New benefits eligible employees have two options to save for retirement. All benefits eligible employees with a .5 FTE or more must elect a retirement plan, Option 1 or Option 2, within the first 30 days of their employment. The significant difference between Option 1 and Option 2 is in how you plan to save your own money for retirement. In Option 1, you agree to save your money by contributing to the Oklahoma Teachers' Retirement System (OTRS) throughout your career at OU and then get a defined benefit for the length of retirement. You can also save additional money in a Voluntary Retirement Savings Plan.
By choosing Option 2, the only available methods through which you can save your own money are the Voluntary Retirement Savings Plans. These plans yield account balances that are available during your retirement.
In both options, OU contributes money on your behalf to the OU Contributory Retirement Plan or the OU Retirement Plan, which are 401(a) Defined Contribution Plans. The amount of the contribution depends on whether you choose Option 1 or Option 2.