Procedure IV.4000.M.a, Retirement Plan for Full-Time Employees

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Procedure

Teacher Retirement System of Texas (TRS) is a defined benefit plan. A payroll deduction is made from the employee's salary, while the College and the state also contribute a percentage. The percentage contribution is subject to change by the state. Members are vested in TRS after five years of active membership; however, annuity amounts increase with years of service and salary. TRS offers several monthly payment options upon retirement.

Optional Retirement Program (ORP) is a defined contribution retirement plan available to faculty, administrators, and other professional positions (as defined by the ORP plan document) in lieu of TRS. A carrier is selected from one of the Board authorized companies to receive a set contribution from the employee and a contribution from the College and the state. Participants in the plan are vested for all money (employee and employer/state contributions)) in their ORP account after contributing for twelve consecutive months, although the account is not accessible until retirement or termination.

For more information on the TRS program, employees should read An Overview of TRS. For information on ORP, employees should read ORP for Employees Eligible to Elect ORP, a Texas Higher Education Coordinating Board Publication, available through Human Resources, Benefits.