Alternative Retirement Plan (ARP)
Choosing an Alternative Retirement Plan (ARP)
Only newly hired full-time college and university employees have the option of either contributing to SERS or an Alternative Retirement Plan (ARP).
Employers are responsible for notifying SERS of an employee who is eligible for an ARP within 10 days of the employee’s first day of employment by submitting a Notice of Employment or Reclassification of Employee Eligible for Alternative Retirement Plan.
Eligible employees have 120 days from their first day of full-time employment to enroll in the ARP.
An employee who chooses the ARP must sign the Retirement Plan Election Form and return it to the employer.
Once the form is submitted, it is irrevocable.
Employers must file a copy of the form with SERS within 10 days of receiving it from the employee. The law provides that the college sends a percentage of each ARP employee’s salary to SERS on a monthly basis for unfunded accrued liabilities.
The mitigating rate, paid by college and university employers to SERS on behalf of ARP participants, is 3.48%.
Once an employee elects the ARP, the employee contributions, and remaining portion of the employer contributions, are sent directly to the ARP.