How We Manage

Each year, we submit a budget to the State of Texas detailing our expected expenditures for education, research, and operations. Our administrators, faculty, and staff are involved in providing input for these expenditures. In preparation of the details of the budget, we are cognizant of the need to be efficient and effective with our resource requirements. This includes each unit’s needs for staffing, equipment, and supplies. Each unit submits its budget expected costs for salaries, equipment, travel, and supplies for the coming academic year. These budgets are reviewed and combined as composite to be submitted to the state.

How We Evaluate and Improve

Each year after the budget has been approved, we evaluate our needs with the resources provided. As part of this process, we consider how we will proceed for the succeeding year based on discussions with our funding sources which include federal, state, and local entities. This includes our alumni who have been supportive of projects and initiatives that maintain the quality programs we offer and the high-quality faculty and staff we retain.

How We Manage

We monitor our resource requirements and the sources of our funding. We are in direct communication with the funding agencies to assess the availability of funding for the future.

How We Manage

Employee participation in one of two retirement programs is mandatory. They have a choice between two different retirement plans.

Teacher Retirement System (TRS): All TRS-eligible employees at Texas public education institutions are automatically enrolled in the Teacher Retirement System (TRS) on their first day of employment.

TRS is a defined benefit retirement plan governed by IRS Code Section 401(a). Member contributions are deposited into an individual member account. Employer contributions made on behalf of the member are deposited into one communal TRS account from which all retirement and death benefits are paid. TRS manages the investments as a large institutional investor, and its investment strategy is available online. Enrolled employees are vested after five years of service with a right to a retirement benefit, which are based on legislatively determined formulas. There are also disability and death and survivor benefits available to TRS members.

Optional Retirement Plan (ORP): ORP-eligible employees at Texas public institutions of higher education may elect to participate in the ORP as an alternative to TRS.

ORP is a defined contribution plan that is similar to a 401(k) plan with employer-matched contributions. ORP is available to select faculty and university administrators. The ORP participant and employing institution make mandatory monthly contributions using percentages of salary that are established by the state legislature and subject to change. Contributions are invested in a 403(b) account with a company chosen from the institution’s list of authorized companies. Participants must create an ORP account and manage their funds directly.

Voluntary Retirement Programs All employees of the UT System are eligible to participate in the Voluntary UT Saver TSA 403(b) and DCP 457 (b) programs.

How We Evaluate and Improve

Retirement plan options are administered through the University’s Office of Human Resources, but the plan funds are managed by third party fund managers. The university reviews the reports issued by the fund manager professionals on a periodic basis. Their reviews inform benefit and retirement plan revisions.