TO: Presidents
BusinessOfficers
FROM: Monica Rimai
SUBJECT: 2010-2011 Early Retirement Incentive Program
Good Morning Colleagues,
As I'm sure you are all aware by now, the State Legislature has enacted legislation that authorizes two early retirement incentive programs for the 2010-2011 fiscal year. The legislation is consistent with information previously provided to you about the Governor's proposed early retirement incentive in that it includes: 1. an elective program, described in Part A, for members of the New York State and Local Employees’ Retirement System (“ERS”), New York State Teachers’ Retirement System (“TRS”), and SUNY Optional Retirement Program (“ORP”); and 2. an elective program, described in Part B, for members of the ERS and TRS. For the State Operated and Statutory Campuses, we intend to present a resolution to the Board of Trustees at our June 29, 2010 meeting seeking authorization for participation in both Part A and Part B, that would allow employees to take advantage of the incentive as early as July (commencement of the "open period"). The legislation provides that the board of trustees for each community college under the program of the State University shall determine whether to participate in the Part A and Part B options.
The legislation includes the following key elements with respect to Part A:
(a) Coverage includes members of ERS, TRS, and ORP.
(b) Eligible employees must be at least 50 years of age with a minimum of ten years of service as of the date of retirement.
(c) Campuses must identify the titles that will be eligible to participate in the incentive program.
(d) To avoid eliminating positions, campuses are required to develop a savings plan.
(e) Employees retire during an open period of at least 30 days, but not longer than 90 days.
(f) An ERS or TRS member eligible for the incentive would receive one month’s additional retirement service credit for each year of credited service to a maximum of thirty-six months. The ERS and TRS costs are amortized over five years.
(g) An ORP member eligible for the incentive would receive an employer contribution to the member’s retirement account of one-twelfth for each year of service multiplied by 15% multiplied by the ORP member’s salary as of March 1, 2010, not to exceed 45% of such salary.
The legislation includes the following key elements with respect to Part B:
(a) Coverage includes members of ERS and TRS in Tiers 2, 3 and 4.
(b) Eligible employees must be age 55-61 and have 25-29 years of service as of the date of retirement..
(c) The State University must identify positions which will be excluded from the incentive because they are critical to the maintenance of public health and safety.
(d) Employees retire during an open period of 90 days.
(e) An employee eligible for the incentive would be able to retire without the reductions normally required of Tier 2, 3 and 4 members under age 62 with fewer than 30 years of service.
We are continuing to discuss details of the early retirement incentive with Division of the Budget. Specifically, we are seeking the flexibility to allow campuses to establish local open periods consistent with campus operational needs. Once adopted by the Board, each campus will have the authority to implement the 2010-11 retirement incentive program in accordance with the Board of Trustees resolution and associated guidelines. The guidelines with be issued immediately after the June 29, 2010 Board meeting.
We will keep you updated as information becomes available. In the meantime, if you have any questions or need additional information, please contact Curtis Lloyd at curtis.lloyd@suny.edu or (518) 320-1192.
Monica Rimai
Senior Vice Chancellor &
Chief Operating Officer
The State University of New York