Faculty Retirement
Choose your retirement benefit
You have 60 days to pick either the Virginia Retirement Systems (VRS) or the Optional Retirement Plan (ORPHE).
Once Faculty members make their retirement elections the next step is to confirm a sick leave plan. All faculty must complete the Faculty Leave Plan Election Form (Accessible PDF). Those enrolling in the VRS Hybrid Plan and selecting the ODU Sick Leave plan must also complete the VSDP-2 College and University Faculty Opt-Out.
- Your choice is “irrevocable” after 60 days, which means that once you make a choice it can never be changed.
- Both plans require you to contribute 5% of your pay toward the benefit.
- Choose a plan through your myVRS account.
- The VRS Hybrid plan has both a Defined Benefit “DB” and a Defined Contribution “DC” component, both are pretax contributions. A DB plan provides you with a monthly pension payment at retirement, while the DC portion provides you with an account that you control to provide you with retirement income.
- The VRS mandatory contribution rate of 5% of gross pay is split with 4% going to the DB component and 1% going to the DC component. In addition, the Employer matches the 1% DC portion and offers additional matching (see supplemental plans section).
- Hybrid Plan Participants may purchase up to 4 years of EVMS Service, to shorten the “DB” vesting period.
- The ORPHE has an 8.5% contribution made by the Employer, and a 5% contribution by the employee.
- You can choose your investments from the plan menu offered by VRS or independent investment advice through CAPTRUST Financial Advisors.
| Feature | Virginia Retirement System | Optional Retirement Plan |
|---|---|---|
| Eligible | All Employees | Faculty and Professional Employees |
| Vesting | 4 Years for DC / 5 Years for DB – see below | Immediate |
| Matching | For Additional Voluntary Contributions | N/A |
How long do I plan to work for ODU?
- If you select VRS and leave ODU before you work 4 years, you forfeit all or a portion of the 1% employer contribution that has been contributed to the DC portion of the benefit. The DC employer contributions vest 50% after 2 years, 75% after 3 years and 100% after 4 years.
- If you select VRS and work less than 5 years, you forfeit your right to the pension benefit.
- If you select the ORP you have a right to any money in your account from day 1
I plan to spend a good portion of my career working for ODU, how does the VRS work?
Example: Work for ODU for 10 years and make $65,000 per year. At the end of 10 years how would the benefits compare?
- VRS Hybrid: Monthly Pension benefit estimate: $541 per month pension payable beginning at age 67 - plus $13,000 saved as an investable account. (includes match but no earnings)
- ORPHE: Account balance without earnings of $87,750 which can be rolled over to an IRA, another retirement plan or remain invested with the ORP.
Am I comfortable investing my account balance?
- ORPHE puts all investing responsibility on the individual employee.
- VRS pension committee invests money and is responsible for paying any pension amount employee earns.
You choose how to invest the 1% DC amount and any additional voluntary Hybrid 457 contributions.