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Retirement Plan Overview

The plans described below are available to help you be ready for retirement. Use them to help you save the equivalent of 15% of your salary each year.

Overview of Plans- Hired on or Before 12/31/22

Plan Features Option 1
Defined Benefit Plan + 401(a) Defined Contribution Plan		   Option 2
401(a) Defined Contribution Plan ONLY
Oklahoma Teachers' Retirement System (OTRS) OU Contributory Retirement Plan  

Salaried Employee: OU Retirement Plan
OR
Hourly Employee: OU Contributory Retirement Plan
Plan Number in Fidelity Account    Fidelity #55857   Salaried: Fidelity #65315
Hourly: Fidelity #55857
Retirement Benefits Provides a life-time, guaranteed amount during retirement.

Benefits are based on this formula:
Full years of Service x 2%
x Average Total Compensation for your five highest-paid years
_________________
= Your Retirement Benefit

 Value of benefit depends on account balance, including contributions and accumulated investment returns.   Value of benefit depends on account balance, including contributions and accumulated investment returns.
How much am I required to contribute? 7% of your Total Compensation Employees do not contribute to this plan.   Employees do not contribute to this plan.

How much does OU contribute?

 Contributes a required monthly fee for plan support. Fees stay with OTRS. Visit OTRS for contribution rate. 8% of your Base Pay over $9,000   9% of your Base Pay
Who directs the investments? OTRS You   You
How does working for OU part-time affect my benefits? Years of service are earned based on your FTE (full time equivalent). For example, a 1.0 FTE employee earns 1 year of service for each calendar year. A .75 FTE employee earns .75 years of service for each calendar year. Contributions are calculated using your Base Pay, regardless of whether you work full-time or part-time as long as you work at least half-time.   Contributions are calculated using your Base Pay, regardless of whether you work full-time or part-time as long as you work at least half-time.
When am I vested in my account? After seven* years, you are entitled to a retirement benefit.

*Beginning November 1, 2017. 		 After three years, you are entitled to your account when you retire or leave OU.   After three years, you are entitled to your account when you retire or leave OU.
After I retire, how long do I receive benefits? You receive an annuity that pays benefits for your lifetime or the lifetimes of you and your spouse, depending on your election. You may elect a lump sum distribution, periodic payments, or various annuities that pay benefits for a certain number of years or for your lifetime.   You may elect a lump sum distribution, periodic payments, or various annuities that pay benefits for a certain number of years or for your lifetime.
What if I leave OU before retirement? If you are vested, you can collect your accrued benefit when you reach retirement age. If you are not vested, you would receive a distribution of all of your contributions and 50% of the interest but none of OU's contributions. If you are vested and you receive a distribution, you forfeit any accrued benefits under OTRS. If you are vested, you may receive a distribution of 100% of your account value. If you are not vested, you forfeit your account.   If you are vested, you may receive a distribution of 100% of your account value. If you are not vested, you forfeit your account.
Are distributions taxable? Distributions are taxable when you receive them, and a tax penalty usually applies if you are under age 59.5. However, if another retirement plan or IRA accepts your distribution as a rollover, you can delay the taxation and avoid the penalty. Distributions are taxable when you receive them, and a tax penalty usually applies if you are under age 59.5. However, if another retirement plan or IRA accepts your distribution as a rollover, you can delay the taxation and avoid the penalty. If you elect an annuity, you are not eligible to make a rollover.   Distributions are taxable when you receive them, and a tax penalty usually applies if you are under age 59.5. However, if another retirement plan or IRA accepts your distribution as a rollover, you can delay the taxation and avoid the penalty. If you elect an annuity, you are not eligible to make a rollover.
If I leave OU before retirement, am I required to take a distribution? No. If you are vested, you can become a non-participating member as long as you do not take a distribution of your contributions. Although you are no longer earning additional benefits, when you reach retirement age, you can begin receiving the benefit you accrued. No. If you are vested, you can leave your balances invested in the plan and begin taking distributions when you reach retirement age.   No. If you are vested, you can leave your balances invested in the plan and begin taking distributions when you reach retirement age.

Overview of Plans- Hired on or After 1/1/23

Plan Features Option 1
Defined Benefit Plan		   Option 2
401(a) Defined Contribution Plan ONLY
Oklahoma Teachers' Retirement System (OTRS)  

Salaried Employee: OU Retirement Plan
OR
Hourly Employee: OU Contributory Retirement Plan
Plan Number in Fidelity Account Does not include a 401(a) Plan contribution.    Salaried: Fidelity #65315
Hourly: Fidelity #55857
Retirement Benefits Provides a life-time, guaranteed amount during retirement.

Benefits are based on this formula:
Full years of Service x 2%
x Average Total Compensation for your five highest-paid years
_________________
= Your Retirement Benefit

   Value of benefit depends on account balance, including contributions and accumulated investment returns.
How much am I required to contribute? 7% of your Total Compensation   Employees do not contribute to this plan.

How much does OU contribute?

 Contributes a required monthly fee for plan support. Fees stay with OTRS. Visit OTRS for contribution rate.   9% of your Base Pay
Who directs the investments? OTRS   You
How does working for OU part-time affect my benefits? Years of service are earned based on your FTE (full time equivalent). For example, a 1.0 FTE employee earns 1 year of service for each calendar year. A .75 FTE employee earns .75 years of service for each calendar year.   Contributions are calculated using your Base Pay, regardless of whether you work full-time or part-time as long as you work at least half-time.
When am I vested in my account? After seven* years, you are entitled to a retirement benefit.

*Beginning November 1, 2017. 		   After three years, you are entitled to your account when you retire or leave OU.
After I retire, how long do I receive benefits? You receive an annuity that pays benefits for your lifetime or the lifetimes of you and your spouse, depending on your election.   You may elect a lump sum distribution, periodic payments, or various annuities that pay benefits for a certain number of years or for your lifetime.
What if I leave OU before retirement? If you are vested, you can collect your accrued benefit when you reach retirement age. If you are not vested, you would receive a distribution of all of your contributions and 50% of the interest but none of OU's contributions. If you are vested and you receive a distribution, you forfeit any accrued benefits under OTRS.   If you are vested, you may receive a distribution of 100% of your account value. If you are not vested, you forfeit your account.
Are distributions taxable? Distributions are taxable when you receive them, and a tax penalty usually applies if you are under age 59.5. However, if another retirement plan or IRA accepts your distribution as a rollover, you can delay the taxation and avoid the penalty.   Distributions are taxable when you receive them, and a tax penalty usually applies if you are under age 59.5. However, if another retirement plan or IRA accepts your distribution as a rollover, you can delay the taxation and avoid the penalty. If you elect an annuity, you are not eligible to make a rollover.
If I leave OU before retirement, am I required to take a distribution? No. If you are vested, you can become a non-participating member as long as you do not take a distribution of your contributions. Although you are no longer earning additional benefits, when you reach retirement age, you can begin receiving the benefit you accrued.   No. If you are vested, you can leave your balances invested in the plan and begin taking distributions when you reach retirement age.

Frequently Asked Questions

How much am I required to contribute?

In Option 1

You commit to being ready for retirement by saving 7% of your total Compensation in the Oklahoma Teachers' Retirement System.

Option 2

For the Salaried Employee: OU Retirement Plan or Hourly Employee: OU Contributory Retirement Plan you do not contribute.

How much does OU contribute?

Option 1

For employees hired on or before 12/31/22, OU contributes 8% of your Base Pay over $9,000 to the OU Contributory Retirement Plan.

For employees hired after 1/1/23, OU does not contribute to the 401(a). 

Option 2

OU contributes 9% of your Base Pay to the Salaried Employee: OU Retirement Plan OR Hourly Employee: OU Contributory Retirement Plan.

Who directs the investments?

Oklahoma Teachers' Retirement System:

Oklahoma Teachers' Retirement  System directs the investment.  

Fidelity 401(a) 

You direct the investment for the Salaried Employee: OU Retirement Plan OR Hourly Employee: OU Contributory Retirement Plan.

How does working for OU part-time affect my benefits?

Oklahoma Teachers' Retirement System

With Oklahoma Teachers' Retirement System your years of service are earned based on your FTE (full-time equivalent). For example, a 1.0 FTE employee earns 1 year of service for each calendar year. A .75 FTE employee earns .75 years of service for each calendar year.  

Fidelity 401(a)

Salaried Employee: OU Retirement Plan OR Hourly Employee: OU Contributory Retirement Plan contributions are calculated using your Base Pay, regardless of whether you work full-time or part-time as long as you work at least half-time under The OU Contributory Retirement Plan.
 

When am I vested in my account?

Oklahoma Teachers' Retirement System

After seven years of contributory service, you are entitled to a retirement benefit with Oklahoma Teachers' Retirement System.  

Fidelity 401(a)

After three years, you are entitled to your account when you retire or leave OU.

After I retire, how long do I receive benefits?

Oklahoma Teachers' Retirement System

With Oklahoma Teachers' Retirement system,if you retire from OTRS, you receive an annuity that pays benefits for your lifetime. For more information regarding rules and beneficiary information, contact OTRS (405) 521-2387. 

Fidelity 401(a)

You may elect a lump sum distribution, periodic payments, or various annuities that pay benefits for a certain number of years or for your lifetime.

What if I leave OU before retirement?

Oklahoma Teachers' Retirement System

With Oklahoma Teachers' Retirement System, if you are vested, you can collect your accrued benefit when you reach retirement age. If you are not vested, you would receive a distribution of all of your contributions and 50% of the interest but none of OU's contributions. If you are vested and you receive a distribution, you forfeit any accrued benefits under Oklahoma Teachers' Retirement System.

Fidelity 401(a)

If you are vested, you may receive a distribution of 100% of your account value. If you are not vested, you forfeit your account. 

Are distributions taxable?

Oklahoma Teachers' Retirement System

Distributions are taxable when you receive them, and a tax penalty usually applies if you are under age 59.5. However, if another retirement plan or IRA accepts your distribution as a rollover, you can delay the taxation and avoid the penalty with  Oklahoma Teachers' Retirement System.
 

Fidelity 401(a), 403(b), and 457(b)

Distributions are taxable when you receive them, and a tax penalty usually applies if you are under age 59.5. However, if another retirement plan or IRA accepts your distribution as a rollover, you can delay the taxation and avoid the penalty. If you elect an annuity, you are not eligible to make a rollover.

If I leave OU before retirement, am I required to take a distribution?

Oklahoma Teachers' Retirement System

No. If you are vested, you can become a non-participating member as long as you do not take a distribution of your contributions. Although you are no longer earning additional benefits, when you reach retirement age, you can begin receiving the benefit you accrued with Oklahoma Teachers' Retirement System.

Fidelity 401(a), 403(b), and 457(b)

No. If you are vested, you can leave your balances invested in the plan and begin taking distributions when you reach retirement age.

Plan Details

Meet 1-on-1 with Fidelity

Contact Retirement Services

Contact your campus Retirement Services team if you need help enrolling in a retirement plan, have questions about plan details, or would like to discuss retiring.

Meet with Norman OU HR Retirement

Meet with HSC OU HR Retirement