| (a) Vesting Requirement. An ORP participant at a Texas
public institution of higher education shall be considered vested
in ORP on the first day of the second year of active participation,
as defined in §25.3 of this title (relating to Definitions),
in ORP in lieu of TRS at one or more Texas public institutions of
higher education. An ORP participant at the Board shall be considered
vested in ORP on the first day of the second year of active participation,
as defined in §25.3 of this title (relating to Definitions),
in ORP in lieu of ERS at the Board.
(1) Year Defined. For purposes of this subsection,
a year shall mean twelve cumulative, but not necessarily consecutive,
months of ORP participation.
(2) Leave-without-Pay. A full calendar month of leave
without pay shall not be included in the calculation of a year for
vesting purposes.
(3) Summer Credit. Because a year for academic faculty
members does not normally include the three summer months, an academic
faculty member shall be credited the three summer months toward vesting
in ORP provided the faculty member is participating in ORP at the
end of the spring semester immediately preceding the summer and resumes
participation in an ORP-eligible position at the same or another Texas
public institution of higher education at the beginning of the fall
semester immediately following the same summer.
(4) More than One Period of Employment. As provided
in subsection (c) of this section, partial vesting credit shall be
retained when there is a break in participation prior to satisfying
the vesting requirement. Therefore, the vesting requirement may be
satisfied during more than one period of participation. For example,
a new faculty member who terminated employment after six months of
active participation, and subsequently returns to ORP-eligible employment
at the same or another public Texas institution of higher education,
with no intervening active service as a TRS member, shall only have
to participate for an additional six months to meet the definition
of "year" for vesting purposes.
(5) Non-Texas ORP Plan. The vesting requirement may
not be satisfied by prior enrollment, participation or vested status
in any plan other than the ORP plan authorized under Texas Government
Code, Chapter 830.
(6) Separate Vesting. Because the election of ORP in
lieu of TRS at a Texas public institution of higher education and
the election of ORP in lieu of ERS at the Board shall be considered
separate and distinct elections, the vesting requirement for ORP in
lieu of TRS may not be satisfied by previous participation or vested
status in ORP in lieu of ERS at the Board. The vesting requirement
for ORP in lieu of ERS at the Board may not be satisfied by previous
participation or vested status in ORP in lieu of TRS at a Texas public
institution of higher education.
(b) Once Vested, Always Vested.
(1) Only One Vesting Period. An ORP participant who
satisfies the vesting requirement for ORP in lieu of TRS shall not
be required to satisfy the vesting requirement again by any Texas
public institution of higher education. An ORP participant who satisfies
the vesting requirement for ORP in lieu of ERS shall not be required
to satisfy the vesting requirement again by the Board.
(2) Withdrawal of ORP Funds has No Effect. A reemployed
ORP participant's vested status shall not be affected by any partial
or total withdrawals of ORP funds made after termination from a prior
period of employment.
(c) Partial Vesting Credit Retained. Unvested ORP participants
shall retain partial vesting credit in the following circumstances.
(1) Termination of Employment. An ORP participant who
terminates employment in all Texas public institutions of higher education
prior to satisfying the vesting requirement shall, upon returning
to ORP-eligible employment with the same or a different Texas public
institution of higher education, retain credit for previous ORP participation
in lieu of TRS. An ORP participant who terminates employment with
the Board prior to satisfying the vesting requirement shall, upon
returning to ORP-eligible employment with the Board, retain credit
for previous ORP participation in lieu of ERS.
(2) Leave-Without-Pay. An ORP participant who goes
on leave without pay for a full calendar month or more prior to satisfying
the vesting requirement shall, upon resuming active ORP participation
with the same or a different Texas public institution of higher education,
retain credit for previous ORP participation in lieu of TRS. An ORP
participant at the Board who goes on leave without pay for a full
calendar month or more prior to satisfying the vesting requirement
shall, upon resuming active ORP participation with the Board, retain
credit for previous ORP participation in lieu of ERS.
(3) Direct Transfers. An ORP participant who, prior
to satisfying the vesting requirement, directly transfers from one
ORP-eligible position to another at the same or a different Texas
public institution of higher education, shall retain credit for previous
ORP participation in lieu of TRS. An ORP participant who, prior to
satisfying the vesting requirement, directly transfers from one ORP-eligible
position to another at the Board, shall retain credit for previous
ORP participation in lieu of ERS.
(4) An ORP participant's partial vesting credit shall
not be affected by any partial or total withdrawals of ORP employee
contributions made after termination of employment.
(d) Benefits of Vested Status.
(1) A vested ORP participant shall have ownership rights
to the employer contributions in his or her ORP accounts, meaning
that, upon termination of employment with all ORP employers or reaching
age 70-1/2, he or she may access both the employee and employer contributions
(and any net earnings) in his or her ORP accounts.
(2) A vested ORP participant shall remain in ORP even
if subsequently employed in a position that is not ORP-eligible, as
provided in subsection (f) of this section.
(e) Unvested ORP Employer Contributions Forfeited.
An ORP participant who terminates employment prior to meeting the
vesting requirement shall forfeit all ORP employer contributions made
during that period of employment in accordance with §25.6(a)(11)
of this title (relating to Forfeited ORP Employer Contributions).
Except as provided in §25.6(a)(11)(F) of this title (relating
to Resumption of Participation within 93 Days), forfeited funds shall
not be recoverable, even if the participant later satisfies the vesting
requirement in a subsequent period of ORP-eligible employment. Such
a participant shall be considered vested only in ORP employer contributions
made during the subsequent and any future employment periods.
(f) Employment in a non-ORP-Eligible Position. An ORP
participant who terminates employment in an ORP-eligible position
and becomes employed in a position that is not eligible for ORP, but
is eligible for the applicable retirement system, shall remain in
ORP or become a member of the applicable retirement system in accordance
with the following provisions.
(1) Not Vested in ORP. An ORP participant who terminates
employment in an ORP-eligible position prior to satisfying the ORP
vesting requirement and who becomes employed in a position that is
not eligible for ORP, but is eligible for the applicable retirement
system, shall become a member of the applicable retirement system,
and shall thereafter be ineligible to participate in ORP in lieu of
the applicable retirement system, even if subsequently employed in
an ORP-eligible position and/or if membership in the applicable retirement
system is canceled through a withdrawal of employee contributions.
(A) ORP in Lieu of TRS. An ORP participant who elected
ORP in lieu of TRS at a Texas public institution of higher education,
who has not satisfied the ORP vesting requirement, who terminates
employment in an ORP-eligible position, and who becomes employed with
the same or another Texas public institution of higher education in
a position that is not eligible for ORP, but is eligible for TRS,
shall become a member of TRS for the remainder of his or her employment
with any Texas public institution of higher education. This individual
shall never be eligible to participate in ORP in lieu of TRS again,
even if subsequently employed in an ORP-eligible position at the same
or another Texas public institution of higher education and/or if
the individual cancels his or her TRS membership by withdrawal of
employee contributions.
(B) ORP in Lieu of ERS. An ORP participant who elected
ORP in lieu of ERS at the Board, who has not satisfied the ORP vesting
requirement, and who becomes employed with the Board in a position
that is not eligible for ORP, but is eligible for ERS, shall become
a member of ERS for the remainder of his or her employment with the
Board. This individual shall never be eligible to participate in ORP
in lieu of ERS again, even if subsequently employed in an ORP-eligible
position at the Board and/or if the individual cancels his or her
ERS membership by withdrawal of employee contributions.
(2) Vested in ORP. An ORP participant who terminates
employment in an ORP-eligible position after satisfying the ORP vesting
requirement and who becomes employed in a position that is not eligible
for ORP but is eligible for the applicable retirement system, shall
remain in ORP unless he or she became an active member of the applicable
retirement system during a break in service prior to employment in
the non-ORP-eligible position, in which case, he or she shall never
be eligible for ORP in lieu of the applicable retirement system again,
even if subsequently employed in an ORP-eligible position and/or if
membership in the applicable retirement system was canceled through
a withdrawal of employee contributions.
(A) ORP in Lieu of TRS. An ORP participant who has
vested in ORP in lieu of TRS, who terminates employment in an ORP-eligible
position, and who subsequently becomes employed with any Texas public
institution of higher education in a position that is not ORP-eligible,
but is TRS-eligible, shall continue to participate in ORP and shall
not be eligible for TRS membership, unless he or she terminates employment
with all Texas public institutions of higher education and becomes
employed in a TRS-eligible position with the Texas public school system
(e.g., Independent School Districts, regional educational service
centers) or any other Texas public educational institution or agency
that is covered by TRS but does not offer ORP in lieu of TRS, which
will require the participant to become a member of TRS. Such an individual
(i.e., one who has had active TRS membership since terminating ORP
participation), upon becoming subsequently reemployed with any Texas
public institution of higher education:
(i) shall not resume participation in ORP; and
(ii) shall not thereafter be eligible to participate
in ORP in lieu of TRS ever again, regardless of the individual's previous
ORP vested status, employment in an ORP-eligible position, or if the
individual's TRS membership was canceled by withdrawal of employee
contributions following termination of employment from the TRS-covered
position.
(B) ORP in Lieu of ERS. An ORP participant who has
vested in ORP in lieu of ERS at the Board, who terminates employment
in an ORP-eligible position with the Board, and who subsequently becomes
employed with the Board in a position that is not ORP-eligible, but
is ERS-eligible, shall, nevertheless, continue to participate in ORP
and shall not be eligible for ERS membership, unless he or she terminates
employment with the Board and becomes employed in an ERS-eligible
position with a Texas state agency that does not offer ORP in lieu
of ERS, which will require the participant to become a member of ERS.
Such an individual (i.e., one who has had active ERS membership since
terminating ORP participation), upon becoming subsequently reemployed
with the Board:
(i) shall not resume participation in ORP; and
(ii) shall not be eligible to participate in ORP in
lieu of ERS ever again, regardless of the individual's previous ORP
vested status, employment in an ORP-eligible position, or if the individual's
ERS membership was canceled by withdrawal of employee contributions
following termination of employment from the ERS-covered position.
(g) Employment in a Non-Benefits-Eligible Position.
(1) An employee who elected ORP in lieu of TRS and
who terminates employment in the ORP-eligible position and becomes
employed with the same or another Texas public institution of higher
education in a non-benefits-eligible position shall not be eligible
to participate in ORP (i.e., have contributions sent to the ORP company)
for the period of time while employed in the non-benefits-eligible
position.
(2) An employee who is participating in ORP at one
institution of higher education and who simultaneously becomes employed
at another institution in a non-benefits-eligible position is not
eligible to participate in ORP at the institution in which he or she
is employed in a non-benefits-eligible position.
(3) Definition. For purposes of this subsection, a
non-benefits-eligible position shall be defined as a position that
is one or more of the following:
(A) less than 50 percent effort;
(B) temporary, as defined by TRS for employees of Texas
public institutions of higher education; or
Cont'd... |
