| How much am I required to contribute? |
7% of your Total Compensation |
Employees do not contribute to this plan. |
Employees do not contribute to this plan. |
How much does OU contribute? |
7.55% of your Total Compensation |
8% of your Base Pay over $9,000 |
9% of your Base Pay |
| Who directs the investments? |
OTRS |
You |
You |
| How are retirement benefits determined? |
Benefits are based on this formula:
Years of Service
x 2%
x Average Total Compensation for your five highest-paid years
__________________
= Your Retirement Benefit |
Benefits are based on the value of your account, including contributions and accumulated investment returns. |
Benefits are based on the value of your account, including contributions and accumulated investment returns. |
| How does working for OU part-time affect my benefits? |
You earn a year of service if you work 75% of full-time or more, half a year if you are between 50% and 75%, and none if you work less than 50%. |
Contributions are calculated using your Base Pay, regardless of whether you work full-time or part-time as long as you work at least half-time. |
Contributions are calculated using your Base Pay, regardless of whether you work full-time or part-time as long as you work at least half-time. |
| When am I vested in my account? |
After five years, you are entitled to a retirement benefit. |
After three years, you are entitled to your account when you retire or leave OU. |
After three years, you are entitled to your account when you retire or leave OU. |
| After I retire, how long do I receive benefits? |
You receive an annuity that pays benefits for your lifetime or the lifetimes of you and your spouse, depending on your election. |
You may elect a lump sum distribution, periodic payments, or various annuities that pay benefits for a certain number of years or for your lifetime. |
You may elect a lump sum distribution, periodic payments, or various annuities that pay benefits for a certain number of years or for your lifetime. |
| What if I leave OU before retirement? |
If you are vested, you can collect your accrued benefit when you reach retirement age. If you are not vested, you would receive a distribution of all of your contributions and 50% of the interest but none of OU's contributions. If you are vested and you receive a distribution, you forfeit any accrued benefits under OTRS. |
If you are vested, you may receive a distribution of 100% of your account value. If you are not vested, you forfeit your account. |
If you are vested, you may receive a distribution of 100% of your account value. If you are not vested, you forfeit your account. |
| Are distributions taxable? |
Distributions are taxable when you receive them, and a tax penalty usually applies if you are under age 59.5. However, if another retirement plan or IRA accepts your distribution as a rollover, you can delay the taxation and avoid the penalty. |
Distributions are taxable when you receive them, and a tax penalty usually applies if you are under age 59.5. However, if another retirement plan or IRA accepts your distribution as a rollover, you can delay the taxation and avoid the penalty. If you elect an annuity, you are not eligible to make a rollover. |
Distributions are taxable when you receive them, and a tax penalty usually applies if you are under age 59.5. However, if another retirement plan or IRA accepts your distribution as a rollover, you can delay the taxation and avoid the penalty. If you elect an annuity, you are not eligible to make a rollover. |
| If I leave OU before retirement, am I required to take a distribution? |
No. If you are vested, you can become a non-participating member as long as you do not take a distribution of your contributions. Although you are no longer earning additional benefits, when you reach retirement age, you can begin receiving the benefit you accrued. |
No. If you are vested, you can leave your balances invested in the plan and begin taking distributions when you reach retirement age. |
No. If you are vested, you can leave your balances invested in the plan and begin taking distributions when you reach retirement age. |
