Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Notes & Samples

NOTE 9 – Defined Benefit Pension Plans and Defined Contribution Plan
Universities

University system offices and independent universities that administer the ORP as their defined contribution plan must disclose the amounts contributed by members and by the employer for that plan. The amounts reported in this note must match those sent from your institution to the Texas Higher Education Coordinating Board ORP coordinator.

Sample Disclosures for University Systems and Independent Universities’ ORP

The state established an optional retirement program (ORP) for institutions of higher education. Participation in ORP is in lieu of participation in the Teacher Retirement System and is available to certain eligible employees. The ORP provides for the purchase of annuity contracts and mutual funds. Participants are vested in the employer contributions after one year and one day of service. The contributory percentages of participant salaries, currently provided by the state and each participant, are x.xx percent and y.yy percent, respectively. Depending upon the source of funding for the employee’s compensation, the university may be required to make the employer contributions in lieu of the state’s contribution. Additionally, the state or the university must make additional contributions above x.xx percent that is contingent on the employee’s date of hire. Since these are individual annuity contracts, the state and the university have no additional or unfunded liability for this program.

Disclose the amounts contributed by members and by the employer for that plan for the fiscal year ended Aug. 31, 20CY: