By Eric A. Jones, J.D., M.B.A., Healthcare, Professional Licensure & Disability Attorney | Reviewed for Legal Accuracy. Updated: September 2026
Choosing a retirement plan through the Ohio Public Employees Retirement System (OPERS) is one of the more consequential decisions a public employee makes early in their career, and it isn’t a decision with a single right answer. What fits best depends on your age, whether you’re married, whether you have dependents, how you expect your health and career to hold up until retirement age, and how comfortable you are managing your own investments. This article walks through what each option actually involves — including a change that has meaningfully narrowed the choice since this topic was last widely written about.
OPERS Traditional Pension Plan
This is the plan most people picture when they hear “government pension.” Your employer makes contributions on your behalf, and your eventual benefit is calculated using a formula based on your years of service credit, your final average salary, and your age at separation — not on how any investments performed.
Because the benefit is formula-based, you don’t need to track the stock market or manage any investment paperwork. The plan also includes disability and survivor benefit coverage, and gives you the option to set up an annuity, which isn’t available under the Member-Directed Plan.
Your specific eligibility and benefit calculation depend on which OPERS membership group you fall into (Group A, B, or C), which is generally based on your date of hire. Your OPERS annual statement or your online account will show which group applies to you.
OPERS Member-Directed Plan
Under the Member-Directed Plan, you control how your own contributions — and a portion of your employer’s contribution — are invested, similar to a 401(k). You designate a percentage of each paycheck toward retirement.
This plan can offer the largest potential upside if your investments perform well, but it comes with real trade-offs. Members participating in the Member-Directed Plan are not eligible for OPERS disability benefits. There also isn’t a formal “survivor benefit” the way the Traditional and Combined plans provide it — instead, the vested portion of your individual account becomes available to your beneficiary as a refund once OPERS-covered employment ends. That’s a meaningful distinction worth understanding rather than assuming your account works the same way a pension survivor benefit does.
OPERS Combined Plan — Closed to New Members
The Combined Plan historically let participants direct part of their own contributions like a 401(k) while their employer also funded a traditional pension component. As of January 1, 2022, OPERS closed the Combined Plan to new elections — it is no longer an option for anyone newly selecting a plan today. As of January 1, 2024, the Combined Plan was formally consolidated into the Traditional Pension Plan for administrative and accounting purposes under Ohio Administrative Code 145-1-90.
If you’re one of the existing participants who selected the Combined Plan before it closed, your plan document and benefit structure remain in effect, and OPERS continues to administer your account under the consolidated framework. If you’re newly choosing a plan today, this option simply isn’t on the table — your real choice is between the Traditional Pension Plan and the Member-Directed Plan.
The 180-Day Election Window — and What Happens If You Miss It
New OPERS members have 180 days from their hire date to select a plan. If you don’t make a selection within that window, you’re automatically placed in the Traditional Pension Plan. Ohio Admin. Code 145-1-88 also allows most members a one-time opportunity to change plans later in their career — for example, moving from the Member-Directed Plan into the Traditional Pension Plan. If you’re considering a plan change, note that OPERS generally requires a waiting period (currently one year from the change’s effective date) before you become eligible to apply for disability benefits under your new plan, so timing matters if health is a factor in your decision.
How Your Plan Choice Affects Long-Term Disability Coverage
One of the most overlooked differences between these plans is what happens if you become unable to work before retirement age. The Traditional Pension Plan provides disability benefits to eligible members with enough service credit. The Member-Directed Plan provides none — if you become disabled, your only access to those funds is a refund of your vested account balance, which is rarely enough to replace lost income long-term.
For public employees who are also assessing their broader disability picture — including whether they might separately qualify for Social Security Disability Insurance — it’s worth understanding how Social Security disability benefits work alongside any OPERS coverage, since eligibility rules and what a spouse or dependent can receive differ significantly between the two systems.
An Illustrative Example
Consider a hypothetical: a 32-year-old university employee is deciding between the Traditional Pension Plan and the Member-Directed Plan. She’s married with two young children and has a family history of a chronic health condition. On paper, the Member-Directed Plan’s growth potential looks appealing. But after reviewing her situation, she recognizes that losing OPERS disability coverage and formal survivor benefits would leave her family more exposed if her health took an unexpected turn. She elects the Traditional Pension Plan instead, trading some upside for the disability and survivor protections that come with it. Every situation is different, and a decision that fits one employee’s circumstances may not fit another’s — which is the actual reason there’s no single “best” plan.
Getting Help With the Decision
OPERS, the State Teachers Retirement System (STRS), and the School Employees Retirement System all present versions of this same decision to public employees, and the stakes — particularly around disability and survivor coverage — are easy to underweight when you’re early in a career and focused on take-home pay. Jones Law Group works with government employees, public safety personnel, and university faculty on questions involving their OPERS, STRS, and related disability options, and can help you think through how a plan choice interacts with your specific health, family, and career situation.
Disclaimer
This article is for general informational purposes only and does not constitute legal or financial advice. Retirement plan rules change, and your specific eligibility, benefits, and options depend on your individual employment history, membership group, and OPERS’s current plan documents. Consult OPERS directly or a qualified attorney before making a plan election or change.
Authorities & Sources
- Ohio Administrative Code 145-1-81 – Defines the Traditional Pension, Combined, and Member-Directed plans
- Ohio Administrative Code 145-1-88 – Plan election changes; Combined Plan closed to new elections effective January 1, 2022
- Ohio Administrative Code 145-1-90 – Combined Plan consolidated into the Traditional Pension Plan effective January 1, 2024
- Ohio Revised Code § 145.81 – Statutory basis for the Member-Directed and Combined plans
- OPERS: How to Select Your Plan – Official plan-selection guidance and the 180-day election window
