Retirement Plans
All benefited employees of Â鶹AV 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.
Optional Retirement Program (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.
Supplemental Retirement Accounts
In addition to participating in TRS and ORP, employees have the option to contribute additional funds to a 403(b) tax deferred annuity or the Texa$aver 457 Deferred Compensation Plan.
Tax-Deferred Annuity (TDA)
A 403(b) plan, also known as a Tax-Deferred Annuity (TDA) plan, is a voluntary savings plan designed for employees of public schools and certain non-profit organizations. The 403(b) retirement program allows you to save additional income for retirement through pre-tax contributions. Contributions are made through payroll deductions and may be invested in funds and annuities with any one of the authorized vendors. There is no employer contribution with the 403(b) Tax-Deferred Annuity (TDA) Plan.
Texa$aver 457 Deferred Compensation Plan
The Texa$aver Program is a voluntary retirement savings plan offered to employees of the State of Texas. It allows participants to save additional funds for retirement pre-tax and post-tax (Roth). There is no employer contribution with the Texa$aver 457 Deferred Compensation Plan.
Dual Participation
Employees can participate in both the 403(b) and the 457 plans.