The Ohio State University Alternative Retirement Program (ARP) Overview
Below are some of the important features about your Plan. This website is intended to be a summary of the plan provisions. In the event that a conflict exists between the information contained within this website and the plan document, the plan document provisions prevail. For more information, contact us.
You and your employer each contribute a certain percentage of your total compensation to the program -- the actual percentage amounts are determined by your university's plan document. Your salary is then "reduced" by the amount of your contribution which, along with the employer's contribution, is sent to Voya Retirement Insurance and Annuity Company and invested according to your instructions. Because these contributions are made on a pre-tax basis, you won't be taxed until you begin taking distributions.
You are always 100% vested in your contributions and any earnings on your contributions; vesting schedules may apply to employer contributions (please see your plan document for details).
While you are employed, withdrawals are not permitted unless there is a death, disability, or separation from service (including retirement) per each university's plan provisions.
Certain eligible withdrawals are subject to a mandatory 20% withholding. You will receive a special tax notice at the time you request a withdrawal that explains this federal withholding requirement.
In addition, an IRS 10% premature distribution penalty tax may be assessed on any withdrawal unless you:
- Rollover funds to another eligible retirement plan or an individual IRA account;
- Leave the Ohio public higher education system on or after age 55;
- Attain age 59½;
- Become disabled;
- Die; or
- Receive the funds under a settlement option that provides for substantially equal periodic payments (not less frequently than annually) payable over your lifetime or the lifetime of your beneficiary.
Additional exemptions may apply. Neither Voya Financial® nor its affiliated companies or representatives provide tax or legal advice. Please consult a tax adviser or attorney before making a tax-related investment/insurance decision.
There are several distribution options to choose from including:
- Lump sum
- Systematic distribution options
- Variety of fixed and/or variable lifetime-based or period certain payout options
Distributions will be taxed as ordinary income in the year the money is received, and may be subject to a 10% federal tax penalty if received prior to age 59½. Keep in mind, the IRS requires that you begin receiving Required Minimum Distributions (RMD) at the later of when you attain age 70 ½ or retire.
You should consider the investment objectives, risks, and charges and expenses of the variable product and its underlying fund options carefully before investing. The prospectuses/prospectus summaries containing this and other information can be obtained by contacting your local representative. Please read the information carefully before investing.
Variable annuities are intended as long-term investments designed for retirement purposes. Withdrawals from an annuity may be subject to an early withdrawal fee and, if taken prior to age 59½, an IRS 10% premature distribution penalty tax will apply, unless an IRS exception applies. Money taken from the annuity will be taxed as ordinary income in the year the money is distributed. Account values fluctuate with market conditions, and when surrendered the principal may be worth more or less than its original amount invested. An annuity does not provide any additional tax deferral benefit, as tax deferral is provided by the plan. Annuities may be subject to additional fees and expenses to which other tax-qualified funding vehicles may not be subject. However, an annuity does provide other features and benefits, such as lifetime income payments and death benefits, which may be valuable to you.
For 403(b)(1) fixed or variable annuities, employee deferrals (including earnings) may generally be distributed only upon your: attainment of age 59½, severance from employment, death, disability, or hardship. Note: Hardship withdrawals are limited to employee deferrals made after 12/31/88. Exceptions to the distribution rules: No Internal Revenue Code withdrawal restrictions apply to '88 cash value (employee deferrals (including earnings) as of 12/31/88) and employer contributions (including earnings). However, employer contributions made to an annuity contract issued after December 31, 2008 may not be paid or made available before a distributable event occurs. Such amounts may be distributed to a participant or if applicable, the beneficiary: upon the participant's severance from employment or upon the occurrence of an event, such as after a fixed number of years, the attainment of a stated age, or disability.
Insurance products, annuities and retirement plan funding issued by (third party administrative services may also be provided by) Voya Retirement Insurance and Annuity Company, One Orange Way, Windsor, CT 06095-4774. Securities are distributed by Voya Financial Partners LLC (member SIPC). All companies are members of the Voya ® family of companies. Securities may also be distributed through other broker-dealers with which Voya has selling agreements. Insurance obligations are the responsibility of each individual company. Products and services may not be available in all states.