Optional Retirement Plan (ORP)
- This plan is offered to faculty and appointed staff as an alternative to ASRS.
- Income at retirement is based on the total accumulation of funds in your account, including any investment gains or losses.
Both you and NAU contribute 7% of your pay each pay period. NAU also pays for your long-term disability benefit.
- Maximum annual contribution for both employee and employer contributions cannot exceed the IRS limit of $66,000 for 2023.
- The compensation on which you can make contributions, is limited by the IRS compensation limit. For 2023 the limits are:
- Enrolled on June 30, 1996 or earlier – $430,000
- Enrolled after June 30, 1996 – $330,000
Vesting refers to the service requirement before “owning” all funds in your account.
- Your Contributions: You are always 100% vested in your own contributions.
- NAU’s Contributions: You are 100% vested in NAU’s contributions after five years of continuous service or age 65, whichever is earliest. Academic year employees, are 100% vested at the end of the fifth full academic year.
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 Human Resources.
If you leave NAU before you meet vesting qualifications, you relinquish the employer contributions.
Your retirement benefit is based on the performance of the investments you select. You select one of the plan’s investment managers: Fidelity or TIAA. Each investment manager offers a broad array of investment options from which you can choose.
To learn more, contact the investment manager’s representative for more information on the funds and services offered or go to the investment manager website.
Still have questions??
Contact the Benefits Team at email@example.com or call (928) 523-2223.