Optional Retirement Plan

Below are the important features about your plan. This website is intended to be a summary of the plan provisions. In the event that a conflict exists between the information contained within this website and the plan document, the plan document provisions prevail. For more information, please contact your local representative.

The Optional Retirement Program (ORP) is a custodial account program that offers mutual funds. The program is offered to Texas public higher education employees as an alternative to the Teacher’s Retirement System (TRS).

Contributions

You and your employer each contribute a certain percentage of your total compensation to the program. Your salary is then "reduced" by the amount of your contribution, which along with the employer's contribution, is sent to Voya and invested according to your instructions. The amounts reduced are the same amounts that would have been deducted under TRS.

Withdrawals

Under the provisions of Texas law, you may not withdraw funds from the ORP except upon the earlier of your termination of participation or attainment of age 70½. You terminate participation by death, retirement (including disability retirement), or termination of employment in all Texas public institutions of higher education participating in the ORP. If you are eligible to take a distribution, you may also be subject to an IRS 10% premature distribution penalty tax. 

If you have terminated participation or attained age 70½ and wish to withdraw funds (including taking out a loan), you must provide Voya with a letter from your employer confirming your termination and/or vesting status. 

Please note: Under the IRS 403(b) regulations effective January 1, 2009, all withdrawal, loan or contract exchange requests must be approved by your 403(b) plan sponsor (generally the employer providing your 403(b) plan) or their designee before we can process your transaction.

Distribution/Payout Options

When you retire, you may: 

  • Request a full or partial withdrawal (may be subject to federal withholding and possible tax penalties).
  • Utilize the funds to purchase a single premium immediate annuity. 
  • Rollover to an IRA or another eligible retirement plan.

You should consider the investment objectives, risks, and charges and expenses of the variable product and its underlying fund options; or mutual funds offered through a retirement plan, carefully before investing. The prospectuses/prospectus summaries/information booklets contain this and other information, which can be obtained by contacting your local representative. Please read the information carefully before investing. 

Variable annuities and mutual funds under a retirement plan are long-term investments designed for retirement purposes. If withdrawals are taken prior to age 59 ½, an IRS 10% premature distribution penalty tax will apply, unless an IRS exception applies. Money taken from the plan will be taxed as ordinary income in the year the money is distributed. Account values fluctuate with market conditions, and when surrendered the principal may be worth more or less than its original amount invested. An annuity does not provide any additional tax deferral benefit, as tax deferral is provided by the plan. Annuities may be subject to additional fees and expenses to which other tax-qualified funding vehicles may not be subject. However, an annuity does provide other features and benefits, such as lifetime income payments and death benefits, which may be valuable to you. 

For 403(b)(1) fixed or variable annuities, employee deferrals (including earnings) may generally be distributed only upon your: attainment of age 59½, severance from employment, death, disability, or hardship. Note: Hardship withdrawals are limited to employee deferrals made after 12/31/88. Exceptions to the distribution rules: No Internal Revenue Code withdrawal restrictions apply to ’88 cash value (employee deferrals (including earnings) as of 12/31/88) and employer contributions (including earnings). However, employer contributions made to an annuity contract issued after December 31, 2008 may not be paid or made available before a distributable event occurs. Such amounts may be distributed to a participant or if applicable, the beneficiary: upon the participant's severance from employment or upon the occurrence of an event, such as after a fixed number of years, the attainment of a stated age, or disability. For 403(b)(7) custodial accounts, Employee deferrals and employer contributions (including earnings) may only be distributed upon your: attainment of age 59½, severance from employment, death, disability, or hardship. Note: hardship withdrawals are limited to: employee deferrals and ’88 cash value (earnings on employee deferrals and employer contributions (including earnings) as of 12/31/88).