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 confusing, especially since new employees have limited time to make a decision that can impact their financial future. This blog series aims to simplify your options, explain how each plan works, and help you make an informed choice. We’ll also explore alternative and supplemental retirement plans available through many employers.  

For personalized guidance, consider speaking with an OPERS representative or your HR department. And if you’d like expert help navigating your options, Schuler Wealth Planning is here to assist.  

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 Member-Directed Plan, a defined contribution plan similar to a 401(k). It offers flexibility and control, allowing you to manage your retirement investments directly. Your retirement income depends on your account balance, which grows based on your contributions, investment choices, and market performance. 

Contributions  

Employee Contributions (10% total): 

• 10% of your paycheck is automatically deposited into your Member-Directed Retirement Account. 

• You cannot contribute more or less than this amount. 

Employer Contributions (14% total): 

• 7.50% to your retirement account 

• 4.00% to your Retiree Medical Account (RMA) 

• 0.26% for administrative costs 

• 2.24% for the mitigating rate (used to offset costs in the Traditional Pension Plan) 

Vesting Schedule 

You are immediately 100% vested in your own contributions. Employer contributions vest over time.   

Employer Contribution Vesting Schedule
Years of Participation	Percentage Vested
1	20%
2	40%
3	60%
4	80%
5	100%

Investment Options 

You can choose from a range of investment options based on your risk tolerance and retirement timeline: 

• Target Date Funds – Automatically adjust risk as you approach retirement (default option) 

• Passively Managed Index Funds – 5 standalone options 

• Actively Managed Funds – 5 standalone options 

• Self-Directed Brokerage Account – For experienced investors with at least $5,000; offers expanded investment choices 

Retirement Eligibility 

You’re eligible to retire at age 55, regardless of your years of service.  

Withdrawal Options 

• Refund or Rollover – Lump sum distribution or rollover to another retirement account (e.g., IRA) 

• Lifetime Monthly Benefit – Choose from Single Life, Joint Life, or Multiple Life plans 

• Partial Lump Sum – Combined with a reduced monthly benefit 

Important Note: 

Unlike the Traditional Pension Plan, the Member-Directed Plan does not guarantee lifetime income. Also, Ohio public employees do not pay into Social Security, so your retirement income will rely solely on your account balance and withdrawal strategy. 

Retiree Medical Account (RMA) 

Although not part of your retirement account, 4% of your employer’s contribution goes into an RMA to help cover qualified healthcare expenses in retirement, including: 

• Health, dental, and vision care 

• Premiums, deductibles, and copays 

Employees do not begin vesting until year 6 of employment and then follow the vesting schedule below.  

RMA Vesting Schedule 

Employer RMA Contribution Vesting Schedule
Years of Participation	Percentage Vested
6	10%
7	20%
8	30%
9	40%
10	50%
11	60%
12	70%
13	80%
14	90%
15	100%

Is the Member-Directed Plan Right for You? 

This plan may be a good fit if you: 

• Want more control over your retirement investments. 

• Plan to work in public service for a shorter period. 

• Prefer portability (your account can be rolled over if you leave). 

• Are comfortable managing investment risk. 

On the other hand, if you’re seeking guaranteed monthly income in retirement and plan to stay in public service long-term, the Traditional Pension Plan might be a better choice. 

Making the Decision 

New OPERS members have 180 days from their start date to choose a retirement plan. If no selection is made, you’ll be automatically enrolled in the Traditional Pension Plan. 

Helpful OPERS Resources: 

• Retirement Plan Selector Tool 

• Educational webinars and videos 

• One-on-one counseling with OPERS Member Services 

Final Thoughts 

The OPERS Member-Directed Plan gives you control over your retirement future. With flexible investment options and potential tax-free healthcare reimbursements, it’s a modern alternative to the traditional pension. 

But with greater control comes greater responsibility. Take time to understand your options, develop an investment strategy, and monitor your account regularly. 

At Schuler Wealth Planning, we specialize in helping Ohio’s public employees make confident retirement decisions. Whether you’re just starting out or nearing retirement, we’re here to guide you every step of the way. We offer ongoing financial planning services or one-time financial plans for those that just need some assurance that they are on the right path.  

Want to learn more about maximizing your OPERS benefits? Contact us for a personalized consultation and financial plan.  

Source: https://www.opers.org/ 

IMPORTANT DISCLOSURE INFORMATION: 
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