The TRS member and employing institution make mandatory monthly contributions by using percentages of salary that are established by the state legislature and subject to change. Federal contribution limits may apply to certain highly compensated employees.

Member contributions are deposited into an individual member account. Employer contributions made on behalf of the member are deposited into a single, separate TRS account from which all retirement and death benefits are paid.

The ORP participant and employing institution make mandatory monthly contributions using percentages of salary that are established by the state legislature and subject to change. Federal contribution limits may apply to certain highly compensated employees.

Contributions are invested in a 403(b) account with the elected ORP company that is authorized by the employing institution.

TRS manages the investments as a large institutional investor. The lifetime monthly retirement income you earn is the same regardless of investment returns.

ORP participants select investments from available fund options and assume the investment risk for all the funds in the account. The value of the account can rise and fall. Tools, resources, and one-on-one guidance are available to help participants understand how to plan and invest for retirement.

Fully vested, after 5 years of participation.

Vesting occurs on the first day of the second year of participation, which is defined as the first day of the 13th month of active participation (i.e., making contributions by payroll deduction). The vesting period is sometimes referred to as “a year and a day.”

Participants who terminate ORP-covered employment with all institutions prior to meeting the vesting requirement typically must forfeit employer contributions made during that period of employment.

Eligibility to retire is based on age, years of service, salary, date of retirement and the applicable membership tier, which is determined by factors including the first date of membership.

Refer to the TRS Benefits Handbook to identify the membership tier that applies to you and the corresponding retirement eligibility requirements.

ORP retirement benefits are based on the accumulated amount of funds in the participant’s ORP account. The ORP participant must meet the eligibility requirements under ERS to be covered under Retiree Insurance.

ORP funds are available for withdrawal only upon termination of all employment with all Texas public institutions of higher education (unless the participant is at least age 70-1/2).

Retirement benefits are based on age, years of service, salary, date of retirement and the applicable membership tier, which is determined by factors including the first date of membership.

Refer to the TRS Benefits Handbook to identify the membership tier that applies to you and the corresponding retirement annuity formulas.

Alternatives to the standard annuity include survivor payment continuation options and if eligible, reduced early-age annuities and Partial Lump Sum Option (PLSO). The TRS plan provides disability and death benefits from the first day of membership that are not available under an ORP-type plan.

ORP retirement benefits are based on the accumulated amount of funds in the participant’s ORP account (no age or service minimums).

Distributions include complete or periodic withdrawals and for some accounts, lifetime annuities.

Eligible distributions can be rolled over to eligible retirement plans such as an IRA. Early withdrawal penalties may apply.

Eligible TRS members may purchase limited amounts of eligible service credit (e.g., military time) and “buy back” previously withdrawn TRS service credit. Refer to the TRS Service Credit Brochure for a detailed explanation of the types of service credit available for purchase, the eligibility requirements for each service credit type, verification of service requirements, and cost calculations.

There are no provisions in the ORP to purchase service credit.

Once retired, always retired: A TRS retiree is no longer eligible to be an active member.

TRS retirees may return to work with a TRS-covered employer without loss of retirement benefits if applicable provisions are followed, including satisfaction of a minimum break in service and working no more than the established maximum amount of time. Provisions vary depending on the date of retirement. Refer to the TRS brochure Employment After Retirement on the TRS website for details.

Once retired, always retired: An ORP retiree who returns to work with any Texas public institution of higher education is not eligible to make ORP contributions.

An ORP retiree is defined as a participant who established retiree status by enrolling in retiree group insurance as an ORP retiree, regardless of whether currently enrolled.

There are no statewide restrictions on the re-employment date or amount of time worked but local institutional restrictions may apply.