University of Cincinnati
RETIREMENT PLAN COMPARISON CHART FOR STAFF
Feature
ARP Defined Contribution
OPERS Member-Directed Plan (Defined Contribution)
OPERS Traditional Pension Plan (Defined Benefit)
Eligibility Plan Type
Eligible staff with appointments ofat least 100% FTE Defined Contribution • Account balance consists of contributions made by you and UC, as well as any investment gains or losses you may have on these contributions. The benefit amount is determinedby your account balance and the payment option(s) you choose when you apply to receive benefits.
All staff
All staff
Defined Contribution • Account balance consists ofcontributions made by you and UC, as well as any investment gains or
Defined Benefit The benefit amount is based on aformula using your age, years of service credit, and final averagesalary.
losses you may have on thesecontributions. The benefit amount is determinedby your account balance and the payment option(s) you choose when you apply to receive benefits.
Employee Contributions University Contributions
• Your pre-tax contribution amount for any of these plans is 10% 1 of your eligible compensation 2 per pay.
• UC contributes an amount equal to 14% 1 of your eligible compensation 2 per pay to your selected retirement plan, allocated as follows:
14.0% 1 goes to the OPERS Traditional Pension Plan to helpfund your future OPERS retirement benefits.
• 11.56% 1 goes to your selectedARP account provider. • 2.44% 1 goes to the OPERS Traditional Pension Plan to helpfund past service liabilities, as required by law.
• 7.5% 1 goes to your individualOPERS account. • 4% 1 goes to your OPERS RetireeMedical Account (RMA). • 2.% 1 goes to the OPERS Traditional Pension Plan to helpfund past service liabilities, as required by law. .5% Administrative Expense
Vesting
• Your contributions are immediately vested. • University contributions generallyare immediately vested.
• Your contributions areimmediately vested.
• Your contributions are immediately vested.
• University contributions are fully vested after five years of contributing service in the plan. Youare vested in a percentage of university contributions based on years of service credit: 1 Year: 20%; 2 Years: 40%. 3 Years: 60%; 4 Years: 80%. 5 Years: 100% Retiree Medical Account vesting varies based on date of OPERS membership.
• After 1.5 years of service credit, you are vested for survivor benefits. • After five years of service credit, you are vested for: – an age and service retirement benefit – disability benefits 3 – an additional a portion of your contributions are vested after the 5- and 10-year mark
How Your Benefit Grows
Your account consists of contributions made by you and the university, as well as with any investment gains or losses you may have on those contributions.
Your account consists of contributions made by you and the university, as well as with any investment gains or losses you mayhave on those contributions.
Your benefit amount grows by adding years of service credit (earned or purchased) and withincreases to your eligible compensation.
Investment Management and Options
• You choose an approved ARP provider through which you invest and allocate contributions among a variety ofinvestment options. • You assume all investment risk and pay any associated management fees.
• Contributions are invested with OPERS. You allocate the contributions among a variety of investment options. • You assume all investment risk and pay any associated management fees.
• OPERS manages all assets to fund your benefits. • You assume no investment risk and pay no associated management fees.
July 2021
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