Alternative Retirement Plan

The Alternative Retirement Plan(ARP), a 401(a) account, is a defined contribution plan in which an employee and employer contribute a defined pre-tax percentage of pay.  The employee makes the investment decisions and those choices determine the amount of investment risk that the employee bears. The account balance consists of contributions made by the employee and the employer, along with the account’s investment gains or losses.  This provides flexibility to the employee to make choices that are right for you.

Ohio Law requires a portion of the employer contribution for an ARP member go to the state retirement system to mitigate any negative financial impact of the ARP on the state retirement system. This is known as the mitigating rate.  The mitigating rate is subject to fluctuation and may increase or decrease at any time based on current law.

• The current mitigating rate for staff who selected the ARP in place of OPERS is 2.24%.  
• The current mitigating rate for faculty who selected the ARP in place of STRS is 2.91%.  

If you elect to participate in an ARP, an election form must be received by the Office of Human Resources no later than 120 calendar days from, and including, the effective date of your eligible appointment.  If an ARP election form is not received timely, you will automatically be placed into the state retirement system. 

The ARP Plan Document defines retirement as age 65. If you participate in the ARP and choose to leave BGSU prior to age 65, it will be considered a resignation and not a BGSU retirement.

If you elect to participate in an ARP and waive your right to participate in the state retirement system it is irrevocable while continuously employed at BGSU. You would have to have a break in service of 365 days or more, in order to change to the state retirement system. 

Both your contributions and the contributions of BGSU are fully vested immediately in the ARP, however there are no defined benefits such as disability or health care. The vested account balance would be available to the employee or beneficiary in the event of retirement, termination, disability, or death.

As a participant in the ARP at Bowling Green State University, you are entitled to change your ARP vendor to another BGSU approved vendor, at anytime throughout the calendar year. To do so, please use the Retirement @ Work website. 

The ARP Plan Document is available upon request from the Office of Human Resources.