POLICY 06:09:00

OPTIONAL RETIREMENT PROGRAMS

This policy is consistent with Tennessee Board of Regents Policy No. 5:01:03:03 and Guideline P-040

Purpose

This policy serves as a supplement to Tennessee Board of Regents Optional Retirement Program Policy 5:01:03:03 and applies to eligible employees of Pellissippi State Community College as governed by the Board.

Policy/Guideline

1. Eligibility to Participate in the Optional Retirement Program
   1. All regular academic, executive, administrative, and professional
      personnel of Pellissippi State are eligible to participate in the Optional
      Retirement Program. In addition, visiting lecturers are eligible to
      participate in the ORP.
2. Election of New Employees to Participate in the Optional Retirement Program
   1. An eligible employee who is not a member of the Tennessee
      Consolidated Retirement System and has not accumulated creditable
      service thereunder as a member of a local retirement fund may elect
      prior to the preparation of their first salary payment either membership
      in the Tennessee Consolidated Retirement System or the ORP.
   2. The Notice of Election to Participate in the Optional Retirement
      Program or the Tennessee Consolidated Retirement System Form,
      which shall be used by employees in designating this election, is
      available on the Treasury website
      at: www.treasury.tn.gov/orp/index.html
   3. In addition, the Premium Distribution Specification Form that must be
      completed to specify the distribution of funds for the ORP can be found
      in its original location on the Optional Retirement Program: P-040
      Guideline.
   4. If no election is made prior to the first salary payment, the employee
      shall be deemed to have elected the TCRS.
3. Election of Current Members of TCRS to Participate in the Optional Retirement
   Program
   1. An employee who is a member of the TCRS or of a local retirement
      fund having rights under the TCRS, and who is otherwise eligible to
      join the ORP, may elect to participate in the ORP in lieu of continuing
      contributions to and accumulating creditable service in the TCRS while
      employed at an institution with an optional retirement program.
      1. Any employee who elects to cease membership in the
         TCRS and commence membership in the ORP may transfer
         plans effective the first day of the month following thirty
         (30) days written notice to TCRS and Pellissippi State. The
         Election to Transfer Membership from TCRS to the
         Optional Retirement Program form is available
         at: www.treasury.tn.gov/orp/index.html
      2. As stated on the form, an employee who transfers
         membership from the TCRS to the ORP will thereafter be
         ineligible to accumulate creditable service in the TCRS
         during such period or periods as they are employed by an
         institution with an optional retirement program.
4. Transfer of Contributions to the Optional Retirement Program
   1. State Service Prior to July 1, 1981
      1. For employees who began state service prior to July 1,
         1981, all employee contributions (made through payroll
         deduction) to TCRS plus that portion of the employer’s
         contribution made on behalf of the employee after July 1,
         1981, plus any accrued interest are fully transferable to the
         ORP.
      2. Only contributions made by the employee themself or
         contributions made by the employer on behalf of the
         employee under the non-contributory plan are transferable.
   2. State Service Effective July 1, 1981 or After
      1. Employees hired on or after July 1, 1981, are noncontributory members only. Employer contributions are not
         transferable.
   3. Any employee who elects to transfer funds in the ORP must execute the
      Election to Transfer Funds from TCRS to the Optional Retirement
      Program Form at least 30 days prior to the payroll date in which the
      change is to be effective.
      1. This form is available
         on www.treasury.state.tn.us/orp/forms.htm
5. Amount of Contributions to the Optional Retirement Program
   1. Employer contributions will be paid at the rate of ten percent (10%) of
      monthly salary up to the social security wage base.
   2. Contributions for salary above the wage base will be paid at eleven
      percent (11%).
   3. For either retirement system (TCRS or ORP), the limit to employer
      contributions made on behalf of employees employed after July 1, 1996
      is $210,000.
      1. There is no contribution limit for employees employed
         before July 1, 1996.
      2. Additionally, for employees enrolled in the ORP, there is
         also an annual aggregate contribution limit for
         contributions to the ORP and 401(k).
         1. This limit is defined on an annual basis.
6. Social Security Contributions
   1. The amount of social security contributions by the employee and the
      employer shall be the same each payroll period as if the employee were
      a member of the TCRS.

Please refer to TBR Policy 5.01.03.03 Retirement Plans for more information.

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Revised by TBR: March 4, 1977
Revised by TBR: June 26, 1981
Revised by TBR: March 19, 1982
Revised by TBR: September 30, 1983
Revised by TBR: December 14, 1984
Revised by TBR: June 26, 1992
Revised by TBR: December 9, 1994
Revised by TBR: March 15, 2002
Revised by TBR: March 18, 2005
Revised by TBR: TBR Meeting March 27, 2015.
Reviewed/Recommended: President’s Council, November 27, 2023
Approved: President L. Anthony Wise, Jr., November 27, 2023

TBR Notes:
(a) The provisions of this policy under which regular full-time executive administrative, and
professional employees are eligible to participate in the optional retirement program became
effective on July 1, 1983.
(b) Regular part-time employees became eligible for retirement system membership on July 1,
1984.
(c) On July 1, 1992, two additional companies were added in the optional retirement program. A
total of three companies became available in the ORP.