Vesting Schedule for Retirement Plans
What is vesting?
Vesting means that you gain ownership of employer funds that are contributed to your
retirement account(s). This process can happen gradually over time (a set percentage
for each year of service until you reach 100% after a certain service requirement)
or it can happen all at once (100% vesting after a certain service requirement). Remember:
you are always vested 100% in any funds you contribute to any retirement account.
What retirement plans does UA have?
The University of Alaska offers the Optional Retirement Plan (ORP), UA Pension Plan, Voluntary 403(b) plan, and Voluntary 457(b) plan. The University also partners with the State of Alaska Division of Retirement and Benefits (DRB) to offer the Public Employees Retirement System (PERS) and Teachers Retirement System (TRS). Each of these accounts have their own vesting schedule.
How do I know what retirement plan(s) I am in?
If you are unsure what retirement plan you are in, login in to UAOnline > "Employee Dashboard "> "Benefits" > "Current Summary" > "Select." You can also
reach out to the benefits team at (907) 450-8242, ua-benefits@alaska.edu, or schedule a one-on-one.
What is the employer fund vesting schedule?
Remember: you are always vested in any amount that you contribute to your own retirement.
The vesting schedule below only indicates the university's portion toward your retirement.
Optional Retirement Plan (ORP)
| ORP Tier | Years of Service | Employer Vesting Percent |
|---|---|---|
| ORP Tier I | NA | Automatically vested in all employer contributions |
| ORP Tier II | NA | Automatically vested in all employer contributions |
| ORP Tier III | Less than 3 years of service |
0% vested in employer contributions If a non-vested employee leaves the university and returns to a benefit eligible position with one year of separation, vesting will continue where the employee left off. If a non-vested employee leaves the university and does not return within one year of separation, the three year vesting schedule will start over. |
| ORP Tier III | 3+ years of service | 100% vested in employer contributions |
UA Pension Plan
| Date of original hire into a benefits-eligible position at the university | Employer Vesting Percent |
|---|---|
| June 30, 2006 and earlier | Immediate vesting |
| July 1, 2006 and later |
Three years of service are required to be vested in employer contributions to the UA Pension Plan. If a non-vested employee leaves the university and returns to a benefit eligible position with one year of separation, vesting will continue where the employee left off. If a non-vested employee leaves the university and does not return within one year of separation, the three year vesting schedule will start over. |
Voluntary 403(b) Plan
This plan does not contain employer funds. You are always 100% vested in these funds
because you are the sole contributor.
Voluntary 457(b) Plan (executives only)
This plan does not contain employer funds. You are always 100% vested in these funds
because you are the sole contributor.
Public Employees Retirement System (PERS)
| Years of Service | Employer Vesting Percent |
|---|---|
| Less than 2 years of service | 0% vested in employer contributions |
| 2 years of service | 25% vested in employer contributions |
| 3 years of service | 50% vested in employer contributions |
| 4 years of service | 75% vested in employer contributions |
| 5+ years of service | 100% vested in employer contributions |
Teachers Retirement System (TRS)
| Years of Service | Employer Vesting Percent |
|---|---|
| Less than 2 years of service | 0% vested in employer contributions |
| 2 years of service | 25% vested in employer contributions |
| 3 years of service | 50% vested in employer contributions |
| 4 years of service | 75% vested in employer contributions |
| 5+ years of service | 100% vested in employer contributions |
Emailed via benefits newsletter on 9/23/2025.
Contact Benefits: (907) 450-8242 | ua-benefits@alaska.edu | schedule one-on-one time