Retirement Program Options

Overview

• Defined Benefit Plan as described in Internal Revenue Code (IRC) Section 401(a)
• Employees contribute 8.25% of their eligible earnings on a pre-tax basis each pay period and UT contributes an additional 8.25%
• TRS monitors/controls investments
• Employees vest after five years of participation with a right to a lifetime annuity
• Retirement benefits are based on years of service, salary, and actuarial formula
• Provides a disability benefit

Eligibility

Employees who meet the following eligibility criteria are eligible for and required to participate in TRS:

• Employees expected to work at least 20 hours or more per week for 4.5 months (135 calendar days).
• Employees who are currently contributing to TRS at another TRS eligible employer, regardless of the number of hours worked at UT Austin.
• Employees who have already received TRS service credit for the current plan year, regardless of the number of hours worked at UT Austin.

Employees whose jobs require student status as a condition of employment are exempt from these requirements and are not eligible to participate. 

Enrollment

Eligible employees will be automatically enrolled in TRS as of their first day of employment or eligibility. 

Additional Information

For more information about TRS, please review the Welcome to Membership video available on TRS’ Member Education Videos webpage, and the TRS Benefits Handbook.

Overview

• Available to employees in certain jobs in lieu of TRS
• 403(b) Defined Contribution Plan
• Employees contribute 6.65% of their eligible earnings on a pre-tax basis each pay period and UT contributes an additional 8.5% match
• Employees manage their own investments
• Employees vest after one year and one day of participation with a right to employer matching contributions
• Account growth is based on performance of selected investment portfolio
• Decision to participate is a once in a lifetime, irrevocable decision

Eligibility

Eligibility is strictly determined by the job an employee performs and is not based on years of service or salary level. To be eligible to participate in ORP, an employee must: (1) initially be appointed on a full-time basis (40SWH) for four and one-half months or more; and (2) be appointed to a position otherwise eligible to participate in ORP.

The following positions are generally ORP-eligible (See the UT System ORP Plan Document for more detailed definitions):

• Faculty members whose duties include teaching and/or research as a principal activity
• Faculty administrators responsible for teaching and research faculty
• Professional librarians
• Chief and senior administrative officials
• Specialized professional positions (such as physicians, engineers, and attorneys)
• Athletic coaches and directors
• Counselors treated in the same manner as faculty

Enrollment

Employees in jobs eligible to elect ORP in lieu of TRS will receive an eligibility notice via email and Docusign within three weeks of their initial eligibility date. Employees who wish to enroll in the ORP will then have until the 90^th day following their date of hire or eligibility to complete all of the following enrollment steps:   

1. Read through the Docusign document carefully.
2. Complete the ORP Acknowledgement Form in Docusign. This acknowledges that the employee has been notified of their eligibility to participate in ORP. It is not an enrollment form.
3. Review the Overview of TRS and ORP document.
4. Choose one or more financial providers from the list of approved providers. 
5. Open an account with the provider(s) selected. For assistance, please contact the local representative(s) for the provider(s).   
6. Log into UT Retirement Manager, choose ORP, and follow the prompts to set up the contributions from eligible pay. For assistance, review the Retirement Manager Reference Video.
7. Submit a signed and notarized TRS Form 28 (Notice to Elect to Participate in Optional Retirement Program).  The TRS Form 28 is included in the DocuSign document and must be printed, completed, signed, notarized, and returned to UT’s Human Resources – Benefits and Leave Management office. For your convenience, notaries may be found in multiple departments across campus. 

Employees who fail to complete any one of the above steps prior to their 90-day enrollment deadlines will remain enrolled in TRS for the duration of their careers in Texas public higher education. 

Additional Information

For more information about ORP, please review the Overview of TRS and ORP and the UT System ORP Plan Document.

Retirement service credit is used to determine eligibility for TRS retirement and UT retiree insurance.  To earn a year of retirement service credit, TRS and ORP participants must have a minimum of 90 paid days during each September 1 – August 31 plan year, except for the final year before retirement.  Employees paid for the full fall semester who retire December 31 will earn a year of retirement service credit.  Review the TRS Service Credit Brochure for more information. 

It is possible for an eligible employee to contribute to TRS or ORP without earning a year of retirement service credit.  This occurs when:

• Employees separate prior to earning 90 paid days for the plan year and don’t retire at the end of the fall semester.
• Unpaid time-off or leave results in fewer than 90 paid days for the plan year.
• Faculty are only assigned for the fall semester and either don’t return for the subsequent fall semester or don’t retire at the end of the fall semester.  Review table below for details.

Overview

• 403(b) plan offered by public schools and certain non-profits that is similar to a 401(k)
• Employees may contribute as little as $15 per month, or as much as 100% of their eligible compensation up to $23,000 (for 2024). There are also two catch up provisions:
  • Age 50 Catch Up – Those 50 and older may contribute and additional $7,500 (for 2023).
  • 15 Years of Service Catch Up – Those with 15 years of UT System service whose previous deferrals into the UTSaver TSA have averaged less than $5,000 per year may defer up to an additional $3,000 per year. The additional deferral may not exceed a lifetime maximum of $15,000.
• All contributions are employee funded and conveniently taken through payroll deduction.
• Contributions may be made on a pre-tax “traditional” or post-tax “Roth” basis.
• Distributions permitted upon:
  • Reaching age 59.5
  • Birth or Adoption
  • Death
  • Disability
  • Financial Hardship (except for those enrolled in the ORP)
  • Separation from employment
• Distributions from “traditional” accounts made prior to age 59.5 will be subject to ordinary taxation and a possible 10% penalty
• Non-qualified distributions from “Roth” accounts made prior to age 59.5 will be subject to ordinary taxation and a possible 10% penalty

Eligibility

All Employees receiving pay from UT Austin are eligible to participate in the UTSaver TSA. This includes student employees, temporary employees, part-time employees, and return to work retirees.

Enrollment

To enroll in the UTSaver TSA, employees should:

• Review the Voluntary Retirement Programs at a Glance brochure
• Choose one or more financial providers from the list of approved providers. 
• Open an account with the provider(s) selected. For assistance, please contact the local representative(s) for the provider(s).
• Log into UT Retirement Manager, choose TSA, and follow the prompts to set up the contributions from eligible pay. For assistance, review the Retirement Manager Reference Video.
• Log into your retirement provider’s website and choose which funds you would like your money invested in.

Additional Information

For additional information about the UTSaver TSA, please review the Voluntary Programs as a Glance brochure. You may also contact the local representative(s) from one of the university’s five authorized retirement providers. 

Overview

• 457(b) plan offered by state or local governments and certain non-profits
• Employees may contribute as little as $15 per month, or as much as 100% of their eligible compensation up to $23,000 (for 2024). There are also two catch up provisions:
  • Age 50 Catch Up – Those 50 and older may contribute and additional $7,500 (for 2023).
  • Special Catch Up – If you are within three years of tax year in which you reach normal retirement age, then you may be able to contribute an additional amount each year. Eligibility is dependent upon your unused elective deferrals for the prior years you were eligible to participate in the DCP and must be calculated by your benefits specialist. This catch up may not be used during the tax year in which you retire, may not be used simultaneously with the Age 50 Catch Up, or if you are age 70.5 or older.
• All contributions are employee funded and conveniently taken through payroll deduction.
• Contributions may be made on a pre-tax “traditional” or post-tax “Roth” basis.
• Distributions permitted upon:
  • Reaching age 59.5
  • Birth or Adoption
  • Death
  • Disability
  • Financial Hardship
  • Separation from employment
• Distributions from “traditional” accounts will be subject to ordinary taxation and a possible 10% penalty
• Non-qualified distributions from “Roth” accounts will be subject to ordinary taxation and a possible 10% penalty

Eligibility

All Employees receiving pay from UT Austin are eligible to participate in the UTSaver DCP. This includes student employees, temporary employees, part-time employees, and return to work retirees.

Enrollment

To enroll in the UTSaver DCP, employees should:

• Review the Voluntary Retirement Programs at a Glance brochure
• Choose one or more financial providers from the list of approved providers. 
• Open an account with the provider(s) selected. For assistance, please contact the local representative(s) for the provider(s).
• Log into UT Retirement Manager, choose DCP, and follow the prompts to set up the contributions from eligible pay. For assistance, review the Retirement Manager Reference Video.
• Log into your retirement provider’s website and choose which funds you would like your money invested in.

A traditional, pre-tax TSA or DCP allows a participant to reduce their taxable income by contributing to a tax-sheltered retirement savings account. No taxes are paid until the participant receives a distribution from the account.

A post-tax Roth account allows a participant to pay taxes up front so that they usually do not have to at the time they receive a qualified distribution. For the distribution to be qualified, the participant must be over age 59.5, and the Roth account must have been open for at least five years.  Nonqualified distributions will be subject to ordinary taxation, and may also be subject to a 10% penalty tax. 

For additional information, review the Roth vs Traditional Retirement Plan presentation. 

Employees may start, stop, or change their contributions to the TSA and DCP by logging into UT Retirement Manager. For assistance, review the Retirement Manager Reference Video.

Employees may transfer their existing TSA and DCP accounts from one approved provider to another by contacting the local representative(s) for the receiving provider.

Upon loss of leave eligibility, retirement, or separation employees may defer all, or a portion of their unused annual-leave payment to their TSA and DCP accounts, not to exceed their maximum contribution limits. To do so, employees must submit the Annual Leave Deferral Agreement (online) form no later than their last day of employment.

Employees who participate in the UTSaver TSA and DCP plans may be able to access the funds in their accounts while employed for the following reasons:

• Reaching age 59.5
• Birth or Adoption
• Financial Hardship

For more information, review the UTSaver Loan and In-Service Distribution Options brochure.

No matter how far away the finish may seem, it's never too early to start saving! Even small moves can have a big impact on your future.
 

Budgeting

	How to Lower Your Current Taxes
	Home Budget & Savings Calculator
	Wake Up and Smell the Coffee Video

Retirement Planning at Any Age

	Retirement Planning for People Under 40
	Retirement Planning for People Over 40

Retirement Planning for Women

	Retirement Planning for Women
	Why Women Should Save for Retirement
	Get Organized

In real life, a roll of the dice won't get you successfully to retirement. Use My Retirement Outlook to identify any potential future shortfalls in your retirement savings and get a better understanding of what’s needed to meet your retirement income objectives.

	How Much is Enough (TRS)
	How Much is Enough (ORP)

Financial Wellness is about the healthy balance between living today while preparing financially for tomorrow. Tomorrow starts today! Watch videos and explore resources to help evaluate your financial health across each of the six Financial Wellness pillars, then take steps to help you enjoy life as you envision.

	Other Savings Goals
	Emergency Savings
	Debt Management
	Protection
	Retirement
	Saving & Spending

UT offers employees a number of options to help as you advance towards retirement. Check out these beneficial resources.

	New Retirement Manager Online
	Calculate Your Outlook Here!
	Is TRS Enough?
	The Saver's Tax Credit

Investing your retirement savings can feel like a game of chance. Learn how to make the right moves to keep your funds growing.

	Investing 101
	Investing 201
	Nearing Retirement: Getting Started

Estate planning is not just for the rich, married or for older people. Everyone has something they care about or want to protect. Learn more about creating a plan for your legacy.

	Estate Planning
	Nearing Retirement: Checking Progress

As you advance through life milestones, it's likely that you'll have savings spread all across the board. Make a plan to keep your savings moving in the right direction.

	Retirement Income
	Healthcare
	Nearing Retirement: Improving Your Finances

You've reached the finish line into retirement... Now what? It's important to strategize how you will utilize your savings once you’ve unlocked this achievement.

	Distribution Options
	Social Security Basics

• Retirement Fund Performance
• Retirement Forms
• Pre-Retirement Checklist