPERS?
Your retirement limit is determined by your retirement plan and/or date of hire. Review the OPERS page for limit information.
How do I contact OPERS?
See our list of providers for contact information.
Can I borrow against my OPERS account?
No, a loan feature is not available.
What can I do with my OPERS account after I leave Ohio State employment?
Please visit the OPERS website for more information.
I want to opt out of OPERS and enroll in ARP. How do I elect the ARP?
You have 120 days from, and including, your eligible appointment date to select between ARP and OPERS. See the ARP Deadline Calendar and research ARP providers. Complete and submit the Retirement Program Election form.
After electing ARP, how do I establish my account, select investments, and name my beneficiaries?
The account at your selected provider will be opened for you after your election is processed by Ohio State. If you select Fidelity, your account will be created after your election is process and the daily file is sent. If any other approved provider is selected, you may open your account by contacting your provider directly.
After your account is opened, choose your investments and name your beneficiaries directly with your provider. If no investment selection is made, you will default to an age-appropriate Target Retirement Date fund based on your date of birth.
Can I change the amount I contribute to the ARP?
No. The contribution rates are based on state retirement system mandates. If you wish to contribute additional funds to retirement, Ohio State employees are eligible to participate in the 403(b) and 457(b) Supplemental Retirement Accounts.
What is the maximum amount I can contribute to the ARP?
Your retirement limit is determined by your retirement plan and/or date of hire. Review the ARP page for limit information.
How do I contact ARP providers?
See our list of approved providers for contact information.
Can I borrow against my ARP account?
No, a loan feature is not available.
Can I rollover funds from another qualified plan to my ARP account?
Yes, you may rollover funds from an eligible retirement account to your ARP account.
What can I do with my ARP account after I leave Ohio State employment?
You may rollover, transfer, or take a distribution from your account. You will be required at age 73 to take a Required Minimum Distribution (RMD) from your account.
I’m enrolled in an ARP, what happens if my appointment decreases below 75% FTE?
Once enrolled in an ARP, the enrollment shall apply to your employment in all positions/appointments at Ohio State unless you terminate employment and do not return in any position at Ohio State prior to one year after your date of termination. If you return to employment after one year, you will then have the opportunity to make a new retirement selection.
As a student employee, can I elect the ARP?
No. Students are not eligible to elect the ARP. The plan is available to 75% or greater full-time employees.
See Mitigating Rate and Employer Contributions for detailed information.
What is “service credit”?
Service credit is the number of years earned through contributing service or purchased under OPERS plan provisions. Service credit is one of the factors used to determine the amount of the monthly service retirement benefit in the Defined Benefit plan and is calculated by your employer according to the rules established by OPERS.
I contributed to another state retirement system, what do I need to know about combining my service credit?
Combining the accounts is optional. The choice to combine (or not combine) the accounts is made at retirement. The Defined Benefit plan is the only plan that allows service credit to be combined at the time of retirement. If the accounts are combined no more than one year of total credit may be granted for each fiscal year. The system with the greatest credit calculates and pays the monthly retirement benefit.
Am I required to contribute to Social Security?
Employees of Ohio public colleges and universities do not participate in the federal Social Security system, other than contributions to Medicare.
If I previously contributed to social security are there any impacts to my retirement plan?
Employees of Ohio public colleges and universities do not participate in the federal Social Security system, other than contributions to Medicare. If you are eligible for a Social Security benefit from other employment in addition to your OPERS benefit, there may be a reduction in your Social Security benefit. Learn more about the impacts to your Social Security benefit.
What is the Required Minimum Distribution (RMD)?
The RMD is a portion of your account, determined by the account value and IRS life expectancy factors, that must be withdrawn from your account beginning at age 73. It ensures that account holders begin taxable distributions of a minimum percentage.
Are RMDs required from Roth balances?
With the passage of SECURE 2.0 and effective January 1, 2024, RMDs are no longer required from Roth account balances within the 403(b) and 457(b) plans.
When does the RMD need to occur?
The IRS requires the first RMD be taken by April 1 of the year following the calendar year in which you reach age 73. The second RMD must be taken by December 31 and each year thereafter.
What plans have an RMD requirement?
The Alternative Retirement Plan (ARP), 457(b), and Retirement Continuation Plan (RCP), require an RMD is taken at age 73 regardless of employment status. An RMD from the 403(b) plan is not required while actively employed.
Who is responsible for calculating the RMD?
Your provider is responsible for calculating your RMD amount. Contact your provider directly to begin your RMD and with any questions related to the RMD calculation and/or distribution.
How can I know what plans will require an RMD?
Look at the section for Distributions, Transfers and Rollovers. Look at the applicable accordion drop-down regarding employment status and find the section of the chart for RMD.
The materials contained in this section are a summary and are not intended to provide complete information about the retirement plans. Consider your plan selection carefully. You may want to consult with a financial planner before determining which plan is right for you.