The Optional Retirement Plan (ORP) is available to those individuals hired on or after July 1, 1996 who would otherwise be requred to participate in the Kentucky Teachers' Retirement System (KTRS).
The ORP is established as a 403(b) defined contribution plan under the Internal Revenue Service Code guidelines. Specific rates of contribution have been established for both the employee and the employer. The level of benefits that a participant receives in retirement will depend on several factors, including level and duration of contributions, investment earnings and age at retirement. The employee contribution rate for 2004 is 6.16% of the member's annual salary. The University contribution rate is 8.21% of the member's annual salary. The providers of Western Kentucky University's ORP are:
Contributions by both the employee and the University are forwarded to the selected company for purposes of funding individual retirement annuities. Although the University contributes to these annuities, the benefits payable to the participants are not the obligation of the University, Commonwealth of Kentucky or the Kentucky Teachers' Retirement System. The benefits and other rights of the ORP are the liability and responsibility of the designated companies to which contributions have been made.
Retirement Plan selection must be made within the first 30 days of employment. If no election is made, the employee is automatically enrolled in KTRS.
Click on this link to view the ORP Plan Document.