Plan Details

You and the UNC ORP

For more information, please visit the UNC ORP Web site.

• The University of North Carolina Optional Retirement Program (ORP) is an option or alternative to the North Carolina Teachers’ and State Employees’ Retirement System (TSERS). Both ORP and TSERS are designed to provide retirement income along with Social Security benefits. Although you and the state share the cost of each plan, you control your investment choices, distribution methods, and retirement goals under the ORP, whereas the state controls the investments under TSERS.

• The Board of Governors of The University of North Carolina is responsible for the administration of the ORP and designates the companies authorized to offer investment products. Under TSERS, a Board of Trustees is responsible for the administration and the State Treasurer serves as custodian of the plan assets.

• You have 60 days from commencing your employment to elect to enroll in the ORP. This is an important decision because once you make your choice, it cannot be changed. Failure to make an election will result in automatic enrollment in TSERS.

• Before you make a decision to enroll in either the ORP or TSERS, you should carefully evaluate the distinct features and benefits of each plan. Your participation in either plan should lay the groundwork for establishing a financially secure retirement.

• With an ORP defined contribution plan, the value of your benefit is not based on a predetermined formula. Rather, contributions are made by you and your employer, resulting in a dollar accumulation that is used to provide a monthly income during retirement. The amount of your retirement income is primarily a function of the value of the account balances that you have accumulated throughout your years of employment. This, of course, is determined by the amount of contributions to your plan accounts and the performance of the investment funds you select. Many employees prefer the features of a defined contribution plan to gain more control over the investment of their retirement assets. They believe that their ability to direct the investment of their retirement contributions into different types of investment funds provides a greater opportunity for growth and a higher overall benefit at retirement.

Securities and investment advisory services are offered by AIG Retirement Advisors, Inc., member FINRA, SIPC and an SEC-registered investment advisor.

AIG Retirement is the marketing name for the group of companies comprising AIG Retirement Advisors, Inc.; AIG Retirement Services Company; and The Variable Annuity Life Insurance Company (VALIC); each of which is a subsidiary of American International Group, Inc.

This information is general in nature and may be subject to change. Neither The Variable Annuity Life Insurance Company nor its financial advisors or other representatives give legal or tax advice. Applicable laws and regulations are complex and subject to change. Any tax statements in this material are not intended to suggest the avoidance of U.S. federal, state or local tax penalties. For legal or tax advice concerning your situation, consult your attorney or professional tax advisor.