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By the Numbers

Now that you have an understanding of some of the considerations for choosing one track or the other, you will want to know how the numbers compare. To get an idea of how much your retirement benefits could be under Track A and Track B, we’ve prepared some examples. Every person’s situation is different, so these examples can only give you an overview. A modeling tool is available if you would like to plug in your own assumptions and get calculations based on the scenarios you choose.

Review the terms and assumptions used in these examples including:

  • Assumptions made about income level and age at date of hire
  • Calculating annual equivalent benefits between Track A and Track B
  • Understanding definitions of compensation.
Track A has mandatory employee contributions under OTRS and Track B doesn’t require any employee contributions. To facilitate a side-by-side comparison, you should assume you are saving for retirement on your own (at the same rate as you would under Track A) and participating in Track B.
Retiring Under Track A Retiring Under Track B
The table below shows your annual equivalent benefit if you choose Track A and stay at OU until retirement at age 62.

The table below shows your annual equivalent benefit if you choose Track B and stay at OU until retirement at age 62.

Remember, Track B consists of the ORP for salaried employees or the DCP for hourly employees. The university contributions are the same for either plan in Track B.

Interest Rate

DCP Equivalent Benefit

OTRS Accrued Benefit

Total of DCP with OTRS

6%

$ 23,133.16

$ 50,795.30

$ 73,928.47

7%

$ 29,159.53

$ 50,795.30

$ 79,954.84

8%

$ 36,710.31

$ 50,795.30

$ 87,505.62

Your Contributions to OTRS

If you choose Track A, you will make mandatory employee contributions to OTRS. To give you an idea of how much your contributions would be, this table shows your annual contributions at various pay levels.

Base Pay
Your Annual Contribution to OTRS

$ 45,000.00

$ 3,638

$ 50,000.00

$ 4,047

$ 55,000.00

$ 4,425

$ 60,000.00

$ 4,759

$ 65,000.00

$ 5,175

Interest Rate

Track B With No Voluntary Contributions
(Equivalent Benefit)

Track B With Voluntary Contributions
(Equivalent Benefit)

6%

$ 30,761.69

$ 58,312.57

7%

$ 38,872.95

$ 73,683.33

8%

$ 49,058.40

$ 92,983.49

In the table above, the middle column shows your annual benefits if you do not contribute to a Voluntary Retirement Plan. The last column shows your annual benefits if you contribute to either of the Voluntary Retirement Plans (making the same rate of contribution you would under Track A).
If You Choose Track A and Leave OU Before Retirement If You Choose Track B and Leave OU Before Retirement

If you choose Track A and then leave OU before you retire, you may take the full value of your balance under DCP plus all of your contributions and half of the interest on your contributions under OTRS (or more after 15 years of service). This table gives you an idea of how much you would be able to take. These examples were developed using the assumptions described on the previous page and reflect an 8% interest rate.

You can also leave your money in OTRS and begin receiving your accrued benefits at retirement.

If you choose Track B and then leave OU before you retire, you may take the full value of your Track B balance plus your balance under either of the Voluntary Retirement Plans. This table gives you an idea of how much you would be able to take. These examples were developed using the assumptions described on the previous page and reflect an 8% interest rate.

If you do not contribute to one of the Voluntary Retirement Plans, you would be entitled to a distribution of your accumulated Track B balance.
Age Years of Service Your DCP Balance Eligible for Distribution

Your Accumulated OTRS Contributions and Half the Interest

Track A Total Amount Eligible for Distribution

35

1

Not vested

$3,686.60

$3,686.60

36

2

Not vested

$7,616.95

$7,616.95

37

3

Not vested

$11,809.23

$11,809.23

38

4

$14,088.03

$16,283.01

$30,371.04

39

5

$18,596.45

$21,059.43

$39,655.88

40

10

$23,568.77

$26,161.27

$49,730.04

45

15

$56,897.44

$57,482.24

$114,379.68

55

20

$190,435.38

$177,265.74

$367,701.12

62

27

$379,692.93

$423,355.34

$803,048.27
Age Years of Service Track B Balance Voluntary Plan Balance (Contributed to at same rate as OTRS) Track B + Voluntary Plan Total

35

1

Not vested

$3,575.53

$3,575.53

36

2

Not vested

$7,910.90

$7,910.90

37

3

Not vested

$12,494.17

$12,494.17

38

4

$19,642.18

$17,544.17

$37,186.35

39

5

$25,859.37

$23,100.75

$48,960.12

40

10

$32,690.08

$29,206.99

$61,897.07

45

15

$78,021.40

$69,753.50

$147,774.90

55

20

$256,684.64

$229,711.14

$486,395.78

62

27

$507,408.56

$454,315.04

$961,723.60