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Elimination of the Mandatory Employee Contribution for Members of the Optional Retirement Program (ORP)
with 10 or More Years of Membership
The Governor recently signed a bill into law that will phase out the required 3% employee contribution for members of the SUNY Optional Retirement Program (ORP). This retirement program enhancement will effect employees who participate in the SUNY Optional Retirement Program (with TIAA-CREF, ING, MetLife and/or VALIC), who currently have mandatory 3% employee contributions via payroll deduction. Therefore, this bill will ONLY effect active employees who joined the SUNY ORP on or after July 27, 1976. The following are details of the enhancement and
its impact on eligible employees.
ELIGIBILITY
Eligibility for the elimination of the 3% employee contribution is based on one's initial SUNY ORP membership date, regardless of actual length of SUNY service. Therefore, if your initial SUNY ORP membership date was more than ten years ago (prior to April 1, 1998), you will qualify for the elimination of the 3% employee contribution regardless of actual length of service or any breaks-in-service. Additionally, as your employee contribution is reduced over the next three years, the State will increase their contribution to your ORP account.
TIMELINE
Employees with a SUNY ORP membership date that was at least ten years ago, who are paying mandatory 3% employee contributions, will have 1% of the employee contribution eliminated effective April 1, 2008; 2% eliminated effective April 1, 2009; and 3% eliminated effective April 1, 2010. Employees reaching ten years of ORP membership on or after April 1, 2010, will have the full 3% employee contribution eliminated when they reach ten years of service.
To assist employees' understanding of how the ORP enhancement will be implemented, the following examples are provided:
EXAMPLES
Employee A: Joined the SUNY ORP 7/1/83, remained continuously employed - Eligible on April 1, 2008, for phase one of employee contribution elimination (1% reduction in employee contribution/1% increase in employer contribution), since employee's original membership date was more than ten years ago. Employee will experience phase two (additional 1% reduction in employee contribution/additional 1% increase in employer contribution) effective April 1, 2009, and phase three (additional
1% reduction in employee contribution/additional 1% increase in employer contribution) effective April 1, 2010.
Employee B: Joined the SUNY ORP 3/1/90, terminated employment 3/31/91, returned to payroll 1/1/08 - Eligible for phase one of employee contribution elimination (1%) April 1, 2008, since their original membership date was more than ten years ago (despite break-in-service). This employee will experience phase two (additional 1%) on April 1, 2009, and phase three (additional 1%) on April 1, 2010.
Employee C: Joined the SUNY ORP 3/31/99, remained continuously employed - Will not be eligible for employee contribution elimination on
April 1, 2008, but will be eligible for phase two (and retro phase one) of employee contribution elimination (2%) on April 1, 2009, since their original membership date will have been more than ten years ago at that point. They will experience phase three (additional 1%) effective April 1, 2010.
Employee D: Joined the ORP 3/31/99, terminated employment 4/30/00, returned to payroll 3/1/08 - Will not be eligible for employee contribution elimination on April 1, 2008, but will be eligible for phase two (and retro phase one) of employee contribution elimination (2%) on April 1, 2009, since their original membership date will have been more than ten years ago at that point (despite break-in-service). Phase three (additional 1%) will be effective April 1, 2010.
QUESTIONS & ANSWERS
- What if I had previous membership/service credit with the New York State
Teachers' Retirement System (NYSTRS) or the New York State
Employees' Retirement System (NYSERS) prior to enrolling in the
Optional Retirement Program? Can that membership date be used for the start
of the 10 year clock?
No. However, time in NYSTRS or NYSERS can be used to expedite the 366 day
vesting period for new Optional Retirement Program members.
- I am currently a member of the NYSTRS or NYSERS and not currently a
member of the ORP. How does this retirement enhancement effect me?
This new bill has no effect on NYSTRS or NYSERS members.
However, NYSTRS and NYSERS members already have a similar 10 year/3%
employee contribution law in effect.
- I joined the ORP prior to July 27, 1976. How does this retirement
enhancement effect me?
Your ORP account will not be effected. You have never had mandatory employee
contributions, and your employer contributions remain equal to or greater
than for someone who joined the ORP on or after July 27, 1976.
- Before coming to Buffalo State College, I previously participated in a TIAA-CREF Optional Retirement Program with a private college in New York
State. Additionally, I previously participated in an ORP with a State
College, but it was not a New York State college. Can I use either of those
ORP membership dates?
No. Only your SUNY ORP membership date may be used. However, your initial
ORP contract could have been initiated at any SUNY campus; it did not have
to originate from Buffalo State College.
- What are some options available to me as a result of my anticipated
increase in net pay?
You can elect to begin (or increase) tax-deferred 403(b) or 457 accounts.
Current maximums for each plan are $15,500 for 2008, with catch-up
provisions available. Employees wanting to start or increase deductions to
these supplemental retirement plans should contact Human Resources for
details.
You may also want to start (or increase) deductions to New York's 529
College Savings Program. Visit www.nysaves.org/emp for details and on-line
enrollment.
Please feel free to contact Human Resources at 878-4821 with any questions
or concerns.
MyNYSHIP Employee Self-Service
You can now get online access to your health insurance enrollment record
through the new secure web site, MyNYSHIP. To register, visit the
Department of Civil
Service web site, select Benefit Programs, then NYSHIP Online.
Select your group if prompted, then click MyNYSHIP-Employee Self-Service.
Or, go directly to
www.cs.state.ny.us/mynyship.
Keep Health Insurance Records Current
The following is a list of situations that may
require a change in the type of coverage that you have. Prompt notification may prevent unnecessary arrears or overpayments,
late-enrollment waiting periods, loss of coverage, or misdirected mail.
Contact Human Resource Management, Cleveland Hall 410, ext. 4821,
immediately to
report changes or to obtain further information
if any of the following changes occur or questions arise:
-
Your
family unit
changes,
for example:
- marriage or divorce
- domestic partner no longer qualifies
- add a dependent
- no longer have any eligible dependents
- dependent loses eligibility
- no longer wish to provide coverage for a dependent
- you
have a disabled dependent
- spouse dies
-
Your
employment status changes (or you anticipate a change), for example:
- planning to retire from State service
- leaving State service
- going on leave without pay
- going on family and/or medical leave (FMLA)
-
Your
personal information
changes: home address,
telephone number, or name change
-
You have
questions
concerning:
- family's eligibility for health insurance coverage
- changing
type of coverage (family/individual)
- changing
health insurance option
- who
the HMOs participating in NYSHIP are
- eligibility for Medicare benefits due to a particular disease
- domestic partner turning 65 soon
- how
to coordinate NYSHIP benefits with Medicare
- the Pre-Tax Contribution Program
- how
to continue health insurance coverage while in vested status
- how
to continue coverage under COBRA
- how
to cancel health insurance coverage to obtain dependent status
under spouse's NYSHIP coverage
- how
to cancel coverage
-
Additional situations arise,
for example:
- Employee Benefit Card is lost or damaged
- you
become disabled and want to apply for a waiver of premium
- you
are returning to State service
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