Selecting Your OPERS Retirement Plan

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Selecting Your OPERS Retirement Plan
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Beginning in 2003, OPERS offers three retirement
plans
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Plan Overview
OPERS Traditional Pension Plan
Employee Contributions
Employer Contributions
13.31 of Pay
8.5 of Pay
PERS manages and invests member and
employer contributions in stocks, bonds, etc.
Retirement and other benefits for member
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Plan Overview

• OPERS Traditional Pension Plan
• Employee and employer contributions are managed
  by OPERS
• Age and Service Retirement benefit is determined
  by a formula (2.2 of Final Average Salary for
  first 30 years and 2.5 for years over 30)
• Health care coverage
• Additional retirement benefits provided by OPERS
• Disability
• Survivor Death
• Cost of Living Adjustment (3 annually)

Ohio law does not guarantee health care
coverage. OPERS provides health care coverage to
the extent resources permit.
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Plan Overview

• OPERS Traditional Pension Plan
• - Retirement Eligibility
• Age 60 with at least 5 years of total service
  credit
• Age 55 with at least 25 years of total service
  credit
• Any age with at least 30 years of total
  service credit
• Benefits are actuarially reduced when received
• before age 65 with less than 30 years of
  total service
• credit
• - Refund (how much you can take with you)
• Employee contributions plus interest
  (currently 4)
• Employer matching contributions equal to
• 33 of employee contributions and interest
  with 5 years
• 67 of employee contributions and interest
  with 10 years

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Plan OverviewOPERS Member-Directed Plan
Employee Contributions
Employer Contributions
8.5 of pay
8.5 of pay
4.81 of pay
Member directs contributions into one or
more OPERS Investment Options that are managed by
investment professionals
Retiree Medical Account (R.M.A.)--
OPERS-managed
Funds for Qualified Health Care Expenses
Funds for Members Retirement
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Plan Overview

• OPERS Member-Directed Plan
• Employee and employer contributions, less an
• administrative fee, are directed by the
  member into
• professionally managed OPERS investment
  options
• Retirement benefit is determined by contributions
  and investment gains and losses
• A portion of employer contributions (4.81 of
  pay) is deposited into an RMA (Retiree Medical
  Account)
• Member-Directed Plan does not provide other
  benefits (e.g. disability and survivor benefits)

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Plan Overview

• OPERS Member-Directed Plan
• Retirement Eligibility
• Age 55
• Refund (How much you can take with you)
• Employee contributions and gains and losses
• A portion of Employer contributions and gains
  and
• losses based on years of OPERS
  participation
• (20 after 1 year increasing to 100 after 5
  years
• of participation)
• RMARetiree Medical Account
• Used for qualified health care expenses at
  retirement or refund

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Plan Overview

• OPERS Member-Directed Plan
• - Retiree Medical Account (RMA)
• Retiree Medical Account is managed by OPERS and
  earns
• a fixed rate of interest (currently 4)
• Account can be used to pay qualified health
  care expenses
• after separation from service (e.g. premiums,
  deductibles,
• copayments)
• Retiree Medical Account value is available to
  the
• employee as follows
• after 1-2 years of service -- 0 of
  value
• after 3 years of service -- 30 of
  value
• after 4 to 9 years of service -- 40-90
  of value
• 
  (10 increase each
• year)
• after 10 years of service -- 100 of
  value

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Plan Overview
OPERS Combined Plan

Employer Contributions
Employee Contributions
8.5 of pay
13.31 of pay
OPERS manages invests employer contributions in
stocks, bonds, etc.
Member directs contributions into one or more
OPERS Investment Options that are managed by
investment professionals
Retirement and Other Benefits
Funds for Members Retirement
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Plan Overview
OPERS Combined Plan

• Defined Benefit Portion
• - Employer contributions are managed by
  OPERS
• - Age and service retirement benefit is
  determined by a formula (1.0
• of Final Average Salary for first 30 years of
  service credit and 1.25
• for years over 30)
• - Same survivor and disability benefits as
  OPERS Traditional
• Pension Plan
• - Same health coverage as OPERS
  Traditional Pension Plan
• Defined Contribution Portion
• - Employee contributions, less an
  administrative fee, are directed
• by the member into professionally managed
  OPERS investment
• options
• - Retirement benefit is determined by
  contributions and investment
• gains and losses

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Plan Overview
OPERS Combined Plan

• Retirement Eligibility
• Same as for OPERS Traditional Pension Plan
• - Age 60 with at least 5 years of total service
  credit
• - Age 55 with at least 25 years of total
  service credit
• - Any age with at least 30 years of total
  service credit
• - Benefits are actuarially reduced when
  received before age 65 with less than 30 years of
  total service credit
• Refund (how much you can take with you)
• - Defined Contribution Portionemployee
  contributions and investment gains and losses
• - Defined Benefit Portion0 with less than 5
  years of service
• 33 of employee contributions with 5-9 years
  of service
• 67 of employee contributions with 10 or
  more years of
• service

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Comparing the Plans

• Feature Traditional Member Combined
• Directed
• Contributions 8.5 8.5 8.5
• 13.31 13.31 13.31
• Management
• Of Account/ OPERS Member OPERS
• Investment (OPERS Member
• Risk for RMA)

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Comparing the Plans

• Feature Traditional Member Combined
• Directed
• Retirement Age 60 with
  Age 60 with
• Eligibility 5 years Age 55
  5 years
• Age 55 with Age 55 with
• 25 years 25 years
• Any age with Any age with
  30 years 30 years

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Comparing the Plans

• Feature Traditional Member Combined
• Directed
• Retirement 2.2 Based on 1. formula
• Benefit formula account plus
• value account value
• Cost of 3.0 Only if 3.0
• Living annually converted annually
• Adjustment to annuity

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Comparing the Plans

• Feature Traditional Member Combined
• Directed
• Access to
• OPERS Yes with No. Yes with
• Health 10 years of Vested 10 years of
• Care In service Portion of
  service
• Retirement credit RMA credit
• Can I Change
• Plans after Yes Yes Yes
• 180 days?

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How to Make Your Election

• Complete and Return a Retirement Plan Selection
  Formfound in the Retirement Plan Selection Kit
  mailed to your home
• Enroll by calling the OPERS Help Line at
• 866-673-7748
• Enroll through the OPERS website at
• www.opers.org using the website to enroll
  requires an OPERS PIN (requested through the
  website)

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How to Make Your Election

• Your election to participate in the
  Member-Directed or Combined Plans also requires
  your choosing among several OPERS investment
  options
• OPERS Pre-Mixed PortfoliosConservative,
• Moderate and Aggressive
• OPERS FundsStable Value Fund, Bond
• Fund, Stock Index Fund, Large Cap Fund,
• Small Cap Fund, and Non-US Stock Fund

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Changing Your Election

• You can change your plan election
• - once after your initial election and before
• attaining 5 years of service credit
• - once between 5 and 10 years of service
  credit
• - once after 10 years of service credit
• Changing to another OPERS plan gives you the
  benefit under the new plan that your current
  account balance, etc. will purchase at that time

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How to Decide Which Plan Is Likely Best for You

• Consider your personal situation
• How long do you plan to work in Ohio public
  employment?
• When do you plan to retire?
• Do you want to direct your retirement
  investments?
• Are survivor, disability or health care benefits
  through OPERS important to you?
• Do you have service credit in STRS or SERS or
  other service for which you might purchase OPERS
  service credit?

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How to Decide Which PlanIs Likely Best for You

• Review the package of materials provided by
  OPERS
• Use the Plan Comparison Wizard found at
• www.opers.org to determine your likely
• retirement benefit under the various plans
• Ask questions through the OPERS Help Line at
  866-673-7748 or the WSU Benefits staff at
• 775-2567

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Deadline for Enrollment

• June 30, 2003 for those with OPERS service credit
  prior to January 1, 2003
• 180 days after employment for employees hired on
  or after January 1, 2003
• If you do not make an election by your election
  deadline, by default you have elected to remain a
  participating member of the OPERS Traditional
  Pension Plan.