Retirement & Savings Programs
TEACHER RETIREMENT SYSTEM OF TEXAS (TRS)
As a regular budgeted employee of the University of Houston-Clear Lake and thus of the State of Texas, you are required to participate in an authorized retirement program. Therefore, at the time of employment, you are automatically enrolled in the Teacher Retirement System. This is a statewide retirement system to which each member and the State of Texas make contributions. Contributions are on a pre-tax basis and equal a percentage of your annual salary. Contribution percentages vary periodically; contact the Office of Human Resources for current information. At the time of retirement, you receive an amount that is based on 1) the contribution you have made, 2) the contribution the state has made, and 3) the interest that has accumulated on both amounts.
Should you terminate your employment before retirement, the amount you have contributed, plus accumulated interest, will be refunded at your request. In this case, the state's contribution plus accumulated interest will never be refunded! You must retire through the Teacher Retirement System to receive the state's contributions. In addition to retirement benefits, TRS also provides death, disability, and survivor benefits.
More detailed information on TRS is in the booklet "Teacher Retirement in Texas". The Teacher Retirement System provides this booklet to each new TRS member. You may contact a TRS representative by calling 1-800-223-8778. If you care to write TRS the address is 1000 Red River Street, Austin, Texas 78701-2698.
OPTIONAL RETIREMENT PROGRAM OF TEXAS (ORP)
Members of the faculty and certain exempt staff who have full-time appointments may elect to participate in the Optional Retirement Program in lieu of the Teacher Retirement System. If you qualify for the Optional Retirement Program, you are initially placed in TRS. You are then given ninety (90) days from the date of employment to elect membership in ORP; after that, the ORP option will not be available again.
As in TRS, both the employee and the state contribute to this fund. Contributions are on a pre-tax basis and equal a percentage of your annual salary. Contribution percentages vary periodically; contact the Office of Human Resources for current information.
Additional information regarding the Optional Retirement Program and a list of insurance companies authorized to enroll employees are included in your New Employee Folder if you qualify for this option.
TAX DEFERRED ANNUITY PROGRAM (TDA)
Another savings program available to employees is the TDA, Tax Deferred Annuity. With a TDA you select the insurance company and annuity plan that you feel are most appropriate for you. You then authorize the university to deduct the cost of the annuity from your gross salary and pay it directly to the insurance company. This deduction lowers your annual salary, consequently reducing your taxable income. For more information about this program, contact the university benefits coordinator in the Office of Human Resources.
DEFERRED COMPENSATION PROGRAM (DCP)
The State of Texas Deferred Compensation Program is available to all employees and is a firm, long-term commitment, separate, and in addition to other retirement or benefit programs offered by the university. Under DCP, an employee may enter into an agreement with the university to reduce taxable income. The amount of salary reduction will be applied to the purchase of life insurance, fixed and/or variable annuities, mutual funds, or investment contracts offered by financial institutions. The proceeds from these contracts will be payable upon any of the following events:
- Normal, early, or postponed retirement
- Death of the employee
- Termination of employment with the State of Texas
- Withdrawal from the plan due to serious financial hardship
(subject to review and approval by the State Comptroller)
Contact the university benefits coordinator in the Office of Human Resources for additional information on the Deferred Compensation Program.
