Georgia State University, Human Resources, Benefits Program

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Retirement Benefits

| Mandatory Retirement Program | Voluntary Retirement Programs |

MANDATORY RETIREMENT PROGRAM

Employees under age 60 must participate in a basic retirement plan through the Teachers Retirement System of Georgia. Your mandatory contribution is 5% of your pre-tax gross salary. Because your contribution is deducted before taxes, however, your net "out of pocket" cost is actually less than 5%. Faculty and some administrators may participate in an alternate "optional retirement plan" (ORP). Exempted employees hired after June 30, 2008 will have the opportunity to elect to particapte in the optional retirement plan.

Teachers Retirement System of Georgia (TRS)

The basic retirement program is offered through the Teachers Retirement System of Georgia (TRS). It is a "defined benefit" plan (a pension-type program). Normal retirement age for TRS benefits is 60 with at least 10 years of service. If you have at least 30 years of service, you can retire regardless of age. Reduced benefits are available if you have at least 25 years of service and opt to take "early retirement."

The actual benefit amount you will receive when you retire depends on a formula that takes into account your total years of service and two highest consecutive years of average salary.

To help administer the TRS program and to fund its benefits, the University also contributes on your behalf. In FY 2007, the University's contribution represents 9.28% of each participant's salary. There is currently a 10-year vesting schedule, meaning that once you have 10 years of creditable services in the TRS system, you are eligible for a retirement benefit once you reach age 60.

Optional Retirement Plan (ORP)

Instead of participating in the TRS defined benefit plan, faculty and certain administrators may elect to participate in an optional retirement plan (ORP). Exempted employees hired after June 30, 2008 will have the opportunity to elect to particapte in the optional retirement plan. The ORP is a "defined contribution" plan. Again, the individual makes a 5% mandatory contribution. The University also makes a contribution of 8.13% directly toward the individual's ORP account. There is full and immediate vesting of all contributions to an individual's ORP account.

The resources contributed to your ORP can be invested through your choice of four investment companies: Each company offers several investment options. You may change your company allocations once a year, during the annual Benefits Open Enrollment period.

IMPORTANT NOTE: IF YOU ARE ELIGIBLE TO PARTICIPATE IN ORP BUT DO NOT ELECT TO DO SO WITHIN THE FIRST 60 DAYS OF YOUR EMPLOYMENT, YOU FOREVER FORFEIT THIS OPTION during the course of your employment. TRS does not grant exceptions!! PLEASE complete your ORP enrollment materials in a timely way; otherwise you will automatically be enrolled in the basic TRS "defined benefit" plan described on the previous page.

Amended ORP Plan

Georgia Defined Benefit Plan

Temporary and student employees contribute 7.5% of their wages to the Georgia Defined Plan, which is the State equivalent of Social Security.

Retirement FAQ's:

Q: Is contributing to a retirement plan mandatory?
A: Employees under the age of 60 must contribute to a retirement program. The employee contributes 5% of his/her salary each pay period. The university contribution varies depending on the selected retirement plan.

Q: If I was employed previously on a temporary basis, am I eligible to receive a refund of my contributions to the Georgia Defined Contribution plan?
A: Yes, once you are no longer eligible to participate in the program, you can apply for a refund. The process takes approximately six to eight weeks.

Q: What happens to my retirement account if I terminate my employment with GSU?
A: You have several options under the TRS plan. Employees can rollover their contributions to a qualified plan, leave the contributions in the account or take a lump sum withdrawal (subject to IRS regulations).

Q: What does "vested" mean under the TRS plan?
A: Vesting under the TRS plan means that you "own" your own contributions you are eligible for a retirement benefit at age 60. You are "vested" after 10 years of participation in TRS.

Q: Can I leave my retirement contributions in my account if I am vested under the TRS plan?
A: Yes, if you have ten or more years of creditable service and leave GSU, you will be entitled to a service retirement benefit upon attaining age 60 (if you have not withdrawn your TRSGA contributions).

Q: What is the maximum amount of service credit an employee can receive under the TRS plan?
A: The maximum amount of creditable service an employee can receive under the TRS system is 40 years. This total includes sick leave credit.

Q: What is the formula used by TRS to calculate an individual's benefit?
A: TRS uses the average of the highest 24 consecutive months of salary multiplied by 2 percent multiplied by the total years of service.

Q: What is the effective date of retirement?
A: Your effective date of retirement can be no earlier than:

- the first of the month following the establishment of enough creditable service required for eligibility
- the first of the month following your termination of employment from GSU.

Q: How often can I change the beneficiary(ies) listed on my benefits?
A: You can change your beneficiaries as often as you wish. Just contact the benefits office to receive the change form. Or you can also access the form by going to www.trsga.com and click on TRSGA Forms.

Q: What happens if I pass away and have less than ten years of creditable service under TRS?
A: Your primary beneficiary(ies) will receive a lump sum refund of your contributions and interest.

Q: What happens if I pass away and am vested under the TRS plan?
A: Your primary beneficiary(ies) can receive either a monthly benefit for life or a lump sum refund of your contributions and interest. The lifetime monthly benefit payable would be the same as if the deceased member had retired and selected Plan B, Option 2 (the 100% survivorship option).

Q: If I previously participated under TRS and withdrew my contributions, am I able to purchase that service credit?
A: You may be able to re-purchase previously withdrawn accounts under the TRS plan. Review the TRS member guide for further details at www.trsga.com

Q: What forms of payment can be used to pay for TRS service purchases?
A: You may pay for eligible service purchases with a personal check, money order or with a direct rollover from another eligible plan (i.e. 401(a), 403(a), 401(k), tax sheltered 403(b), a governmental 457 plan or a traditional or rollover IRA). Roth rollovers are not permitted.

Q: Can service be purchased in one-year increments rather than by a lump sum?
A: Individuals may purchase service as one lump sum or in one-year increments.

Q: Can I purchase additional service credit under the ORP plan?
A: Participants under the ORP plan are not eligible to purchase service credit, since the benefit is based on amounts contributed rather than years of service.

Q: If I am a participant under the ORP plan, does my sick leave count towards my retirement benefit?
A: Faculty and staff members who elect to participate in the ORP plan are not eligible to receive sick leave credit for purposes of early retirement.

| Mandatory Retirement Program | Voluntary Retirement Programs |