Feature
ARP Defined Contribution
OPERS Member-Directed Plan (Defined Contribution)
OPERS Traditional Pension Plan (Defined Benefit)
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 returns your account earns is also tax-deferred.
Access to Funds at Termination/Retirement
• Choose from several options 4 : – Leave your account on
Choose from severaloptions 4 : Leave your account balance with your ARP provider Roll the vested portion of your account into another qualified account or IRA. Receive the vested portion of your account in the following ways: o partial or full cashwithdrawal o fixed-period payments over a set number of years o systematic withdrawal o single or joint life monthlyannuity with continuing survivor protection
• Choose from several 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 are eligible for additional portions of your contributions plus interest after the 5- and 10-year mark. Receive a retirement pension benefitbased on the plan formula.
deposit for future benefits. – Roll the vested portion of your account into another qualified planor 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 setnumber of years.
– Receive
systematic withdrawals
Receive single or joint life monthly annuity fromthe vested portion of your account with continuing survivor protection.
Additional Benefits
No additional benefits. You will have access to RetireeMedical Account to be reimbursed for eligible health care expenses and access to vested account balance if disabled.
You may be eligible for health care, disability, and survivor benefits. Specificeligibility criteria must be met.
No additional benefits other thanvested account balance if disabled.
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 http://www.uc.edu/hr/benefits/retirement-benefits/alternative-retirement-plan- arp-.html 3 Based on eligibility requirements. Visit opers.org/members/retire/index.shtml 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 theHuman Resources Department, OPERS, and/or your selected ARP provider.
July 2021
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