What is OPERS?

The Ohio Public Employees Retirement System (OPERS) is the largest public pension fund in Ohio, with over 1 million active members, retirees, and beneficiaries. It covers a wide range of public employees, including those working for state agencies, local governments, public universities, and other public entities across the state.

While OPERS offers valuable retirement benefits, navigating its options can be complex, especially when choosing the right plan early in your career. New employees have only 180 days to select a plan, and that decision can have long-term financial implications. 

This blog series aims to clarify each OPERS plan option, explore supplemental retirement strategies, and help you make informed decisions. For personalized guidance, we recommend contacting OPERS directly or speaking with your HR department. Schuler Wealth Planning is also here to help you evaluate your options. 

What are my options?

OPERS offers three retirement plan options:

1. Traditional Pension Plan (Defined Benefit)
2. Member-Directed Plan (Defined Contribution)
3. Combined Plan (Hybrid) – No longer available to new employees.

This post focuses on the Traditional Pension Plan, a defined benefit plan that guarantees lifetime monthly income.

What is a Defined Benefit Plan?

A defined benefit pension plan guarantees a monthly retirement income for life. Your benefit is calculated using a formula based on your salary and years of service and is not impacted by market performance or investment returns. 

How It Works: Contributions & Investments

Enrollment in the Traditional Pension Plan is automatic unless you choose a different plan within 180 days of employment. 

• Employees contribute 10% of their salary.
• Employers contribute 14% of the employee’s salary.

These contributions are pooled and invested by OPERS to fund future retirement benefits. 

Retirement Eligibility

Retirement eligibility depends on your OPERS group (A, B, or C) and whether you qualify for unreduced or reduced benefits. Below is an overview of the eligibility requirements:

Unreduced
Employment Type	Group A		Group B		Group C
	Age	Service	Age	Service	Age	Service
State/Local	Any	30	52	31	55	32
			Any	32
	65	5	66	5	67	5
Law Enforcement	48	25	50	25	52	25
	62	15	64	15	64	15
Public Safety	52	25	54	25	56	25
	62	15	64	15	64	15
Law and Public Safety	52	25	54	25	56	25

Reduced
Employment Type	Group A		Group B		Group C
	Age	Service	Age	Service	Age	Service
State/Local	55	25	55	25	57	25
	60	5	60	5	62	5
Law Enforcement	52	15	52	15	56	15
	N/A	N/A	48	25	48	25
Public Safety	52	15	52	15	56	15
	48	25	48	25	52	25
Law and Public Safety	48	25	48	25	52	25

How Are Benefits Calculated?

Your monthly pension benefit is calculated using the following formula:

Final Average Salary (FAS) × Years of Service × Formula Factor

• FAS: The average of your highest 3 years (Groups A & B) or 5 years (Group C) of earnings. 
• Formula Factor:
  • Group A/B
    • 2.2% × first 30 years of service
    • 2.5% × each year over 30 
  • Group C
    • 2.2% × first 35 years of service
    • 2.5% × each year over 35

Examples:

• Group A/B:
  • $100,000 FAS × 30 years × 2.2% = $66,000/year

• Group A/B with 35 years:
  • ($100,000 × 30 × 2.2%) + ($100,000 × 5 ×2.5%) = $78,500/year

• Croup C with 40 years:
  • ($100,000 × 35 × 2.2%) + ($100,000 × 5 × 2.5%) = $89,500/year

Payment Plan Options

Your monthly pension amount also depends on the payment plan you choose:

• Single Life Plan:

Highest monthly benefit based on the above formulas. Payments stop at death. The remaining contributions (if any) go to beneficiaries. 

• Joint Life Plan:

Lower monthly benefit. After death, a designated beneficiary receives 10-100% of your benefit. Spousal consent is required to choose less than 50% for a spouse. 

• Multiple Life Plan:

Lowest monthly benefit. Payments continue to up to four designated beneficiaries after your death. 

• Partial Lump Sum Option Payment (PLOP)

Receive a lump sum (6-36 times your monthly benefit) plus a reduced monthly pension. The lump sum is taxable unless rolled over to a qualified plan. Monthly benefit must remain at least 50% of the original amount. 

Cost-of-Living Adjustments (COLA)

OPERS provides an annual COLA on your retirement anniversary. The adjustment is based on the Consumer Price Index (CPI), capped at 3%. 

Other Benefits: 

The Defined Benefit Plan also includes: 

• Disability Retirement: For members who become permanently disabled before retirement. 
• Survivor Benefits: For eligible family members. 
• Health Care Coverage: Available to eligible retirees, subject to funding and plan rules. 

What happens to my pension if I leave Ohio public service before retirement?

Leaving public service before reaching retirement age doesn’t mean losing all your OPERS pension. If you’re vested, typically after five years of service, you have two main options: 

1. Leave Your Contributions in OPERS

You can keep your contributions in the system and begin receiving a reduced pension once you reach the eligible retirement age. 

2. Request a Refund

You may choose to withdraw your employee contributions, which may include interest. However, this does not include employer contributions and forfeits your right to future monthly pension benefits. 

Refund Schedule:

• Less than 5 years: Refund your contributions plus interest.
• 5 years of service: Refund plus 33% of eligible contributions.
• 10 years of service: Refund plus 67% of eligible contributions

Final Thoughts

In today’s uncertain economic climate, having a reliable source of retirement income is more important than ever. The OPERS Defined Benefit Plan offers Ohio’s public employees a steady, predictable income stream for life. 

Understanding how OPERS works, and how it fits into your broader financial picture, is key to making smart retirement decisions. 

At Schuler Wealth Planning, we help Ohio public employees navigate OPERS and build personalized retirement strategies aligned with their career paths and life goals. Whether you’re early in your career or nearing retirement, we’re here to guide you every step of the way. 

Source: https://www.opers.org/ 

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