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The University of Oklahoma Human Resources Website


Oklahoma Teachers' Retirement System

OTRS is a defined benefit plan designed to provide eligible retirees with lifetime income. The lifetime benefit is based on years of participation in the plan and annual compensation.

  • Vesting period is 5 years.
  • Eligible to retire and receive monthly income for life when participant meets one of the following eligibility requirements:
    • Rule of 80 - Age plus years of service must equal 80 – joined prior to 7/1/1992
    • Rule of 90 - Age plus years of service must equal 90 – joined 7/1/1992 or after
    • Age 62 and vested
    • Any age with 30 years of participation
    • Reduced retirement at 55 and vested

Rights and Privileges after Termination of Employment

Participant terminates employment and is not vested in OTRS:

  • Eligible to request a lump sum distribution plus any interest earned. Distribution is taxable income. Distributions are generally taxed at a rate of 20%. Early withdrawal tax penalties will usually apply if withdrawn prior to age 59 ½.
  • Eligible to receive employee contributions plus interest. Participants do not receive employer contributions.
  • Eligible to rollover funds into another retirement plan – for example an IRA or 401K.
  • OTRS will not distribute funds prior to 120 days after participant’s last day employee was physically at work.

Participant terminates employment and is vested in OTRS:

  • Vested participants should understand when they receive a distribution they are withdrawing their years of service credit.
  • Participants leaving funds in OTRS should have their extended leave balance verified with OTRS.
  • Participants transferring to or considering employment at another institution where they are eligible to participate should strongly consider leaving their funds in OTRS.
  • Participants vested in OTRS, should consider leaving their funds in OTRS and receiving a lifetime benefit upon eligibility.

OTRS Participants Responsibility

  • Contact OTRS to request forms for withdrawal or transfer of account balance.
  • Withdrawal and transfer forms must be signed by an OU representative.
  • Forms can be mailed to the Benefits Office or dropped off. Completed forms are mailed to OTRS unless participant requests otherwise.
  • Notify OTRS if retiring at a later date.
  • Notifying OTRS of a change of address is important. OTRS members receive annual statements.