Optional Retirement Plan (ORP) FAQs

The ORP is a 401(a) defined contribution (DC) plan. With this plan, your income at retirement is based on the investment options you elect including any losses and gains from the investments.

Only faculty, appointed staff, or service professionals have the choice to choose between the ASRS or ORP for their primary retirement plan election.

• Visit the benefit eligibility chart.

Both the ASRS and ORP are 401(a) primary retirement plans. ASRS is a defined benefit (DB) plan and the ORP is a defined contribution (DC) plan.

• Visit the Retirement Plan Comparison.
• Visit the ORP Guide.
• Visit the ASRS retirement plan comparison and video.

Yes, qualified plans such as 401(k), 401(a) or 403(b) call be rolled over into the ORP. You will not have access to those funds while you are employed with the Arizona University System.

Contact your investment provider for the documents needed for a rollover request. Visit the Vendor Contact webpage which includes the provider’s website address and customer service phone number.

TIAA and Fidelity are the current investment providers of the Arizona University System.

• Visit the Vendor Contact webpage which includes the provider’s website address and customer service phone number.

You can change your investment provider for future contributions once a year. If you want to move the funds into your NAU account, you can request an in-plan transfer.

Both TIAA and Fidelity have representatives who can meet with you to help you choose investments for your retirement portfolio. In addition, the provider’s website offers online planning tools to help you manage and track your portfolio on your own. To schedule a consultation, contact Fidelity Investments or TIAA directly.

• Visit the Vendor Contact webpage which includes the provider’s website address and customer service phone number.
• View the ORP Guide.

The ORP requires that employees contribute 7% and NAU contribute 7%.

No, the plan only allows you to contribute 7%. You cannot change your contribution percentage. If you would like to save more for retirement you can contribute to one of the supplemental retirement plans.

Vesting refers to the requirement of service before “owning” all funds in your account.

You are always 100% vested in your contributions.

To be fully vested in the university’s contributions you must have:

(1) 5 years of participation;

(2) attained your Normal Retirement Date; or

(3) had your employment ended by death.

Immediate vesting may be available if you have an active retirement account (funds on deposit) through another institution of higher education. For more information contact nauhrbenefits@nau.edu.

Until you are vested, NAU contributions are held in trust.

Once vested, your employer contributions (plus interest, calculated at the rate of interest earned by the university’s general fund) are deposited in your ORP account as soon as possible, but no later than 30 days following the vesting date.

Afterwards your employer contributions are credited to your account each payday, along with your employee contributions

If you leave NAU before you meet vesting qualifications, you relinquish the employer contributions.

No, the ORP does not offer loans

No there is no access to your account except during Phased Retirement.

• Visit the phased retirement webpage.

1. The Arizona Board of Regents Phased Retirement Program enables eligible Optional Retirement Plan (ORP) participants to reduce their workload and hours, remain employed for up to three years, and concurrently take distributions from their ORP retirement account(s).

• Visit the phased retirement webpage.

To participate in the phased retirement period, you must:

• be at least 62 years old
• be fully vested in the ORP
• enter into a written Phased Retirement Agreement with the University

The agreement must be finalized, approved, and accepted by the University and submitted to Human Resources before the beginning of the employee’s next contract period.

• Visit the phased retirement webpage.

If you participate in a primary or supplemental retirement plan and are leaving the university but not retiring, you may be eligible to:

• request a refund or distributions of your employee contributions, vested employer contributions if any, and interest earned on these amounts;
• roll over your retirement funds to an IRA or other qualified retirement plan; or
• leave your contributions on deposit for a future benefit.

Contact your retirement plan or investment manager to review your options or to request a refund or distribution.

Visit the Vendor Contact webpage which includes the provider’s website address and customer service phone number.

You can request a distribution after you have received your final pay and made your final contribution to the plan. Remember if you leave NAU before you meet vesting qualifications, you relinquish the employer contributions.