The following employers -- created by action of the General Assembly or by the legislative authority of any of the units of local government not covered by the State Teachers Retirement System or the School Employees Retirement System -- are subject to coverage under OPERS:
Carryover Public Employees
A carryover employee is an OPERS member who continues to perform the same or similar duties for a private employer that contracts to provide functions that were previously publicly operated. A carryover employee has two choices:
- The employee can continue to contribute both to OPERS and to Social Security, or
- The employee can elect to terminate membership in OPERS and only contribute to Social Security.
How this is handled:
- Employees must choose whether they want to continue to contribute to OPERS within 90 days of the date of thetransition to the private employer.
- If the employee elects to end participation in OPERS, OPERS will approve the form and send a confirmation letter to the private employer to terminate contributions. Contributions received on salary earned after the effective date of the transfer to the private employer will be refunded as unauthorized.
- Carryover employees who have chosen to stop contributing to OPERS may leave their accumulated contributions on deposit with OPERS or request a refund.
- New employees hired by the private employer after the date of conversion are not public employees and cannot become members of, or contribute to, OPERS.
Employer Responsibilities - Carryover Public Employees
A public employer who is transferring a public operation and its employees to a private employer should contact OPERS Employer Services (1-888-400-0965, select prompt #3 for membership and compliance) well in advance of the conversion. OPERS will supply the employer with applicable instructions and forms.
The public employer who contracts with the private employer is ultimately responsible for ensuring continuation of contribution report submission and payment.
Contribution Rates - Carryover Public Employees
The employer contribution rate is currently 14% of the employee’s earnable salary while the employee contribution rate is currently 10% of the employee’s earnable salary. The OPERS Board sets the employer and employee contribution rates as permitted by statute.
For employees remaining members of the retirement system following the conversion of a public function to a private function under a contractor, pre-tax withholdings will cease commensurate with the contract effective date. Contributions will be required to be withheld and remitted on a post-tax basis.
OPERS Employer Services