OTRS Contributions and Benefits for OSU Employees

This information applies to OSU (and OU) employees who are members of OTRS and who are currently employed. If already retired, the rules may have been different based on the date of retirement. The formulas would also be different for employees of other educational institutions.

OTRS is the Authority: You are encouraged to contact OTRS at 1-877-738-6365 with any questions, concerns, or suggestions that you may have. OTRS can also provide you with your OTRS membership date, elections you have made, and assist you in determining when you would become eligible for retirement. You may wish to request a personalized calculation of your expected retirement income.

Twelve Major Scenarios: Below are twelve scenarios for OSU employees to determine how OTRS contributions and retirement benefits are calculated. To determine which scenario applies, you will need to know when you became a member of OTRS and any salary base elections you have made during membership if you joined OTRS before July 1, 1995.

The salary bases that you elected determines the contributions that are paid to OTRS and the benefits that are derived from OTRS upon retirement. An option for low ($7,800) or high ($8,900) base was given in 1974 with the option continuing through June 30, 1979. In 1978 an option was given to members in the high base group (as determined by the 1974 election) to choose between Option 1 ($10,000) or Option 2 ($15,000) base. In 1987, another choice was given to elect the low ($25,000) or the high ($40,000) base.

Although the following twelvecategories should cover the majority of OSU employees, you should verify benefits by contacting OTRS.

  1. Joined OTRS before 7/1/79elected $7,800 base; later elected$25,000base
  2. Joined OTRS before 7/1/79 elected $7,800 base; later elected $40,000 base
  3. Joined OTRS before7/1/79 & elected $8,900; then $10,000; then $25,000 base
  4. Joined OTRS before7/1/79 & elected $8,900; then $15,000, then $25,000 base
  5. Joined OTRS before7/1/79 & elected $8,900; then $10,000, then $40,000 base
  6. Joined OTRS before7/1/79 & elected $8,900; then $15,000, then $40,000 base
  7. Joined OTRS between7/1/79 and 6/30/92; elected low base cap of $25,000
  8. Joined OTRS between 7/1/79and 6/30/92; elected high base cap of $40,000
  9. Joined OTRS between 7/1/92 and 6/30/95; elected low base cap of $25,000
  10. Joined OTRS between 7/1/92 and 6/30/95; elected high base cap of $40,000
  11. Joined OTRS between 7/1/95 and 6/30/96; uncapped salary base
  12. Joined OTRS 7/1/96 or later; uncapped salary base

Contributory Salary: Prior to July 1, 1982, OTRS required contributions on salary only. After this date, OTRS required contributions on salary plus benefits. Benefits include the cost of OSU-paid health and life coverage plus OSU-paid retirement contributions. When the term “contributory salary” is used, it means the salary, or salary-plus-benefits, upon which contributions were paid to OTRS.

Final Average Salary (FAS): Only one FAS is calculated for each member for his/her entire membership period. For employees who joined OTRS prior to July 1, 1992, the FAS is the average of the three highest years on which contributions were made. For employees who joined OTRS on or after July 1, 1992, the FAS is the average of the five highest consecutive years on which contributions were made. If the FAS exceeds the cap elected, then the cap is the maximum amount that will be considered in the determination of retirement benefits. OSU employees who joined OTRS on or after July 1, 1995,pay on uncapped salary and, therefore, do not have contributions and benefits limited according to salary base caps.
#1 – Joined OTRS before 7/1/79 & elected $7,800 base; later elected $25,000 base

Rule of 80: Full retirement benefits are available at “Rule of 80” (Age plus OTRS membership years = 80) or age 62 and 5 years vested service.

Sick Leave Credit: One year of service may be added if the member has at least 960 hours of accrued sick leave upon retirement. Credit for sick leave is treated as service earned prior to 7-1-95 and would be subject to the $25,000 cap.

Final Average Salary (FAS): Average of high three years of contributory salary.

DATE OF CONTRIBUTIONS / MEMBER CONTRIBUTIONS PAID TO OTRS / ANNUAL OTRS
RETIREMENT BENEFITS
Years before 7/1/79 / Contributory salary not to exceed $7,800 X contribution rate
plus / FAS X 2% for years of membership during this period, not to exceed $7,800
plus
7/1/79 – 6/30/95 / Contributory salary, not to exceed $25,000,X contribution rate
plus / FAS X 2% for years of membership during this period, not to exceed $25,000
plus
7/1/95 - 6/30/07 / Contributory salary, not to exceed the increasing low base cap for each year, X contribution rate / Each year stands alone in the calculation. Contributory salary X 2% for each year (no averaging)
7/1/95 – 6/30/96 / Contributory salary up to $27,500; buy-up option to $32,500 plus / Contributory salary X 2%
plus
7/1/96 – 6/30/97 / Contributory salary up to $32,500 plus / Contributory salary X 2% plus
7/1/97 – 6/30/98 / Contributory salary up to $37,500 plus / Contributory salary X 2% plus
7/1/98 – 6/30/99 / Contributory salary up to $42,500 plus / Contributory salary X 2% plus
7/1/99 – 6/30/00 / Contributory salary up to $42,500 plus / Contributory salary X 2% plus
7/1/00 – 6/30/01 / Contributory salary up to $47,500 plus / Contributory salary X 2% plus
7/1/01 – 6/30/02 / Contributory salary up to $52,500 plus / Contributory salary X 2% plus
7/1/02 – 6/30/03 / Contributory salary up to $57,500 plus / Contributory salary X 2% plus
7/1/03 – 6/30/04 / Contributory salary up to $62,500 plus / Contributory salary X 2% plus
7/1/04 – 6/30/05 / Contributory salary up to $67,500 plus / Contributory salary X 2% plus
7/1/05 – 6/30/06 / Contributory salary up to $72,500 plus / Contributory salary X 2% plus
7/1/06 – 6/30/07 / Contributory salary up to $77,500 plus / Contributory salary X 2% plus
7/1/07 and after / Actual pay plus benefits (no longer have caps on the contributory salary) X contribution rate / FAS X 2% for years of membership during this period

#2 – Joined OTRS before 7/1/79 & elected $7,800 base; later elected $40,000 base

Rule of 80: Full retirement benefits are available at “Rule of 80” (Age plus OTRS membership years = 80) or age 62 and 5 years vested service.

Sick Leave Credit: One year of service may be added if the member has at least 960 hours of accrued sick leave upon retirement. Credit for sick leave is treated as service earned prior to 7-1-95 and would be subject to the $40,000 cap.

Final Average Salary (FAS):Average of high three years of contributory salary.

DATE OF CONTRIBUTIONS / MEMBER CONTRIBUTIONS PAID TO OTRS / ANNUAL OTRS
RETIREMENT BENEFITS
Years before 7/1/79 / Contributory salary not to exceed $7,800
plus / FAS X 2% for years of membership during this period, not to exceed $7,800
plus
7/1/79 – 6/30/95 / Contributory salary, not to exceed $40,000,X contribution rate
plus / FAS X 2% for years of membership during this period, not to exceed $40,000 plus
7/1/95 – 6/30/07 / Contributory salary, not to exceed the increasing high base caps for each year, X contribution rate / Each year stands alone in the calculation. Contributory salary X 2% for each year (no averaging)
7/1/95 – 6/30/96 / Contributory salary up to $44,000; buy-up option to $49,000 plus / Contributory salary X 2% plus
7/1/96 – 6/30/97 / Contributory salary up to $49,000plus / Contributory salary X 2% plus
7/1/97 – 6/30/98 / Contributory salary up to $54,000plus / Contributory salary X 2% plus
7/1/98 – 6/30/99 / Contributory salary up to $59,000plus / Contributory salary X 2% plus
7/1/99 – 6/30/00 / Contributory salary up to $59,000plus / Contributory salary X 2% plus
7/1/00 – 6/30/01 / Contributory salary up to $64,000plus / Contributory salary X 2% plus
7/1/01 – 6/30/02 / Contributory salary up to $69,000plus / Contributory salary X 2% plus
7/1/02 – 6/30/03 / Contributory salary up to $74,000plus / Contributory salary X 2% plus
7/1/03 – 6/30/04 / Contributory salary up to $79,000plus / Contributory salary X 2% plus
7/1/04 – 6/30/05 / Contributory salary up to $84,000plus / Contributory salary X 2% plus
7/1/05 – 6/30/06 / Contributory salary up to $89,000plus / Contributory salary X 2% plus
7/1/06 – 6/30/07 / Contributory salary up to $94,000plus / Contributory salary X 2% plus
7/1/07 and after / Actual pay plus benefits (no longer have caps on the contributory salary) X contribution rate / FAS X 2% for years of membership during this period

#3 – Joined OTRS before7/1/79 & elected $8,900; then $10,000; then $25,000 base

Rule of 80: Full retirement benefits are available at “Rule of 80” (Age plus OTRS membership years = 80) or age 62 and 5 years vested service.

Sick Leave Credit: One year of service may be added if the member has at least 960 hours of accrued sick leave upon retirement. Credit for sick leave is treated as service earned prior to 7-1-95 and would be subject to the $25,000 cap.

Prior Service Credit: No extra credit service is given since member paid on Option 1 ($10,000) instead of Option 2 ($15,000) base in 1978.

Final Average Salary (FAS):Average of high three years of contributory salary.

DATE OF CONTRIBUTIONS / MEMBER CONTRIBUTIONS PAID TO OTRS / ANNUAL OTRS
RETIREMENT BENEFITS
Years before 7/1/79 / Contributory salary not to exceed maximum bases allowed throughout the years during this period plus / FAS X 2% for years of membership during this period, not to exceed $25,000
plus
7/1/79 – 6/30/95 / Contributory salary not to exceed $25,000,X contribution rate
plus / FAS X 2% for years of membership during this period, not to exceed $25,000
plus
7/1/95 - 6/30/07 / Contributory salary, not to exceed the increasing low base cap for each year, X contribution rate / Each year stands alone in the calculation. Contributory salary X 2% for each year (no averaging)
7/1/95 – 6/30/96 / Contributory salary up to $27,500; buy-up option to $32,500 plus / Contributory salary X 2%
plus
7/1/96 – 6/30/97 / Contributory salary up to $32,500 plus / Contributory salary X 2% plus
7/1/97 – 6/30/98 / Contributory salary up to $37,500 plus / Contributory salary X 2% plus
7/1/98 – 6/30/99 / Contributory salary up to $42,500 plus / Contributory salary X 2% plus
7/1/99 – 6/30/00 / Contributory salary up to $42,500 plus / Contributory salary X 2% plus
7/1/00 – 6/30/01 / Contributory salary up to $47,500 plus / Contributory salary X 2% plus
7/1/01 – 6/30/02 / Contributory salary up to $52,500 plus / Contributory salary X 2% plus
7/1/02 – 6/30/03 / Contributory salary up to $57,500 plus / Contributory salary X 2% plus
7/1/03 – 6/30/04 / Contributory salary up to $62,500 plus / Contributory salary X 2% plus
7/1/04 – 6/30/05 / Contributory salary up to $67,500 plus / Contributory salary X 2% plus
7/1/05 – 6/30/06 / Contributory salary up to $72,500 plus / Contributory salary X 2% plus
7/1/06 – 6/30/07 / Contributory salary up to $77,500 plus / Contributory salary X 2% plus
7/1/07 and after / Actual pay plus benefits (no longer have caps on the contributory salary) X contribution rate / FAS X 2% for years of membership during this period

#4 – Joined OTRS before7/1/79 elected $8,900; then $15,000; then $25,000 base

Rule of 80: Full retirement benefits are available at “Rule of 80” (Age plus OTRS membership years = 80) or age 62 and 5 years vested service.

Sick Leave Credit: One year of service may be added if the member has at least 960 hours of accrued sick leave upon retirement. Credit for sick leave is treated as service earned prior to 7-1-95 and would be subject to the $25,000 cap.

Prior Service Credit: One year of extra service credit is given since the member paid on Option 2 ($15,000) base instead of Option 1 ($10,000) base in 1978. This one year of credit is documented as “Prior Service” at OTRS and is subject to the $25,000 cap.

Final Average Salary (FAS): Average of high three years of contributory salary.

DATE OF CONTRIBUTIONS / MEMBER CONTRIBUTIONS PAID TO OTRS / ANNUAL OTRS
RETIREMENT BENEFITS
Years before 7/1/79 / Contributory salary not to exceed maximum bases allowed throughout the years during this period
plus / FAS X 2% for years of membership during this period, not to exceed $25,000
plus
7/1/79 – 6/30/95 / Contributory salary not to exceed $25,000,X contribution rate
plus / FAS X 2% for years of membership during this period, not to exceed $25,000
plus
7/1/95 - 6/30/07 / Contributory salary, not to exceed the increasing low base cap for each year, X contribution rate / Each year stands alone in the calculation. Contributory salary X 2% for each year (no averaging)
7/1/95 – 6/30/96 / Contributory salary up to $27,500; buy-up option to $32,500 plus / Contributory salary X 2%
plus
7/1/96 – 6/30/97 / Contributory salary up to $32,500 plus / Contributory salary X 2% plus
7/1/97 – 6/30/98 / Contributory salary up to $37,500 plus / Contributory salary X 2% plus
7/1/98 – 6/30/99 / Contributory salary up to $42,500 plus / Contributory salary X 2% plus
7/1/99 – 6/30/00 / Contributory salary up to $42,500 plus / Contributory salary X 2% plus
7/1/00 – 6/30/01 / Contributory salary up to $47,500 plus / Contributory salary X 2% plus
7/1/01 – 6/30/02 / Contributory salary up to $52,500 plus / Contributory salary X 2% plus
7/1/02 – 6/30/03 / Contributory salary up to $57,500 plus / Contributory salary X 2% plus
7/1/03 – 6/30/04 / Contributory salary up to $62,500 plus / Contributory salary X 2% plus
7/1/04 – 6/30/05 / Contributory salary up to $67,500 plus / Contributory salary X 2% plus
7/1/05 – 6/30/06 / Contributory salary up to $72,500 plus / Contributory salary X 2% plus
7/1/06 – 6/30/07 / Contributory salary up to $77,500 plus / Contributory salary X 2% plus
7/1/07 and after / Actual pay plus benefits (no longer have caps on the contributory salary) X contribution rate / FAS X 2% for years of membership during this period

#5 – Joined OTRS before7/1/79 & elected $8,900; then $10,000; then $40,000 base

Rule of 80: Full retirement benefits are available at “Rule of 80” (Age plus OTRS membership years = 80) or age 62 and 5 years vested service.

Sick Leave Credit: One year of service may be added if the member has at least 960 hours of accrued sick leave upon retirement. Credit for sick leave is treated as service earned prior to 7-1-95 and would be subject to the $40,000 cap.

Prior Service Credit: No extra credit service is given since member paid on Option 1 ($10,000) instead of Option 2 ($15,000) base in 1978.

Final Average Salary (FAS):Average of high three years of contributory salary.

DATE OF CONTRIBUTIONS / MEMBER CONTRIBUTIONS PAID TO OTRS / ANNUAL OTRS
RETIREMENT BENEFITS
Years before 7/1/79 / Contributory salary not to exceed maximum bases allowed throughout the years during this period
plus / FAS X 2% for years of membership during this period, not to exceed $40,000
plus
7/1/79 – 6/30/95 / Contributory salary, not to exceed $40,000,X contribution rate
plus / FAS X 2% for years of membership during this period, not to exceed $40,000 plus
7/1/95 – 6/30/07 / Contributory salary, not to exceed the increasing high base caps for each year, X contribution rate / Each year stands alone in the calculation. Contributory salary X 2% for each year (no averaging)
7/1/95 – 6/30/96 / Contributory salary up to $44,000; buy-up option to $49,000 plus / Contributory salary X 2% plus
7/1/96 – 6/30/97 / Contributory salary up to $49,000plus / Contributory salary X 2% plus
7/1/97 – 6/30/98 / Contributory salary up to $54,000plus / Contributory salary X 2% plus
7/1/98 – 6/30/99 / Contributory salary up to $59,000plus / Contributory salary X 2% plus
7/1/99 – 6/30/00 / Contributory salary up to $59,000plus / Contributory salary X 2% plus
7/1/00 – 6/30/01 / Contributory salary up to $64,000plus / Contributory salary X 2% plus
7/1/01 – 6/30/02 / Contributory salary up to $69,000plus / Contributory salary X 2% plus
7/1/02 – 6/30/03 / Contributory salary up to $74,000plus / Contributory salary X 2% plus
7/1/03 – 6/30/04 / Contributory salary up to $79,000plus / Contributory salary X 2% plus
7/1/04 – 6/30/05 / Contributory salary up to $84,000plus / Contributory salary X 2% plus
7/1/05 – 6/30/06 / Contributory salary up to $89,000plus / Contributory salary X 2% plus
7/1/06 – 6/30/07 / Contributory salary up to $94,000plus / Contributory salary X 2% plus
7/1/07 and after / Actual pay plus benefits (no longer have caps on the contributory salary) X contribution rate / FAS X 2% for years of membership during this period

#6 – Joined OTRS before7/1/79elected $8,900; then $15,000; then $40,000 base

Rule of 80: Full retirement benefits are available at “Rule of 80” (Age plus OTRS membership years = 80) or age 62 and 5 years vested service.

Sick Leave Credit: One year of service may be added if the member has at least 960 hours of accrued sick leave upon retirement. Credit for sick leave is treated as service earned prior to 7-1-95 and would be subject to the $40,000 cap.

Prior Service Credit: One year of extra service credit is given since the member paid on Option 2 ($15,000) base instead of Option 1 ($10,000) base in 1978. This one year of credit is documented as “Prior Service” at OTRS and is subject to the $40,000 cap.

Final Average Salary (FAS): Average of high three years of contributory salary.

DATE OF CONTRIBUTIONS / MEMBER CONTRIBUTIONS PAID TO OTRS / ANNUAL OTRS
RETIREMENT BENEFITS
Years before 7/1/79 / Contributory salary not to exceed maximum bases allowed throughout the years during this period
plus / FAS X 2% for years of membership during this period, not to exceed $40,000
plus
7/1/79 – 6/30/95 / Contributory salary, not to exceed $40,000,X contribution rate
plus / FAS X 2% for years of membership during this period, not to exceed $40,000 plus
7/1/95 – 6/30/07 / Contributory salary, not to exceed the increasing high base caps for each year, X contribution rate / Each year stands alone in the calculation. Contributory salary X 2% for each year (no averaging)
7/1/95 – 6/30/96 / Contributory salary up to $44,000; buy-up option to $49,000 plus / Contributory salary X 2% plus
7/1/96 – 6/30/97 / Contributory salary up to $49,000 plus / Contributory salary X 2% plus
7/1/97 – 6/30/98 / Contributory salary up to $54,000 plus / Contributory salary X 2% plus
7/1/98 – 6/30/99 / Contributory salary up to $59,000 plus / Contributory salary X 2% plus
7/1/99 – 6/30/00 / Contributory salary up to $59,000 plus / Contributory salary X 2% plus
7/1/00 – 6/30/01 / Contributory salary up to $64,000 plus / Contributory salary X 2% plus
7/1/01 – 6/30/02 / Contributory salary up to $69,000 plus / Contributory salary X 2% plus
7/1/02 – 6/30/03 / Contributory salary up to $74,000 plus / Contributory salary X 2% plus
7/1/03 – 6/30/04 / Contributory salary up to $79,000 plus / Contributory salary X 2% plus
7/1/04 – 6/30/05 / Contributory salary up to $84,000 plus / Contributory salary X 2% plus
7/1/05 – 6/30/06 / Contributory salary up to $89,000 plus / Contributory salary X 2% plus
7/1/06 – 6/30/07 / Contributory salary up to $94,000 plus / Contributory salary X 2% plus
7/1/07 and after / Actual pay plus benefits (no longer have caps on the contributory salary) X contribution rate / FAS X 2% for years of membership during this period

#7–Joined OTRS between 7/1/79 and 6/30/92; Low Base Cap of $25,000

Rule of 80: Full retirement benefits are available at “Rule of 80” (Age plus OTRS membership years = 80) or age 62 and 5 years vested service.

Sick Leave Credit: One year of service may be added if the member has at least 960 hours of accrued sick leave upon retirement. Credit for sick leave is treated as service earned prior to 7-1-95 and would be subject to the $25,000 cap.

Final Average Salary (FAS):Average of high three years of contributory salary.

DATE OF CONTRIBUTIONS / MEMBER CONTRIBUTIONS PAID TO OTRS / ANNUAL OTRS
RETIREMENT BENEFITS
7/1/79 – 6/30/95 / Contributory salary not to exceed $25,000,X contribution rate
plus / FAS X 2% for years of membership during this period, not to exceed $25,000
plus
7/1/95 - 6/30/07 / Contributory salary, not to exceed the increasing low base cap for each year, X contribution rate / Each year stands alone in the calculation. Contributory salary X 2% for each year (no averaging)
7/1/95 – 6/30/96 / Contributory salary up to $27,500; buy-up option to $32,500 plus / Contributory salary X 2%
plus
7/1/96 – 6/30/97 / Contributory salary up to $32,500 plus / Contributory salary X 2% plus
7/1/97 – 6/30/98 / Contributory salary up to $37,500 plus / Contributory salary X 2% plus
7/1/98 – 6/30/99 / Contributory salary up to $42,500 plus / Contributory salary X 2% plus
7/1/99 – 6/30/00 / Contributory salary up to $42,500 plus / Contributory salary X 2% plus
7/1/00 – 6/30/01 / Contributory salary up to $47,500 plus / Contributory salary X 2% plus
7/1/01 – 6/30/02 / Contributory salary up to $52,500 plus / Contributory salary X 2% plus
7/1/02 – 6/30/03 / Contributory salary up to $57,500 plus / Contributory salary X 2% plus
7/1/03 – 6/30/04 / Contributory salary up to $62,500 plus / Contributory salary X 2% plus
7/1/04 – 6/30/05 / Contributory salary up to $67,500 plus / Contributory salary X 2% plus
7/1/05 – 6/30/06 / Contributory salary up to $72,500 plus / Contributory salary X 2% plus
7/1/06 – 6/30/07 / Contributory salary up to $77,500plus / Contributory salary X 2% plus
7/1/07 and after / Actual pay plus benefits (no longer have caps on the contributory salary) X contribution rate / FAS X 2% for years of membership during this period

#8 –Joined OTRS between 7/1/79 and 6/30/92; elected High Base Cap of $40,000

Rule of 80: Full retirement benefits are available at “Rule of 80” (Age plus OTRS membership years = 80) or age 62 and 5 years vested service.

Sick Leave Credit: One year of service may be added if the member has at least 960 hours of accrued sick leave upon retirement. Credit for sick leave is treated as service earned prior to 7-1-95 and would be subject to the $40,000 cap.

Final Average Salary (FAS):Average of high three years of contributory salary.

DATE OF CONTRIBUTIONS / MEMBER CONTRIBUTIONS PAID TO OTRS / ANNUAL OTRS
RETIREMENT BENEFITS
7/1/79 – 6/30/95 / Contributory salary, not to exceed $40,000,X contribution rate
plus / FAS X 2% for years of membership during this period, not to exceed $40,000 plus
7/1/95 – 6/30/07 / Contributory salary, not to exceed the increasing high base caps for each year, X contribution rate / Each year stands alone in the calculation. Contributory salary X 2% for each year (no averaging)
7/1/95 – 6/30/96 / Contributory salary up to $44,000; buy-up option to $49,000 plus / Contributory salary X 2% plus
7/1/96 – 6/30/97 / Contributory salary up to $49,000plus / Contributory salary X 2% plus
7/1/97 – 6/30/98 / Contributory salary up to $54,000plus / Contributory salary X 2% plus
7/1/98 – 6/30/99 / Contributory salary up to $59,000plus / Contributory salary X 2% plus
7/1/99 – 6/30/00 / Contributory salary up to $59,000plus / Contributory salary X 2% plus
7/1/00 – 6/30/01 / Contributory salary up to $64,000plus / Contributory salary X 2% plus
7/1/01 – 6/30/02 / Contributory salary up to $69,000plus / Contributory salary X 2% plus
7/1/02 – 6/30/03 / Contributory salary up to $74,000plus / Contributory salary X 2% plus
7/1/03 – 6/30/04 / Contributory salary up to $79,000plus / Contributory salary X 2% plus
7/1/04 – 6/30/05 / Contributory salary up to $84,000plus / Contributory salary X 2% plus
7/1/05 – 6/30/06 / Contributory salary up to $89,000plus / Contributory salary X 2% plus
7/1/06 – 6/30/07 / Contributory salary up to $94,000plus / Contributory salary X 2% plus
7/1/07 and after / Actual pay plus benefits (no longer have caps on the contributory salary) X contribution rate / FAS X 2% for years of membership during this period

#9–Joined OTRS between7/1/92 and 6/30/95; elected Low Base Cap of $25,000