1. (a) An employee shall be considered vested in the Optional Retirement Program (ORP) on the first day of the second year of participation in one or more optional retirement plans operating in one or more Texas public institutions of higher education or the Central Education Agency. For purposes of this subsection, a year shall mean 12 cumulative full months. A full calendar month of leave without pay shall not be included in the calculation of such year. An academic faculty member shall be credited the three summer months toward vesting in the ORP provided the faculty member teaches the spring semester immediately preceding the summer and the fall semester immediately following the same summer.
2. (b) Once a participant has vested in the ORP in accordance with subsection (a) of this section, such participant's vesting status shall not be affected by any partial or total withdrawals made after termination of participation in the ORP under subsection (j) of this section or attainment of age 70 1/2 years. Upon reemployment in a public institution of higher education in Texas, a vested participant shall not be required to satisfy the vesting period again.
3. (c) An ORP participant who terminates employment in all public institutions of higher education in Texas prior to satisfying the vesting requirements in subsection (a) of this section shall, upon reemployment in an ORP eligible position, retain credit for previous ORP participation. Such credit shall not be affected by any partial or total withdrawals made after termination of participation in the ORP under subsection (j) of this section or attainment of age 70 1/2 years.
4. (d) A new employee who is eligible to participate in the ORP for the first time is automatically enrolled in the Teacher Retirement System (TRS) until an election to participate in the ORP is made.
5. (e) Election to participate in the ORP must be made before the 91st day after becoming eligible. Failure to elect the ORP during the 90-day period will require an individual to remain in the TRS for the remainder of his or her employment in Texas public higher education.
6. (f) An employee who elects to participate in the ORP may withdraw his or her accumulated contributions (plus interest) from the TRS. Contributions refunded by the TRS to ORP participants are not restricted as to their use by the employee. However, such refund may not be transferred to an ORP carrier.
7. (g) After electing the ORP, an ORP participant is not thereafter eligible for membership in the TRS (except as provided in subsection (i) of this section) unless the individual terminates employment covered by the ORP and becomes employed in any Texas public educational institution or agency that is not part of the ORP and therefore requires TRS membership. Such an individual, upon becoming reemployed in Texas public higher education, may not resume participation in the ORP.
8. (h) An ORP participant who vests in the ORP in accordance with subsection (a) of this section and subsequently becomes employed in an institution of higher education in Texas in a position not eligible for the ORP shall, nevertheless, continue to participate in the ORP and shall not be eligible for TRS membership.
9. (i) An ORP participant who has not satisfied the vesting requirements in subsection (a) of this section and becomes employed in an institution of higher education in Texas in a position not eligible for the ORP shall be required to return to membership in the TRS for the remainder of his or her employment in Texas public higher education.
10. (j) An individual terminates participation in the ORP only upon death, retirement (including disability retirement), or termination of employment in all public institutions of higher education in Texas. A change of company providing ORP benefits or a participant's transfer between institutions of higher education is not a termination of employment.

Source Note:The provisions of this §25.3 adopted to be effective April 3, 1992, 17 TexReg 2126; amended to be effective June 16, 1994, 19 TexReg 4332; amended to be effective May 27, 1997, 22 TexReg 4290.