Effective 1/1/2023
The university currently offers two retirement plan options to its benefits-eligible
employee population:
- Option 1: Oklahoma Teachers’ Retirement System (OTRS) with a 401(a) Defined
Contribution Plan (DCP)
- Employee contributes to OTRS: 7% of the employee’s total compensation
(earnings, plus employer paid insurance premiums and DCP contributions),
effective the first day of employment
o OU contributes to OTRS: 8.55% of the of the employee’s total compensation
(earnings, plus employer paid insurance premiums and DCP contributions),
effective the first day of employment.
- OU contributes to a 401(a) DCP: 8% of the employee’s base salary, less the
first $9,000, effective after a one-year waiting period.
- Vesting Period: OTRS portion is seven (7) years and DCP portion is three (3)
years. The one-year waiting period is included as one year of participation.
- Option 2: 401(a) Defined Contribution Plan
- OU contributes to 401(a) DCP: 9% of employee’s base salary, effective after a
one-year waiting period.
- Vesting Period: DCP is three (3) years from first day of employment. The
one-year waiting period is included as one year of participation.
The university is changing the “Option 1” retirement plan; this includes removing the 401(a) defined contribution of 8% over $9,000 for all new benefits-eligible
employees who are hired on or after January 1, 2023, and electing the Option 1 retirement plan.
Current benefits-eligible employees and those benefits-eligible
employees hired prior to January 1, 2023, will not be affected by the retirement plan change.
Future University Retirement Offerings for benefits-eligible employees:
- Option 1: Oklahoma Teachers’ Retirement System (OTRS) with no 401(a)
Defined Contribution Plan (DCP)
- Employee contributes to OTRS: 7% of the employee’s total compensation
(earnings plus employer paid insurance premiums), effective the first day of
employment.
- OU contributes to OTRS: 8.55% of the of the employee’s total compensation
(earnings plus employer paid insurance premiums), effective the first day of
employment.
- Vesting Period: OTRS is seven (7) years.
- Option 2: 401(a) Defined Contribution Plan
- OU contributes to a 401(a) DCP: 9% of employee’s base salary, effective after
a one-year waiting period.
- Vesting Period: DCP is three (3) years. The one-year waiting period is
included as one year of participation.