Choose Your Plan
The Benefits-eligible faculty and staff are eligible for the Teacher Retirement System of Texas (TRS). Certain administrative and faculty positions are eligible to choose the Optional Retirement Program (ORP) in lieu of TRS. In addition to these mandatory plans, all benefits- eligible employees may contribute to a TDA (Tax Deferred Account) which can significantly reduce taxes and help save for retirement.
Optional Retirement Program (ORP)
Employee contributes 6.65% and the State contributes 6.6% of the employee’s wages. Employee contributions are tax deferred. These contributions are deposited with the employee’s selected ORP carrier. Participants vest after one year and one day of ORP participation. ORP is a defined contribution plan with benefits based upon individual investment decisions. The University accepts no fiduciary responsibility for the outcome of one’s ORP. Contribution rates are not guaranteed and subject to legislative change.
Teacher Retirement System (TRS)
Employees contribute 8.0% and the State contributes 8.0% of the employee’s wages. Employee contributions are tax deferred. Interest is credited annually on August 31st to the member’s account. Members vest after 5 years of credible service. TRS is a defined program offering death, survivor, disability, and retirement annuity benefits. Contribution rates are not guaranteed and subject to legislative change.
Texas State University Tax Deferred Account (TDA)
All benefits-eligible employees can participate in a pre-tax (Traditional) or post-tax (Roth) 403(b) plan through payroll deduction. Participation is voluntary and enrollment is anytime of the year. Investments are from employee contributions only. Annual contribution limits are defined by IRS code. The Supplemental 403(b) Tax Deferred Account allows employees to accumulate investment funds through salary reductions, thereby deferring the payment of income tax on contributions until a future time.