Retirement Programs
Teacher Retirement System / Optional Retirement
Program
All regular employees are eligible for membership
in the Teacher
Retirement System of Texas (TRS) after 90 days of employment.
Full-time faculty members and certain professional administrative
staff members (including Librarians) may be eligible to elect to
participate in the Optional
Retirement Program (ORP) in lieu of TRS. Eligibility laws and
rules and a list of specific job titles eligible for ORP are available
in the college Human Resources Office.
Eligible employees selecting the Optional Retirement
Program must do so within ninety (90) calendar days from their date
of eligibility or automatically and permanently become a member
of the Teacher Retirement System.
TRS is a defined benefit plan. The employee’s
tax-deferred contribution is 6.4% and Texas State Technical College
contributes 6% to the system. Normal retirement age is 65 with 5
years of service or any combination of age and service that equals
at least 80 (Rule of 80). A member may receive a reduced annuity
at age 55 with at least 5 years of service or at any age with 30
or more years of service. The standard annuity benefit formula is
2.3% of the average of the best three annual salaries multiplied
by the number of years of service. Higher salaries and more years
of service will mean a greater retirement benefit. Additional benefits
are detailed in the TRS
Benefits Handbook.
ORP is a defined contribution plan. The tax-deferred
employee contribution is 6.65% and Texas State Technical College
contributes 6% to the employee’s account. Eligible employees
enrolled in the ORP in the State of Texas prior to August 31, 1995,
with or without a break in service, may be eligible for an additional
2.5% employer contribution. Texas ORP members vest with one year
and one day of participation. Additional rules and regulations are
outlined by the Texas
Higher Education Rules – Chapter 25. Contact the college
Human Resources Office for a list of approved providers.
Supplemental Retirement
Employees may participate in the 403(b) Tax Sheltered
Annuity Program or a 457 Deferred Compensation Plan through payroll
deduction. The voluntary tax-deferred contributions may be invested
in a variety of investment products with an approved company. Contact
the college Human Resources Office for a list of approved providers.
Social Security
Texas State Technical College participates in
the Federal
Social Security and Old Age Survivor and Disability Insurance
(OASDI). The employee’s contribution is specified by the federal
government, and an equal amount is matched by Texas State Technical
College.
The employee pays 6.20% OASDI to a maximum salary
of $90,000 for the calendar year 2005. In addition, the employee
must pay 1.45% Medicare tax on all salary.
Retiree Medical
Retiree health insurance benefits are available
through Employees
Retirement System (ERS) to employees at 65 years of age with
10 years of service or when the Rule of 80 is met.
Medicare
Medicare
is a federal program of health insurance. Part A, the basic hospital
insurance plan, pays for most hospital, home health, hospice, and
skilled nursing facility services. Part B is an optional supplementary
medical insurance plan that pays a percentage of your doctors’
bills, medical equipment, and certain outpatient services.
Your ERS health plan assumes that you have chosen Medicare Parts
A and B and now will become the secondary payer. Medicare becomes
your primary payer and pays the health bills first. Your ERS health
plan pays second. If you choose a doctor who accepts Medicare assignment,
you will not be responsible for any difference between the billed
charge and the Medicare allowable amount.
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