Transcript Optional Retirement Plan (ORP) Review Committee Update

Optional Retirement Plan (ORP)
Review Committee
Optional Retirement Plan (ORP)
Review Committee
Recommendations:
 Simplify and consolidate assets:
Eliminate requirement for two insurance
products and two mutual funds.
 Ongoing eligibility:
Once initial criteria are met, no ongoing
requirement.
 Creation of Tier 4:
8% employer contribution + 4% employer
match up to first 4% of employee contribution.
 Retain current contributions, benefits and privileges of Tiers
One, Two and Three ORP Participants.
Optional Retirement Plan (ORP)
Review Committee
Contingency:
 What if 6.0% employer pick-up of employee
contribution is taken away?
 If it is to the benefit of all employees, modify statute to
allow conversion of Tier 3 to Tier 4. This must apply to
all Tier 3 employees.*
* Next employer assessment for Tier 1 and 2 employees is
26.5%.