The Optional Retirement Plan (ORP), which is an alternative to the state defined benefit plan, provides you with greater control over your retirement plan assets. Basic features include the following:

• May be chosen (irrevocably) by certain eligible titles during the initial period of eligibility

• Defined contribution plan

• You manage your investments

• Account growth based on performance of your selected investment portfolio

• Employer contributions are vested after one year and a day

• No disability benefit

•  Contribution amounts are established by the Texas Legislature and may fluctuate. In 2012, you contribute 6.65% of your compensation and the State will contribute 6.4% of your compensation.

Investment options

The investment options in this plan represent mutual funds invested primarily in the three major asset classes (stocks, bonds and short-term investments). You might want to consider these options if you are comfortable diversifying your investments on your own or with the assistance of your financial advisor and/or asset allocation tools.

Withdrawals

Withdrawals from the ORP are available only upon termination of employment in all institutions of higher education throughout the State of Texas.

To view or print a prospectus, click here. Click the appropriate link inside the box titled “Prospectuses and Other Important Materials.” Click on "Funds" in Quick Links, and funds available for your plan are displayed. The prospectus contains the investment objectives, risks, charges, expenses and other information about the respective investment company that you should consider carefully before investing. Please read the prospectus carefully before investing or sending money. You can also request a copy by calling 1-800-448-2542.