Skip to Main Content. Please Contact Us if there is anything we can do to improve the Accessibility of this page.

Investment Process

Choosing Investment Provider(s)

Under ORP, you have a number of choices to make regarding the investment of your retirement funds. You must choose among the approved participating companies, as well as among the alternative investment products available within companies. The university cannot make recommendations to you on which company or companies would be best for you.
The five approved participating companies with which SUSORP participants may invest their SUSORP funds are:
  • VALIC - Marketing name for the group of companies comprised of VALIC Financial Advisors, Inc., VALIC Retirement Services Company, and the Variable Annuity Life Insurance Company (VALIC). Each is a member company of the American International Group, Inc.
  • ING Insurance and Annuity Company of America
  • Jefferson National Life Insurance Company
  • MetLife Investors USA Insurance Company
  • TIAA-CREF - Teachers Insurance and Annuity Association - College Retirement Equities Fund.
Please see Company Information & Resources for information about these companies, including their telephone and Fax numbers, e-mail and Web site addresses, mailing addresses, and company ratings, as well as a brief overview of the insurance company rating services. If you have additional questions, you may also contact the Division of Retirement (see Division Contacts).
A general description of types of funds, methods of crediting investment earnings, and expense charges is contained in this section. Refer to your own qualified financial advisor or general investment literature for discussions of investment strategies that best fit your needs and circumstances.
Keep in mind throughout your ORP investment decision process that not all choices you will make must be forever. Many of the investments you will consider can be changed at a future date if they prove inappropriate. You should understand the flexibility of your investment when you make your decision(s).

Major Investment Categories

Each participating company has its own description of the products it markets. Company product names are rarely as direct as the two major investment categories - fixed and variable. In spite of this fact, all the products the companies will offer you will be either fixed or variable investments. In general, a fixed investment contract provides a guaranteed rate of return while a variable investment contract provides a rate of return that fluctuates with changing market conditions. The following descriptions should help you decide which basic type a product is, and whether it fits into your personal investment strategy.

Fixed Investment Contracts

Fixed investment contracts usually offer one or more guaranteed rates of return on your investment dollars. The guarantees often take the form of a promise to pay a certain percentage return on all contributions made during a specified period, and/or a minimum future guaranteed return on those funds as well as on subsequent investments. Some contracts also promise to share company earnings that may exceed the rate they promised to pay you. These excess interest amounts are usually credited in the form of dividends near the end of an investment year.
Minimum guarantees included in most contracts are quite low, generally ranging from three percent to seven percent. Still, this type of guarantee could provide a level of security for your investments in the case of adverse economic circumstances. Most other guarantees are good only for your current investment dollars. Consequently, these types of guarantees generally last for a year or less and should not be the sole factor influencing your investment decision.
Under guaranteed contracts, your investment earnings are usually credited to you in one of two primary ways:
  • Under one approach, all the money invested by you in a given year continues to receive interest credits based on the investments made during that year. Your total fund would then be composed of a series of annual "cells" of money, each of which would be earning different returns based on rates earned for bonds, mortgages, and other investments made during that year. The interest on those cells is usually considered a current year investment and would be invested with the new money for that year. In each year, therefore, you would have current year contributions and interest on your prior contributions being invested at current rates. At some point, the principal of your prior investments would also mature to provide more dollars being invested in any given year.
  • The other approach to crediting investment earnings involves a portfolio of investments, often with much shorter maturities, which allows for a new rate based on your total assets to be determined annually. Instead of having pockets or cells of money, each of which continues to earn a return based on an initial investment, all assets are considered together in arriving at a total annual combined yield.

Variable Investment Contracts

Under a Variable Investment Contract, your contributions and those of the other policyholders are pooled and used to buy a portfolio of investments, either in common stocks, bonds, money market funds, or a combination thereof. The value of these investments may increase or decrease from year to year, depending on market conditions. You will have the opportunity to invest in any of the approved funds available within the contract you purchase.
The Variable Investment Contract is often considered to provide the investor with inflation protection. But even though variable products tend to reflect changes in price levels over the long term, stock values do not always move in conjunction with living costs. There have been periods when inflation levels were extremely high while stock prices were depressed. Although past performance is not necessarily indicative of future returns, many find it useful to review the historical level of investment return of particular variable annuity products. Therefore, you should consider the past performance record of all the funds within the variable contract you buy. For example, look at the strength of the basic growth funds, bond funds, and balanced funds within the contract. Also, make particular note of how those accounts that are largely composed of stocks (which are generally recognized as having the higher yielding returns desirable in long-term investments) have performed. In addition, many find it helpful to review the particular investment strategies set by the fund managers prior to selecting a variable investment contract.

Transferability

The SUSORP rules provide that, where provided by contract 1, participants may transfer all or any portion of the accumulated value of either their employer-funded or voluntary (employee-funded) ORP accounts from one ORP provider company to another. Such transactions are subject to the limitations or penalties provided in the individual contract with the company.

Transfer Charges 2

The provider companies may charge a fee for transfers or impose other restrictions. Transfer/withdrawal charges are generally of two types:
  • A loss of a portion of the account value based on a percentage of withdrawal; or
  • A lowering of the investment credit which the account would otherwise have received.
Some companies may offer annuities without any transfer/withdrawal charges; others may waive charges after a certain number of years of participation.

Loans 2

The ORP plan does not allow participants to borrow any funds provided by employer contributions. There are no similar restrictions placed on funds accumulated through your voluntary contributions. You should review applicable contract(s) to determine if loans are available from voluntary contributions, and the associated financial effects.

Expense Charges 2

Participating companies may charge for their expenses in a variety of ways - an annual fixed administrative charge; an annual deposit charge; or an asset management charge. There might be other maintenance fees that are deducted from your account on a monthly, quarterly, or annual basis. Finally, you may incur service charges when you annuitize (retire). You should ask each company to itemize its applicable fees.
1 If a company does not permit such transfers to other provider companies, no such transfers may be made to that company. (See Rule 60U-2.003(1)(g) and (2)(d), F.A.C.)
2 Before making your investment contract selection(s), you should understand any restrictions or charges that are imposed by the company.
E-mail your SUSORP comments or questions to us. Please include your name, mailing address, e-mail address, the last four digits of your social security number (SSN), and your phone number if you require an answer from us.