OPERS 101

Established in 1935, the Ohio Public Employees Retirement System provides pension benefits and health care coverage to retired public employees in Ohio. We're the largest of five public, state-affiliated pension systems in Ohio, and the 14th-largest such entity in the United States.

OPERS is not, however, part of state government. We are governed by the OPERS Board of Trustees, 11 non-paid volunteers who are responsible for our administration and management. The Ohio Retirement Study Council provides legislative oversight of all state public pension systems.

OPERS' membership includes employees from about 3,700 employers. Our members work for Ohio's state government as well as its cities, counties, townships, universities, colleges, libraries, transit authorities, housing authorities and public hospitals.

You can find detailed information about our system in our financial reports.

OPERS and Ohio law

Ohio Revised Code Chapter 145 provides the framework under which OPERS is administered.

Investments

OPERS' Investments Division is a team of professionals who manage a broadly diversified portfolio with the goal of sustained performance over time. Our main goal is sustained performance, which will help to provide secure retirement benefits and health care coverage to our members.

We maintain separate investment plans for our three retirement funds: defined benefit, health care and defined contribution.

For more information about OPERS investments read the latest annual investment plan on our website.

Contributions

OPERS members contribute to a pension in lieu of Social Security. Their employers also contribute to their retirement account, in varying amounts depending on the job the employees perform.

State and local employees contribute 10 percent of their salaries, and their employers contribute 14 percent of the salaries. Law enforcement employees contribute 13 percent and public safety employees contribute 12 percent of their salaries, and the employers of both groups contribute 18.1 percent of the salaries.

The pension benefit

OPERS offers its new members two pension choices: a defined benefit plan and a defined contribution plan. About 95 percent of our members belong to the defined benefit plan. Upon retiring, OPERS calculates the monthly benefit according to a salary based on earned service credit and final average salary.

While exact calculations vary depending on a member's age and length of service, the basic formula used to determine OPERS' defined benefit pensions is:

(Final average salary) x (years of service) x (2.2 percent)

Additional information regarding this benefit is in our Retiring from Public Employment leaflet.

For further descriptions of each retirement plan, see the Pensions 101 page.

Additional benefits

In addition to the pension benefit, OPERS provides its members a variety of benefits designed to provide retirement security. They include disability and survivor benefits, the additional annuity, a death benefit, a choice of payment plans and a partial lump sum payment option.

For details about these benefits, read the Benefit Recipient Handbook.

Health Care

OPERS provides the OPERS health care program for eligible benefit recipients, both those under 65 and those over 65 who are on Medicare. Refer to the Health Care page at opers.org for plan details and eligibility information.

Pre-Medicare

Health care coverage for those under 65 is for retirees in either the Traditional Pension Plan or Combined Pension Plan.

Effective Jan. 1, 2022, the OPERS health care program offered to Pre-Medicare benefit recipients was changed from a group health plan to a reimbursement model. Participants pay for premiums and other eligible expenses and are reimbursed through a Health Reimbursement Arrangement (HRA) that OPERS funds. The HRA is administered by a third-party vendor, Via Benefits. To learn more, refer to the Health Care page at opers.org.

Medicare-eligible

Retirees who are Medicare eligible and enrolled in both Medicare Parts A and B can enroll in secondary coverage through the OPERS Medicare Connector. They must select an individual plan with an insurance carrier through Via Benefits to receive HRA funding from OPERS.

Like the Pre-Medicare reimbursement model, participants pay for premiums and other eligible expenses and are reimbursed through an HRA that OPERS funds. Participants can use the funds to pay for spouses’ premiums if they choose.

Although OPERS understands the importance of offering a meaningful health care program, the OPERS Board of Trustees has the discretion to review, rescind, modify or change our health care program at any time.