Cincinnati Retirement System Decisions: Options, Refund (2026)

Updated October 7, 2026. Quick answer: A City of Cincinnati employee in Group G (membership began on or after January 1, 2016) who retires picks a single-life pension or one of four joint-and-survivor options paying 100%, 50%, 66 2/3% or 80%, and a married member needs the spouse’s signed waiver to choose anything other than the spouse as optionee. The election is irrevocable on and after the retirement date. Leaving before retirement offers a refund of employee contributions or, with 5 years of service credit, a deferred pension at age 67. A refund permanently voids the membership date. This page covers Group G only.

What this page covers and what it does not

This page works from documents published by the Cincinnati Retirement System (CRS), the City of Cincinnati’s pension plan for its general employees: the Members’ Retirement Plan Benefit Guide for Group G, the Payment Options fact sheet, the Separation From Employment and Death in Service web pages, the cash refund application and the Spousal Waiver form, read on October 7, 2026. Any figure here is CRS’s, or is labeled as a computed example from assumed inputs.

CRS assigns benefits by group. The benefit guide says “The information presented in this guide is specifically for members of Group G whose membership in CRS began on or after January 1, 2016”. Everything below covers Group G only; the pages read describe no other group’s rules. For the state tax side, see Ohio retirement taxes and does Ohio tax pensions.

How the monthly pension is figured

The guide says “Available pension benefits are determined exclusively by the member’s service credit years, plan multiplier, and average highest compensation”. For Group G the multiplier steps down with service: “0-30 year of service credit = 2.2% multiplier” and “Over 30 years of service credit = 2.0% multiplier”. The average is defined as “The monthly average of your highest pensionable earnings over 60 consecutive months occurring at any time during your CRS membership”. The guide adds that “Your balance of accumulated employee contributions is NOT a component for determination of your pension benefits”, so the refund balance and the pension are separate things.

The guide’s own example is “30 x .022 x $5000 = $3,300.00 gross monthly pension amount”.

A computed example from assumed inputs, not a CRS figure: 25 years of service credit at the 2.2% multiplier on an assumed $4,000 average highest compensation is 25 x 2.2% x $4,000, a computed $2,200 a month before any payment option reduction. A real estimate comes from CRS.

When a Group G pension can start

On early retirement the guide says “There is a substantial actuarial reduction in monthly pension benefits paid to those members who elect Early Retirement”. The pages read do not give the size of the reduction.

Applying and the deadlines that follow

The guide says “About nine weeks before you retire, you will need to apply for your benefits by completing an Application for Service Retirement”, and that the member completes a “Payment Option Election form (for Single Life or Options 1 through 4)” at a processing session. The first payment is slower than many expect: “your first retirement benefit payment is issued two months after your retirement”.

The application can be pulled back only briefly: “The withdrawal request must be made using the CRS Rescission Form, signed by you, and received by the CRS office no later than 4:00 PM not less than 15 days prior to your Retirement Effective Date.”

The election: single life or one of four survivor options

This is the central decision. For the baseline, “A monthly pension benefit is paid to you (the member) during your lifetime only”. For a married member the default flips: “If you are legally married, you must select one of the following four options and name your legally married spouse as your optionee.” “Retirees may ONLY select one optionee (multiple optionees are not permitted).”

Under Option 1 the survivor payment is “equal to 100% of the monthly pension benefit amount that was payable to you on your date of death”, and under Option 2 it is “equal to 50% of the monthly pension benefit amount that was payable to you on your date of death”. Options 3 and 4 reduce the payment when either person dies. For Option 3 the amount is “reduced to 66 2/3% of the monthly pension benefit amount that was payable to you on the date of the first death”, and Option 4 uses 80% in the same way.

The guide prints these as an example and says “The Actuarial Adjustment is based on the member’s age and gender and their selected Optionee’s age and gender on the retirement date”. The example’s ages are not printed. The Payment Options fact sheet gives a different illustration on a $2,500.00 whole life benefit, with Option 1 at $1,980.75 and Option 2 at $2,210.25 and $1,105.13 for a surviving optionee, and says “The impact that selecting an option has on reducing the monthly retirement allowance can vary significantly from one member to the next”. That trade-off is discussed on single-life versus joint-and-survivor pension.

A worked reduction from an assumed benefit

A computed example, not a CRS quote: take an assumed single-life benefit of $3,000 a month and apply the actuarial adjustments printed in the guide’s illustration (0.844272 for Option 1 and 0.914717 for Option 2). Those factors depend on the ages and genders in that example, so a real member’s factors will differ. Option 1 would be 3,000 x 0.844272, a computed $2,532.82 a month for both people. Option 2 would be 3,000 x 0.914717, a computed $2,744.15 while both are alive, and a surviving optionee would receive 50% of that, a computed $1,372.08 a month. The cost of survivor protection is the gap between $3,000 and the reduced figure, paid for as long as the retiree lives.

What cannot be changed, and the spousal waiver

“Your option election is irrevocable on and after your retirement date, unless you get divorced after retirement.” The guide describes one exit: after a divorce the pension may be recalculated to an unreduced single-life amount once CRS receives an executed waiver from the ex-spouse or a decree providing for it, plus a written request. See survivor benefit with a government pension for the general mechanics.

A married member who wants a single-life pension, or an optionee other than the spouse, needs the spouse’s signature. The Spousal Waiver form says “CRS requires that this retirement benefit be paid in a joint or survivor form unless both the Member and the spouse waive their respective rights in the joint and survivor form of benefit in favor of a single life form of benefit”. It warns the spouse that “Upon the Member’s designation of a single life benefit, the Member’s spouse will no longer be entitled to any retirement pension benefits upon the death of the Member, and all benefits, including healthcare, provided to the Member’s spouse shall terminate upon the Member’s death”. The form read carries a notary block.

Lump sums

In the documents read, the only lump sum a living member can take is the refund of employee contributions after leaving City service. The pages read do not describe a lump-sum retirement option or a partial lump sum with the pension. The CRS website menu lists a DROP page, which was not read for this page, so nothing is said here about how a DROP works.

Leaving before retirement: refund or keep the pension right

The Separation From Employment page says “If you resign or are terminated from employment with the City of Cincinnati for any reason, prior to retirement eligibility, you may request a refund of your employee pension contributions plus interest”. It adds that “The employer paid contributions do not accrue to individual member accounts”. The guide also says “There are NO loans available against your accumulated contributions balance”.

The refund is final in several ways. “If you withdraw your contributions from the Cincinnati Retirement System, you will NOT be entitled to a pension upon reaching retirement eligibility.” “By obtaining a return of contributions, the member’s original membership date is voided permanently”. A member with 5 or more years of service credit has an extra step: “you must complete, sign, and have notarized a Retirement Benefit Waiver form waiving your rights to any future benefits from the Cincinnati Retirement System”. “Payment of refunded contributions may take 90 to 120 days from the employee’s termination in the City personnel and payroll system.” The page also says only one of cash refund or direct rollover may be chosen, and “No combinations are permitted”.

The deferred path: “If you have at least five years of service and you leave City employment PRIOR TO reaching retirement eligibility requirements, you may choose to leave your contributions with CRS”. The guide’s own view of the trade-off is: “The value of leaving your contribution in the system so that it can be transferred or count towards vesting in retirement benefits later in your career may greatly exceed the value of any refund.” The pages read do not state the interest rate credited on contributions. The general decision is covered on pension refund versus leaving it.

Taking the refund in cash or by rollover

For a cash refund, “In accordance with federal law, 20% of the refund will be withheld for federal taxes before any other payments are made from the refund”. The cash refund application adds that “The payee does NOT have a choice about choosing a different withholding amount”, and that “The distribution may be taxable for the purposes of your state of residency, although no state taxes are withheld from the distribution”.

For a rollover, the page says “You may request a direct transfer of your employee paid pension contributions (less any outstanding loan balance or outstanding court ordered payments) to an established qualified retirement plan, such as a 457 Deferred Compensation plan, a 401(K), or an Individual Retirement Account (IRA)”. The 20% rule is explained on 20% withholding on a pension lump sum.

A computed example from an assumed $10,000 taxable cash refund, not a CRS figure: 20% of $10,000 is a computed $2,000 withheld for federal tax, leaving a computed $8,000 in cash before any other tax. The final tax can be more or less than the withholding. The benefit guide also notes that “CRS only withholds State of Ohio income tax”.

Buying service credit and repurchasing withdrawn service

A member who withdrew and later returned can repurchase lost service, with conditions: “Members must repay the amount of the withdrawn CRS pension contributions, plus interest from the date of withdrawal, to obtain this prior service credit.” “You do not become eligible to re-purchase that service until you have completed 18 months of membership service after your re-enrollment in the System.” Even then, “If you withdraw your employee contributions, you cannot re-establish your prior membership date and/or Group assignment through the purchase of withdrawn prior service if you are rehired by the City of Cincinnati”.

Other purchases are limited. For military service “you may only purchase up to three years of retirement service credit”, and the cost includes “Interest of 4%, compounded annually, from the date of discharge to the date of payment”. For federal or out-of-state employment, a member “may purchase up to five years of service credit for their employment with the Federal Government”, and “Members must pay a non-refundable application fee of $250 to request a cost calculation for the purchase of Federal/Out-of-State service credit”. The pages read do not print a dollar price for these purchases. To judge whether a purchase pays back, see the pension buyback calculator.

If the member dies before retirement

The Death in Service page says that for a member with at least 20 years of service credit, the legally married spouse could choose a monthly pension, and “the member’s legally married spouse must be designated as the member’s sole primary beneficiary prior to the member’s death”. If the member is not eligible for that, “your designated primary beneficiary is eligible to receive a refund of your accumulated CRS contributions”. On that refund, “Note that Federal taxes would be withheld from this particular payment at a rate of 20% if the beneficiary is the member’s legally married spouse, or 10% withholding if the beneficiary is anyone else”. The guide adds a one-time survivor payment of 2/3rds of annual salary at death for a spouse and eligible children of a member with at least 18 months of employment who is not eligible for a monthly pension.

Cost of living adjustments after retirement

The guide says “At the start of your fourth year of retirement, you will begin receiving a 3% simple cost of living adjustment (COLA)”. The guide’s example is “if your initial annual benefit is $30,000, the annual COLA amount is $900”. The adjustment is a flat dollar amount repeated each year, not a percentage that compounds.

What the IRS adds on tax

A refund or lump sum from a public pension is a distribution, so the IRS rules apply on top of CRS’s own. On withholding, the IRS says that a taxable eligible rollover distribution paid to you “is subject to mandatory income tax withholding (generally at a rate of 20%), even if you intend to roll it over later”, and that if you roll it over yourself “you’ll have to add funds from other sources equal to the amount withheld”. CRS’s refund page and cash refund application both state the 20% federal withholding on a cash refund, and the guide says a direct rollover avoids it. The rollover clock, if the money is paid to you: “you have 60 days from the date you receive it to roll it over to another eligible retirement plan”.

On early distributions the IRS says “the law imposes a 10% additional tax on certain early distributions from certain retirement plans”. Its list of exceptions includes “Distributions made to you after you separated from service with your employer after attainment of age 55” and “Distributions made to a qualified public safety employee from a governmental plan”. Whether an exception fits a particular refund depends on your own plan and facts, so confirm it with a tax preparer before you take one.

What this page could not settle

• The pages read do not give the size of the actuarial reduction for early retirement or the factors for a specific member; the illustrations do not print the ages behind their factors.
• The pages read do not state the interest rate credited on employee contributions or the interest rate for repurchasing withdrawn service.
• Source conflict: the guide’s cover and introduction say Group G is membership on or after January 1, 2016, while its qualification list says a membership date on or after January 1, 2010. This page follows the cover and introduction, so a member hired between those dates should confirm the group with CRS.
• The two CRS illustrations of the payment options (a $3,203.00 benefit in the guide and a $2,500.00 benefit in the fact sheet) use different factors; both are described as illustrations, and neither is a quote for a real member.
• The DROP page on the CRS website, the Cincinnati Municipal Code text (Chapter 203), disability retirement, retiree health care details and other groups’ rules were not read for this page.
• The pages read do not state whether a lump-sum retirement option exists, or whether the COLA applies to a survivor’s payment.

Common mistakes

• Treating the payment option as changeable later; the guide says the election is irrevocable on and after the retirement date, with a narrow divorce exception.
• Naming a different optionee or choosing single life without the spouse’s signed and notarized waiver; a married member must otherwise pick a survivor option naming the spouse.
• Taking a refund without weighing what ends; CRS says a refund voids the membership date permanently and the member is not entitled to a pension at retirement age.
• Expecting to roll part of a refund over and take part in cash; the page says only one of cash refund or direct rollover may be chosen.
• Waiting to buy service credit until after leaving City employment; the guide says purchases and transfers must be completed before separation.

Related on this site: Ohio retirement taxes, does Ohio tax pensions, Ohio SERS retirement decisions, pension refund versus leaving it, single-life versus joint-and-survivor pension, pension buyback calculator, 20% withholding on a pension lump sum, survivor benefit with a government pension and public pension retirement decisions by system.

Sources

• Cincinnati Retirement System, Separation From Employment (web page, read October 7, 2026): https://www.cincinnati-oh.gov/retirement/membership/separation-from-employment
• Cincinnati Retirement System, Payment Options: Determining Your Monthly Pension Benefit (fact sheet): https://cincinnati-oh.gov/sites/retirement/assets/DROP/Payment-Options.pdf
• Cincinnati Retirement System, Death in Service (web page, read October 7, 2026): https://cincinnati-oh.gov/retirement/membership/death-in-service
• Cincinnati Retirement System, Application for Return of Accumulated Contributions, Cash Refund (form, rev. 06/23): https://cincinnati-oh.gov/sites/retirement/assets/Forms/ROC-Cash-Refund-0623-Fill-in.pdf
• Cincinnati Retirement System, Spousal Waiver of Joint and Survivor Annuity (form): https://cincinnati-oh.gov/sites/retirement/assets/Forms/Spousal_Waiver_2018.pdf
• Cincinnati Retirement System, Members’ Retirement Plan Benefit Guide, Group G (membership date 01/01/2016 to present; file named Group G2 2026): https://cincyweb.cincinnati-oh.gov/sites/retirement/assets/Handbook/CRS_Retirement_Handbook_Group_G2-2026.pdf
• IRS, Topic no. 413, Rollovers from retirement plans (irs.gov): https://www.irs.gov/taxtopics/tc413
• IRS, Topic no. 558, Additional tax on early distributions from retirement plans other than IRAs (irs.gov): https://www.irs.gov/taxtopics/tc558

Sources: the primary documents linked above, read on October 7, 2026. General information from each system’s own published materials, not legal, tax or financial advice. Your own member statement and the system’s current rules decide your benefit, and a pension counsellor at the system or a fee-only adviser is the right place to confirm anything consequential.