Alternative Retirement Plan (ARP)

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) and the Ohio Public Employee Retirement System (OPERS). Ohio law requires public universities to allow a minimum of four approved ARP vendors to administer the Plan.

Investment options are selected and monitored by the Miami University Retirement Advisory Committee and Cammack, its independent investment consultant.

Employees considering the ARP in lieu of other state retirement plans are encouraged to evaluate each vendor's information (shown below), annual reports, fee disclosures, and objectives to determine what they have to offer. You may also consult with a financial expert, if you feel the need.

To elect the ARP, you must choose an approved ARP vendor within 120 days from your full-time hire date, set up an account, and then allow the vendor to invest your retirement contributions.

Electing the ARP

You have 120 days from your full-time hire date to elect either the state plan or the ARP by submitting the Retirement Plan Election (PDF 65KB) to the Benefits office in 15 Roudebush, faxing to number 513-529-4223, or email (without SSN) to Benefits@MiamiOH.edu.

Once you have selected the ARP, your election is final and irrevocable (i.e., you cannot change to OPERS or STRS), but you can change your ARP vendor once per calendar month in the Retirement@Work portal. Your vendor change will be effective on the first of the following month.

Contribution Amounts

ARP participants are required to contribute the same amount under the ARP as they would to the applicable state retirement system (OPERS or STRS).

However, Ohio Revised Code Section 3305.06 requires that when an ARP is chosen, a portion of the employer contribution (called a "mitigating fee") is also sent to the applicable state system (OPERS or STRS) to mitigate the negative financial impacts of the ARP on that system. As a result, ARP contribution amounts are as follows:

• Non-faculty employees must contribute 10% of their salary to the ARP. Miami will also contribute an amount equivalent to 14% of their salary (less a 2.24% ARP-OPERS mitigating fee, for a total ARP contribution of 11.76%). 
• Faculty must contribute 14% of their salary to the ARP. Miami will also contribute an amount equivalent to 14% of their salary (less a 2.91% ARP-STRS mitigating fee, for a total ARP contribution of 11.09%). 

You are 100% vested in your contributions immediately. After completing one year of service, you are 100% vested in Miami's employer contributions.

Please note: If you do not submit the retirement plan election form and set up your account with your chosen approved vendor within 120 days, you will default to the State's plan.

Taking a Loan From Your ARP

A loan cannot be made from any other account under a Plan (such as an employer contribution account), but such accounts are considered for purposes of calculating the maximum amount of the loan.

The maximum amount that a participant may borrow from a Plan is the lesser of:

1. 50% of your vested account under the Plan, or
2. $50,000 reduced by the greater of:
   1. the highest outstanding aggregate loan balance for the Plan during the one-year period ending the day before the loan is approved (not taking into account any payments made during this one-year period); and
   2. the outstanding aggregate loan balance from the Plan on the day the loan is made.

A vendor's investment contracts may provide further restrictions on the amount you may borrow under the Plan.

The ARP and 403(b) Plan are aggregated for purposes of these rules. A loan under the ARP is treated as if it were a loan under the 403(b) Plan, and vice versa and the vested account under the ARP is treated as if it were a vested account under the 403(b) Plan, and vice versa. Notwithstanding, a participant is not eligible for a loan amount that would exceed the loan amount available under each Plan on its own.