STATE UNIVERSITY OF NEW YORK
CHOOSING YOUR RETIREMENT PLAN
|
Plan Type |
Teacher's Retirement System & A defined benefit plan provides a fixed, lifetime monthly income at retirement.
The amount of the benefit generally depends on how long you work and how much
you earned. Benefits are guaranteed by the State constitution. |
Optional Retirement System (ORP) Defined contribution plan benefits are based on the amounts contributed by
the employer and employee and the success of the investments. Amount of
contributions is known but the amount of future benefit varies according to
investment performance. Benefits are not guaranteed. |
|
Vesting |
5 years of full-time service credit |
Immediate if employee brings retirement contracts with any
of the four carriers with him/her from another institution; or if the
employee has 366 days service in ERS /TRS; otherwise, after 366 days of
employment. |
|
Employee Contribution |
Tiers 1 & 2 - none Tiers 3 & 4 - 3% of salary for
the first 10 years of service, none thereafter. |
3% of salary for employees joining on or after 7/27/76. |
|
University Contribution |
A lump-sum annually to its pension funds, not to
individual accounts. The annual amount is determined by the actuary of the
pension systems. |
8% of salary for the first seven years of service; 10% for years 8-10, 13% of
salary thereafter. (For employees who joined the ORP on or after 7/17/92).
|
|
Minimum Retirement Age |
Tier 1 - age 55 Tiers 2, 3, & 4 - age 62 or age 55
with 30 years of service for full benefits. Reduced benefits available at age
55 with less than 30 years of service. |
No minimum retirement age. |
|
Retirement Options |
Lifetime annuity. |
Lifetime annuity or cash withdrawals (subject to certain
limitations). |
|
Calculation of Retirement Benefit |
Retirement benefit based on a formula which takes into
account your final average salary (average of highest three consecutive years)
and your length of service. Varies by Tier. |
Retirement benefit based on the accumulated value of
contributions made by employee and University. Benefits vary depending upon
the carrier's investment experience. |
|
Death Benefit |
Calculated by formula taking into account salary and
length of service. Varies by Tier. Maximum: three times salary. Minimum: the
lesser of 1/2 salary or $10,000. |
Value of contracts. Minimum: the lesser of 1/2 salary or
$10,000. |
|
Loans |
75% of contributions plus interest. |
50% of the accumulated value of your contracts, to a
maximum of $50,000. |
|
Military Service |
May receive credit for up to three years military service
by paying 3% of salary. |
No credit. |
|
Prior Public Service |
May receive credit for prior public service when a member
of ERS/TRS or when not a member of any retirement system (contribution
required in tiers 3 & 4.) |
No credit is given for periods of service when one was not
a member of the ORP. |
Points to consider if you are offered the
opportunity to move from ERS or TRS to the Optional Retirement Program
Members of the ORP who leave SUNY and move to another employer where they are
required to join ERS or TRS will not be able to receive service credit in
ERS/TRS for any period of time during which they were a member of the ORP.
ERS and TRS allow tier reinstatement. That is, if you join in one tier, leave
state service and return at a later date, you will re-enter in your old tier
rather than being covered by the provisions of the tier in effect at the time
you rejoin. Currently, tier reinstatement is possible in the ORP if you rejoin
within seven years (this could change in the future). Also, if you move from
ERS to TRS you will join the ORP in the current (contributory) tier, even if
you are a Tier 1 or 2 member of ERS or TRS.
Legislation enacted in 2000 provides that Tier 3 & 4 members of ERS/TRS
do not have to contribute 3% of salary after 10 years of membership; no similar
legislation has been enacted to date for the ORP.
Persons who are Tier 1 or 2 members of ERS/TRS and in public service on
April 1, 1999 and October 1, 2000 will receive an additional one month's
service credit for each year of service. As ORP benefits are not based on years
of service, no similar provisions exist in the ORP.
For further information you may contact the retirement plans directly: ERS
(518) 474-7736, TRS (800) 356-3128, ING (800) 677-4636, MetLife (800)560-5001,
TIAA-CREF (800) 842-2276, VALIC (800) 44VALIC
CREF (800) 842-2776, VALIC (800) 44-VALIC.