What is OPERS?
OPERS stands for The Ohio Public Employees Retirement System. This is a retirement pension system offered to public Ohio employees that replaces the standard Social Security system. As an employee, you contribute 10% of your annual salary towards your OPERS retirement and your employer contributes another 14% of your annual salary.
What OPERS plans are available?
What OPERS payment options are available?
Let’s look at an example:
Single Life Plan member who retires at age 63 with 30 years of service and a Final Average Salary (highest 3 paying years) of $55,000.
If they chose to take the full monthly payments:
(FAS x Up to 30 Years) x 2.2% = Annual Payment
($55,000 x 30 years) x 2.2% = $36,300
($36,300 per year) / (12 months) = $3,025
If they chose to take a PLOP of $50,000 with reduced monthly benefits:
Monthly Benefit Reduction:
Cost of PLOP (changes by age) x each $1,000 taken = Monthly Reduction
$7.87 x 50 (for $50,000 PLOP) = $393
Reduced Monthly Benefit:
Full Monthly Benefit - Reduction = Reduced Monthly Benefit
$3,025 - $393 = $2,632
Which option should you choose?
Unfortunately, no one solution fits all to whether you should take a Partial Lump Sum Option Payment. When deciding whether to take the PLOP, you may want to consider the following:
I hope this answers some of the questions you may have about the Ohio Public Employee Retirement System and PLOP. If you have additional questions, don’t hesitate to schedule a free, initial consultation so that we may begin sorting through your options.