The Coordinating Board has updated its annual "Overview of TRS and ORP" document. It is by far the most authoritative source for educators who are making the crucial choice between the two retirement plans. The decision, which must be made by new faculty and administrators shortly after being hired, is "irrevocable" and hence worthy of serious consideration. Both plans are explained in detail, with consideration given to the advantages and disadvantages of each. Precise topics such as the terms of vesting, portability issues, and the legal conditions under which persons are allowed to collect retirement benefits are included. TRS is a "defined benefit" plan, while ORP is a "defined contribution" plan. General comparisons are often difficult, and the best choice may depend upon prior work history and a host of other factors.
The Coordinating Board document is also useful to those who have already made their choice, as it updates relevant policies and laws passed by the Texas Legislature and, occasionally, Congress. There is also a handy table providing a history of the rates that are paid by the state and the individual contributor.
Here's the link. It's a good idea to keep it available for future reference.
Comments