Human Resources

Staff Handbook

Retirement Plans

New employees are automatically enrolled in the Teacher Retirement System of Texas (TRS) begins after the 91 st days of work, unless status as a graduate student is a condition of employment. Faculty and certain other administrative employees may make a one-time, irrevocable election within their first 90 days of eligibility to enroll in the Optional Retirement Plan (ORP). The employee and the A&M system contribute toward retirement benefit under both plans on a salary of up to $150,000. The contribution amounts may change from year-to-year based on legislative action.

TRS requires the employee to contribute 6.4 percent of his or her salary to the plan. The State of Texas currently contributes an amount equaling 6 percent of the employees' pay to the plan. TRS eligibility purposes is employment for one-half or more of the standard workload for a definite period of four and one-half months or a full semester of more than four calendar months. Ownership of all funds in the retirement account is vested after participation in TRS for five years. (http://www.trs.state.tx.us/)

ORP requires the employee to contribute 6.65 percent of his or her salary to the plan. The State of Texas currently contributes an amount equaling 6 percent of the employees pay. ORP is available as an alternative to TRS for full-time faculty, librarians and certain professionals and administrators whose careers normally involve interstate mobility.

Employees must select optional retirement plan from one of the various System approved carriers who offer investment options. Investment options include retirement annuities and a wide variety of other investment opportunities.

An employee's retirement benefit is based on the total contributions (employee and state) and the investment earnings on these contributions. Ownership is vested with the employee after participation in ORP for one year and one day.

You should consult your tax advisor before withdrawing any funds, as there may be penalties for withdrawal before age 55.

More information is available from your account manager or the human resource office.

This page last updated 21 December, 2004