An Alternative Retirement Plan (ARP) is a retirement option available to newly hired full-time college and university employees, as defined under Chapter 3305 of the Ohio Revised Code.
By law, only newly hired full-time college and university employees have the option of either contributing to SERS or selecting an ARP.
Employers must notify SERS of an ARP-eligible employee within 10 days of the employee’s first day of employment by submitting:
Eligible employees have 120 days from their first day of full-time employment to enroll in an ARP.
To enroll:
Once the form is submitted, the ARP election is irrevocable.
Employees who do not choose an ARP within the 120-day election period will automatically become members of SERS.
Mitigating Rates
The mitigating rate, paid by college and university employers to SERS on behalf of ARP participants, is 3.85%.
Ohio law (Ohio Revised Code Section 3305.06) provides that the college/university sends a percentage of each ARP employee’s salary to SERS on a monthly basis for unfunded accrued liabilities. This contribution requirement begins with an employee’s ARP effective date.
The employees’ contribution of 10 % and the remaining 10.52% employer contributions are sent directly to the ARP.
The ARP mitigating rate is subject to review every five years per Ohio law.
Reporting
Mitigating contributions are due to SERS for as long as the employee is continuously employed in an SERS-covered position.
ARP reporting is done through eSERS listing mitigating contributions on a monthly basis.
Submit an ARP report either by file upload or manual file entry in eSERS.
A Payment Remittance is required for each liability created for an ARP reporting.
For adjustments, create an adjustment in the next report using an adjustment earnings code of 51.
For more information, view Submitting Files for an Alternative Retirement Plan (ARP).
Terminating with No More Than a 365-Day Break: ARP participants who terminate employment in an ARP-eligible position must remain in the ARP if there is no more than a 365-day break in employment with their college or university, even if they move from a full-time to a part-time ARP position.
Changing to a New School: If an employee terminates employment with one college or university and joins a new college or university in an ARP-eligible position, the employee must make a new ARP election within 120 days of the start date at the new institution.
If you have questions about your employer responsibilities or need assistance with eSERS, contact Employer Services at 877-213-0861.
