An ARP is a defined contribution plan, which means the retirement benefit will be based on the amount contributed to the employees’ account plus any income, expenses, gains and losses allocated to the account.
Each pay period, the employee contributes 10% of their wages into their ARP account and North Central State College contributes 14% on behalf of the employee (14% = 8% to ARP and 6% to SERS Unfunded Liability account)
The employee is 100% vested on both the employee and employer contributions regardless of length of employment with North Central State College. This means that at whatever time an employee terminates employment with the College, the employee is entitled to the entire amount of their ARP account.
There are a number of ARP providers who offer a variety of investment options to suit every individual’s needs:
- VOYA Financial
- AIG VALIC
Contact information for the providers listed above is available from the Human Resources department.
Full and part-time non-faculty employees are enrolled in the School Employees Retirement System (SERS) upon hire. Newly hired full-time employees may choose an Alternative Retirement Plan (ARP) within 120 days of their date of hire.
SERS is a defined benefit plan, which means the retirement benefits an employee receives are set by a formula in the Ohio law. Each pay period, employees contribute 10% of their wages into their SERS account and North Central State College contributes another 14%. Your retirement allowance is based on your age, number of years of service (service credit), and final average salary (FAS).
Service Retirement Eligibility RequirementsCurrent Eligibility: Applies to:
Eligibility Changes: Applies to:
- Members who retire before Aug. 1, 2017
- Members with 25 Years or more of service on or before Aug. 1, 2017 (Grandfathered)
: No: No-: Retire with Full BenefitsCurrent Eligibility: Age 65 with 5 years, or any age with 30 yearsEligibility Changes: Age 67 with 10 years, or age 57 with 30 years: No: No-: Retire Early with Reduced BenefitsCurrent Eligibility: Age 60 with 5 years, or age 55 with 25 yearsEligibility Changes: Age 62 with 10 years, or age 60 with 25 years: No: No
- Members with less than 25 years of service on Aug. 1, 2017
Health Insurance – Currently, members retiring on service retirement with at least 10 years of credit have access to health insurance through SERS. Recipients will pay part, or all, of the monthly premium based on the number of years of service at the time benefits commence. Various choices of health plans are available in certain areas of the state; a managed care plan is available regardless of location. Benefits, eligibility and premiums are subject to change.
For complete information regarding SERS, go to www.ohsers.org
Full and part-time faculty are enrolled in the State Teachers Retirement System (STRS) upon hire. Each pay period, employees contribute 14% of their wages into their STRS account and North Central State College contributes another 14%. Newly hired full-time employees may choose an Alternative Retirement Plan (ARP) within 120 days of their first day of paid service. This election is irrevocable and applies to all employment with the current employer.
In addition to a defined benefit plan, STRS offers defined contribution retirement plan options for eligible faculty who elect participation in STRS. The options include:Defined Benefit Plan With this professionally managed plan, retirement benefits are based on a member’s age, years of service credit and final average salary. The Defined Benefit Plan also feature survivor and disability protection as well as access to optional health care coverage in retirement for those who meet the eligibility requirements. Defined Contribution Plan This plan is similar to ARPs. Members who select this plan allocate their contributions among eight investment choices managed by STRS Ohio to build their portfolio. Administrative fees compare favorably with those charges by ARP providers. Combined Plan This plan features components of both the Defined Benefit and Defined Contribution Plans. Employer contributions fund a defined benefit account that offers retirement income as well as survivor and disability protection and access to optional health care coverage in retirement for those who meet eligibility requirements. Member contributions are deposited in a defined contribution account for the member to allocate among investment choices managed by STRS Ohio.
Note: New members who choose the STRS Defined Contribution Plan or the Combined Plan will have another opportunity to reselect a permanent plan during their fifth year of membership.
For faculty who elect to participate in STRS, the deadline to select from among the three plan options listed above is 180 days from the first day of paid service.
For complete information regarding STRS, go to www.strsoh.org.