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Optional Retirement Programs (ORP)

HROG Section:
Work/Life Benefits
Document Title:
Optional Retirement Programs
Initial Date Posted:
Board Approval:
Applies To:
Full-time Administrators and Faculty
Source:
District Human Resources
Related TASB Policy:
Last Date Revised:

Purpose

To offer Faculty and Administrators an optional retirement program (ORP) that is portable.  Vesting in the program occurs after one year and one day of employment. 

Background

Definitions

Eligibility

Procedures

An employee shall be eligible to make a once-per-lifetime irrevocable election of ORP in lieu of the Teachers Retirement System of Texas.

Election to participate in the optional retirement program must be made before the ninety-first day after becoming eligible.

An employee who fails to elect the ORP during the 90-day period shall remain in the Teacher Retirement System for the remainder of employment in Texas higher public education.

The Board has authorized a number of companies to write optional retirement programs for eligible District personnel. The list of carriers authorized by the Board is maintained in the District Human Resources Office. 

Employees eligible for optional retirement programs may change carriers no more than one time during each fiscal year and may be requested at any time during the year. An ORP Payroll Reduction Authorization form (PDF - 89KB) must be complete to make a carrier change.  There are no changes permitted during the initial year of enrollment. 

Employees are eligible to roll-over funds according to company procedures (contact your carrier or agent for more information).  An Transaction Routing Request form (PDF - 79KB)
must be completed and submitted to the location Human Resource office.

If hired by Aug. 31, 1995 --Employee contributes 6.65 percent of gross pre-taxed earnings; State and District contributes 8.5 percent.

Effective Sept. 1, 1995 (hired on Sept. 1, 1995 and after)--Employee contributes 6.65 percent of gross pre-taxed earnings; State contributes 6.6 percent. 

ORP deductions are pre-tax.

Employee Responsibility

ORP eligible employees, upon hire, must complete the retirement eligible document. ORP eligible document (PDF - 75KB).

Existing employee position changing to another classification: Eligible full-time employees have ninety days (90 days) from the date of eligibility to enroll in ORP.  Once an eligible employee declines or fails to join ORP during 90 days, the employee must remain enrolled in TRS throughout their career in Texas higher education.

For general information about the Optional Retirement Program:

ORP Coordinator
Texas Higher Education Coordinating Board
P.O. Box 12711
Austin, Texas 78711
512-483-6160

For general information on the Teacher Retirement System or its benefits:

TRS Information Center
512-397-6400 or 800-223-8778

Teacher Retirement System of Texas
1000 Red River Street
Austin, Texas 78701-2698

Employees must contact the authorized carrier and location Human Resources office to complete the required paperwork before the ninety-first calendar day to elect to participate in ORP.  Transaction Routing Request form (PDF - 79KB)

HR Responsibility

Exceptions To Policy

The DCCCD does not participate in Social Security.

Other Notes