Comparison of TRS/ORP for Administrators & Faculty
Plan Details | Teacher Retirement System (TRS) | Optional Retirement Program (ORP) |
|---|---|---|
Type of Plan | Defined Benefit Plan (401a) | Defined Contribution Plan 403(b) |
Retirement Benefit | Guaranteed annuity at retirement backed by the State of Texas. | Built from contributions plus earnings |
| As managed by you and your selected carrier. | ||
Contributions | Employee (tax-sheltered) 8.25% | New ORP Participants: Employer (state) 6.6% 1st year, the employer funds are invested in a money market-type fund. ORP Transfers Note: AC will contribute the 7.31% if the new employee transfers from another public institution where he/she was receiving a higher rate. AC does not pay 8.5%. |
| Employer (state) 8.25% | ||
Earnings | 5% per year | Varies depending on investments. |
Vesting | 5 years | 366 days |
Other Benefits | Survivor Benefits Disability Retirement | Very portable due to the vesting period and type of plan. No survivor or disability benefits. |
| www.trs.state.tx.us |
If an employee completes 10 years of service in the ERS insurance program then the employee will have the State Health Insurance paid for them as a retiree when they turn 65 years old or when they reach the Rule of 80 (service years and age must add to 80) under current law.