Employees participating in the Teacher Retirement System are required to contribute 6.4 percent of salary. Texas Tech contributes 6.58 percent. Legislative action may change the percentages of salary to be contributed. For additional information refer to the TRS website.

* In accordance with Chapter 830, Texas Government Code

Employees electing to participate in the Optional Retirement Program are required to contribute 6.65 percent of salary. Texas Tech contributes 6.58 percent. Employees who were enrolled in the Texas ORP on or before August 31, 1995, will receive the FY 95 supplemented employer contribution rate of 8.5 percent. Legislative action may change the percentages of salary to be contributed.

ORP is available an an alternative to active TRS membership for full-time higher education employees who are faculty, librarians, and certain professionals and administrators as defined by the Texas Higher Education Coordinating Board. See http://www.depts.ttu.edu/personnel/docs/TRS-ORP-Overview.pdf for additional information.

Every ORP eligible employee is enrolled in TRS unless and until ORP is elected. Although an employee has 90 days from the first day of eligibility to enroll in ORP , contributions to TRS must be made if an election of ORP is not made by submitting the appropriate forms on or before the first day of eligibility. Employees who do not enroll in ORP during their 90 day ORP election period are never again eligible to elect ORP in lieu of TRS during their careers in Texas public higher education. For additional information please refer to "An Overview of TRS and ORP".

In addition to participation in the Teacher Retirement System or the Optional Retirement Program, employees of Texas Tech are eligible to set aside additional amounts of salary, up to certain limits, without paying current income tax on those amounts.

The Tax Sheltered Annuity Program is available to employees on an optional basis. Under the Tax Sheltered Annuity Program, employees may enter into an agreement with Texas Tech to reduce current taxable earnings, up to specified limits, and apply the proceeds of such reduction to the purchase of fixed annuity, variable annuity, custodial, non-custodial, or mutual fund accounts with carriers approved by Texas Tech. For additional information about the Tax Sheltered Annuity Program see OP 70.09, “Tax Sheltered Annuity Program.”

The Texa$aver deferred compensation program (IRC 457) is available to employees on an optional basis. Under the Texa$aver program, employees may enter into an agreement with the state to reduce current earnings, up to specified limits, and apply the proceeds of such reductions to the purchase of investment products approved by the Employees Retirement System (ERS), the plan administrator. For additional information about the Texa$aver deferred compensation program, visit the Texa$aver.

The employee’s portion of the social security tax is 7.65% to a maximum salary of $94,000 (effective 01/01/2006) then; 1.45% on remainder per calendar year.

Old-Age and Survivors Insurance (Social Security) * IRS Publication 519 Employees of Texas Tech are required to participate in the Old-Age Survivors Insurance Program (OASI) and the Medicare Hospitalization Insurance Program of Social Security.