HR / Labor Relations
Optional Retirement Program Cash Withdrawal Policy
October 28, 2003
This policy item applies to:
This policy outlines the circumstances under which participants in the State University of New York’s (University) Optional Retirement Program (ORP) shall be permitted to make lump-sum withdrawal of all or any portion of all accumulations.
A. Lump-sum withdrawal of all or any portion of all accumulations by a participant in the State University of New York’s (University) Optional Retirement Program (ORP) shall be permitted under the following circumstances:
2. prior to a participant’s resignation, termination or retirement from service;
a. if the participant is receiving benefits under the University’s group long-term disability program; or
b. if the University determines that the participant suffers a serious financial hardship as described below;
i. medical expenses for the employee, spouse, and dependents in excess of 7.5% of adjusted gross income; or
ii. preventing foreclosure on/or eviction from the employee’s principal residence.
C. The ORP carriers will administer the hardship withdrawal provisions.
D. Employees will self-certify that they have an immediate and heavy financial need due to one of the above two hardships listed above and that the withdrawal is necessary to satisfy the need.
There are no definitions relevant to this policy.
There are no forms relevant to this policy.
In case of questions, readers are advised to refer to the New York State Legislature site for the menu of New York State Consolidated.
There are no appendices relevant to this policy.