A Unit of Business & Finance
NGCSU non-exempt (hourly) benefits-eligible employees are required to participate in the Teachers Retirement System of Georgia (TRS).
NGCSU faculty and exempt (salaried) employees have the option to choose to participate in TRS or in the Optional Retirement Plan (ORP). The decision of faculty members to elect TRS or ORP is irrevocable and may not be changed at a later date.
Employees who participate in TRS contribute 5.25% of salary; NGCSU contributes 9.74%. Employees who participate in ORP contribute 5.00% of salary; NGCSU contributes 9.24% (effective Jan 1, 2010). Employees are eligible to retire (a) with 25 years of service* or (b) at age 60 with at least 10 years of service. Please note that an early pension benefit penalty will apply to TRS participants who decide to retire anywhere between 25 and 30 years of service, prior to reaching age 60. TRS members may retire at any age after 30 years of service, without penalty.
If you are an NGCSU employee considering retirement click here for important information about your eligibility for continued insurance coverage.
Teachers Retirement System of Georgia (TRS)
All non-exempt benefits-eligible NGCSU employees are required to participate in TRS. TRS is considered a "defined benefit" program. Your benefit is "defined" by calculation using your years of membership service, the average of your two highest membership salary years, and a 2% multiplier. Members are vested after 10 years of membership service and any unused sick leave may be applied towards additional membership service. Under TRS, you assume no investment risk and you are guranteed retirement income for the rest of your life.
Optional Retirement Plan (ORP)
Faculty members and exempt staff employees also have the option to participate in ORP. ORP is a "defined contribution" program. There are four authorized ORP vendors: American Century, Fidelity, TIAA-CREF, and Valic. The decision of faculty members to elect TRS or ORP is irrevocable and may not be changed at a later date. ORP members are immediately vested in both employee and employee contributions. Retirement income is directly linked to the value of the account and the performance of investment choices.