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SERS Home  >  Employers  >  Membership  >  ARP
Choosing an Alternative Retirement Plan (ARP)

This option only applies to college and university employees.

Newly hired full-time college and university employees have the option of either contributing to SERS or an Alternative Retirement Plan (ARP).

You 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 (5.171).

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 (20.487b ARP-3) and return it to the employer.

Once the form is submitted, it is irrevocable. As the employer, you must file a copy of the election form with SERS within 10 days of receiving it from the employee. 

The law also provides that the college sends a percentage of each ARP employee’s salary to SERS on a monthly basis for unfunded accrued liabilities. The current percentage is 6%. Once an employee elects the ARP, the employee and remaining portion of the employer contributions are sent directly to the ARP.