Ohio ARP Plan Overview
Below are the important features about your employer's plan. This website is intended to be a summary of the plan provisions. In the event that a conflict exists between the information contained within this website and the plan document, the plan document provisions prevail.
The Ohio Alternative Retirement Plan (ARP) is a 401(a) retirement plan offered to specific groups of employees of Ohio's public universities as an alternative to the Ohio State Teacher Retirement System (STRS), the Ohio Public Employee Retirement System (OPERS) and, where applicable, the Ohio School Employees Retirement System (SERS).
The Ohio ARP offers you:
- Choice in selecting your own investment portfolio from a variety of investment options.
- Control in managing your retirement portfolio.
- The opportunity for the potential tax deferred growth of the investments you select. (Taxes are due upon withdrawal. Withdrawals prior to the age 59½ may be subject to an IRS 10% premature distribution penalty tax.)
- Portability that doesn't limit your career opportunities.
Please refer to the disclosure materials in your Enrollment Kit (in the “Enrollment” section of this website) and/or the “Performance Report”( in the “Investment Performance” section of this website) for specifics regarding charges, expenses, fees, transfer restrictions, etc.
Specific eligibility to be determined by your employer at date of full-time employment. In general, you have 120 days from the date of full-time employment to make your election into the ARP. If you do not make an election; by law, your retirement provider will default to STRS.
You and your employer each contribute a certain percentage of your total compensation to the program -- the actual percentage amounts are determined by your university's plan document. Your salary is then "reduced" by the amount of your contribution which, along with the employer's contribution, is invested according to your instructions. Because these contributions are made on a pre-tax basis, you won't be taxed until you begin taking distributions.
You are always 100% vested in your contributions and any earnings on your contributions; vesting schedules may apply to employer contributions (please see your plan document for details).
Under the Plan, the maximum annual contribution amount is set by Internal Revenue Service (IRS) guidelines on a yearly basis. You may view the current limits here
- While you are employed, withdrawals are not permitted. Some plans may allow exceptions for disability or loans. Certain eligible withdrawals are subject to a mandatory 20% withholding. You will receive a special tax notice at the time you request a withdrawal that explains this federal withholding requirement. In addition, an IRS 10% premature distribution penalty tax may be assessed on any withdrawal unless you:
- Rollover funds to another eligible retirement plan or an individual IRA account;
- Leave the Ohio public higher education system on or after attaining age 55;
- Attain age 59½
- Become disabled
- Receive the funds under a settlement option that provides for substantially equal periodic payments (not less frequently than annually) payable over your lifetime or the lifetime of your beneficiary.
Additional exemptions may apply. Our representatives do not provide tax or legal advice. Please consult a tax adviser or attorney before making a tax-related investment/insurance decision.
You should consider the investment objectives, risks, and charges and expenses of the variable product and its underlying fund options carefully before investing. The prospectuses/prospectus summaries containing this and other information can be obtained by contacting your local representative. Please read the information carefully before investing.
Variable annuities are intended as long-term investments designed for retirement purposes. Withdrawals from an annuity may be subject to an early withdrawal fee and, if taken prior to age 59½, an IRS 10% premature distribution penalty tax will apply, unless an IRS exception applies. Money taken from the annuity will be taxed as ordinary income in the year the money is distributed. Account values fluctuate with market conditions, and when surrendered the principal may be worth more or less than its original amount invested. An annuity does not provide any additional tax deferral benefit, as tax deferral is provided by the plan. Annuities may be subject to additional fees and expenses to which other tax-qualified funding vehicles may not be subject. However, an annuity does provide other features and benefits, such as lifetime income payments and death benefits, which may be valuable to you.
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