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ORP Vesting and Retirement Guidelines

HROG Section:
Resigning/Retiring From Employment
Document Title:
ORP Vesting and Retirement Guidelines
Initial Date Posted:
Board Approval:
Applies To:
ORP employees considering retirement
Source:
Related TASB Policy:
Last Date Revised:

Purpose

Background

Definitions

Eligibility

In ORP vesting refers to a participant’s ownership rights to the employer portion of the contributions.  Vested ORP participants can take both employee and employer contributions with them.  The ORP vesting period is one year – 12 cumulative months of participation with no future vesting period of requirement.  Vesting occurs on the first day of the second year of participation; participants must begin a second year of employment in an ORP eligible position before achieving vested rights to employer contributions.  Temporary employment or employment for less than half time are not considered ORP eligible.  Part-time employees who participate in ORP at another institution can not contribute to their optional retirement account. 

ORP retirement benefits are based on the actual amount contributed to the individual’s participant account plus any returns on investments.  ORP benefits are very dependent on the contribution rate and total salary earned by the employee while participating.  Contracts with the ORP Carrier may provide for an annuity, periodic withdrawals or withdrawals of the total balance in an account that are managed individually, there are not state provisions for improvement of benefits after termination and/or retirement. 

In accordance with state law, benefits from an investment purchased under ORP are available only upon termination (retirement) or attainment of age 70.5.  In addition, no loans or hardship withdrawals are available under ORP while employed with the DCCCD.  Since ORP is a portable retirement benefit, contributions are managed as a personal retirement fund and a participant who vest prior to retirement has access to both employee and employer contributions.

Procedures

Employee Responsibility

Contact your location human resources office to ensure all retirement eligibility guidelines have meet met before a decision for retirement is made.

HR Responsibility

Exceptions To Policy

Other Notes

Related Links