City of Oakwood, Ohio
Notes to the Basic Financial Statements
For The Fiscal Year Ended December 31, 2024
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Group A
Eligible to retire prior to
January 7, 2013 or five years after January 7, 2013 |
Group B
20 years of service credit prior to
January 7, 2013 or eligible to retire ten years after January 7, 2013 |
Group C
Members not in other Groups
and members hired on or after January 7, 2013 |
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State and Local
Age and Service Requirements:
Age 60 with 60 months of service credit
or Age 55 with 25 years of service credit
Traditional Plan Formula:
2.2% of FAS multiplied by years of
service for the first 30 years and 2.5% for service years in excess of 30 |
State and Local
Age and Service Requirements:
Age 60 with 60 months of service credit
or Age 55 with 25 years of service credit
Traditional Plan Formula:
2.2% of FAS multiplied by years of
service for the first 30 years and 2.5% for service years in excess of 30 |
State and Local
Age and Service Requirements:
Age 57 with 25 years of service credit
or Age 62 with 5 years of service credit
Traditional Plan Formula:
2.2% of FAS multiplied by years of
service for the first 35 years and 2.5% for service years in excess of 35 |
Traditional plan state and local members who retire before meeting the age-and-years of service credit requirement for unreduced benefits receive a percentage reduction in the benefit amount. The amount of a member’s pension benefit vests at retirement. Law enforcement and public safety members who retire before meeting the age-and-years of service credit requirement for unreduced benefits receive a percentage reduction in the benefit amount. Combined plan members retiring before age 65 with less than 30 years of service credit receive a percentage reduction in benefit.
Final average Salary (FAS) represents the average of the three highest years of earnings over a member’s career for Groups A and B. Group C is based on the average of the five highest years of earnings over a member’s career.
When a traditional plan benefit recipient has received benefits for 12 months, the member is eligible for an annual cost of living adjustment (COLA). This COLA is calculated on the member’s original base retirement benefit at the date of retirement and is not compounded. Members retiring under the combined plan receive a cost–of–living adjustment on the defined benefit portion of their pension benefit. For those who retired prior to January 7, 2013, the cost-of-living adjustment is 3 percent. For those retiring on or after January 7, 2013, beginning in calendar year 2019, the adjustment is based on the average percentage increase in the Consumer Price Index, capped at 3 percent.
Defined contribution plan benefits are established in the plan documents, which may be amended by the Board. Member-directed plan and combined plan members who have met the retirement eligibility requirements may apply for retirement benefits. The amount available for defined contribution benefits in the combined plan consists of the member’s contributions plus or minus the investment gains or losses resulting from the member’s investment selections. Combined plan members wishing to receive benefits must meet the requirements for both the defined benefit and defined contribution plans. Member-directed participants must have attained the age of 55, have money on deposit in the defined contribution plan and have terminated public service to apply for retirement benefits. The amount available for defined contribution benefits in the member-directed plan consists of the members’ contributions, vested employer contributions and investment gains or losses resulting from the members’ investment selections. Employer contributions and associated investment earnings vest over a five-year period, at a rate of 20 percent each year. At retirement, members may select one of several distribution options for payment of the vested balance in their individual OPERS accounts. Options include the annuitization of the benefit (which includes joint and survivor options and will continue to be administered by OPERS), partial lump-sum payments (subject to limitations), a rollover of the vested account balance to another financial institution, receipt of entire account balance, net of taxes withheld, or a combination of these