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Retirement

All regular, benefits-eligible employees are required by state law to participate in one of two retirement programs offered by the university: Teacher Retirement System of Texas (TRS) or Optional Retirement Program (ORP). In addition to these two programs, all benefits-eligible employees may participate in one or both of our voluntary savings options: Tax Deferred Annuity (TDA) and Deferred Compensation.

Descriptions of the programs and eligibility requirements are noted in the program overviews below:

Teacher Retirement System of Texas (TRS)

Participation in the Teacher Retirement System is open to all benefits-eligible employees of the university. Rights to benefits are vested upon completion of 5 years of creditable service. Currently employees contribute 7.7% of their gross salary monthly and the state contributes 7.5% of the employee's gross salary to a state account to pay retirement benefits. Employees earn interest at a rate of 2% annually on their account balance, which is managed by TRS. Read more on the TRS Retirement page.

Optional Retirement Program (ORP)

Optional retirement plans are available to full-time (100 percent FTE) benefits-eligible faculty members and certain professional administrative staff under the provisions of State law. Investment companies that have partnered with the university can be found here. It is the employee's responsibility to select a company in which to invest their retirement contributions. Read more on the ORP Retirement Page.

In addition to the mandatory program options above, UH benefits-eligible employees can select a supplemental retirement program that will further their savings goals:

Tax Deferred Annuity (TDA)

The University of Houston allows for two types of tax deferred annuity. Please note that neither program includes an employer match.

403b

The 403b program is offered to all benefits eligible employees. Investments are handled by companies that have contracted with the university. Contributions are managed by the employee in consultation with their financial advisor, and can be made pre-tax or post-tax. Pre-tax contributions are excluded from taxable income until distributed from the account to the employee. Post-tax contributions (Roth) are taxed at the time of contribution and will not be subject to taxes when drawn down. The minimum age for disbursement, as set by the IRS, is 59 1/2. Read more on the Supplemental Retirement page.

457b

The 457b program is offered to all benefits eligible employees. Investments are managed by Texa$aver. Contributions can be made pre-tax or post-tax. Pre-tax contributions are excluded from taxable income until distributed from the account to the employee. Post-tax contributions (Roth) are taxed at the time of contribution and will not be subject to taxes when drawn down. Read more on the Supplemental Retirement page.