The Ohio Public Employees Retirement Plan Investment Guide (2024)

As a public employee in Ohio, you have access to a valuable benefit: the Ohio Public Employees Retirement System (OPERS).

This retirement plan provides you with the opportunity to secure your financial future and enjoy a comfortable retirement.

Let’s explore the intricacies of OPERS and discover how it can help you invest in your tomorrow.

OPERS is a public pension fund established in 1935 to provide retirement security for Ohio’s public employees, including teachers, firefighters, police officers, and other state and local government workers.

It’s the largest public pension fund in Ohio, managing over $100 billion in assets on behalf of its members.

Most public employees in Ohio are automatically enrolled in Ohio Public Employees Retirement Plan (OPERS) upon starting their employment.

However, specific eligibility requirements may vary depending on your job position and employer. If you’re unsure about your eligibility, contact your employer or visit the OPERS website for more information.

OPERS offers two main types of retirement plans:

1. Defined Benefit Plan:

This traditional plan provides a guaranteed monthly pension benefit upon retirement. The amount of your benefit is based on your years of service, salary, and final average salary.

As a member, you contribute a portion of your paycheck to the plan, and Ohio Public Employees Retirement Plan (OPERS) invests those contributions to grow your retirement savings.

2. Defined Contribution Plan:

This plan operates similarly to a 401(k) plan. You contribute a portion of your salary to your individual account, and OPERS invests those funds according to your chosen investment options.

The amount of your retirement benefit will depend on your contributions, investment returns, and market performance.

• Guaranteed income in retirement: The Defined Benefit plan provides a stable and predictable income stream in retirement.
• Professional investment management: OPERS has a team of experienced investment professionals who manage your retirement savings.
• Diversified asset allocation: Your investments are spread across various asset classes, such as stocks, bonds, and real estate, to minimize risk and maximize returns.
• Long-term investment horizon: OPERS invests for the long term, minimizing the impact of short-term market fluctuations.
• Health care benefits: OPERS offers health care coverage to eligible retirees and their dependents.

Ohio Public Employees Retirement Plan (OPERS) offers several advantages compared to other retirement savings options, such as IRAs and 401(k)s. These include:

• Guaranteed pension benefit: Unlike most other plans, the Defined Benefit plan offers a guaranteed monthly benefit in retirement, providing financial security and peace of mind.
• Professional management: OPERS’ team of experienced investment professionals manages your retirement savings, freeing you from the burden of making investment decisions.
• Lower fees: OPERS operates as a non-profit organization, keeping administrative fees low and maximizing your returns.
• Health care benefits: OPERS offers health care coverage to eligible retirees, a valuable benefit not typically offered by other retirement plans.

Ohio Public Employees Retirement Plan (OPERS) takes a prudent and long-term approach to investing. Their investment philosophy is based on the following principles:

• Diversification: Spreading investments across various asset classes minimizes risk and maximizes long-term returns.
• Long-term horizon: OPERS invests for the long term, minimizing the impact of short-term market fluctuations.
• Risk management: OPERS implements a comprehensive risk management framework to protect the retirement savings of its members.

Ohio Public Employees Retirement Plan (OPERS) goes far beyond simply managing your retirement funds. They offer a wealth of member resources to help you make informed decisions and plan for your future. These resources include:

• Online account access: Manage your account 24/7, view your benefits, and track your progress towards retirement.
• Educational webinars and workshops: Learn about different investment options, financial planning strategies, and the latest retirement news.
• Financial planning guidance: Get personalized advice from a financial advisor to create a retirement plan that meets your individual needs.
• Retirement planning calculators: Estimate your future retirement income and determine how much you need to save.
• Customer service: Contact OPERS representatives any time you have questions or need assistance.

Don’t just take our word for it! Hear directly from OPERS members who have benefited from the plan:

“OPERS has given me the peace of mind to focus on my work without worrying about my retirement. I know that when I retire, I will have a secure income that I can count on.” – Sarah, a teacher with 20 years of service

“After my husband passed away, OPERS survivor benefits provided me with the financial security I needed to raise our children. I am so grateful for this program.” – Mary, a widow of a firefighter

OPERS has a long history of strong investment performance, consistently delivering returns that meet or exceed their investment targets.

Their disciplined and diversified investment approach ensures that your retirement savings are protected and grow over time.

• Average annual return of 7.8% over the past 10 years.
• Total assets of over $100 billion.
• Investment portfolio that is diversified across asset classes, including stocks, bonds, and real estate.

Enrolling in OPERS is one of the best investments you can make for your future. It allows you to:

• Save systematically: A portion of your salary is automatically deducted and invested in your retirement account, ensuring you are saving consistently.
• Benefit from employer contributions: The State of Ohio contributes significantly to your OPERS account, supplementing your own contributions and accelerating your retirement savings.
• Enjoy tax advantages: Contributions to your OPERS account are tax-deductible, and your retirement income is taxed at a lower rate than your current income.

OPERS is more than just a retirement plan; it’s an investment in your future. By participating in the plan, you are taking control of your financial well-being and ensuring that you can enjoy a comfortable and secure retirement.

Don’t wait any longer to start planning for your future. Enroll in OPERS today and take the first step towards a secure and fulfilling retirement.