Retirement Plans

Enrollment Selections—Time Sensitive

Choose between OPERS/STRS or ARP

You are initially defaulted into OPERS/STRS but have 120 days from your hire date to decide whether to stay in OPERS/STRS or choose the ARP option. If you choose ARP, pick one of the four providers listed under the Key Contacts section and set up a CSU ARP account using the plan number provided. Once your account is set up, complete the Retirement Plan Election Form and send to benefits@csuohio.edu. Be sure to finalize all steps before the 120-day deadline.

Select OPERS/STRS account type

For employees new to OPERS or STRS, there is an 180-day deadline for the selection of a retirement plan: Defined Benefit, Defined Contribution or Combination. Your plan selection is submitted directly to OPERS or STRS, not to CSU.

Note: OPERS/STRS will send detailed information to your home address on file. It is critical that you review this information and act in a timely manner.

Social Security and Medicare Contributions

As a public employer in Ohio, CSU does not participate in Social Security. You will not contribute the standard 6.2% to Social Security during your employment at CSU, and CSU will not contribute as your employer. You will contribute 1.45% of your earnings toward Medicare. For more information on Social Security, review Publication 05-10051.

Voluntary Retirement Plans: 403(b) and 457(b)

Cleveland State University offers voluntary 403(b) and 457(b) plans to all faculty and staff who want to supplement their mandatory retirement benefits through payroll deduction. These plans are entirely employee funded; the University does not contribute. Employees may participate in one or both plans, subject to annual regulatory contribution limits.

403(b)—Cleveland State University Tax-Sheltered Annuity Program

CSU faculty and staff can take part in the CSU 403(b) tax-sheltered annuity program through payroll deduction. Since 403(b) plans are meant for long-term retirement savings, you can usually take money out only when you reach age 59½ or when you separate from employment.

Distributions may also be allowed in cases of financial hardship, death or disability, provided IRS rules are met. Withdrawals before age 59½ may be subject to federal restrictions and a 10% penalty.

If you need money for a short time, you can take a loan from your 403(b) account without lowering your balance for good. But if you do not repay the loan, it counts as regular income and could result in a 10% penalty if you are under 59½. Not repaying a loan may also prevent you from getting future loans from any university retirement plan, such as ARP.

Why Contribute to a 403(b) Plan?

A 403(b) plan offers several key benefits:

• Flexible tax strategies:
  Employees can use pre-tax contributions to lower current taxable income, post-tax (Roth) contributions to build tax-free retirement income, or combine both for balanced tax advantages.
• Tax-deferred growth:
  Earnings grow without immediate taxation, including compounding interest, which can accelerate savings compared to a regular taxable account.
• Enhanced retirement security:
  Pension plans and Social Security often do not replace your full salary in retirement. A 403(b) allows you to save more for greater financial security.

How to Start or Update a 403(b) Contribution

You can start or update your 403(b) contributions through the Retirement Manager site. Follow the step-by-step instructions found here.

457(b) —Ohio Public Employees Deferred Compensation Program

The Ohio Public Employees Deferred Compensation Program (OPEDC) is a retirement savings plan set up under IRS Code Section 457(b). It helps public employees in Ohio save and invest pre-tax income to reach their long-term financial goals and have a more secure retirement. A post-tax option is not available at this time.

OPEDC stands out because it is a public, not-for-profit program created by Ohio law. A 13-member Board of Trustees oversees the program and works to serve the best interests of public employees.

Participants can take advantage of several benefits:
 

• Access to educational tools and resources for informed retirement planning
• A wide variety of investment options
• Flexible options for saving and withdrawing funds
• Portability if you move between public-sector employers

How to Start or Update a 457(b) Contribution

To start an account, stop contributions or make changes, contact OPEDC at 877.644.6457 or visit their website. OPEDC will set the dates for your contributions and let Benefits know when to update your payroll. Usually, it takes about 30 days to enroll or make changes.