Welcome to your ORP retirement plan. The Idaho Optional Retirement Plan (ORP) with Corebridge Retirement Services offers you an opportunity to help save for a secure retirement. You contribute pre-tax dollars automatically by convenient payroll reduction, which might lower your current income taxes. Your account benefits from the opportunity for tax-advantaged growth.
Review the features and highlights of your employer’s retirement plan below.
The 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
You contribute 6.97% of your regular salary to the plan.
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 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.
You may qualify for a higher level of elective contributions than those described above if certain requirements are met:
Accessing your money before retirement
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
Corebridge 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
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 professional for more specific information.
In addition, the Internal Revenue Service (IRS) requires you to take Required Minimum Distribution (RMD) withdrawals from your retirement account(s) annually beginning the year you reach the RMD eligible age. RMD eligible age is:
- Age 73 if you were born January 1, 1951, or later (The RMD eligible age will increase to age 75 after December 31, 2032)
- Age 72 if you were born after June 30, 1949, and before January 1, 1951 (For individuals turning age 72 in 2023, no RMD payment is required in 2023)
- Age 70 ½ if you were born before July 1, 1949.
Important considerations before deciding to move funds either into or out of a Corebridge Retirement Services account
There are many things to consider. For starters, you will want to carefully review and compare your existing account and the new account, including: fees and charges; guarantees and benefits; and, any limitations under either of the accounts. Also, you will want to know whether a surrender of your current account could result in charges. Your financial professional can help you review these and other important considerations. Consult a tax professional before making a decision to move funds either into or out of a Corebridge account.
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.
The annual administrative fee assessed on mutual fund assets in the plan is $103 per participant per year, assessed quarterly at a rate of $25.75 divided pro-rata among all ISBOE Plan Accounts. 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.
RO 2767020 (3/2023)