TEACHER RETIREMENT SYSTEM OF TEXAS (TRS) - TRS is a defined benefit plan in which your standard monthly annuity is calculated by an established formula (2.3% times your total years of service credit times the average of your five highest annual salaries divided by 12). If you are enrolled in TRS, you will contribute 6.4% of your salary and the University contributes an amount equal to 6.8% of your salary. Your contributions are not taxed as current income. Vesting occurs after five years of participation. TRS also provides disability, survivor and death benefits.
OPTIONAL RETIREMENT PROGRAM (ORP) - ORP is a defined contribution plan, the performance of which is determined by your investment decisions. Under ORP, you contribute 6.65% of your salary and the University contributes an amount equal to 6.6% of your salary. Your contributions are not taxed as current income. You are vested after one year and one day of participation. Faculty members and certain full-time staff may elect ORP in lieu of TRS.
TAX-DEFERRED ACCOUNTS (TDA and DCP) - Whether you are in TRS or ORP, you can choose to invest additional money for retirement with a tax-deferred account. You may contribute as little as $25 per month to a TDA and $20 per month to a DCP. The maximum contribution is determined by the IRS. Your contributions are deposited with an authorized company of your choice and are not taxed as current income.
Selecting an ORP/TDA Vendor
Maximum Contribution Limits for the TDA and Texas$aver Plans
Comparison of the TDA Program and the Texas$aver Plan
Overview of the TDA Program and Texas$aver DCP
Retirement Program Vendors
Teacher Retirement System of Texas