Upcoming Alternative Retirement Plan Mitigating Rate Change

Employees enrolled in the Alternative Retirement Plan (ARP) will see some changes to the mitigating rate effective July 1, 2017.

Ohio law requires that a portion of the employer's contributions be paid to the Ohio Public Employees Retirement System (OPERS) and the State Teachers Retirement System (STRS) as a mitigating rate charge to ensure their long term viability.

Under Ohio law, the mitigating rate charge can change at any time. The maximum mitigating rate that can be charged against the employer contributions is capped by current law at 4.5% for OPERS, STRS, and all other Ohio public retirement systems. The mitigating rate charge is assessed against all ARP participants. In addition, OPERS and STRS have the authority to charge a mitigating rate fee from the employer contribution to their members who elect the defined contribution or combined plan. Only the Ohio General Assembly has the ability to reduce the amount of the mitigating rate that can be charged.

Employees in an OPERS-Covered Position (Non-Faculty)

On July 1, 2017, OPERS is increasing the mitigating rate charge to 2.44% from the current 0.77%. This change will reduce the amount of the employer contributions contributed to your ARP account. The current employer contributions to your ARP account equal 13.23% of your salary and will decrease to 11.56% beginning with your July pay. Your employee contributions to the ARP remains at 10 % and will continue to be deposited into your retirement account. This change to the mitigating rate does not affect your take-home pay. If you have questions regarding these changes, please contact OPERS at 800-222-7377, or Employee Benefits and Wellness at 513-529-2148. Information for OPERS covered positions is also online.

Employees in a STRS-Covered Position (Faculty)

On July 1, 2017, the mitigating rate charge will decrease from 4.5% to 4.47%. Employee contributions to the ARP remain at 14% and will continue to be deposited into your retirement account. This change to the mitigating rate does not affect your take-home pay. If you have questions regarding these changes, please contact STRS at 888-227-7877, or Employee Benefits and Wellness at 513-529-2148. Information for STRS covered positions is also online.