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

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.
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.
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.
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
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.
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.

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.