番茄社区

Human Resources

Retirement Plans

Retirement Plans

All benefited employees of 番茄社区 University will participate in a mandatory retirement plan. Your employment status will determine your eligibility for either the Texas Retirement System (TRS) or the Optional Retirement Plan (ORP). Both employees and employers contribute to these retirement systems, ensuring the security of retirement benefits.

Contribution rates may vary depending on the chosen retirement plan and are established by the Texas Legislature, subject to change. Additionally, you have the option to enroll in voluntary retirement savings plans such as a 403(b) or 457.

Teacher Retirement System

The Teacher Retirement System (TRS) is a defined benefit plan, meaning your retirement benefit is determined by a formula set by Texas law, not by your contributions. Once you retire under the plan’s rules, you receive a monthly benefit for life.

  • Lifetime Annuity: Provides a lifetime annuity when full retirement criteria are met.
  • Contributions: Both employees and the employer contribute 8.25% of the employee’s annual salary. Employee contributions are tax-deferred.
  • Standard Annuity Calculation:
    • Average Salary = Average of three or five years of salary (determined by retirement tier)
    • Total Percent = Total years of service credit x 2.3%
    • Annual Annuity = Total Percent x Average Salary
    • Monthly Annuity = Annual Annuity / 12
  • Vesting: Occurs after five years.

Optional Retirement 番茄社区 (ORP)

In lieu of the Teacher Retirement System, the Optional Retirement Plan (ORP) is available to benefit-eligible employees in specific roles, such as faculty, certain administrative positions, executives, librarians, and athletic coaches. The ORP is a defined contribution plan, meaning your retirement income depends on your contributions and investment performance.

  • Contributions: Employees contribute 6.65% of their annual salary, and the employer adds 6.6%. Employee contributions are tax-deferred.
  • Portability: The plan is portable, so you can take it with you if you change jobs.
  • Eligibility: HR Benefits will notify you if your position qualifies for ORP eligibility. You have 90 calendar days from your hire date to choose the ORP, and this decision cannot be changed once made.
  • Vendors: If you choose the ORP, you must select one of the approved ORP vendors.
  • Vesting: Vesting occurs after one year and one day.

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