The University of Arizona offers multiple plans to help employees create a financially secure retirement.
Enrollment in a retirement plan is mandatory if you work 20 hours a week (.50 FTE) for 20 weeks or longer within a fiscal year. You must enroll within the first 30 days of employment or new retirement eligibility to one of the two university mandatory retirement plan options:
- Arizona State Retirement System (ASRS) is a defined benefit plan that provides a fixed, pre-established benefit for employees at retirement.
- Optional Retirement Plan (ORP) is a defined contribution plan that allows employees to invest pre-tax dollars in the capital markets, where they can grow tax-deferred until retirement.
Most eligible employees may choose either plan. If you do not elect a retirement plan, you will default into the ASRS, which cannot be changed.
All employees, regardless of ASRS or ORP eligibility, can participate in voluntary supplemental retirement plans, including the Arizona University System 403(b) Plan and the State of Arizona 457(b) Plan. Enrollment in these plans can be done at any time of the year.
Mandatory Retirement Plans
The Arizona State Retirement System (ASRS) is a defined benefit plan that provides a fixed, pre-established benefit for employees at retirement.
The ABOR-sponsored Optional Retirement Plan (ORP) is a defined contribution plan in which your benefit is determined by the amount accruing in your account and depends on investment performance.
Supplemental Retirement Plans
All university employees can participate in the Voluntary 403(b) Plan and the 457(b) Deferred Compensation Plan. Both plans are designed to help you save for retirement, and both offer the option of traditional pre-tax contributions or post-tax Roth contributions through payroll deduction. The university does not make contributions toward these plans.