If you are part-time, you are not required to join a retirement system, but you may do so if you wish. Part-time Management Confidential professional employees may join ERS or TRS at any time; part-time employees who have a TERM appointment may join ERS, TRS, or the ORP.

DEFINED BENEFIT PLANS

The New York State Teachers' (TRS) and the New York State Employees' (ERS) retirement systems are both defined benefit plans. With a defined benefit plan, your retirement income is guaranteed by New York State law and comes in the form of a monthly annuity payment which is determined by your final average salary (the average of your highest five consecutive years of salary), years of service and your age at retirement. You can estimate this pension by visiting the ERS and TRS web sites found below. Benefits under these plans vary by tier with your date of membership determining the tier you belong to. Those joining ERS or TRS on or after April 1, 2012, belong to Tier 6. Information on Tier 6 benefits can be found at www.osc.state.ny.us/retire/members/tier-6/index.php.

DEFINED CONTRIBUTION PLANS

SUNY Optional Retirement Program (ORP)

In a defined contribution plan like the SUNY Optional Retirement Program (ORP), you control your investment choices. The value of your benefit is not predetermined by a formula. Your retirement benefit will depend on the success of your investments, the amount of the contributions made to the plan while you are working, your age at retirement, and the benefit option you select.

The ORP was established by law and the State University Board of Trustees approved the Teachers Insurance and Annuity Association — College Retirement Equities Fund (TIAA-CREF) as the insurer in 1964. In 1994, three additional insurers, ING, MetLife, and VALIC, were approved by the Trustees. If you select the ORP as your retirement plan, you will initially purchase contracts with TIAA-CREF; once you become a vested member of TIAA-CREF, you may choose to distribute your retirement contributions among the other three insurers.

Contributions made by you and the College are placed in your account (contract) according to the investment choices you have personally made. You accumulate a "fund" which is then used to provide a monthly income during retirement. Fund choices include "fixed" investments where your principle is guaranteed by TIAA. You may also invest your contributions using "variable" investment accounts which include stocks, bonds, money market funds or a combination thereof. The value of these investments may vary with market performance. There are no guarantees of principal or interest in variable investment contracts. You are encouraged to diversify your investments among the various fixed and variable accounts when setting up your retirement portfolio.

VESTING:  WHAT IS IT AND WHEN AM I VESTED?

When you are vested, you have ownership of the assets held in your retirement account. Vesting does not mean that you have an immediate right to withdraw these assets, but simply that you would retain these assets upon termination of employment.

The vesting period for the two public pension programs (ERS and TRS) is ten years of full-time credited service.

Participation (or vesting) in the SUNY ORP is immediate for employees who own qualifying TIAA-CREF, ING, MetLife or VALIC contracts at the time of their employment. Qualifying contracts must include employer contributions. For those who do not own pre-existing contracts with one of these annuity carriers, College contributions will be made upon completion of a 366 day vesting period. At the end of 366 days of service, the College will make a single lump sum contribution with interest for this initial period and then make regular bi-weekly contributions thereafter. If you leave State service prior to becoming a vested member, no College contributions will be made. However, your contributions plus interest may be refunded.
 

WHAT ARE THE EMPLOYER AND EMPLOYEE CONTRIBUTIONS?

All three programs provide for contributions by you as well as the College. Your contributions will be made on a before-tax basis (federal taxes only) through payroll deduction, throughout your active membership.

ERS:
Employer Contribution Rate:  Based on actuarial recommendations, New York State contributes an amount necessary to satisfy present and future pension payments.

Employee Contribution Rate:  Prior to April 1, 2013, 3% of salary is required.  Beginning April 1, 2013, contribution rates are based on a member's salary: 

TRS:
Employer Contribution Rate:  Based on actuarial recommendations, New York State contributes an amount necessary to satisfy present and future pension payments.

Employee Contribution Rate:  Prior to April 1, 2013, 3.5% of salary is required.  Beginning April 1, 2013, contribution rates are based on a member's salary: 

ORP (TIAA-CREF; Alternate Funding Vehicles):
Employer Contribution Rate:  8% of salary for the first 7 years of SUNY ORP membership; 10% thereafter.

Employee Contribution Rate:  Prior to April 1, 2013, 3% of salary is required.  Beginning April 1, 2013, contribution rates are based on a member's salary: 

HOW DO I ENROLL IN MY PRIMARY RETIREMENT PLAN?

For full-time Management Confidential employees, the election of a retirement plan must be made within 30 days of your appointment. This is an important decision because the choice is irrevocable. Please indicate your election on the Retirement Election Form.

In addition, you will need to complete an enrollment application for the plan you select. If you are electing the Optional Retirement Program (ORP), this may be done online, or if you prefer, you can complete a paper application. The TIAA-CREF paper application is either in your orientation packet, or available through your campus Human Resources office. If you are electing either the New York State Employees’ (ERS) or Teachers’ (TRS) Retirement System, applications are available in the Employee Benefits Office, Cleveland Hall 410, or you may download it at:
 

Please remember that State law is very specific about the deadline for enrolling in the ORP.  After 30 days, the ORP is no longer an option and ERS/TRS will be your default selection.

Before making your decision, please review the individual retirement system booklets found in your orientation package. When considering participation in the ORP, we recommend that you carefully review fund prospectuses, performance information and sales literature of each annuity company. You should consider each program in relation to your particular needs and objectives and consult with a qualified financial or tax professional for assistance. Representatives of each of these plans are available to assist you.