Benefits : Optional Retirement Plan
The ORP is a "defined contribution" plan in which retirement benefits are based on employer contributions plus earnings of the account balance over the course of the participant's working years. In a defined contribution plan, the value of the retirement benefits may change, depending on investment gains or losses.
State legislation passed on March 15, 2010, has created two plans for ORP members. House Bill 1189 and Senate Bill 232 are referred to as Plan 2 and the current provisions as Plan 1. All current UVa-Wise employees in the ORP are in Plan 1 and this legislation does not affect them.
New employees who begin work after July 1, 2010 will be in Plan 2. This legislation also affects “rehired” members. Rehired members are those who take a refund of the funds in their member contribution account or optional retirement plan account from a previous position and return to covered employment with no service credit.
Optional Retirement Plan (ORP) Summary
|Effective July 1, 2010||ORP Plan 1 (Members hired before July 1, 2010 who have not taken a refund)||ORP Plan 2 (Members hired or rehired on or after July 1, 2010)|
|ORP Contribution Rates||10.4 percent employer contribution||Establishes an 8.9 percent employer contribution for ORP members. ORP employees are also required to make a 5 percent member contribution.|