Retirement Plans
All eligible employees and faculty are required to participate in a retirement program after a 90-day waiting period. The Teacher Retirement System of Texas (TRS) is available to employees. Faculty and certain administrators may elect to participate in either TRS or the Optional Retirement Program (ORP).
To be eligible to participate in TRS, employees must be regular full-time or part-time (i.e. work a minimum of 20 hours per week for 4 ½ months, or if faculty, work a minimum of 4 ½ months or one semester of more than 4 months). Full-time status is required in order to participate in ORP. The following is a summary of the features of each plan:
Teacher Retirement System:
This is a defined benefit type plan. Retirement annuities are determined by a formula that considers the employees age, the average of the highest three annual salaries, and total years of creditable service. In this plan, the State assumes the investment risks and manages the retirement fund. Employees are vested (i.e. have rights to retirement benefits) after 5 years of service. TRS provides death and disability benefits to participants as well. Employees contribute 6.4% and the State contributes 6.0% into the retirement fund each month. Employee contributions are tax-sheltered and deposits earn 5%. If employees leave employment, employees can take their contributions and interest earnings, or, if vested, employees can leave their contributions until retirement age. Normal retirement age is 65 with 5 years of service, or a combination of years of service and age which total 80.Early retirement may be taken at age 55 with 5 years of service (with reduced benefits). TRS benefit information can be found on the TRS Web site. Contribution rates are not guaranteed and subject to legislative change.
Optional Retirement Program:
This is a defined contribution type of plan. Retirement annuities are determined by the actual dollar amount in the employee's retirement account. ORP is an individualized plan in which participants select investment companies from an approved list and then choose fixed/variable investment products. Employees are vested (i.e. have rights to retirement benefits) after one year and one day of service. ORP does not provide death or disability benefits. Participants contribute 6.65% and the State contributes 6.0% into these retirement accounts. Employee contributions are tax-sheltered. ORP is a portable plan, that employees can take with them should they leave
employment with ASU.
Retirment Links
Social Security
Health Select for Persons Over Age 65
Eligibility for ERS Health Insurance at Retirment
Medicare Handbook