The University of Akron (UA) is announcing updates to its 401(a) Alternative Retirement Plan (ARP), The University of Akron 403(b) Tax Deferred Annuity Plan (TDA) and The University of Akron 457(b) Deferred Compensation Plan (the Plan).
The University participated with other Ohio public universities through the Inter-University Council of Ohio in a review of the vendors approved under the Plan. UA subsequently engaged CAPTRUST, an independent investment advisor, to work with UA to reduce the number of approved vendors, evaluate and streamline investment options, reduce some plan and investment expenses and simplify the investment selection process.
Effective April 11, 2022, there will be four vendors offered. The focused selection of vendors enables UA to leverage its size and volume to negotiate lower fees for some investments. The four vendors are: AIG, Equitable, TIAA and Voya.
UA is committed to providing retirement planning resources to assist you with this transition. We will offer group educational sessions and individual financial counseling sessions with the four vendors. Schedules for these sessions can be found on the Benefits website. In addition to these sessions, you will receive transition materials mailed to your home from your current vendor or TIAA. If you invest with more than one of the four offered vendors, you will receive a separate communication for each of them.
If you have questions about the transition, please contact the Office of Human Resources by email at benefits@uakron.edu.
Please note that the Ohio Deferred Compensation 457(b) is not affected by these changes. The plan remains available to UA employees.
As a faculty member, you are automatically enrolled in STRS upon your hire, rehire, or job change. Faculty who are considered full time also have the choice to elect the ARP, however part time and adjunct faculty members are not eligible. All faculty members are eligible to participate in the supplemental retirement plans.
If you elect to participate in an ARP, an election form must be received by the Office of Human Resources no later than 120 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 STRS. If you remain in STRS, you have 180 days from your date of hire to select a plan within STRS.
If you elect to participate in an ARP and waive your right to participate in the STRS it is irrevocable while continuously employed at UA. You would have to have a break in service of 365 days or more, in order to change to STRS.
To compare the difference between the STRS plans and an ARP, please see retirement plan comparison chart provided by STRS website.
Both you and the university contribute to your retirement account. Your contributions are made on a pre-tax basis; federal and state taxes are deferred until benefits are paid. Benefits are exempt from local and municipal taxes within Ohio, except school district income tax. Any investment return on your account is also tax-deferred.
To learn more about the three options offered by STRS, please visit the STRS website or contact them directly at 1-888-227-7877. To learn more about the ARP, please review the Alternative Retirement Plan Tab.
As a staff or contract professional member, you are automatically enrolled in OPERS upon your hire, rehire, or job change. Staff who are considered full time also have the choice to elect the ARP. Staff members who are not considered full time are not eligible for the ARP. All staff members are eligible to participate in the supplemental retirement plans.
If you elect to participate in an ARP, an election form must be received by the Office of Human Resources no later than 120 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 OPERS. If you remain in OPERS, you have 180 days from your date of hire to select a plan within OPERS.
If you elect to participate in an ARP and waive your right to participate in the OPERS it is irrevocable while continuously employed at UA. You would have to have a break in service of 365 days or more, in order to change to OPERS.
Both you and the university contribute to your retirement account. Your contributions are made on a pre-tax basis; federal and state taxes are deferred until benefits are paid. Benefits are exempt from local and municipal taxes within Ohio, except school district income tax. Any investment return on your account is also tax-deferred.
To learn more about the options offered by OPERS, please visit the OPERS website or contact them directly at 1-800-222-7377. To learn more about the ARP, please review the Alternative Retirement Plan Tab.
(Note: Staff and CPs hired prior to September 28, 2016 elected retirement from the School Employees Retirement System (OHSERS). To learn more about the options offered by OHSERS, please visit the SERS website or contact them directly at 1-866-280-7377. Contract Professionals may have been enrolled in OHSERS prior to September 28, 2016 or may be grandfathered in STRS based on their job specification. To learn more about options offered by STRS, please visit the STRS website or contact them directly at 1-888-227-7877.)
The alternative retirement plan, 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 2.44%.
The current mitigating rate for faculty who selected the ARP in place of STRS is 4.47%. (Effective 7/1/22, this rate will change to 2.91%.)
Website: https://ohiohighered.aigrs.com/home
Customer Service: 1-800-448-2542 – Preferred number for existing AIG account holders
Enrollment Center: 1-888-569-7055 – Preferred number for assistance with new plan enrollments
Financial Professional contact information
James Musengo, CFP®
VALIC Financial Advisors, Inc.
Tel 216 643 6340 | Cell 330 221 1899| Fax 216 777 1171
james.musengo@aig.com
Andrew Bragg
VALIC Financial Advisors, Inc.
Tel 614 436 4551 | Cell 614 448 6015 | Fax 614 961 4254
Andrew.Bragg@aig.com
Website: https://equitable.com/
Customer Service: 1-800-551-2423
Website: https://www.tiaa.org/public/tcm/uakron
Manage your account: Visit https://www.tiaa.org/public/tcm/uakron and log in to manage your account. If you're new to TIAA, select "Log in" then "Register" for online access. Follow the on-screen directions to access your account.
Phone: 800-842-2252, weekdays 8:00 a.m. to 10:00 p.m. (ET)
Schedule an investment advice session: https://www.tiaa.org/public/support/contact-us/consultations-seminars
Website: https://www.voyaretirementplans.com
Online Enrollment Instructions
Customer Service: 1-800-584-6001
Call for an appointment: 330-471-8897
Brian D. Koch, AIF®
Financial Advisor
D.P. Cushing and Associates
5906 Mayfair Rd., NW
North Canton, OH 44720
Tel: 234.347.0384
Email: Brian.Koch@voyafa.com
David P. Cushing, CRPC®, AIF®
Financial Advisor
D.P. Cushing and Associates
5906 Mayfair Rd., NW
North Canton, OH 44720
Tel: 330.471.8897
Email: David.Cushing@voyafa.com
Forms
- Retirement Plan Election Form
- 457b Salary Reduction Agreement
- 403b Salary Reduction Agreement
- ARP Change Form
Steps to retirement
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