Optional Retirement Plan Tier 3
Participants in this defined-contribution retirement plan contribute 8 percent of pre-tax salary; the university also makes a 12 percent contribution. ORP does not have a retiree medical benefit. Employees are always 100 percent vested in their own contributions. After three years, employees vest in the employer's contribution.
Effective July 1, 2015, the ORP Tier 3 is only available to regular and term-funded faculty members, and officers / senior administators.
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, purchase an annuity contract from the fund sponsor or receive payment of their account balance through a lump sum distribution (subject to taxes and penalties for early distribution). No loans or hardship distributions are allowed under this plan. For more information, check out The Handbook (pdf)and the Retirement Plan Document.