SUNY Benefits

SUNY ORP Distributions

SUNY Optional Retirement Program
Distributions and Taxation

The SUNY ORP is designed to allow retirement at any age. Distributions from ORP contracts are permitted any time after separation from services, subject to an IRS taxation guidelines.

SUNY ORP Distribution Authorization

In order to take distributions from your SUNY ORP contracts you must be separated from service.

The SUNY ORP Authorized Investment Providers will require you to obtain verification of your termination from SUNY before your distribution can be processed.

SUNY policy requires that an employer authorization be obtained for any distributions from SUNY ORP contracts in which premiums have been remitted from SUNY within the past two years. If your employment with SUNY has ended more than two years ago, you can simply write the following statement in the Employer Authorization section of the distribution form that you received from your Investment Provider:

"Per SUNY Policy, an authorized employer signature is no longer required in cases where no premiums have been remitted by institution for two or more years. Please contact David Morrell at 518-320-1430 with any questions."

This will eliminate the need for a signature allowing your distribution request to be processed more quickly.

In the event that your termination date was less than two years ago, however, you will still be required to obtain a signature from an authorized SUNY official verifying your termination date.

To obtain a required signature verifying your separation, please contact the SUNY campus Benefits Office where you were most recently employed:

• State Operated Campus Benefits Administrators
• Community College Campus Benefits Administrators

SUNY ORP Taxation

Distributions from ORP contracts are subject to an IRS 10% penalty for distributions prior to age 59 ½ , unless separating from service after reaching the normal retirement age of 55. No IRS 10% tax penalty is applied to payments made to children or to a divorced spouse in accordance with a qualified domestic-relations order.

As a New York State Public Retirement Plan, distributions from SUNY ORP contracts are exempt from New York State Income Taxes. You can learn more about taxation of SUNY ORP distribution at:

• SUNY ORP Taxation

If you have questions about your specific SUNY ORP contracts, or if you have received an audit letter from the NYS Department of Taxation and Finance about previous distributions, please contact your SUNY ORP Investment Provider for assistance.