Ohio Supplemental Retirement Plan

• Category: Corporations - Public - Retirement
• State: Multi-State
• Control #: US-CC-21-104
• Format: Word; Rich Text

Description

21-104 21-104 . . . Supplemental Executive Retirement Plan which permits eligible management and highly-compensated employees to receive benefits that will compensate them for limitations imposed by Sections 401(a)(17), 401(k), 401(m) and 402(g) of Internal Revenue Code on salary deferrals and matching contributions under 401(k) plan The Ohio Supplemental Retirement Plan (ORP) is a retirement savings program designed for public employees in the state of Ohio. It offers an additional retirement savings option, allowing participants to supplement their primary retirement plan. The ORP is available to employees of participating Ohio employers, including state agencies, public universities, community colleges, school districts, and certain non-profit organizations. It leverages the advantages of tax-deferred contributions and compounding interest to help employees build a sizeable nest egg for their retirement years. Participants in the ORP can contribute a portion of their salary to the plan on a pre-tax basis, meaning that the contributions are deducted from their gross income before taxes are applied. This reduces their current taxable income, potentially providing immediate tax benefits. The contributions grow tax-free until withdrawal, allowing for significant accumulation over time. Furthermore, participants have the flexibility to choose from various investment options offered within the ORP program. These investment options typically include mutual funds, target-date funds, and fixed income options, allowing individuals to tailor their investments according to their risk tolerance and retirement goals. The Ohio Supplemental Retirement Plan offers portability, meaning that if a participant changes jobs within the participating Ohio employers, they can continue contributing to the plan without interruption. This feature ensures that employees can maintain their retirement savings momentum even if they decide to pursue other opportunities. There are two primary types of Ohio Supplemental Retirement Plans available to eligible employees. The first type is a Defined Contribution plan, where participants contribute a fixed percentage or amount from their salary, and the employer may match a portion of the contribution. The second type is a Deferred Compensation plan, which allows employees to defer a portion of their salary towards retirement without employer contributions. The Ohio Public Employees Deferred Compensation Program (OPE DCP) is an example of the Deferred Compensation plan offered as part of the ORP. It allows employees to allocate a portion of their salary to a supplemental retirement account, enabling them to save additional funds for retirement while enjoying the potential tax benefits. Ultimately, the Ohio Supplemental Retirement Plan serves as a valuable tool for public employees in Ohio to bolster their retirement savings and secure a financially stable future. It offers various investment options, tax advantages, and portability features to help individuals achieve their retirement goals.

The Ohio Supplemental Retirement Plan (ORP) is a retirement savings program designed for public employees in the state of Ohio. It offers an additional retirement savings option, allowing participants to supplement their primary retirement plan. The ORP is available to employees of participating Ohio employers, including state agencies, public universities, community colleges, school districts, and certain non-profit organizations. It leverages the advantages of tax-deferred contributions and compounding interest to help employees build a sizeable nest egg for their retirement years. Participants in the ORP can contribute a portion of their salary to the plan on a pre-tax basis, meaning that the contributions are deducted from their gross income before taxes are applied. This reduces their current taxable income, potentially providing immediate tax benefits. The contributions grow tax-free until withdrawal, allowing for significant accumulation over time. Furthermore, participants have the flexibility to choose from various investment options offered within the ORP program. These investment options typically include mutual funds, target-date funds, and fixed income options, allowing individuals to tailor their investments according to their risk tolerance and retirement goals. The Ohio Supplemental Retirement Plan offers portability, meaning that if a participant changes jobs within the participating Ohio employers, they can continue contributing to the plan without interruption. This feature ensures that employees can maintain their retirement savings momentum even if they decide to pursue other opportunities. There are two primary types of Ohio Supplemental Retirement Plans available to eligible employees. The first type is a Defined Contribution plan, where participants contribute a fixed percentage or amount from their salary, and the employer may match a portion of the contribution. The second type is a Deferred Compensation plan, which allows employees to defer a portion of their salary towards retirement without employer contributions. The Ohio Public Employees Deferred Compensation Program (OPE DCP) is an example of the Deferred Compensation plan offered as part of the ORP. It allows employees to allocate a portion of their salary to a supplemental retirement account, enabling them to save additional funds for retirement while enjoying the potential tax benefits. Ultimately, the Ohio Supplemental Retirement Plan serves as a valuable tool for public employees in Ohio to bolster their retirement savings and secure a financially stable future. It offers various investment options, tax advantages, and portability features to help individuals achieve their retirement goals.