Alternative Retirement Plan (ARP)
Choosing an Alternative Retirement Plan (ARP)
Newly hired full-time college and university employees have the option of either contributing to SERS or an Alternative Retirement Plan (ARP). This option only applies to college and university employees.
As the employer, 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.
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 you. Once the form is submitted, it is irrevocable. You must file a copy of this form with SERS within 10 days of receiving it.
The law also provides that the college sends a percentage of each ARP employee’s salary to SERS on a monthly basis. Once an employee elects the ARP, the employee and remaining portion of the employer contributions are sent directly to the ARP.
The mitigating rate, paid by college and university employers to SERS on behalf of ARP participants, is 3.48%.