Feature
ARP Defined Contribution
STRS Defined Contribution Plan
STRSDefinedBenefit Plan
STRSCombinedPlan(Defined Benefit and Defined Contribution)
Taxes
• There are important tax issues associated with how and when you may receive your benefit — consult with your tax advisor for more information.
Tax-Deferred Benefits
• Your contributions are made on a pre-tax basis; federal and state taxes are deferred until benefits are paid. • Benefits are exempt from local or municipal taxes within Ohio, except school district income tax. • Any investment return your account earns is also tax-deferred.
Access to Funds at Termination/ Retirement
• Choose from a number of options 4 : – Leave your account balance with your ARP provider. – Roll the vested portion of your account into a different qualified plan. – Receive the vested portion of your account in the following ways: •
• Choose from a number of options 4 : – Leave your account on deposit for future benefits. – Roll the vested portion of your account into another qualified plan or IRA. – Receive a lump sum refund of your contributions; you also may be eligible for a portion of the employer contributions plus interest. – Receive fixed-period payments over a set number of years. – Receive systematic withdrawals. – Receive single or joint life monthly annuity from the vested portion of your account with continuing survivor protection.
• Choose from a number of options 4 : – Leave your account on deposit for future benefits. – Roll your vested account funds into another qualified plan or IRA. – Receive a lump sum refund of your contributions; you also may be eligible for a portion of the employer contributions plus interest. – Receive a retirement pension benefit based on the plan formula.
• For the DC portion, choose from a number of options 4 : – Leave your account on deposit for future benefits. – Roll the vested portion of your account balance into another qualified plan or IRA. – Receive a lump sum refund of your contributions; you also may be eligible
for a portion of the employer contributions plus interest.
– Receive fixed-period payments from the vested portion of your account balance over a set number of years. – Receive systematic withdrawals. – Receive single or joint life monthly annuity with continuing survivor protection. • For the DB portion, choose from a number of options 4 : – Leave your account on deposit for future benefits. – Roll your vested account funds into another qualified plan or IRA. – Receive a lump sum refund of your contributions; you also may be eligible for a portion of the employer contributions plus interest. – Receive a retirement pension benefit based on the plan formula. You may be eligible for health care, disability, and survivor benefits. Specific eligibility criteria must be met.
partial or full cash withdraw al
•
fixed-period payments over a set number of years
•
systematic withdrawal
• single or joint life monthly annuity withcontinuing survivor protection
Additional Benefits
No additional benefits other than vested account balance if disabled.
No additional benefits.
You may be eligible for health care, disability, and survivor benefits. Specific eligibility criteria must be met.
Impact on Social Security Benefits
If eligible, there may be a reduction in your Social Security benefit.
Other Considerations
The above comparison is not a comprehensive list. You should carefully consider your retirement options and personal needs when selecting a retirement plan.
1. Subject to increase or decrease based on applicable law retirement system mandates. 2. Subject to federal limits. Refer to Retirement Contribution and Distribution Rates link at https://mailuc.sharepoint.com/sites/HR-Benefits/ SitePages/RET%20Ale.aspx 3. Based on eligibility requirements. Visit www.strsoh.org . 4. Withdrawals made before age 59½ may be subject to an additional federal tax penalty Note: This is intended to be a summary of plan provisions. For additional information, contact the Human Resources Department, STRS, and/or your selected ARP provider.
June 2017
Retirement 5
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