Optional Retirement Plan
Retirement Transition Update
The transfer of Optional Retirement Plan (ORP) retirement assets to Fidelity is complete and you can now access your account at Fidelity. However, if you had a previous ORP account, a portion or all of your account balance may still be with your previous vendor. See this chart to see what transferred to Fidelity and what stayed with your previous vendor.
Your previous ORP balance will not transfer to Fidelity unless you provide direction as you hold individual contracts with those vendors. Fidelity has information on how to roll over funds on their NetBenefits site. You can find contact information for all previous vendors here.
Assets at Securian
In the case of Securian, the assets that transferred to Fidelity depended on which funds you were invested in at the time of the transition (as shown in the chart linked above). Securian also moved your assets that stayed at Securian to a new web platform. Securian sent all their remaining participants a letter with a PIN number for the new account for the phone system. If you have any questions on the assets that remain at Securian, please call Securian at 1-800-362-3141.
Faculty and staff can save more for retirement through the Optional Retirement Plan (ORP), a 403(b) voluntary retirement savings plan. This plan offers pre-tax and Roth contributions to help you save more for retirement in addition to either the Minnesota State Retirement System (MSRS) or the Faculty Retirement Plan that you're already enrolled in at the University.
Access Your Retirement Plan
For first-time users, you can find help with NetBenefits here.
On Fidelity’s NetBenefits site, you can:
- Enroll in the ORP
- Choose how much you contribute
- Make investment changes
- Find fund performance information
- Request a distribution or withdrawal if eligible
Who Can Participate
All faculty and staff members who are paid on a continuous basis are eligible to participate in the Optional Retirement Plan. You can begin contributing at any time.
The ORP allows you to make pre-tax and Roth contributions, which are after-tax contributions. The Roth contribution option was added as part of the transition to Fidelity. The University contributes to the Minnesota State Retirement System (MSRS) or the Faculty Retirement Plan and does not contribute to the ORP.
Any contribution changes you make with Fidelity will take one to two payroll periods to affect your paycheck.
2020 New Enrollment and Contribution Changes
|Enrollment or Deferral Changes made by this date||Paycheck Effective Date|
Enrollment or contribution rate changes made on the last day by 5:00 p.m. CT will be processed according to the above schedule. Changes made after 5:00 p.m. CT may be included but may be effective on the next pay date.
How much can I contribute?
- You can contribute up to 100% of your reduced salary or $19,500 for 2020—whichever figure is smaller. Your "reduced salary" is your salary amount after your required primary retirement plan contribution is made.
- If you are age 50 or older, you can contribute an additional amount to the plan. For 2020, that contribution can be up to $6,500.
You can now roll over funds from a previous employer’s qualified retirement plan or funds from previous ORP vendors. When you roll money over to the ORP, you do not pay taxes and your money continues to grow tax-deferred.
The process to roll funds over will depend on your previous retirement vendor.
You will be able to roll over eligible pretax and after-tax contributions from another workplace savings plan account or eligible pretax contributions from conduit IRAs.
Withdrawals and Distributions
For the most part, funds may not be withdrawn before your retirement or termination of employment. The Internal Revenue Service restricts when funds may be paid from your account. Please note that IRS rules are subject to change. You may withdraw your money only under these circumstances:
- Attaining the age of 59½
- When you encounter a severe financial hardship, such as the foreclosure on your home, purchase of a primary residence, college expenses for a child, significant out-of-pocket medical expenses, damage to your principal residence, or funeral expenses.
- You are required to make payment to a former spouse, according to the provisions of a Qualified Domestic Relations Order
- You become totally disabled
Hardship withdrawals are subject to a 10% penalty tax unless they are for out-of-pocket medical expenses totaling more than 7.5% of your adjusted gross income.