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ORP plan

Plan details 

Welcome to your ORP retirement plan. The Idaho Optional Retirement Plan (ORP) with AIG Retirement Services affords you an opportunity to help accumulate money for a secure retirement. You contribute pretax dollars automatically by convenient payroll reduction, which might lower current income taxes. Your account benefits from the opportunity for tax-advantaged growth.

Click below to view the features and highlights of your employer’s retirement plan.

The plan highlights are only a brief overview of the plan's features and are not a legally binding document. The information in this section does not modify the terms of the plan and in the event of a conflict, the terms of the plan control.

Take advantage today

All faculty and exempt staff are immediately eligible to enroll in the ORP. Participation among employees is mandatory upon hire.

Starting early has its advantages

Contributions

Employee contributions

You contribute 6.97% of your regular salary to the plan.
 

Employer contributions
In addition, each employee’s respective employer also contributes an amount to the employee’s ORP account. The employer contribution for community college and EITC employees is an amount equal to 11.24%. The employer contribution for four-year institutions will be 9.27%.
 

Vesting

Vesting is a participant’s right of ownership to the money in his or her plan account. The plan provides for full and immediate vesting. You own all contributions to your account.

Accessing your money before retirement

Withdrawal restrictions

Your plan was established to encourage long-term savings, so withdrawals prior to age 59½ may be subject to federal restrictions and a 10% federal early withdrawal tax penalty.
 

Generally, depending on your employer’s plan provisions, you may withdraw your vested account balance if you meet one of the following requirements:

  • Retirement or severance from employment

  • Your death or total disability 

The following are some events upon which you may withdraw vested amounts without incurring a 10% federal early withdrawal tax penalty:

  • Severance from employment at or after age 55
  • Your death or total disability
  • Taking substantially equal payments for a period of five years or reaching age 59½, whichever is later

In addition, you must begin taking distributions once you reach age 70½ or you retire, whichever is later.
 

Distribution options 

AIG Retirement Services offers many distribution options, allowing you to tailor your benefits to meet your individual needs. Depending on your plan provisions, your withdrawal options include:

  • Transferring or rolling over your vested account balance to another tax-advantaged plan that accepts transfers of rollovers
  • Electing systematic or partial withdrawals
  • Choosing one of the many annuity options available
  • Deferring distributions until the later of age 70½ or severance of employment, and allowing your account to continue to grow on a tax-deferred basis

Generally, income taxes must be paid on all amounts you withdraw from your plan. A 10% federal early withdrawal tax penalty may apply to distributions taken prior to reaching age 59½.

Consult your financial advisor for more specific information.


Death benefit

In the event of your death, the account balance passes directly to your named beneficiary. This generally avoids the costs and delays of probate. Your beneficiary can leave all or a portion of the account balance on deposit, depending on the circumstances. Your beneficiary can make withdrawals at any time. Withdrawals may be subject to tax laws that might require distributions to occur within certain time frames.

 

 

An array of investment choices

You decide how to invest all contributions among the mutual funds and the Fixed-Interest Option* offered under Idaho ORP.

The following funds are available in your plan. They provide you with the flexibility you need to create a suitably diversified portfolio that matches your personal retirement time horizon, investment risk tolerance and investment preferences.
 

Remember, this plan represents a long-term investment. Investment values of the mutual funds you choose will fluctuate, and there is no assurance that the objective of any fund will be achieved. Mutual fund shares are redeemable at the then-current net asset value, which may be more or less than the original cost. Bear in mind investment involves risk, including possible loss of principal.
 

Administrative fee  

The gross annual administrative fee assessed on mutual fund assets in the plan is .25%. This may be offset, in whole or in part, by reimbursement received from mutual fund companies. Additionally, mutual fund annual operating expenses apply based on the funds chosen. Mutual fund expenses and fund reimbursements are described in the prospectus. 
 

Fixed-Interest Option withdrawal/transfer restrictions 

You may withdraw no more than 20% from the Fixed-Interest Option annually. There is no withdrawal charge for this transaction. In-service transfers from the Fixed-Interest Option to another funding entity can be accomplished over a five-year period. There are no transfer or withdrawal restrictions if one of the following conditions is met: 

  • Annuity payout option is selected 
  • Your death 
  • Total and permanent disability
  • Withdrawal taken as a hardship under the terms of the employer plan
  • Retirement or severance from employment from the employer who sponsors your plan
  • Election to transfer a portion of the account value to a companion account for a loan

This restriction includes money transferred to mutual funds or to another provider.


* Policy Form GFA-504, a group fixed allocated annuity, issued by The Variable Annuity Life Insurance Company, Houston, Texas.


To view or print a prospectus, access “Prospectuses and Other Important Materials”. The prospectus contains the investment objectives, risks, charges, expenses and other information about the respective investment companies that you should consider carefully before investing. Please read the prospectus carefully before investing or sending money. You can also request a copy by calling 1-800-428-2542.