Ohio-valued purchased service credit Credit that is purchased for private teaching and other public service to be used in the calculation of retirement, disability or survivor benefits. For more information go to Purchasing Service Credit . This credit is not used in the calculation of the benefit. Under the money-purchase calculation, your lifetime contributions, plus interest, are matched by employer funds to provide an annuity reserve. The benefit is calculated by dividing the annuity reserve by an annuity factor.
Interest rates are subject to change without notice.
Limitation on final average salary A final average salary may be limited to address the unfunded liability resulting from disproportionate pay increases in the highest two years of employment earnings. Under a final average salary limitation, compensation earned in your highest two years that exceeds your highest percentage increase in the three preceding years, is excluded. If you retire before earning a full contract in the final year, the earnings for the partial year may also be limited. Contributions on the earnings not used in the final average salary are paid as a small monthly annuity that is included in the regular monthly pension check.