Welcome to your ORP retirement plan. Click below to view the features and highlights of your employer’s retirement plan.
The plan highlights are only a brief overview of the plan's features and are not a legally binding document. The information in this section does not modify the terms of the plan and in the event of a conflict, the terms of the plan control.
Take advantage today
To be eligible to participate in ORP, an employee must be in a position that:
(a) satisfies job-related criteria established by the Texas Higher Education Coordinating Board, as interpreted by the system member chief executive officer;
(b) is budgeted for 100 percent time for at least four and one-half months; and
(c) does not require student status as a condition of employment.
Each eligible employee is allowed 90 days from the date of employment or eligibility to elect to participate in ORP. If this election is not made on or before the first day of employment, a new employee is required to become a member of TRS with the right to change to ORP within 90 days and apply for a refund of the employee's TRS contributions. Any eligible employee not exercising the irrevocable one-time option to participate in ORP during the 90-day period is thereafter required to continue membership in TRS.
Starting early has its advantages
All employer and employee contributions will be deposited into your Texas ORP account after every payroll period. Percentages for both the employee and employer contributions are set by the Texas State Legislature. All deferrals are made on a pre-tax basis.
Vesting refers to the length of service required for you to own the money deposited into your account. You are always 100% immediately vested in your own contributions. You are 100% vested in your employer's contributions after completing one year and one day of active participation in ORP.
Accessing your money before retirement
When you retire, or if you terminate employment before retirement, you have the following basic benefit options from which to choose: continuation of tax-deferred accumulation, loan, annuitization, or cash distribution. Distributions may not be made earlier than: the earliest date on which you have a severance from employment from all Texas public institutions of higher learning, your death, total disability or attainment of age 70½.
Continuation of tax-deferred accumulation.
You can choose to leave your account on deposit so that it can continue to accumulate tax-deferred. This way you can maintain investment flexibility while deferring all current tax liability until withdrawal or annuity payments begin, usually at retirement. You will be required under federal law to begin minimum distributions by April 1 of the year following your retirement or age 70½, whichever is later.
After retirement or separation from service, you may take advantage of a tax-free loan from the vested portion of your AIG Retirement Services account. This provision gives you access to cash without permanently reducing the value of your Texas ORP account. It is especially attractive since it's not subject to federal withdrawal restrictions imposed on plan distributions received prior to age 59½ . Your financial advisor can provide information regarding maximum loan amounts and loan repayment terms.
When you select an annuity option, you decide what portion, if not all, of your account you would like to use for annuity payout and how frequently you would like to receive payments. Generally, annuity payout can provide an income that AIG Retirement Services guarantees will last as long as you live. Partial annuity payout can provide an income and continued access to a portion of your retirement savings. With annuity payout, there are many payment options from which to choose. Taxes are payable on annuity payments as they are received.
All guarantees are backed by the claims-paying ability of The Variable Annuity Life Insurance Company.
You can receive all or any portion of your account's current value as a cash distribution. However, if you choose this option, the amount withdrawn is immediately subject to federal income taxes and may be subject to federal early withdrawal tax penalties.
An array of investment choices
The following funds are available in your retirement plan. They provide you with the flexibility you need to create a suitably diversified portfolio that matches your personal retirement time horizon, investment risk tolerance and investment preferences.
Mutual fund performance:
- View the entire list of funds and performance available in your Optional Retirement Plan (ORP). (Please note: It may take a few minutes to load the performance.)
For mutual fund: To view or print a prospectus, access “Prospectuses and Other Important Materials”. The prospectus contains the investment objectives, risks, charges, expenses and other information about the respective investment companies that you should consider carefully before investing. Please read the prospectus carefully before investing or sending money. You can also request a copy by calling 1-800-428-2542.
For annuity: To obtain a Portfolio Director prospectus and underlying fund prospectuses, visit www.valic.com or call 1-800-428-2542 and follow the prompts. The prospectuses contain the investment objectives, risks, charges, expenses and other information about the respective investment company that you should consider carefully before investing. Please read the prospectuses carefully before investing or sending money. Policy Form Series UIT-194, UITG-194 and UITG-194P.