Ohio Alternative Retirement Plan

Ohio Alternative Retirement Plan For the State of Ohio Public Higher Education System Your future. Made easier. SM 41334_ART.E.P.RM.89-10.E.P:8.5x11 worksite template 2/13/09 4:20 PM Page 1 What is the Ohio Alternative Retirement Plan? The Ohio Alternative Retirement Plan (ARP) is a retirement plan offered to specific groups of employees in Ohio’s public universities as an alternative to the Ohio State Teacher Retirement System (STRS), the Ohio Public Employee Retirement System (PERS) and, where applicable, the Ohio School Employees Retirement System (SERS). What is the legal basis of the Ohio ARP? Ohio ARP was made available through Ohio Rev. Code Ann. §3305.01. It was established to give employees control over the investments funding their primary retirement plan. It also provides the

portability to move their vested account balances without tax consequence to other similar retirement or Individual Retirement Account plans when they leave employment with the Ohio university system. 41334_ART.E.P.RM.89-10.E.P:8.5x11 worksite template 2/13/09 4:20 PM Page 2 Is the Ohio ARP the right choice for me? It may be, if… You want choice in selecting your own investment portfolio from a diversified menu of options. You want investment control in managing your retirement portfolio. You want the opportunity to benefit from the potential tax-deferred compound growth of the investments you select. You want retirement plan portability that does not limit your career opportunities. Ohio Alternative Retirement Plan When do I have to make my decision between the Ohio ARP and the traditional defined benefit plans offered by Ohio STRS, PERS, or SERS? Eligible employees (as defined by the university and/or STRS, PERS, or SERS) have 120 days commencing with their date of full-time employment to make their election. Check with your campus to verify your eligibility and the applicable enrollment dates. If you make no election at all in the 120 days, you will default back into the STRS, PERS, or SERS plan for which you are eligible. This period of 120 days is your only opportunity to elect the Ohio ARP. Your choice between ARP and STRS, PERS, or SERS is generally irrevocable once elected. Why do many eligible employees choose the ARP? Many eligible professionals elect the ARP because it offers substantial flexibility: You choose your investment portfolio from a menu of investment options, giving you control over where your contributions are allocated. You build a portfolio to fit your needs and objectives, and can change your investment mix in your portfolio over time, as often as you would like, as your individual needs change (subject to ING’s policy on market timing and excessive trading). Under the Internal Revenue Code, with the ARP, you are taxed only when you begin taking distributions. You are always 100% vested in your employee contributions and any earnings on those contributions; vesting schedules may apply to employer contributions (please see your program document for details). You have full access to your vested account balances at separation from service or retirement. There is no Deferred Sales Charge (DSC). (You may incur the IRS 10% premature distribution penalty tax for certain withdrawals. See “Can I withdraw funds from ARP?” for details). The ARP is portable....

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