Date: Mon, 20 Nov 2006 18:23:29 -0500
To: announce@list.gcsu.edu,official@list.gcsu.edu
From: Craig Turner <craig.turner@gcsu.edu>
Subject: FYI: System-Level Committee on the Optional Retirement Plan (ORP)

A University System Optional Retirement Plan (ORP) Advisory Committee has been formed to advise
Chancellor Davis on ORP. I am a committee member and we met on
     
                     Th, November 16, 2006 from 10:30 am. - 1:30 p.m.

The first draft of our recommendations is copied below including the email we received from Dr. Dorothy
Roberts, the presiding officer of the committee.  These recommendations are the main points that were
discussed at the meeting and do not yet represent a consensus recommendation of the members of
the committee   Some changes to the recommendations will likely be necessary as presently statutory
recommendations 2, 3, and 4 cannot be simultaneously implemented.  Of these, my perception from the
meeting was that recommendation three is most likely to receive support of the committee.

Our timeline is brief as feedback is requested by Monday November 27, 2006.  (one week!)  On Nov 29, the
recommendations should be forwarded to the Chancellor.  After that, the Chancellor will meet with Governor
Perdue and his staff after which the information would be shared with relevant legislators during the next
legislative session.

As your representative to this committee, I invite you to share by email, by phone or in person any information
that you deem relevant to the scope of this committee and with which I might better represent you.  

I will share additional information as it becomes available.

****************************************
Craig Turner
Professor of Mathematics
478.445.0973
****************************************
 
Date: Fri, 17 Nov 2006 16:16:47 -0500
From: Dorothy Roberts <Dorothy.Roberts@usg.edu>
To: rcallan@mcg.edu, galloway@ega.edu, cgardiner@aug.edu, tgausvik@uga.edu,
        John Grovenstein <john.grovenstein@ohr.gatech.edu>, hhudson@gsu.edu,
        kschultzk@kennesaw.edu, craig.turner@gcsu.edu,
        "Kelley, James" <jkelley@tiaa-cref.org>
CC: "Daniel, Tom" <tom.daniel@usg.edu>, Flowers Jim <Jim.Flowers@usg.edu>
Subject: Optional Retirement Plan ( ORP) Advisory Committee

Thank you for your spirited participation and excellent contributions on yesterday.  Attached is a draft summary of the ORP recommendations. 
Please review and provide me with your comments by Monday, November 27th.  The goal is to finalize the recommendations and submit to Chancellor Davis by Wednesday, November 29th.  Thank you again for your contributions.
Dorothy Roberts

--
Dorothy W. Roberts
Interim Associate Vice Chancellor
for Human Resources Board of Regents of the
University System of Georgia
270 Washington Street. S.W.
Atlanta, Georgia 30334-1450

Office Phone - 404-657-7596
Office Fax - 404-463-7499

E-Mail: dorothy.roberts@usg.edu

Optional Retirement Plan (ORP) Advisory Committee Meeting
 
 
 
The Optional Retirement Committee met on November 16, 2006 and following are draft recommendations proposed by the committee. The recommendations will require either an administrative process change or a statutory change. 
 
 
Administrative Process Change
 
Recommendation 1: Revise current administrative procedures to allow plan participants to move from an annual fund sponsor change to a quarterly fund sponsor change. 
 
Background:  The current administrative process permits participants to change fund sponsors during the annual enrollment period.
 
Rationale:  If a participant wishes to explore other opportunities within the plan, participant can effect timely and proactive plan changes.
 
Recommendation 2:  Establish a standing Administrator/Sponsor Retirement Committee independent of the TRS Board of Trustees to ensure that the interests of the ORP participants are addressed.
 
Background:  The Board of Regents currently serves as the ORP Plan Administrator/Sponsor but does not have ongoing over-sight of the plan.
 
Rationale:  Creation of such a Committee would enable the Board of Regents to better monitor on a regular basis vendor performance, product offering, and fund performance.  It is also an opportunity for the Board of Regents to evaluate participants? satisfaction with the Plan.  
 
Recommendation 3:  The Board of Regents to move the ORP plan to a single record-keeping system/reporting platform in order to provide plan participants individual objective investment advice and counsel from a single source. 
 
Background:  The four ORP vendors currently offer individual investment counseling without knowledge of participants? entire investment picture.  Each vendor is responsible for its? own fund line up. 
 
Rationale:
  A single record-keeping platform will provide the participant with a single source for retirement planning while providing for ease administration for institution payroll units.
 
 
 
 
Statutory Change
 
Recommendation 1: ORP participants should be provided the option, at least once in their careers, to opt out of the ORP to TRS or TRS to ORP.  If ORP participants elect to move from ORP to TRS, participants from 1991-2001 should be granted a special TRS purchase formula based on the contributions levels (1991-2001) in order that the participant is not unfairly disadvantaged.
 
Background:  Eligible employees make a one time irrevocable decision within the first 60 days of employment on Plan participation.
 
Rationale:  Newly hired Faculty or Principal Administrators may not have all the necessary information to make an informed decision at the time of hire.  Later in the career, the employee may be in a position to fully understand plan benefits and options.
 
Recommendation 2: Uncouple the current link between TRS and ORP employer contribution.    Increase the employer ORP contribution rate consistently with southeastern university systems or other appropriate benchmark.
 
Background:  Current ORP employer contribution rate is linked to TRS formula.
 
Rationale:  The increase would allow USG to maintain a competitive position in recruiting and retaining world renowned faculty.  (Rates will be included as an attachment)
 
Recommendation 3:  Maintain the current employer contribution rate linkage with TRS and set the normal contribution rate as the minimum ORP employee contribution rate.
 
Background:  Current ORP employer contribution rate is linked to TRS formula.
 
Rationale:  The increase would allow USG to maintain a competitive position in recruiting and retaining world renowned faculty.
 
Recommendation 4:  Increase the employers? contribution to ORP to be equal to the total TRS contribution rate (normal plus unfunded liability).
 
Background:  Current ORP employer contribution rate is linked to TRS formula.
 
Rationale:  The increase would allow USG to maintain a competitive position in recruiting and retaining world renowned faculty.
 
Recommendation 5:  Expand the definition of ORP eligibility to include all exempt employees.
 
Background:  Current definition of eligible employee is limited to Faculty or Principal Administrator.
 
Rationale:  USG competes from a national market for exempt employees.

 
Date: Mon, 06 Nov 2006 16:59:25 -0500
To: official@list.gcsu.edu,announce@list.gcsu.edu
From: Craig Turner <craig.turner@gcsu.edu>
Subject: System-Level Committee on Optional Retirement Plan

A University System Optional Retirement Plan (ORP) Advisory Committee has been formed to advise
Chancellor Davis on ORP.  I am one of the members and our first meeting is scheduled for Th, November
16, 2006 at 10:30 am.   The purpose of this meeting is threefold (1) to discuss the purpose/charge of this
committee (2) to outline the responsibilities of respective committee members, and  (3) to discuss how
the committee will assist the Chancellor and members of his staff

As your representative to this committee, I invite you to share by email, by phone or in person any information
that you deem relevant to the scope of this committee and with which I might better represent you.  


****************************************
Craig Turner
Professor of Mathematics
478.445.0973