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