Retirement Options for Faculty and Staff

Retirement Options for
Faculty and Staff
Judy Kurtz
Benefit Services Coordinator
Retirement Services
[email protected]
979.862.4028
[email protected]
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06/25/2015
Overview
Mandated Retirement Programs
Retirement Program Eligibility
ORP Notification Process
What Drives Benefit Eligibility?
Retirement Process
Voluntary Retirement Programs
Resources
HR Liaison Network – 06/25/2015
Human Resources | Page 2
Mandated Retirement Programs
Teacher Retirement System (TRS)
• Automatically enrolled on date of hire/eligibility
• Employee contribution rate increases from 6.7% to
7.2% September 1, 2015
• Defined benefit plan
Optional Retirement Program (ORP)
• Requires enrollment forms to elect ORP in lieu of TRS
• Employee contribution rate remains at 6.65%
• Defined contribution plan
HR Liaison Network – 06/25/2015
Human Resources | Page 3
Retirement Program Eligibility
Teacher Retirement System (TRS)
• 50% work effort; 4.5 months during the fiscal year (FY)
Optional Retirement Program (ORP)
• 100% work effort for at least 4.5 months during the FY
• ORP-eligible title code - 7 categories of positions that
satisfy specific job-related criteria
• ORP-eligible title codes are administered by HR
Classification and Compensation and are identified in
the list of non-classified titles online
<http://employees.tamu.edu/compensation/titles-salaries/non-classified/>
HR Liaison Network – 06/25/2015
Human Resources | Page 4
ORP Notification Process
Weekly ORP eligibility report generated
after EPA completes
Retirement Services verifies ORP eligibility
and sends ORP packet to eligible
employees
Retirement Services available to work
with Departments throughout
employment process
HR Liaison Network – 06/25/2015
Human Resources | Page 5
What Drives Benefit Eligibility?
Employee Payroll Action (EPA)
• Effective dates – should reflect the actual months in
the current fiscal year
• Annual term months – should reflect a 4.5 month, or
greater annual term (i.e, 9 or 12)
• Percent effort – must be at least 50% to be eligible for
insurance benefits and TRS; must be at least 4.5
months at 100% to be eligible for ORP in lieu of TRS
HR Liaison Network – 06/25/2015
Human Resources | Page 6
Retirement Process
Employee Actions
• Contact Retirement Services preferably six months
prior to retirement date
• Contact TRS for retirement packet (if applicable)
HR Liaison Network – 06/25/2015
Human Resources | Page 7
Retirement Process
Departmental Actions
• Encourage employees to contact Retirement Services
• Process EPA timely
• Attach Acknowledgement of Employee Retirement to
EPA
• Submit lump-sum vacation payment request (if
applicable)
• Return completed Sick Leave Pool Donation Form to
HR
HR Liaison Network – 06/25/2015
Human Resources | Page 8
Retirement Process
Retirement Services Actions
Confirm A&M System retirement eligibility
Provide retirement counseling
Assist with required A&M System retiree paperwork
Assist with TRS retirement forms
Ensure ORP and/or TDA Notification of Change in
Employment Status is completed (if applicable)
• Send Acknowledgement of Employee Retirement
and Sick Leave Pool Donation Form to departmental
HR Liaison
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HR Liaison Network – 06/25/2015
Human Resources | Page 9
Voluntary Retirement Programs
Tax-Deferred Account (TDA) 403(b)
• All employees who report personal income for federal
tax purposes – anyone on payroll
• Employee money only ($25 minimum monthly
contribution)
Deferred Compensation Plan (DCP) 457(b)
• All employees who report personal income for federal
tax purposes – anyone on payroll
• Employee money only ($20 minimum monthly
contribution)
HR Liaison Network – 06/25/2015
Human Resources | Page 10
Final Thoughts
1.
Visit Retirement Services online at
http://employees.tamu.edu/benefits/retirement/
2.
3.
4.
Contact Retirement Services with
retirement questions
Contact Payroll Services with EPA
processing questions
Attend the Financial Wellness Fair on
October 6, 2015
HR Liaison Network – 06/25/2015
Human Resources | Page 11
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