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Retirement Programs (E-43)

Original Implementation: September 1, 1983
Last Revision: April 13, 2006

Employees of the University working 20 hours per week (50% time) or more for a period of at least four and one-half months must participate in either the Teacher Retirement System of Texas (TRS) or an Optional Retirement Program (ORP). 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. The amounts listed are those in effect at the time of publication of this policy and in no way reflect a contract between Stephen F. Austin State University and any employee.

  1. Teacher Retirement System. Employees who participate in the Teacher Retirement System of Texas are required to contribute 6.4% of their gross annual salary to the Retirement System. The employer matching contribution is 6.00% of the gross annual salary. Contributions are obtained through monthly payroll deductions.

  2. Optional Retirement Program

    1. ELIGIBILITY--An Optional Retirement Program is available to the following employees of the University: full-time members of the faculty whose duties include teaching or research; administrator responsible for teaching and research faculty; professional librarians, the President, vice presidents, or other professional staff members whose national mobility requirements are similar to those of faculty members and who fills a position that is the subject of nationwide searches in the academic community. Eligibility to participate is also subject to rules adopted by the Higher Education Coordinating Board. Positions listed as classified are ineligible to participate. Eligibility in ORP is in lieu of present or future active membership in the Teacher Retirement System of Texas.

The University Board of Regents utilizes the following definitions, promulgated by the Texas Higher Education Coordinating Board, for determining eligibility for participation in the Optional Retirement Program:

  1. "a member of the faculty whose duties include teaching or research" shall mean: all persons whose specific assignments are made for the purpose of conducting instruction or research as a principal activity (or activities), and who hold titles of professor, associate professor, assistant professor, instructor, lecturer, or equivalent faculty title;

  2. "an administrator responsible for teaching and research faculty" shall mean: deans, directors, associate deans, assistant deans, chairpersons or heads of academic departments if their principal activity is planning, organizing and directing the activities of faculty as defined in subsection (1) of this section;

  3. "professional librarian" shall mean: a librarian with a degree in library science;

  4. "other professional staff person" shall mean: administrative and professional positions customarily recruited by advertising in national publications such as The Chronicle of Higher Education or in newsletters of national professional associations or at meetings of such associations. In addition, each administrative or professional position must be at a salary rate equivalent to the rate for faculty for the institution.

    1. administrative positions shall normally report to the office of the President, vice president or dean. Incumbents in such positions serve as director or other administrative head of a major department or budget entity. Incumbents of such positions must be:

      1. appointed by the governing board or the chief administrative officer of the institution, or his/her delegate; and

      2. responsible for the preparation and administration of the budget, policies, and programs of the department or entity.

    2. professional positions shall include positions in nationally recognized fields, which require advanced degrees and/or specialized professional and artistic training, experience, and achievement. These would include titles such as physicians, athletic coaches, engineers, and lawyers.

    3. 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. The employee will complete Form TRS 29 to withdraw all contributions they made to TRS prior to election ORP.

    4. CONTRIBUTIONS TO ORP--Contributions of participants in ORP shall be 6.65% of gross annual salary. The employer matching contribution is 8.5% of the gross annual salary for grandfathered employees (ORP participants prior to 9-1-95.) New employees hired on or after 9-1-95 receive a 6.0% employer matching contribution.

  5. Federal, Private, and other Non-Education and General Contributions to Retirement Programs. As a result of House Bill 2083 passed by the Texas 66th Legislature, and Senate Bill 745 passed by the Texas 69th Legislature, matching contributions into both ORP and TRS based on salaries and wages paid from these sources will be direct fringe benefit charges against these sources.

A listing of authorized vendors and agents is available in Human Resources.

Source of Authority: V.T.C.S., Title 110B, Chapter 31-36; Texas Higher Education Coordinating Board; Board of Regents, President

Cross Reference: None

Contact for Revision: Director of Human Resources

Forms:Form TRS 28 and the ORP-1, (both forms are available in Human Resources)