SUS Optional Retirement Plan
Plan details
The State of Florida Optional Retirement Program (ORP) is an alternative to the Florida Retirement System Investment Plan (FRS Plan), and provides you with greater control over your retirement plan assets. As a participant in the ORP, you may voluntarily contribute a percentage of your income to your retirement account. Your contributions, combined with the employer contribution, give you a unique advantage in preparing for a secure retirement. Enrollment must occur within 90 days from the date of hire or you will automatically be enrolled in the FRS Investment Plan.
Click below to view the features and highlights of your employer’s retirement plan.
The plan highlights are only a brief overview of the plan's features and are not a legally binding document. The information in this section does not modify the terms of the plan and in the event of a conflict, the terms of the plan control.
Take advantage today
The State of Florida Optional Retirement Program (ORP) is available to all State University System Faculty and Administrative and Professional (A&P) employees.
Enrollment must occur within 90 days from the date of hire or you will automatically be enrolled in the FRS Investment Plan. All employees who fill an ORP eligible position are eligible to participate.
Starting early has its advantages
State contributions
When you participate in the ORP, the state automatically makes a contribution for you. Effective, July 1, 2012, your employer contribution was reduced to 5.14% of compensation. That percentage is in accordance with Section 121.35(4), Florida Statutes.
Employee mandatory contributions
ORP participants must continue to contribute 3% of compensation as retirement contributions, on a pre-tax basis. Your employer will automatically deduct the employee contributions.
Voluntary contributions
You may supplement your employer contributions by making pretax contributions to your voluntary ORP account. Employees may contribute by salary reduction an amount not to exceed the percentage contributed by the university (currently 5.14%). Additionally, the Internal Revenue Code (IRC) limits your employee contribution (see IRS contribution limit below).
Voluntary catch-up contributions
You may also be eligible to contribute additional catch-up contributions if you meet the following conditions. Please consult with your financial professional to discuss your personal voluntary contribution limit.
Vesting
Vesting is a participant’s right of ownership to the money in his or her plan account. You are always 100% vested in contributions made to the plan, plus any earnings they generate.
Accessing your money before retirement
Withdrawals
Your plan was established to encourage long-term savings, so withdrawals prior to age 59½ might be subject to federal restrictions and a 10% federal tax penalty.
Generally, depending on your employer’s plan provisions, you may withdraw your vested account balance after you have been separated from service for three calendar months if you meet one of the following requirements:
- Early retirement (after age 55) or separation from service
- Your death or total disability
Please be sure to check with the State’s ORP office to understand potential restrictions before withdrawing money from your ORP account.
In addition, the Internal Revenue Service (IRS) requires you to take Required Minimum Distribution (RMD) withdrawals from your retirement account(s) annually beginning the year you reach the RMD eligible age. RMD eligible age is:
- Age 73 if you were born January 1, 1951, or later (The RMD eligible age will increase to age 75 after December 31, 2032)
- Age 72 if you were born after June 30, 1949, and before January 1, 1951 (For individuals turning age 72 in 2023, no RMD payment is required in 2023)
- Age 70 ½ if you were born before July 1, 1949.
Important considerations before deciding to move funds either into or out of a Corebridge Retirement Services account
There are many things to consider. For starters, you will want to carefully review and compare your existing account and the new account, including: fees and charges; guarantees and benefits; and, any limitations under either of the accounts. Also, you will want to know whether a surrender of your current account could result in charges. Your financial professional can help you review these and other important considerations. Consult a tax professional before making a decision to move funds either into or out of a Corebridge account.
RO 2767020 (03/2023)