Teacher Retirement System / Optional Retirement Program
All regular employees are eligible for membership in the Teacher Retirement System of Texas (TRS) after 90 days of employment. Full-time faculty members and certain professional administrative staff members (including Librarians) may be eligible to elect to participate in the Optional Retirement Program (ORP) in lieu of TRS. Eligibility laws and rules and a list of specific job titles eligible for ORP are available in the college Human Resources Office.
Eligible employees selecting the Optional Retirement Program must do so within ninety (90) calendar days from their date of eligibility or automatically and permanently become a member of the Teacher Retirement System.
TRS is a defined benefit plan. The employee’s tax-deferred contribution is 6.4% and Texas State Technical College contributes 6% to the system. Normal retirement age is 65 with 5 years of service or any combination of age and service that equals at least 80 (Rule of 80). A member may receive a reduced annuity at age 55 with at least 5 years of service or at any age with 30 or more years of service. The standard annuity benefit formula is 2.3% of the average of the best three annual salaries multiplied by the number of years of service. Higher salaries and more years of service will mean a greater retirement benefit. Additional benefits are detailed in the TRS Benefits Handbook.
ORP is a defined contribution plan. The tax-deferred employee contribution is 6.65% and Texas State Technical College contributes 6% to the employee’s account. Eligible employees enrolled in the ORP in the State of Texas prior to August 31, 1995, with or without a break in service, may be eligible for an additional 2.5% employer contribution. Texas ORP members vest with one year and one day of participation. Additional rules and regulations are outlined by the Texas Higher Education Rules – Chapter 25. Contact the college Human Resources Office for a list of approved providers.
Employees may participate in the 403(b) Tax Sheltered Annuity Program or a 457 Deferred Compensation Plan through payroll deduction. The voluntary tax-deferred contributions may be invested in a variety of investment products with an approved company. Contact the college Human Resources Office for a list of approved providers.
Texas State Technical College participates in the Federal Social Security and Old Age Survivor and Disability Insurance (OASDI). The employee’s contribution is specified by the federal government, and an equal amount is matched by Texas State Technical College.
The employee pays 6.20% OASDI to a maximum salary of $90,000 for the calendar year 2005. In addition, the employee must pay 1.45% Medicare tax on all salary.
Retiree health insurance benefits are available through Employees Retirement System (ERS) to employees at 65 years of age with 10 years of service or when the Rule of 80 is met.
Medicare is a federal program of health insurance. Part A, the basic hospital insurance plan, pays for most hospital, home health, hospice, and skilled nursing facility services. Part B is an optional supplementary medical insurance plan that pays a percentage of your doctors’ bills, medical equipment, and certain outpatient services.