Ohio ARP Overview

What is the Ohio ARP?

The Ohio Alternative Retirement Plan (ARP) is a 401(a) retirement plan offered to specific groups of employees of Ohio's public universities as an alternative to the Ohio State Teacher Retirement System (STRS), the Ohio Public Employee Retirement System (PERS) and, where applicable, the Ohio School Employees Retirement System (SERS).

The Ohio ARP offers you:

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Eligibility

Who is eligible to join the plan?

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When do I have to make my decision between the Ohio ARP and the traditional defined benefit plans offered by Ohio STRS, PERS, or SERS?

Eligible employees (as defined by the university and/or STRS, PERS, or SERS) have 120 days commencing with their date of full-time employment to make their election. If you make no election at all in the 120 days, you will default into the STRS, PERS, or SERS plan for which you are eligible. Your choice between ARP and the state defined benefit plan is generally irrevocable once elected.

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Ohio ARP and ING

When you choose ING Life Insurance and Annuity Company (ING) for your ARP, you and your employer each contribute a certain percentage of your total compensation to the ING Retirement Master variable annuity contract, issued by ING Life Insurance and Annuity Company. Those contributions are invested in the variable investment options or fixed options you select. The effect on your take-home pay is the same regardless of which primary retirement plan you select (ARP vs. STRS, PERS, or SERS).

Important Information

Variable annuities offered through a retirement plan are long-term investments designed for retirement purposes. Early withdrawals taken prior to age 59½ may be subject to an IRS 10% premature distribution penalty tax. Money distributed from the annuity will be taxed as ordinary income in the year the money is received. Account values fluctuate with market conditions, and when surrendered the principal may be worth more or less than its original amount invested. Tax deferral is provided by your employer’s plan and the annuity does not provide any additional tax deferral benefit. Annuities may be subject to additional fees and expenses to which other tax-qualified plan funding vehicles may not be subject. However, annuities provide features and benefits such as lifetime income payments and death benefits which may be valuable to you.

You should consider the investment objectives, risks, charges and expenses of the variable product and its underlying fund options carefully before investing. The contract and fund prospectuses contain this and other information. You may obtain a prospectus by contacting your ING representative or the Company at the address listed below. Please read the prospectus carefully before investing.

Product features

The Retirement Master variable annuity contract has the following features:

Your ING campus representative is available to meet with you one-on-one to explain the program, answer your questions, and help make enrollment simple. Your representative will work with you to help you build a portfolio of funds within the variable annuity contract that is suitable to your risk tolerance and personal time horizon.

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Contributions

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 ING Life 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).

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Withdrawals

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:

Additional exemptions may apply. Neither ING 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.

Variable annuities offered through a retirement plan are long-term investments designed for retirement purposes. Early withdrawals taken prior to age 59½ may be subject to an IRS 10% premature distribution penalty tax. Money distributed from the annuity will be taxed as ordinary income in the year the money is received. Account values fluctuate with market conditions, and when surrendered the principal may be worth more or less than its original amount invested. Tax deferral is provided by your employer’s plan and the annuity does not provide any additional tax deferral benefit. Annuities may be subject to additional fees and expenses to which other tax-qualified plan funding vehicles may not be subject. However, annuities provide features and benefits such as lifetime income payments and death benefits which may be valuable to you.