Employees of Ohio public institutions do not contribute to the federal Social Security system, other than contributions to Medicare (employees hired after April 1, 1986). While employed by the university, your retirement contributions must be directed to one of the state retirement plans (OPERS, STRS) or to the Alternative Retirement Plan (ARP).
The IRS indexed dollar limits to qualified retirement plans for 2013 are provided in the table below.
The University of Cincinnati offer two supplemental retirement saving plans – a 403(b) and a 457. These tax deferred savings plans enable faculty, staff, and student employees to use pre‐tax payroll deductions to invest for retirement with approved annuity and mutual fund providers.
Information on supplemental savings opportunities and a listing of approved providers can be found online at http://www.uc.edu/hr.
|403(b) Elective Salary Deferral Limit||$17,500||$17,000|
|457(b) Annual Deferral Limit||$17,500||$17,000|
|Age 50 - Catch Up Limit||$ 5,500||$ 5,500|
Newly hired, full-time employees of the university have a choice between two retirement systems: the state system or the Alternative Retirement Plan (ARP). The state system is either Ohio Public Employees Retirement System (OPERS) or State Teachers Retirement System (STRS). The ARP is only available if your appointment is 100% FTE. The decision is irrevocable; once a retirement system is chosen, the employee remains with that system throughout his/her employment with the university.
OPERS and STRS offer a choice of three plans within their system to new members. Those who have previously contributed to a state retirement system should contact OPERS (1-866-673-7748) or STRS (1-888-277-7877) to verify options. New members will receive information from OPERS/STRS shortly following employment.
Regardless of the selectioned plan, employees contribute a percentage of allowable salary. Staff and librarians contribute 10% and the university contributes 14%. Law enforcement employees contribute 10.10% and the university contributes 17.63%. Faculty members contribute 10% and the university contributes 14% towards retirement.
STRS and OPERS Unfunded Liability account: Of the 14% the university contributes toward faculty members' retirement program, for those faculty members participating in the ARP, the university directs 10.5% to the faculty member's ARP account and the remaining 3.5% is directed to the STRS unfunded liability account. For staff members, the total contributed by the university is 14% (staff) and 17.3% (law enforcement). Of this amount, the university contributes 13.23% to the staff member's ARP provider and the remaining 0.77% is forwarded to OPERS unfunded liability account. For law enforcement employees, these amounts are 16.86% to the participant's ARP provider and 0.77% to the OPERS unfunded liability account. To learn more about the unfunded liability account refer to the websites for OPERS or STRS.
The Internal Revenue Service places limits on the amount of contributions and compensation on which contributions may be remitted. These limits may vary depending on the type of plan an employees participates in and are based on compensation limits under 401(a)(17) and contribution limits under 415(c) of the Internal Revenue Code.
The Social Security WEP Benefit Calculator is maintained by the Social Security Administration. It is designed to allow you to estimate any benefits you may have earned for work covered by Social Security. The university does not sponsor the calculator, nor does it vouch for any calculations you may receive from using it. Any comments or questions regarding the Social Security WEP Calculator should be addressed to the Social Security Administration at CalculatorMaster@ssa.gov.
The university also offers voluntary supplemental retirement accounts including a 403(b) tax deferred account and 457 deferred compensation accounts. Employees are encouraged to participate in either or both programs. Supplemental retirement accounts are subject to IRS deferral limits.
Planning to retire? It is important to note that an employee must FIRST apply for retirement and be approved by his/her university sponsored retirement system. Please refer to Board Rule 30-28-01 for further clarification.
The Leaving University Employment Guide provides a list of things to do beginning six (6) months prior to retirement. The university also provides an Employee Retirement Letter Template in the Managers' Toolkit to assist supervisors.
To obtain more information about the benefits available to you as a UC retiree refer to our website. If you have questions, please refer to the Frequently Asked Questions.
Human Resources also offers seminars that may be of interest.