Retirement and Savings Plans

Contents  

RETIREMENT SAVINGS PLAN DEADLINE NEARING


Under the new UNT System-sponsored Optional Retirement Plan (ORP) and Tax-Sheltered Annuity (TSA) plans, all contributions made after December 31, 2009 must be invested in funds offered by one of the four approved providers.  These providers are:

Fidelity: www.fidelity.com
ING: www.ingretirementplans.com
TIAA-CREF: www.tiaa-cref.org/texasorp
VALIC: www.valic.com

If you are not currently enrolled with one of the new providers you have until November 25, 2009 to complete the necessary paperwork.

All employees participating in ORP that have not completed the necessary paperwork by November 25, 2009 will have their contributions invested in an age-appropriate Fidelity Freedom Fund until they redirect the future funds.  You may transfer out of the default Fidelity account at any time without a penalty.  For TSA participants that are not currently enrolled with one of the approved providers and do not complete the paperwork by the deadline, their TSA contributions made through payroll deduction will be discontinued.  To contribute through payroll deduction you will need to enroll with one of the approved providers.

If you currently participate with one of the four investment providers, there is no need for you to re-enroll, and your current level of contribution through payroll deduction will automatically continue.  If you have any questions regarding this new program, please contact Pat Morgan, Benefits Coordinator, at 940-565-4129 or email your questions to HRRetirement@unt.edu.

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Upcoming Retirement Seminars

PLANNING YOUR FUTURE SEMINAR
WHO:           Open to all ORP & TRS retirement-plan eligible faculty and staff members
WHEN:          Thursday, December 3, 2009         
WHERE:        University Union, Room 411
TIME:           8:00 a.m. to 4:00 p.m.  Registration is required.  Employees are invited to attend some or all of the events that pertain to them.
Click here for additional information

QUESTIONS: Please contact Pat Morgan, Benefits Coordinator, at 940-565-4129 or email your questions to HRRetirement@unt.edu

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What's New with Retirement-New UNT System-sponsored Optional Retirement Plan (ORP) and Tax Sheltered Annuity (TSA) plans

The changes outlined below are important for current participants in the UNT and UNT System- sponsored Optional Retirement Plan (ORP) and the Tax-Sheltered Annuity (TSA) plans.

Representatives of UNT System-member institutions have been working to improve the retirement savings programs sponsored by our institutions. Regulatory changes enacted by the Internal Revenue Service (IRS) are prompting some of the most significant changes in institutionally sponsored retirement savings in more than 40 years. UNT System-member institutions have taken this opportunity to ensure that funds of the highest quality are readily available to faculty and staff members.

In June 2009, an Evaluation Committee from the UNT System, UNT, UNT Dallas, and the UNT Health Science Center in Fort Worth, along with Sibson Consulting (an employee benefits consulting company with higher-education expertise), was tasked with reviewing, evaluating and recommending new retirement savings plans and investment providers to better serve faculty and staff members and ensure IRS regulations are met.  On August 20, 2009, the UNT System Board of Regents and Chancellor Lee Jackson approved the recommended plans and providers.

  • Under the new UNT System-sponsored Optional Retirement Plan (ORP) and Tax-Sheltered Annuity (TSA) plans, the number of approved investment providers has been reduced to four.  Future contributions through the UNT System-sponsored program must be invested in funds offered by these providers, who already are serving many of our faculty and staff members. The providers are:

Fidelity: www.fidelity.com
ING: www.ingretirementplans.com
TIAA-CREF: www.tiaa-cref.org/texasorp
VALIC: www.valic.com

  • Within the selected providers you and other participants in the new UNT System-sponsored Optional Retirement Plan (ORP) and/or the Tax-Sheltered Annuity (TSA) plans will benefit from a wide range of investment funds from which to choose, enhanced services, and greater access to online resources to assist in planning for your retirement income.
  • If you are currently participating in only the Teacher Retirement System (TRS), that TRS retirement savings program remains unchanged, and no action on your part is necessary.
  • If you are in the Teacher Retirement System (TRS), and also are saving through a Tax-Sheltered Annuity (TSA) program sponsored by UNT, you will be required to invest future TSA voluntary contributions through the investment providers and funds associated with the new UNT System-sponsored TSA plan.
  • Meanwhile, if you have any questions or concerns, feel free to contact:  UNT, UNT System, UNT Dallas: Pat Morgan, Benefits Coordinator, at 940-565-4129 or email your questions to HRRetirement@unt.edu

Read the Frequently Asked Questions

View Provider List

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 Tax Sheltered Annuity (TSA) Plans

Universal Eligibility Notification -- Saving for Retirement

A Tax-Sheltered Annuity (TSA) Plan is a voluntary 403(b) retirement program that allows you to save additional income for retirement through pre-tax contributions. Contributions are made through payroll deductions and may be invested in mutual funds, fixed or variable annuities, with any one of the authorized vendors. There is not an employer contribution with the 403(b) Tax-Sheltered Annuity (TSA) Plan.

Eligibility
All employees who normally work at least 20 hours per week and are not student employees are eligible to contribute to a TSA in addition to their regular retirement program.

Contributions
You can get started for as little as $20.00 a month and contribute up to the general limit ($16,500 for 2009) or 100% of your salary, whichever is less. In addition, you can contribute more if you are over the age of 50 and may be able to contribute more if you have worked for UNT for 15 years or more. Contact Human Resources  for more information regarding how much you can contribute.

Getting started
Contact a representative appointed by a company on the list of authorized vendors. Complete the account application and other documents the representative will have. The completed documents must come to Human Resources before the payroll deduction can begin. The effective date of your plan will always be the first day of the month following the date Human Resources receives the paperwork.

Making changes
You can start or stop your account or change the amount of your contributions at any time during the year. You can change the company your contributions are going to up to twice a year. Contact Human Resources if you want to make changes to an existing account. If you want to change how your funds are being invested, contact your provider directly.

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 The IRS Announces Retirement Plan Limitation Changes for 2009

The Internal Revenue Service has announced a limit increase for retirement and savings plans. For those participating in 403(b) or 457(b) contracts, the following changes go into effect January 1, 2009:
The general limit on 403(b) accounts is increased from $15,500 to $16,500.
The catch-up limit on 403(b) accounts for individuals over the age of 50 is increased from $5,000 to $5,500.
The general limit on 457(b) accounts is increased from $15,500 to $16,500.
The aggregate limit on ORP accounts is increased from $46,000 to $49,000.
For questions about these changes, or to change your contributions, please contact the Benefits area in Human Resources at 940.565.4129.

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  Teacher Retirement System (TRS)

Coverage in a retirement plan is mandatory for all regular faculty and staff working 20 hours or more per week. The Teacher Retirement System is designed and administered by the Teacher Retirement System of Texas for its employees in public education.

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Optional Retirement Program (ORP)

Available to eligible full-time faculty and to certain eligible full-time non-classified personnel in lieu of the Teacher Retirement System program (contact the Human Resources Department for eligibility criteria).

For ORP information from the Texas Higher Education Coordinating Board please see use the link at  bottom of this page.

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Retirement Contributions

Both the employee and the state make contributions to TRS and ORP based on percentages of the employee’s salary. The percentages are established by the Texas Legislature and may fluctuate over time. Employee contribution rates for September 1, 2009, through August 31, 2010, are 6.4 percent for TRS members and 6.65 percent for ORP participants. The state contribution rate for both plans is 6.4 percent. Institutions are authorized to provide local supplements to the ORP state rate (up to 2.1 percent) under certain conditions. Contributions are not subject to federal income tax until withdrawn or paid as benefits.

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Important Links

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