Optional Retirement Plan Tier 1
Employees hired before July 1, 2005 (Tier 1) contribute 8.65 percent of pre-tax salary to the defined-contribution retirement plan. The university also makes a contribution, which is equal to the three-year rolling average of the rates in effect for participating employers in the Teachers' Retirement System. ORP does not have a retiree medical benefit.
Vesting is immediate. Employees select an investment company for employee and employer contributions (can be the same or different companies):
When employees have terminated all employment for 45 days, they may transfer their account to another qualified plan, roll their account into an IRA or receive payment of their account balance through an annuity contract purchased from the fund sponsor. No lump sum or hardship distributions are allowed under this plan. For more information, check out The Handbook (pdf).