ORP and VRS Retirement Plans
Eligible Employees
Executive | 12-Month Professional & Faculty | 12-Month Postdoc | 9-Month Professional, Faculty & Postdoc
In addition to Social Security, contributions will be made for you to a retirement plan. You may choose one of two plans. An application must be submitted within 60 calendar days of hire date.
To further understand the differences between the VRS and ORP plans, please read:
- Choosing Your Retirement Plan (pdf) (found on the Optional Retirement Plan for Higher Education website),
- William & Mary's ORP Summary Plan Description (pdf), and
- Our Retirement Comparison Guide (pdf) that may help you decide between the ORP and VRS Hybrid Plan.
Option 1: Optional Retirement Plan (ORP) - Plan choice dependent upon hire date
This plan is a defined contribution plan. Starting January 1, 2018, TIAA-CREF is our Plan Administrator and investment provider for our ORP plan. Employees hired prior to January 1, 2018 have the option to choose either TIAA-CREF or Fidelity Investments as their Investment provider. As a member, you determine the allocation of contributions to the investment funds available within your chosen company.
Vesting is immediate with the ORP. The benefits received at retirement will depend on the level of contributions, the duration of participation, investment gains and losses, the actual age at retirement, and the retirement income option selected.
Effective January 1, 2018, the Virginia Retirement System (VRS) no longer manages ORP for our employees. The university opted out of the VRS ORP and manages its own optional retirement plan, just as Virginia Tech, University of Virginia, Virginia Commonwealth University and George Mason have done.
ORP Plan 1 - For employees hired before July 1, 2010
Employees hired prior to July 1, 2010 will be enrolled into the ORP Plan 1 as long as they did not have a break in service with a withdrawal taken from their account. The university contributes 10.4% of your creditable compensation per paycheck. Members retire at 65 as the normal retirement age. The earliest retirement age is 55 at least five years of service credit or age 50 with at least 20 years of service credit.
ORP Plan 2 - For employees hired/rehired on or after July 10, 2010
Employees hired or rehired on or after July 1, 2010 will be enrolled into the ORP Plan 2. Employees under this plan will have to make a 5% contribution to their retirement account unless they are former members who did not rollover or request a refund from their ORP account. The university contributes 8.5% of your creditable compensation per paycheck. Employees contribute an additional 5% per paycheck. Members retire at the normal social security retirement age. The earliest retirement age is 60 with at least five years of service credit.
Option 2: Virginia Retirement System (VRS) - Plan choice dependent upon hire date
VRS Hybrid Plan - For employees hired on or after January 1, 2014 with no prior state service
This is a combination of a defined (or fixed) benefit retirement plan and defined contribution (or 401k-like) plan. Members must have at least five years of service and have attained age 60 to retire early with reduced benefits. To receive full benefits, the member must be of social security age and have at least five years of service credit or when age and service credit equal at least 90. The benefits received under the defined benefit portion of the plan are determined by salary, length of service, age at retirement, and the retirement income option selected (e.g., survivorship, partial lump-sum optional payout [PLOP]). The benefits received under the defined contribution portion of the plan are determined by the contribution level and fund performance over time. More information about the VRS Hybrid Plan can be obtained at the VRS website.
VRS Plans 1 and 2 - For employees hired prior to January 1, 2014
This is a defined (or fixed) benefit retirement plan. Members must have at least five years of service and have attained age 60 to retire early with reduced benefits. To receive full benefits, the member must be of social security age and have at least five years of service credit or when age and service credit equal at least 90. The benefits received at retirement are determined by salary, length of service, age at retirement, and the retirement income option selected (e.g., survivorship, partial lump-sum optional payout [PLOP]). More information about VRS Plan 1 and VRS Plan 2 can be obtained at the VRS website.
