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The University of Oklahoma Human Resources Website

The Optional Retirement Plan (ORP)

Track B consists of only one part:

Optional Retirement Plan (ORP)

OU contributes 9% of your Base Pay. You do not contribute. You direct the investment of your account. The amount you receive at retirement depends entirely on the amount of contributions made to the plan on your behalf and the investment returns on the account.

Because ORP does not accept employee contributions, you should consider adding to your retirement by making contributions to either of the Voluntary Retirement Plans.

If you elect Track B, the plan becomes effective on the first day of the month following completion of the required forms.

Salary paid employees, hired July 1, 2004 or later, who would have been formerly mandated to participate in the Oklahoma Teachers’ Retirement System, now have an option to decide in which retirement plan they want to participate. Employees, under age 45, must decide within the first 90 days of employment if they wish to participate in the Optional Retirement Plan (ORP) or join the Oklahoma Teachers’ Retirement System (OTRS) and receive a Defined Contribution Benefit (DCP). This is a one time irrevocable election. If an employee does not make an election within the first 90 days of employment, the employee will be defaulted into the Oklahoma Teachers’ Retirement System and will receive Defined Contributions.

The Optional Retirement Plan (ORP), a tax-qualified plan under Section 401(a) of the Internal Revenue Code, consists of a diverse range of investment options provided through four retirement investment companies. The four companies are: ING, Fidelity Investments, TIAA-CREF, and The Vanguard Group. The companies invest the contribution made by the university to establish investment accounts that help provide income during retirement years.

Participation- Is limited to employees formerly mandated to join OTRS, hired 7/01/2004 or later and employees hired after 1/01/2001, who are under the age of 45 and elected not to join OTRS. This group generally includes faculty and salaried staff. There is no minimum age restriction for participants.

Contributions - 9% of salary. Participation begins the first of the month following enrollment.

Vesting- Three years from the date of enrollment in the ORP

Investment Options - There is a diverse range of investment options provided through the four retirement investment firms (ING, Fidelity, TIAA-CREF and Vanguard). The employee chooses the companies and options in which to invest the contributions. Monthly employees age 45 or older will have contributions automatically placed in a TIAA-CREF Money Market Account until they designate a different company or fund. Monthly employees under the age of 45 must turn in all specific paperwork for their contributions to begin.

Termination Prior To Retirement - An employee who terminates and has met the three year vesting period may withdraw funds from the investment accounts. All withdrawals are subject to taxation. Some penalties and restrictions may apply to certain accounts. An employee has the option to leave accumulated funds in the investment accounts until age 70 1/2. Any employee, whose employment terminates prior to completing three years of participation, will forfeit all contributions. Employees who return to work at OU in any capacity will not be eligible to withdraw funds while drawing a paycheck from the University.

Retirement Benefits - Retirement income can be started any time after retirement occurs. It is generally required that annuity income be started no later than age 70 1/2. Each retirement investment firm has a number of retirement income options to choose from. Upon retirement, the payout option best suited to the needs of the retiree should be selected.