Questions to Ask Yourself

1. Which option offers the greater economic value for you?

Review the examples later in the Retirement Plan Decision Guide in Section 10 - By the Numbers.

2. What are your other financial obligations?

The decision is how you balance the need for a lifetime benefit (Track A) with the need for available cash (Track B). Track A requires that you make mandatory contributions to OTRS that you cannot change or stop. Some people do not choose OTRS because of the mandatory employee contributions. Under Track B, you do not have to make any contributions. But you can choose to contribute to a Voluntary Retirement Plan— and you can change or stop those contributions at any time.

3. How old are you today?

Generally, for older employees, a defined benefit pension plan such as OTRS builds benefits value faster than a defined
contribution plan such as ORP. However, there are many complex issues to consider, such as the age you plan to retire and your life expectancy at retirement.

4. What is your comfort level with making investment choices? What is your tolerance for investment risk?

OTRS does all of the investing for you. In DCP and ORP, you direct the investment of your accounts. So the amount you have for retirement under DCP and ORP depends on the investment choices you make.

5. What other sources of retirement income will you have?

If you choose Track B and you do not intend to save for retirement on your own, you would end up with a lower benefit. Would ORP—in combination with Social Security and any personal savings—provide enough retirement income?

6. Do you intend to stay at OU only a short period of time?

If you anticipate having many different employers over your career or you do not expect to stay with OU at least five years, you would want to look more closely at Track B because it is more portable—especially to other colleges and universities. However, if you continue to participate in OTRS or another Oklahoma state retirement program, your
participation may be credited or transferred.

7. If you left OU before retiring and were vested in OTRS (for example, at age 50), would you be willing to keep your money in OTRS so that you could collect a retirement benefit later?

If you do not take a distribution of your OTRS contributions, you become a non -participating member. At retirement age (normally age 62), you will be entitled to collect retirement benefits based on the benefit you had accrued under OTRS during your years of service with OU.

8. Did you participate in OTRS with another institution or have you ever been a participant in any other Oklahoma state retirement programs?

The longer you are in OTRS or another Oklahoma state retirement program, the better choice it becomes. OTRS is designed primarily to reward long-service employees. Most people who join OTRS today will not be eligible to retire until age 62. Also, your service credit may transfer to other Oklahoma state retirement programs.

9. Will you have sources of retirement income other than the benefits you earn while you are at OU?

For example, if you are unmarried and would not have the cushion of a second retirement income in your home, you may feel more secure electing Track A because you can more easily predict the retirement benefit it will provide.

10. Are you working for OU on a research grant or other short-term project?

If you do not anticipate staying with OU long enough to become vested in OTRS, you may do better to elect Track B. Please keep in mind that you must have three years of service credit to become vested under ORP.