Annual Estimate of Optional Retirement Program (ORP) State Contributions

Overview

Applicable to

All public junior and community colleges.

Policy

Junior/community colleges must certify estimates of state matching contribution funds for employees participating in the Optional Retirement Program (ORP).

Legal Citation

Texas Government Code Section 830.202(d); House Bill 1, 88th Legislature, Regular Session, 2023, Article III- 46, Riders 2 and 5.

Background

Every year junior/community colleges must certify estimates of state matching contribution funds for employees participating in the ORP.

The amount of funds your college receives monthly is dependent on providing a list each month to the Comptroller’s office that includes employees participating in ORP, each employee’s salary and the contribution amount per employee. The contribution amount for all participating employees should total the requested sum.

See Filling Out the Forms in this fiscal policy and procedure (FPP) for details on submitting the annual certification and monthly payment request forms.

Contribution Rate

The state reimbursement rate for the 2024 – 25 biennium must not exceed 50 percent of the college contribution for the Optional Retirement Program of 6.6 percent of the total covered payroll for a Public Community or Junior College for each fiscal year. The state reimbursement rate is determined by the college’s growth limitation factor as computed by the Legislative Budget Board.