Effective July 1, 2008, all exempt new hires will have the opportunity to choose between the following two retirement plans:
One plan is the Teachers Retirement System of Georgia which is a defined benefit program providing a 2% factor for each year of service. TRS operates on a fiscal year cycle (July 1st - June 30th. Effective FY 2013, the employer contribution rate increases from 10.28% to 11.41% and the employee contribution rate increases from 5.53% to 6%. The maximum allowance after 40 years' service is equal to 80% of the average of two highest consecutive annual salaries. To visit TRSGA, click www.trsga.com.
The other retirement plan is a defined contribution plan. This plan will provide for investment options in three companies, TIAA-CREF, VALIC, and FIDELITY with immediate vesting. ORP (Optional Retirement Plan) operates on a calendar year. Effective January 1, 2009 the employer contribution rate is 9.24% and the employee contribution rate is 5%.
TIAA-CREF - www.tiaa-cref.org/usg
Fidelity - plan.fidelity.com/USGeorgia
VALIC - www.VALIC.com/usg
Additional contributions can be made to a voluntary retirement plan (403b). There are limits to these employee only contributions. Contributions are sheltered from state and federal taxes the same as the regular Teacher Retirement/Optional Retirement contributions. We currently offer supplemental retirement through payroll deduction with VALIC.