Optional Retirement Program (ORP)
Who Pays?
PHSC and You pay 3%
When You Are Eligible
As soon as option is chosen. Election must be within first 90 days of employment.
What You Receive
Participation in the ORP is limited to full-time employees who are otherwise eligible for membership in the FRS System and: 1) Employed in a full-time position classified in the state accounting manual for colleges as Instructional, Executive Management, or Instructional Management if the college determines that recruiting to fill a vacancy in the position is to be conducted in the national or regional market and the duties and responsibilities of the position include either (a) the formulation, interpretation, or implementation of policies; or (b) the performance of functions which frequently involve the support of the mission of the college; or 2) Employed in a position not included in the Senior Management Service Class of the FRS. A newly hired employee who is in an ORP eligible position has ninety (90) days from the date he/she is hired to elect to join the ORP. Otherwise, the employee will remain in the FRS system. See the Optional Retirement Plan Overview Brochure for further information. The employee contribution rate is 3.00%. The college will contribute 5.15% to an authorized Optional Retirement Plan Company and 4.19% to FRS. Total contribution rate is 12.34%. If you are eligible to join the Optional Retirement Plan, you will be notified at employment.
As of July 1, 2011, vesting or vested benefit under the FRS Pension Plan is the right you earn upon completion of 8 or more years of creditable service to receive a monthly retirement benefit whether you continue in your employment or you terminate. As long as your contributions remain on deposit with the FRS, you may later return to service and increase your years of creditable service or you may not elect to return to service and receive a benefit to begin at your normal or early retirement age. Under the FRS, you do not earn a vested right in PHSC’s contributions made on your behalf. You earn a right only to the monthly benefit PHSC’s contributions help to finance.
Vesting or vested benefit under the FRS Investment Plan is the right you earn to the monies contributed by PHSC after one year of service.