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The State University of New York
Retirement Plan Option Summaries
General Information

All full-time (with appointments of 3 months or more), permanent employees must join a retirement system within 30 days of appointment/hire date.  Membership is optional for all part-time employees and those with provisional or temporary appointments and may be initiated at any time.

Election is permanent and may not be withdrawn while actively-employed.

• Employee contributions are required in any of the retirement program options for those joining on or after July 27, 1976.  
• All employees, regardless of classification or whether full-time or part-time are eligible to join the New York State Employees' Retirement System (ERS).  
• All full-time or part-time, term appointed UUP-represented faculty and professional staff with faculty titles, librarian titles, coach titles, and those M/C professionals in certain titles (Chancellor, President, Vice-President, Provost, Dean, Associate Dean and Assistant Dean) are eligible to join the New York State Teachers' Retirement System (TRS).
• All full-time UUP-represented faculty and professional staff and M/C professional staff are eligible to join the SUNY-Optional Retirement Program (ORP), as well as those in part-time “term” (not temporary) appointments.  
• Changes from one retirement program to another are not possible, unless the employee experiences a position change from a TRS or ORP ineligible position (as defined above) to a position that is eligible for TRS or the ORP. 

Retirement Plan Options

NYS Employees' Retirement System (ERS)
www.osc.state.ny.us/retire/

ERS (and TRS) are defined benefit retirement programs.  The benefits calculation takes into account final average salary (the average of highest 36 consecutive months), number of years of service, and age at retirement.

• For those classified employees in bargaining units CSEA, GSEU, M/C, Police, PEF & Security, ERS is the one available option and membership is effective as of date of hire for full-time, permanent employees or the date the registration form is received by ERS (from your HR department) for part-time, temporary or provisional employees.  Membership may not be withdrawn while the member is employed by a public employer that participates in ERS. 
• For UUP-represented faculty and professional staff and M/C professionals (part-time and full-time), date of membership is the date the registration form is received by ERS (from your HR department).  
• Members may request service credit for state service prior to joining ERS.  Tiers 3, 4 and 5 members who joined on or after January 1, 2010 are required to pay 3% of salary plus interest for the period of prior service claimed. 
• Tier 3 and 4 members are vested (entitled to a pension benefit at retirement) after 5 full-time years of service credit.  Tier 5 members are vested after 10 full-time years.  Service credit is pro-rated for part-time employees. 
• Members may withdraw their membership and their contributions plus interest, if they leave with less than 10 years of credited service. 
• Retirement benefits vary by tier.  Date of membership in ERS determines tier level: 

Tier 3 and 4 members  are require to contribute 3% of salary for the first 10 years of membership.  Tier 5 members are required to contribute 3% of salary throughout active membership.  Contributions are deducted prior to the computation of federal income taxes.  Subject to certain restrictions, members may borrow up to 75% of their contributions plus interest.

• Normal retirement with full benefits is possible at age 62.  Membership provides retirement benefits at age 55 (reductions apply to Tier 2, 3, and 4 members under age 62 unless they have 30 years of service), disability retirement benefits at any age with 10 years of service (the service requirement is removed for certain on-the-job injuries), and death benefits.   

The NYS Teachers' Retirement System (TRS)
www.nystrs.org

Provisions are generally the same as for the NYS Employees' Retirement System (ERS) with the following exceptions:

• Tier 3 and 4 members are required to contribute 3.5% of salary after the first ten years of membership. Tier 5 members are required to contribute 3.5% of salary throughout active membership.
• TRS allows Tier 1 members (joined prior to July 1, 1973) with 35 years of service to retire at any age; ERS minimum retirement age is 55.
• ERS allows unused sick leave to be used in calculating service credit; TRS does not.
• Professional and Classified Staff only: ERS allows for the inclusion of payment for unused vacation towards final average salary (must have joined prior to 4/1/72 or after 7/26/76) if final average salary is based on the 36 months preceding retirement; TRS allows no such inclusion.
• Faculty only: TRS gives a full year's service credit for sabbatical at half-pay; ERS allows a half-year's service credit.
• Date of membership in TRS determines Tier level, same as above for ERS for full-time UUP-represented faculty and eligible UUP represented and M/C professionals, the date of membership is the first date of full-time service.  For those with optional membership (part-time or temporary), it is the first of the month during which service was originally rendered or the first of the month during which 3% contributions were withheld, depending upon the individual appointment and/or initial payroll processing.   

SUNY Optional Retirement Program (ORP)
http://www.suny.edu/BENEFITS/benefits_information/retirement

The ORP is a defined Internal Revenue Code Section 401(a) contribution plan.  Employee and employer contributions are made to individual contracts whose accumulations are largely dependent upon the success of the investments chosen by the participant and are not guaranteed by the State.

• In addition to the 3% employee contributions for the first 10 years required for tier 3 and 4 members, the University's contributions are according to tier which is based upon your membership date in the ORP.

• Maximum salary levels for employer and employee contributions are subject to IRS limitations announced for each calendar year.
• The vesting period is 366 days. However, if at the time of enrollment, the participant currently owns retirement contracts with any of the ORP vendors through a previous employer that include employer contributions, the vesting period will be waived and the participant will be considered immediately-vested.
• If electing the ORP without owning prior contracts with any of vendors, employee and employer contributions are held in an interest-bearing escrow account at the Office of the State Comptroller during the 366-day vesting period.
• The ORP offers a choice of four vendors: ING, MetLife, TIAA-CREF and VALIC. Initial enrollment is with TIAA-CREF.  Once vested or if considered immediately-vested, the participant may open contracts with any or all of the other vendors.
• The ORP offers loans and hardship withdrawals under certain circumstances.
   

For a side-by-side comparative view of ERS, TRS and the ORP, visit: Comparison Chart

 To view the latest quarterly fund performance by ORP vendor, visit: http://hr.cornell.edu/benefits/retirement/orp.html

January 2010