ORP is a defined contribution plan which means the amount of retirement benefits paid to you is based on your accumulated contributions, employer contributions and investment earnings. Contributions are invested in a 403(b) account, similar to a 401(k) plan, and you are responsible for monitoring your own investments.
Important Information About the ORP
An employee of a Texas public institution of higher education who meets the eligibility requirements for TRS membership is required to be a TRS member, unless the employee is eligible to make a one-time, irrevocable election to participate in ORP in lieu of membership in TRS and the employee makes a timely election to participate in ORP.
Eligibility to participate in ORP is determined by the employing higher education institution in accordance with the Texas Higher Education Coordinating Board's Chapter 25 rules. However, TRS determines whether an individual has timely made an election to participate in ORP in lieu of membership in TRS.
If an employee is newly hired or promoted to a position that is eligible for ORP, the employee's eligibility to elect ORP participation, in lieu of membership in TRS, begins on the employee's first day of employment in the ORP-eligible position. This is the employee's Initial ORP Eligibility Date.
The following criteria must be met in order for TRS to accept an employee's election to participate in ORP:
- A person who is eligible to participate in the Optional Retirement Program (ORP) must elect to participate before the 91st day after becoming eligible to participate. However, additional provisions have been passed by the 85th Texas Legislature in the event that the employer fails to inform the employee of his or her eligibility to participate in ORP on the date the person becomes eligible.
- If the employer notifies the employee of his/her eligibility to participate in ORP after the first date of eligibility, but before the 91st day after the first day of eligibility, the employee must make his/her election before the later of the 91st day after the first day of eligibility or the 31st day after he/she was notified of eligibility.
- If the employer fails to notify the person of his/her eligibility to participate in ORP before the 91st day after the first day the person becomes eligible to participate, but notifies the person before the 151st day after the first day the person becomes eligible, the person must make his/her election before the later of the 151st day after the first day of eligibility or the 31st day after he/she was notified of eligibility.
- If the employer fails to notify the person of his/her eligibility to participate in ORP before the 151st day after the first day of eligibility, the person is not eligible to elect to participate in ORP and must remain a participant of the TRS retirement plan.
Both the employee and an authorized reporting employer business official must properly complete and sign all applicable sections on the TRS 28.The properly completed TRS 28 must be returned to TRS without delay.
If you need additional information regarding ORP, please contact the Texas Higher Education Coordinating Board (THECB), or review the THECB's An Overview of TRS and ORP brochure available at the THECB website.
Related Resources
Optional Retirement Program Brochure (PDF)
Information Sheet for ORP Election and/or Refund
TRS28 - Election to Participate in Optional Retirement Program and/or Refund