Retirement Programs (E-43)
Original Implementation: September 1, 1983
Last Revision: January 31, 2012
Employees of the university working 20 hours per week (50 percent time) or more for a period of at least four and one-half months must participate in a retirement program. This excludes students employed in positions requiring student status as a condition of employment.
Contribution amounts for the employee, and the employer matching monies, are determined by the Texas State Legislature. These amounts are subject to change with any legislative session.
With regard to federal, private and other non-education and general contributions to retirement programs, matching contributions into both ORP and TRS based on salaries and wages paid from these sources will be direct fringe benefits charged against these sources.
Teacher Retirement System
Employees who participate in the Teacher Retirement System of Texas are required to contribute a percentage of their gross annual salary to the Retirement System. Contributions are obtained through monthly payroll deductions. An employees’ contributions are tax-deferred.
Optional Retirement Program
An Optional Retirement Program is available to the following employees of the university who must be employed at 100% FTE for a full semester or four and one-half months: faculty members; faculty administrators; librarians; executive administrators, other key administrators, athletic coach, and professionals as those terms are defined in 19 Tex. Admin. Code § 25.4. Eligibility to participate is subject to rules adopted by the Texas Higher Education Coordinating Board. Positions listed as non-exempt are ineligible to participate. Eligibility in ORP is in lieu of present or future active membership in the Teacher Retirement System of Texas.
TIME LIMIT FOR ELECTION OF ORP--Eligible new employees have 90 days after employment by the university in an ORP-eligible position to elect to participate in ORP. An employee who elects to participate in ORP must complete the Form TRS 28 and the proper payroll forms. If applicable, the employee will complete Form TRS 29 to withdraw all contributions they made to TRS prior to election ORP.
A listing of authorized vendors and agents is available in Human Resources.
Cross Reference: Tex. Gov’t Code Ch. 821-830; 19 Tex. Admin. Code § 25
Responsible for Implementation: President
Contact for Revision: Director of Human Resources
Forms: Form TRS 28 and the ORP-1 (both forms are available in Human Resources)
Board Committee Assignment: Finance and Audit