Member’s Guide to: Service Retirement
Member's Guide to:
Service Retirement
Member's Guide to:
Disability Benefits
As a member of Ohio Police & Fire Pension Fund (OP&F), once you reach a certain age and obtain sufficient service credit, you are eligible to receive a pension for life. The size of the pension depends upon:
? your age and service credit; ? the annuity payment plan you select; and ? your allowable average annual salary. More information about OP&F's retirement plans can be found in this guide including eligibility guidelines and the application process.
This publication summarizes the most important provisions of the governing law and administrative rules on the reporting requirements and employment restrictions related to an OP&F service retirement benefit recipient. This summary cannot sufficiently represent all of the details applicable to this guide. Nothing contained in this summary is meant to interpret, extend or change, in any way, the governing statute, administrative rules or policies. As a result, your rights can only be determined by the provisions of OP&F's governing documents, which are subject to change.
updated, 05/2023
Table of contents
Types of service retirements.................................................................... 2 Calculating types of service retirements.................................................. 3 Cost-of-living allowances (COLAs).......................................................... 4 Types of service credit............................................................................. 5 Service credit grants................................................................................ 6 Application for service retirement............................................................ 6 Interim and final payments...................................................................... 7 Survivor benefits...................................................................................... 7 Annuity payment plan selections............................................................. 7 Tax liens and court orders....................................................................... 8 Deferred Retirement Option Plan............................................................ 8 Public re?employment............................................................................. 8 Penalty for returning to public employment under an Ohio retirement system.................................................................................... 8
One?on?one interview to discuss retirement
You are encouraged to schedule a personal interview at OP&F's office to discuss all aspects of your retirement. The interview with a Member Education Representative will last about an hour and covers your retirement options. Your pre?retirement interview should be scheduled three to four months before your retirement date. Call OP&F's Customer Service at 1?888?864?8363, Mon.? Fri., 8 a.m. to 4:30 p.m. EST, to schedule an appointment.
Member's Guide to Service Retirement
Types of service retirements
Four distinct types of service retirement options are available to OP&F members --normal service, service commuted, age/service commuted and actuarially reduced. Each option has different age and service credit requirements and is designed to fit a variety of circumstances. These service retirement options are listed in the Ohio Revised Code, Section 742.37(C).
Normal service retirement
Most OP&F members receive pensions under a normal service retirement. For persons whose OP&F membership began on or before July 1, 2013, normal service retirement eligibility is age 48 with at least 25 years of service. For persons whose OP&F membership began after July 1, 2013, normal service retirement is age 52 with at least 25 years of service. When eligible for a normal service retirement, the pension benefit is equal to 60 percent of your average annual salary. The percentage increases each year after 25 years to a maximum pension of 72 percent of your average annual salary after 33 years of service credit.
If you have 25 years of service credit but have not reached the required minimum age, you can terminate employment, but you must wait until you have reached the minimum retirement age to start receiving a pension. You should file an application with OP&F upon termination of employment and be sure to notify OP&F of any address changes. For details, refer to Ohio Revised Code Section 742.
Service commuted retirement
If you terminate police or fire employment with at least 15 years of service, you may qualify for a service commuted retirement when you reach the minimum retirement age and 25 years have elapsed from the date of your full?time hire. If you have at least 15 years of service upon your termination of employment, you should file a Service Retirement Application with OP&F. OP&F will determine your eligibility for this benefit and will begin paying benefits when you have met the statutory criteria and completed additional forms. It is important for you to keep your address current with OP&F so that the benefits can be timely paid to you once they become due.
Age/service commuted retirement
As an OP&F contributing member, you could qualify for an age/service commuted retirement if you have at least 15 years of service credit and are still a contributing member on the day you reach age 62. This benefit is calculated under the normal service retirement formula, up to 33 years of service.
Actuarially reduced
If your membership began after July 1, 2013, you may still retire at age 48 with 25 years of service, but with a reduced pension. Your pension benefit will be reduced to the actuarial equivalent of the amount payable had you retired at age 52. This amount will be determined by OP&F's independent actuary.
What earnings are pensionable?
While Ohio law defines salary as all compensation, wages, and other earnings within the scope of employment, not all wages are considered pensionable by OP&F.
Overtime is pensionable, as long as it is paid within the pay period earned or the following pay period and reported to OP&F by the member's employer within 60 days of when the overtime is worked. If a member chooses to bank worked overtime for use at a later date, it is not pensionable, unless it is used to make up the member's regular schedule at a later date.
Pensionable salary includes all earnings made within the scope of employment which can vary by employer. Non-pensionable salary includes compensation for services performed outside the scope of the employee's regular employment.
Payments such as longevity, shift differential, acting pay, stress or hazard pay, educational allowances, performance bonuses and sick leave incentives that do not reduce the member's sick bank are considered pensionable salary if paid within one year of when earned. Retroactive payments (pay raises) are considered pensionable regardless of when earned.
2 ? Prudence ? Integrity ? Empathy
OP&F Customer Service: 1-888-864-8363 ? Monday?Friday, 8 a.m.?4:30 p.m. EST ? op?
Calculating types of service retirements
The chart below outlines the age and service credit requirements and formulas used to calculate OP&F's four types of service retirement.
Your average annual salary is used in the formula to calculate your retirement. For OP&F members with 15 years of service or more as of July 1, 2013, this is an average of the three years of highest allowable earnings. For members with less than 15 years of service credit as of July 1, 2013, this would be the average of the five years of highest allowable earnings. With 33 years of service credit, you would receive the maximum pension of 72 percent of this average annual salary calculation. Since the term "average annual salary" is subject to certain statutory and administrative limitations, not all salary, earnings, or compensation may be used in the calculation.
Type of Retirement
Age
Members hired on or before July 1, 2013
Age
Member hired after
July 1, 2013
Service Credit (years)
Formula
(2.5% x 1 through 20 years) +
Normal
48
52
25
(2.0% x 21 through 25 years) + (1.5% x 26 through 33 years) x
Average Annual Salary
Service Commuted
48*
52*
15
(1.5% x complete years) x Average Annual Salary
Age/Service Commuted
62**
62**
(2.5% x 1 through 20 years) +
15
(2.0% x 21 through 25 years) x
Average Annual Salary
Actuarially not applicable
Reduced
48 to 51
The formula is the same as a normal service
retirement, however, retiring before age 52
25
will result in a reduction in benefits by using
an actuarial equivalent to determine the
reduced benefit amount.
* You cannot be paid before 25 years has elapsed from your initial full?time hire date with a qualifying employer and the attainment of the minimum retirement age, whichever is the last event to occur. For those whose OP&F membership began on or before July 1, 2013, normal service retirement eligibility is age 48 years with at least 25 years of service. For members hired into an OP&F-covered position after July 1, 2013, normal service retirement is age 52 with at least 25 years of service.
** You must still be a contributing OP&F member on the day you reach age 62.
Ohio Police & Fire Pension Fund ? 3
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