Feature
ARP Defined Contribution
OPERS Member-Directed Plan OPERS Traditional Pension
OPERS Combined Plan (Defined Benefit and Defined Contribution)
(Defined Contribution)
Plan (Defined Benefit)
• There are important tax issues associated with how and when you may receive your benefit — consult with your tax advisor for more information.
Taxes
• 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.
Tax-Deferred Benefits
• Choose from a number of options 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: • partial or full cash withdrawal • fixed-period payments over a set number of years
• 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; youalso maybeeligiblefora portionof the employer contributions plus interest. – Receive fixed-period payments over a set number of years. – Receive systematic withdrawals – Receive singleor joint life monthly annuity from the vested portion of
• 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 are eligiblefor additional portions of your contributions plus interest after the 5 and 10 year mark. – 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-periodpayments from the vested portion of your account balance over a set number of years. – Receive systematic withdrawals. – Receive single or joint life monthly annuitywith 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 are eligible for additional portions of your contributions plus interest after 5 and 10 year mark. – Receive a retirement pension benefit based on the plan formula. Youmay beeligiblefor health care, disability, and survivor benefits. Specific eligibility criteria must be met..
Access to Funds at Termination/ Retirement
• systematic withdrawal • single or joint life monthly annuitywithcontinuing survivor protection
your account with continuing survivor protection.
Additional Benefits
No additional benefits other than vested account balance if disabled.
No additional benefits. You will have access to Retiree Medical Account tobe reimbursed for eligible health care expenses and access to vested account balance if disabled.
Youmay beeligibleforhealth care, disability, and survivor benefits. Specific eligibility criteria must be met.
If eligible, there may be a reduction in your Social Security benefit.
Impact on Social Security Benefits
consider your retirement options and personal needs when selecting a
Other Considerations
The above comparison is not a comprehensive list. You should carefully 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 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.
April 2018
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