Ohio University’s retirement program is considered a pick-up-plan; regardless of plan choice the retirement contributions are a tax-deferred contribution deducted automatically each pay period. Primary retirement will be with the Ohio Public Employees Retirement System (OPERS), State Teachers Retirement System (STRS) or an Alternative Retirement Plan (ARP). State employees of Ohio are exempt from contributing to Social Security. Employees hired after March 31, 1986 will make contributions to Medicare.
Newly hired, full-time employees of Ohio University have a choice between two retirement systems; the state system (OPERS or STRS) and the Alternative Retirement Plan (ARP). This decision is irrevocable; once a system is chosen, the employee remains with that system throughout their employment at Ohio University.
OPERS and STRS offer a choice of three plans within their systems to new members. Those who have previously contributed should contact OPERS (1-866-673-7748) or STRS (1-888-227-7877) to verify options.
The Ohio Public Employees Retirement System (OPERS) is a retirement plan option available to administrative and classified staff. Visit the OPERS website for further details.
The State Teachers Retirement System (STRS) is a retirement plan option available to faculty members and master teachers. Visit the STRS website for further details.
In 1998 the Alternative Retirement Plan (ARP) was offered to administrators and faculty with less than five years of service; the ARP became available to classified staff with less than five years of service in 2005. The ARP was available to employees hired after it's implementation.
The ARP is a defined contribution plan with a choice of providers offering various investment options. Retirement income is based on the performance choices for the total contributions (employee and employer; subject to contribution limits). Contributions may be allocated among various investment options managed by the providers. Participating employees may change ARP providers throughout their careers.
Click here for a list of approved Ohio University ARP Providers.
Regardless of the selected plan, the employee contributes a percentage of allowable salary. Administrative and classified staff contribute 10% and the university contributes 14%. Faculty members contribute 13% (14% effective 7/1/16) and the university 14% toward retirement. NOTE: the university contributes 9.5% to faculty members participating with an ARP provider; currently an additional 4.5 % is forwarded to STRS unfunded liability account. The university contributes 13.23% to administrative and classified staff participating with an ARP provider; currently an additional .77% is forwarded to OPERS unfunded liability account.
The Internal Revenue Service places limits on the amount of contributions and compensation on which contributions may be remitted for employees. These limits vary depending on the type of plan an employee participates in and are based on compensation limits under 401(a)(17) and contribution limits under 415(c) of the Internal Revenue Code.
|OPERS Member Directed Plan
and Combined Plan;
Alternative Retirement Plan
|OPERS Defined Benefit Plan|
|Total Contribution to Your Retirement Plan||23.23%||23.23%||23.23%||24%||24%||24%|
|Ohio University Contribution to Mitigating Rate||0.77%||0.77%||0.77%||not applicable|
The chart below shows the current, as well as future contribution rates.
|STRS Defined Benefit & Combined Plans||ARP and STRS DC Plan|
|Total Contribution to Your Retirement Plan||27%||28%||22.5%||23.5%|
|Ohio University Contribution to Mitigating Rate||not applicable||4.5%||4.5%|
Ohio University also offers voluntary supplemental retirement accounts including 403(b) tax deferred annuities and 457 deferred compensation accounts. Employees are encouraged to participate in either/or both programs. Supplemental retirement accounts are subject to IRS deferral limits. Learn more....
Click here for a listing of approved Ohio University Providers.
The Social Security WEP Benefit Calculator is maintained by the Social Security Administration. It is designed to allow you to estimate any benefits you may have earned for work covered by Social Security. LASERS does not sponsor the calculator, nor does it vouch for any calculations you may receive from using it. Any comments or questions regarding the Social Security WEP Calculator should be addressed to the Social Security Administration at CalculatorMaster@ssa.gov.
Learn more about the Windfall Elimination Provision
If you receive a pension from a federal, state or local government based on work where you did not pay Social Security taxes, your Social Security spouse's or widow's or widower's benefits may be reduced. To learn more visit: