The Ohio Public Employees Retirement System, known as OPERS, is the mandatory retirement program for most people who work for the state of Ohio, its counties, and its municipalities. Membership is automatic once you’re hired into a covered position, and both you and your employer pay into the system from every paycheck. In return, you build toward a pension, a refundable account balance, or a mix of the two, depending on which plan you choose, and you may qualify for a health care benefit once you retire.1OPERS. What is OPERS? – Section: Do I have to contribute to OPERS?
Who Is Covered
Most state, county, and municipal employees in Ohio are required to join OPERS as soon as they begin working in a covered job.2Ohio Legislative Service Commission. Ohio Revised Code § 145.03 The system also recognizes specific categories for PERS law enforcement officers and PERS public safety officers, who contribute at different rates and have their own rules.3Ohio Legislative Service Commission. Ohio Revised Code § 145.49
Not every public employee in Ohio belongs to OPERS. Teachers generally belong to the State Teachers Retirement System, and many other school employees belong to the School Employees Retirement System.4Ohio Legislative Service Commission. Ohio Revised Code § 145.01 If you’re in one of those jobs, OPERS is not your retirement system.
Your Three Plan Choices
If you’re a new member who’s eligible to choose, you have 180 days from your start date to pick one of three plans. State law excludes some workers from this election, including PERS law enforcement and public safety officers, certain retirees returning to work, and people who already have money in the system.5Ohio Legislative Service Commission. Ohio Revised Code § 145.19
Traditional Pension Plan
The Traditional Pension Plan is a defined benefit plan. Your future monthly payment is calculated by a formula using your years of service and your final average salary, drawn from your highest years of earnings or consecutive months of salary. OPERS manages the investments and carries the market risk, so your pension amount isn’t tied to day-to-day market swings.6OPERS. Traditional Pension Plan
Member-Directed Plan
The Member-Directed Plan is a defined contribution plan. You choose how your account is invested, and your retirement balance reflects the gains or losses of those investments over time.7OPERS. Member-Directed Plan
Combined Plan
The Combined Plan blends the two. Part of the employer’s contribution funds a formula-based pension, while your own contributions go into an individual investment account you direct. If you leave public employment before you’re eligible to retire, you may be able to refund your contributions, and what you get back depends on the rules of the plan you chose.8OPERS. Combined Plan
What You and Your Employer Pay
Contributions are deducted automatically from your earnable salary, and your employer pays its own share on top. Current member rates are:9OPERS. What is OPERS? – Section: How much do I contribute to OPERS?
- Most state and local government employees: 10% of salary
- Law enforcement employees: 13%
- Public safety employees: 12%
Employers pay in at these rates:10OPERS. What is OPERS? – Section: How much does my employer contribute to OPERS?
- State and local government employers: 14%
- Agencies with law enforcement personnel: 18.1%
- Agencies with public safety personnel: 18.1%
The retirement board can adjust these rates, but state law caps them. Most employee contributions can’t exceed 10%11Ohio Legislative Service Commission. Ohio Revised Code § 145.47, the standard employer rate is capped at 14%12Ohio Legislative Service Commission. Ohio Revised Code § 145.48, and the law enforcement and public safety employer rate is capped at 18.1%.3Ohio Legislative Service Commission. Ohio Revised Code § 145.49
Retiree Health Care
OPERS offers a health care benefit for eligible retirees through a Health Reimbursement Arrangement. This benefit isn’t guaranteed by law. It can change based on available funding and board decisions.13OPERS. Getting Reimbursed for Health Care Expenses
Eligibility turns on a mix of age and qualified health care service credit earned during your career. Some retirees at age 65 may qualify with at least 20 years of health care service credit. Retirees who stop working younger may need between 30 and 32 years of credit, depending on their group. If you qualify, OPERS makes a monthly deposit into an account you use to pay for medical expenses, with the deposit set as a percentage of a base allowance tied to your age and service history.14OPERS. HRA Eligibility
The health care program is funded from a portion of employer contributions, not from your paycheck deductions, and the money sits in a health care trust fund that is separate from the pension trust fund.9OPERS. What is OPERS? – Section: How much do I contribute to OPERS?
Who Runs the System
OPERS is created and structured under Chapter 145 of the Ohio Revised Code and is overseen by an 11-member public employees retirement board. The board includes five employee members elected by participants, two retirees elected by those receiving benefits, the state treasurer’s investment designee, the director of administrative services, and two appointed investment experts.15Ohio Legislative Service Commission. Ohio Revised Code § 145.04 Board members are fiduciaries required by law to act solely in the interest of participants and beneficiaries, to use care and diligence in investing, and to diversify assets to reduce the risk of large losses unless it is clearly prudent not to do so.16Ohio Legislative Service Commission. Ohio Revised Code § 145.11