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The ORP is a defined contribution plan.
Retirement benefits are based on the total accumulation of funds, including any investment gains or losses.
Contribution Rate
Vesting
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Employees are 100% vested in their contributions at all times.
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Employees are 100% vested in the NAU-matched funds after 5 years of service.
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Employees may withdraw or transfer available contributions upon separation from employment.
After 5 years of service an employee is fully vested. For an academic year employee, that will be at the end of the academic year. The NAU matching funds (plus interest, calculated at the rate of interest earned by NAU's general fund) are sent to the employee's ORP vendor in a lump sum as soon as possible, but no later than 30 days following the vesting date. After the employee is vested, the employer contribution is credited to the employee's ORP account each payday, at the same time as the employee contribution.
Note: Immediate vesting may be available to qualifying new employees. Matched funds are held in trust until vesting qualifications are met. Employees who leave NAU prior to meeting vesting qualifications relinguish the NAU-matched funds.
Qualifying for Retirement
Employees may retire under the ORP at any time, although employees retiring with less than 5 years of credited service and age 50 will not qualify for some State of Arizona and Arizona Board of Regents retirement benefits.
Benefits Upon Retirement
- Various retirement payment options are available depending on the ORP vendor.
- Health and dental insurance (must have 5 years of service and age 50)
Note: There is no credit (subsidy) toward monthly health and dental insurance premiums available.
Vendors
The Arizona Board of Regents currently contracts with three financial institutions for the ORP:
The above information is a general overview of the ORP. Additional information about the ORP, including specific investment information, is available in the Optional Retirement Plan Book or by contacting an ORP Vendor.
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