DCP & ORP Retirement Plans

The Defined Contribution Plan and Optional Retirements Plans are defined contribution plans established in accordance with Section Code 401(a). This type of plan provides for an individual account for each participant and benefits are based on the account balance.

Plans have a three year cliff vesting period to own the funds in participant’s account. If employee does not complete the vesting period the funds are returned to OU.

Employees must participate for three calendar years to own the funds.
Faculty must participate for three academic years to own the funds.

Rights and Privileges after Termination of Employment

Upon termination of employment and completing the vesting period participants may:

Request a rollover of a portion or the total balance to an IRA, another employer plan, or a qualified retirement plan.
Request a full or partial withdrawal.
Leave the funds in this account.
Withdrawals are subject to taxes as these funds were contributed on a pre-tax basis. Generally withdrawals are subject a 20% mandatory Federal Tax rate.
The exceptions to the 20% tax are rollovers and electing a lifetime annuity
When a participant reaches age 70 ½ and is no longer employed, they are required by law to begin receiving a minimum distribution of their balance.

Participants Responsibility

Participant must contact the investment company to request forms for a withdrawal or rollover.
Participants must be aware of any restrictions regarding withdrawal of a guaranteed or fixed fund.
Forms must be signed by an authorized representative of OU to verify termination and vesting.
Funds can be received in a shorter period of time if an electronic deposit is elected on the withdrawal form.
Notifying investment companies of a change of address is important. Participants receive quarterly statements.