Answers to OPERS member questions
This month: We address several system education and service inquiries
By Michael Pramik, Ohio Public Employees Retirement System
March 13, 2025 – Members and retirees often ask us questions through our social media channels that others could benefit from. Periodically we post these questions and answers in our PERSpective blog.
Q: I’ve been trying for a while to log in to my account. Each time I see an error message telling me to call, but when I do, the recording tells me that they are experiencing a large number of calls and to call back later. How can I contact someone?
A: OPERS’ telephone hold time is sometimes extended because of a high call volume, and we apologize for any inconvenience it may cause. We offer a virtual hold option that allows you to receive a call back when it’s your turn to speak to a representative. Once our hold time exceeds our business hours for the day, our system stops allowing calls to be placed on hold and requires you to call back later. Our call volume is lower in the mornings and in the middle of the week.
Q: Do you have seminars for people thinking about retiring?
A: OPERS offers many educational opportunities for those about to retire.
We have separate “Ready to Retire” seminars for Pre-Medicare members who are within 12 months of retirement eligibility, and for Medicare-eligible members who are 65 and older and are within 12 months of retirement eligibility.
These sessions include two presentations, during which you’ll learn about the retirement application process, timeline details about your transition to retirement and the resources available to help you with your retirement decisions.
There’s also a seminar titled, “Planning for Retirement,” which is for all members who are more than 12 months from retiring but within five years of retirement eligibility. Participants will learn about service credit and pension and health care eligibility.
Finally, we offer a seminar for active members called, “Understanding Your Medicare Options.” It’s for those who are currently working and are 65 or older or will turn age 65 within the next 15 months.
You can sign up for these seminars online, through your OPERS online account.
Q: I purchased service credit in the amount of about $30,000. I believe it already has been taxed. When I retire, can I take a tax-free, partial lump-sum option payment of $30,000 as a cash option, from that already-taxed service credit?
A: Partial lump-sum option payments are always fully taxable. However, any after-tax contributions you made to OPERS while you were employed in an OPERS-covered position, whether for mandatory contributions or the purchase of service credit, will not be taxed again.
When you receive your monthly benefit, a portion of it will be excluded each month from federal taxes. When the non-taxable (already taxed) portion has been completed paid out/recovered, your monthly benefit will become fully taxable.
Q: I’m curious why the Medicare Part A reimbursement is added to our monthly pension checks, and thus it’s subject to taxation. However, my Medicare Part B reimbursement goes directly to my checking account. Why is one taxed, and the other is not?
A: The Medicare Part A reimbursement is non-taxable. Because it is not included as taxable income, it is not included on the 1099-R. The Medicare Part B reimbursement is tax free since you are being reimbursed for your payment of a qualified expense through your Health Reimbursement Arrangement.
Q: I’m planning to move to another public-service job in another state and I have about 20 years of service credit in OPERS. Can I transfer the OPERS service time to a public retirement plan in the other state?
A: No. Members cannot transfer their service credit to another retirement system outside of Ohio. There are options, however, if another job takes you out of Ohio. You could simply leave your OPERS account as it is and take a retirement benefit when you’ve reached the requisite age and service requirement. Or, you could take a refund on your account.
Q: Why can’t OPERS withhold school district taxes from pensions?
A: OPERS is a retirement system, not an employer. We are capable of withholding for the payment of federal and state income taxes. The school district income tax, and whether a retiree is subject to it, varies across the more than 700 districts in Ohio. We are unable to collect and maintain this information at an individual level.
However, retirees may voluntarily increase the amount of withholding for the state of Ohio. This additional withholding could be applied to the school district income tax liability when the retiree completes his or her tax return. You can change your tax withholding through your online account or by completing and mailing us the IT-4P form from our website.
Michael Pramik
Michael Pramik is communication strategist for the Ohio Public Employees Retirement System and editor of the PERSpective blog. As an experienced business journalist, he clarifies complex pension policies and helps members make smart choices to secure their retirement.
Why cant I opt out of OPERS. I am a service connected Veteran whom has no need for other retirement funding.
Laura,
In some cases it’s possible to opt out, but not for all OPERS-contributing positions, as defined in Ohio law. Contact us at 800-222-7377 for more information.
I am retired and waiting to receive my one-time PLOP but I wanted to know if OPERS will grant us another opportunity to take another PLOP since our present life has changed drastically with this new administration?
Faye,
The partial lump-sum option payment is available at retirement, not after one is already taken and the benefit payments have commenced.
I noticed my income tax form{1099-R} had a deduction for “Roth Contributions or Insurance premiums”.
I don’t remember signing up for either of these. How does this happen?
In the instructions that were included with the 1099-R it is explained that box 5 includes the “after-tax contributions that were recovered tax free this year.” If the account value at retirement includes contributions that were received post-tax there will be a portion of the monthly benefit that is not taxable which is called the tax exclusion amount. The tax exclusion amount of the monthly benefit will continue to be non-taxable until the total amount of the after-tax contributions have been recovered.
Is OPERS concerned about the probability that the Health Care Plans on the ACA are about to have subsidies expire? This will most likely cause premiums to go much higher? Do you plan to warn pre-medicare retirees if this occurs?
Susan,
We always communicate a wealth of information about OPERS health care during open enrollment, and the same will be true later this year for 2026.