Pick-Up Plans

Internal Revenue Service law makes it possible for an employer to pay (pick-up) employee contributions for members of OPERS. This is a technique that enables employers to designate employee contributions picked up by the employer as employer contributions.

The federal law states that employer contributions to a qualified pension plan are non-taxable to the employee until such time as the contributions are received as a refund or as retirement benefits.

Pick-up plans for mandatory contributions and payroll deductions to purchase other service credit are separate plans which an employer must establish and qualify separately.