If you are thinking about retirement, there are many sources of information for what you should do. The decision needs to fit your situation at retirement. The Bureau of Consumer Financial Protection has some publications that could assist what to do. Some of the text is geared towards private-sector defined benefit pension plans, however they touch on topics that every retiree thinks about.
Pension Lump-Sum Payouts and Your Retiree Security - Gives near-retirees the information they need to understand the trade-offs of taking their pension in a monthly payment or lump sum. Also provides tips and warnings about how to protect and best manage that money for those considering a lump-sum payout option from a private-sector defined benefit pension plan.
Savings Fitness: A Guide To Your Mondy and Your Financial Future - Create your personal savings plan and prepare for retirement with this step-by-step guide.
Disponible en Espanol: Su Dinero y Futuro Económico: Una Guía para Ahorrar
COLLIN COLLEGE RETIREMENT PLANS
Collin College provides several ways for employees to save for retirement.
Teacher Retirement System of Texas (TRS)
Generally, full time staff employees participate in the Teacher Retirement System of Texas (TRS). This is a defined benefit, state retirement plan.
- Employees contribute 7.7% of their salary to the plan and the state contributes 6.8% of the employee’s salary to the plan. After five (5) years of service in the system, you are vested for retirement benefits.
- Vesting means that the employee has earned a retirement income benefit when they are eligible to retire. The amount of the retirement income benefit is based on a statutory formula using the number of years of employee service credit with the TRS system, the employee’s age, and average covered earnings while an active participant.
- TRS also provides death benefits and disability retirement coverage from the first day of membership. The plan is administrated by the state of Texas.
Optional Retirement Program (ORP)
Full time faculty and Administrators at Collin College have the option to choose between TRS and ORP. The ORP is a 403(b) defined contribution plan in which, the employee contributes 6.65% of their salary to the plan and the state contributes 6.6% of the employee’s salary to the plan. With ORP, the college contributes an additional 1.75% of the employee’s salary to the plan.
The employee will vest in this plan after a year and a day or ORP participation. ORP retirement benefits are a direct result of the amounts contributed and any net return on the investments selected by each participant. Collin College has agreements with several vendors to provide investment vehicles for ORP participants and to provide guidance and information to employees for selecting the best investment option. As like most investment plans, the plan does experience a certain amount of risk and fluctuation. It is the responsibility of the employee to monitor this volatility and work with the vendor to minimize the long term ups and downs of this type of plan.
Retiree Insurance Eligibility: Upon completion of 10 years of service and otherwise having been eligible to retire under TRS Rules (Rule of 80), an ORP participant can submit for retiree insurance.
- ORP Participants need to be eligible for an annuity with their ORP account(s) in order to maintain eligible for retiree insurance. Moving your funds out of ORP can impact retiree insurance eligibility.
TCG has been contracted through Region 10 Retirement Asset Management Services (RAMS). All ORP enrollments through the TCG website.
Part Time Employees - FICA Alternative Plan
A retirement plan in lieu of Social Security has been created with MetLife. Participants will have 7.5% of their salary deducted pre-tax for the PERC plan. Part time employees at Collin College must participate in the FICA Alternative Plan, unless they are exempt by the following:
- a current TRS or ORP retiree,
- an active TRS member through other full time employment elsewhere, or
- an International employee working in the United States based on F1, J1, M1, or Q1 visa.
The FICA Alternative Plan features tax deferred contributions and interest accumulation, 100% vesting immediately, portability or transfer to an individual IRA upon complete separation of employment, and no annual service fee for active accounts.
Full-time and part-time employees (except student employees) at Collin College may enroll in the voluntary Tax Sheltered Account (TSA) plan. The employee is 100% vested at all times. Collin College has retained TCG Administrators to administer our Voluntary 403(b) as well as the Optional Retirement Plan (ORP) and provide on-line services.
TCG has been contracted through Region 10 Retirement Asset Management Services (RAMS). All Voluntary TSA enrollments (403(b)), contribution changes, transfers, loans, and withdrawals must be done online through the TCG website.
Employees may stop and restart their deductions anytime during the year by contacting TCG Administrators at, 800-943-9179. For example, if you would like to end deductions in May and restart deductions in September, you will need to contact TCG Administrators in advance so that the dates can be updated and processed through payroll. Changes must be reported to TCG before the 10th of a month to be reflected in you payroll for that same calendar month.
Employees may also make these changes online through the TCG website. Employees who choose to suspend contributions will be required to complete two entries (one at the time the deductions will be stopped and a second entry will be needed at the time the deductions will be restarted).
To enroll in a 403(b) TSA plan:
Visit the TCG website to register a new 403(b) elective deferral plan. Click on yellow "Register" button and use plan password colli403 to create a unique login.
- Enter your social security number (with no dashes) and proceed through registration
To make a change to your current TSA election:
Visit the TCG website to make changes to a current account. .
- Click on yellow "Login" button.
- Enter your user name and password as created at registration
- Click "Login" to proceed
If you are newly eligible to enroll in the ORP plan:
Visit the TCG website to register as a new ORP participant. .
Click on yellow "Register" button and use plan password colliORP to create a unique login.
- Enter your social security number (with no dashes) and proceed through the registration