SUNY University-Wide Human Resources Manual
Benefits

last updated: Thursday, August 11, 2005

This section of the SUNY University-Wide Human Resources Manual is intended to provide very general summary information about the benefits available to State employees of SUNY. Although there is a lot of benefit information available on the internet for State employees, this information is being included in this manual for the following reasons: (1) it is felt that a SUNY University-Wide Human Resources Manual would be "incomplete" if it did not include at least some summary information about employee benefits, and (2) it may be a preferred informational source for some individuals who prefer to read "straight through" a broad topic without having to jump from link to link to get a general overview of what benefits the State/SUNY/SUNY's Collective Negotiating Agents provide. Much more detailed information is provided in other resources including the very informative SUNY Benefits website. You will find a link to it and to other resources at the end of this section.

It is important to note that employee benefit programs and employee eligibility for them are constantly changing. "Who you are" (title, full-time/part-time, negotiating unit to which your position is assigned, number of courses taught or amount of projected earnings, and length of appointment, among other factors) determines eligibility for current benefits and for any new benefits offered by the State on its own or provided through collective negotiations with employee unions. Consequently, benefits information can become out-of-date quickly. Therefore, questions about eligibility, current costs, and information about a particular benefit that may not be summarized in this manual should be addressed to the campus Human Resources Office or researched by using the links provided under references at the end of this section. In the event that there is a conflict between information contained in this section and in other more authoritative sources, follow the information from the authoritative source or contact the Human Resources Office for clarification.

Although it is hoped that many will simply read through this benefits section to get a broad, but general understanding about SUNY employee benefits, it is recognized that some may bypass the Index and come to this page for a quick answer to a question about a particular benefit. Therefore, the following table of links to benefit information contained in this section is provided.

Home Long Term Care
Death Benefits Loans from retirement plans
Deferred Compensation Retirement Programs
Disability Insurance Tax Deferred Annuities
Flex Spending Account Tuition Assistance
Health Insurance Unemployment Insurance
Life Insurance Workers Compensation


Death/Survivor Benefits
If an employee dies while in service, beneficiaries may receive death benefit payments from the employee's retirement system or the Survivor's Benefit Program, and from the Social Security Administration.

NYS Employees' Retirement System (ERS) Death Benefit
Employees who joined the Employees' Retirement System on or after July 26, 1986 must elect coverage under one of two death benefits. Death Benefit Two coverage is automatic for Tier 3 and Tier 4 members who joined prior to July 26, 1986.

Death Benefit One: Provides for the payment of an amount equal to one month's salary for each year of service, not to exceed a maximum of three (3) years salary (after 36 full years of service). At age 62, Death Benefit One is substantially increased for a career employee, since the benefit becomes equal to the member's pension reserve.

Death Benefit Two: After one year of service, Death Benefit Two equals the deceased member's salary. After two years of service, the benefit equals two times salary; and after three or more years of service, the benefit equals the maximum amount of three times salary. However, if an employee last joins the retirement system at age 52 or later, the benefit is reduced based upon the member's age when last joining the system. At age 61, Death Benefit Two will be reduced by 10 %, and by 10 % each year thereafter, but not below 10 % of the original benefit. Death Benefit Two is payable after retirement. It will be reduced 50 % at the time of retirement, and by an additional 25 % upon completion of the first year of retirement. At the beginning of the third year of retirement, the benefit will equal 10 % of the benefit in force at age 60, if any, or at the time of retirement, if retirement preceded age 60.

Note: If an employee's spouse dies, it should prompt the employee to review both beneficiaries and benefits. For example, a reduction in the cost of health insurance would result if the death enables the employee to switch from family to individual health insurance.

 

NYS Teachers' Retirement System (TRS) Death Benefit
Members who join the Teachers' Retirement System after September 1, 1983 must elect coverage under one of two death benefits. Death Benefit Two coverage is automatic for Tier 4 members who do not elect a death benefit option.

Death Benefit One: Provides for the payment of an amount equal to one month's salary for each year of service, not to exceed a maximum of three (3) years salary (after 36 full years of service). However, under the "Death Gamble" provision, your beneficiary would be eligible for your pension based upon your pension reserve amount, if that provides a greater benefit.

Death Benefit Two: After one year of service, Death Benefit Two equals the deceased member's salary. After two years of service, the benefit equals two times salary; and after three or more years of service, the benefit equals the maximum amount of three times salary. However, if an employee last joins the retirement system at age 52 or later, the benefit is reduced based upon the member's age when last joining the system. At age 61, Death Benefit Two will be reduced by 10 %, and by 10 % each year thereafter, but not below 10 % of the original benefit. Death Benefit Two is payable after retirement. It will be reduced 50 % at the time of retirement, and by an additional 25 % upon completion of the first year of retirement. At the beginning of the third year of retirement, the benefit will equal 10 % of the benefit in force at age 60, if any, or at the time of retirement, if retirement preceded age 60.

Optional Retirement Program (ORP) Death Benefit [AIG Valic, ING, MetLife, or TIAA-CREF]
Should an employee who selected the Optional Retirement Program die before their annuity benefits begin, the full amount of accumulations (both the employee's contribution and the State's contributions plus all investment earnings) is payable to the employee's designated beneficiary.

Death benefits after retirement will be determined by the combination of the income available to the survivor(s), if any, from the retirement income option selected at the time of retirement for annuitized funds and the balances remaining in accounts not yet annuitized. Further information is available in the Human Resources Office or directly from the Optional Retirement Program provider.

Accidental Death Benefit
If an employee dies as the result of a job-related accident, as determined by the NYS Workers' Compensation Board, the employee's estate/beneficiaries may be eligible for a $50,000 survivor's accidental death benefit.

An additional accidental death benefit is that dependent children of the deceased who are admitted to the State University of New York (SUNY) may be eligible for full tuition reimbursement. In the case of employees designated managerial or confidential, such children may be eligible for full tuition reimbursement at SUNY or full tuition, up to the amount charged by SUNY, while attending another accredited institution in New York State.

In addition to the ordinary death benefits, accidental death benefits are payable on behalf of members who die as a direct result of on-the-job accidents. There is no minimum service requirement for the accidental death benefit. This benefit is paid in monthly installments with the annual amount equal to 50 % of the member's last year's earnings.

Survivor's Benefit Program for Active State Employees
This program ensures a minimum death benefit of $2000 for the designated beneficiary of an employee who dies while in service and does not otherwise qualify for an ordinary death benefit of an equal or greater amount if enrolled in a retirement program. It also provides for a payment of $2000 if you are otherwise entitled to the ERS accidental death benefit. This benefit program is free to you; you are automatically enrolled in the program after you have been employed for ninety (90) days, providing you work at least twenty (20) hours per week, or your annual salary exceeds $2000.

Survivor's Benefit Program for Retired State Employees
The designated beneficiary, or the deceased retired employee's estate, of an eligible State employee will receive a $3,000 survivors benefit in addition to any death benefit available through his/her retirement program. To be eligible, employees must have retired with 10 years of full-time State service in the fifteen years prior to retirement. Additionally, ERS and TRS participants must have been at least age 50 when they retired to be eligible. ORP participants are eligible if they were at least age 62 when they retired, or if they were at least 55 and began taking a portion of the benefit in lifetime annuities within 90 days of their retirement effective date.

More detailed information is available in the Human Resources Office. Ask for the pamphlet entitled The Survivor's Benefit Program for State Employees or the pamphlet Survivor's Benefit Program for Retirees.

Social Security Survivors Benefits
The Social Security Administration provides a death benefit for survivors of those who have paid into the system. Generally, a beneficiary receives 75 % of the primary insurance benefit the employee would have received if he or she retired at age 65. The exact amount payable is determined by such factors as salary at time of death, number and age of dependents, and whether any of the dependents has a disability. A surviving spouse with children may be entitled to additional benefits. Additional information is available in the Human Resources Office or can be obtained directly from the Social Security Administration at the link contained in the references at the end of this section.

New York State Accidental Death Tuition Benefit
The program provides a $50,000 accidental death benefit and a college tuition benefit to eligible surviving children of State employees who die as a result of an on-the-job accident where a death benefit is paid under the Workers' Compensation Law. The tuition benefit provides for full tuition reimbursement for dependent children admitted to the State University of New York.

Deferred Compensation
Eligible State employees may participate in a deferred compensation program. This program allows participating employees to save on a tax-deferred, payroll deduction basis. Upon separation from employment employees may withdraw their funds, elect a distribution option, or allow the funds to continue to draw interest until they decide to draw on them later. However, unless still working, they must start a distribution at age 70 1/2.

Eligible employees have other options for tax deferred retirement savings through participation in tax deferred annuity programs. In some cases these programs can be combined to maximize both tax advantages and the amount invested for retirement. After retirement or age 59 1/2, there are tax advantages for participants who remain in NYS. On their NYS Income Taxes they may deduct up to a maximum of $20,000 per tax year for distributions received from a Deferred Compensation account, a Tax Deferred Account, or a combination from these accounts. To be eligible for this tax advantage, participants in the Deferred Compensation Plan must choose scheduled periodic payments distribution option. Follow the deferred compensation link in the references at the end of this page or contact your Human Resources Office for more information.

(See also: Tax Deferred Annuities later in this section).

Disability Insurance
There is no disability insurance for classified service employees beyond sick leave and other accruals plus, with some restrictions, one pay period at half pay for each six months of service. [All employees could be further assisted from the "Leave Donation Program" to the extent that other employees donated vacation accruals to support them]. For all full-time unclassified service employees (SUNY Professional Service) and part-time unclassified service employees meeting salary or course load eligibility requirements, the following plan, fully funded by the University and administered by the Standard Insurance Company of New York, is provided:

Flex Spending Account (Dependent Care Advantage and/or Health Care Spending Account)
Under this program eligible employees can choose two benefits. One benefit allows employees to set aside pre-tax dollars, up to $5,000 per year for the Dependent Care Advantage Program, to help defray depend care expenses. The other allows employees to set aside up to $3,000 per year for the Health Care Spending Account to help defray health care expenses not covered by regular health insurance. To be eligible, employees must be receiving regular biweekly paychecks. Participants must sign up during the open enrollment period - contributions are made on a tax year (1/1-12/31) basis. The participation amounts, up to the maximum allowed for each program, are determined by the employee.

Note: The Flex Spending Account programs are "Use It or Lose It" programs. It is very important to understand the following information that is not always included in promotional materials for this program:

Forfeiture Rules -- "Use It Or Lose It"
Because of the tax advantages of the Flex Spending Account, the Internal Revenue Service (IRS) has strict guidelines for its use. One of these guidelines is commonly known as the "use it or lose it" rule. Put simply, if you contribute pre-tax dollars into your DCAAccount or HCSAccount and then do not have enough eligible expenses during the Plan Year to equal the amount you contributed, you will lose the balance remaining in your account when the Plan Year ends. That is why it is important to plan carefully before deciding how much to contribute. With careful planning, you can minimize the risk of losing any of your contributions. According to the IRS, after all submitted reimbursement claims have been processed, any funds remaining must be returned to the employer. The unused funds are used to defray the cost of administering the program. Participants have until March 31st each year to submit any eligible unreimbursed expenses from the previous Plan Year. But remember -- if you plan properly, you are unlikely to forfeit any of your funds.

For more information choose the Flex Spending Account (Dependent Care Advantage Health Care Spending Account) link in the references at the end of this page.

Health Insurance
Several health insurance options are available to eligible State employees depending upon appointment title, which determines their collective negotiations unit, and other factors relating to the type and duration of their appointment. The following information is intended to provide general information and guidance. For more detailed information, follow the links under references at the end of this section. Information on the following topics is provided below:

Eligibility:
The following employees are eligible for health insurance coverage for themselves and their eligible dependents at the group rate:

Effective Date of Coverage:
Providing you apply for coverage within the first 42 days of employment, coverage will become effective on the 43rd day of employment. If employees lapse coverage while on a leave or other interruption of service, they will again have a 42 day waiting period before coverage becomes effective following re-enrollment. Employees on leave without pay may continue health insurance by paying the full-cost of premiums. Part-time professional staff who are eligible for health insurance during the spring semester who do not receive pay during the summer may be entitled to have additional premiums withheld during the spring semester to cover the cost of the continuation of their health insurance until they return to the payroll in the fall.

Premiums:
The State indexes the cost of premiums to the Empire Plan premium. Then, regardless of whether you participate in the Empire Plan, or an HMO, the State pays an amount equal to 90% of the empire plan premium for individual coverage and an amount equal to 75% of the empire plan premium for your eligible dependents or 100% of its cost for the Empire Plan, whichever is less. Employees are responsible for paying the remaining share of the premium. Employee may elect to have the biweekly health insurance premium deducted on a pre-tax cost. Effective January of each year, the biweekly premium cost is subject to change.

(Note: When available to employees represented by collective negotiations, such employees meeting eligibility requirements, including meeting the sick leave accrual requirements at the time of election, may exchange up to 3 days of such credits for the purpose of reducing their health insurance premiums. Because this benefit is tied to the health insurance premium rates for each calendar year that are mostly paid on a pre-tax basis, the open period is scheduled for November. If and when this program is available, employees are provided timely information about this program, the deadline dates for enrollment and an enrollment application. See: Sick Leave Exchange Program under Orientation - Attendance and Leave).

Options:
Employees may enroll in either the Empire Plan, which is available statewide, or choose from 13 health maintenance organizations available in different parts of the state. There is an annual option transfer period (usually November) when employees may transfer to a different plan for the coming year.

Change of Option/Coverage
There is an annual transfer period (usually in November) during which time an employee can change their health insurance option and/or coverage. This restriction is because premiums may be paid on a pre-tax basis (a "qualified plan" under IRS rules. Consequently, changes, except in special cases, must be associated with the tax year.

Health Insurance for Domestic Partners
State employees who are enrolled in the New York State Health Program (NYSHIP) can provide for the extension of health insurance coverage to their domestic partners. Unmarried enrollees may cover same, or opposite, sex partners with whom they reside and have a committed, long-term relationship of mutual support and for whom they have assumed long-term financial responsibility or have mutual financial responsibility. Persons who live together for economic reasons, but who have not made a commitment to an exclusive enduring domestic partnership will not be considered to be domestic partners for the purposes of enrollment in the New York State benefit program. The rules require proof of one year of domestic partnership prior to eligibility for coverage and a two-year break between covering domestic partners. For additional information and appropriate forms, please contact the Office of Human Resources.

Prescription Drug, Dental, Vision, and Hearing Care
Employees eligible to participate in health insurance may be eligible to enroll in prescription drug, dental insurance, vision care and hearing care plans. Coverage which in some cases is provided through a negotiated employee benefit fund is generally effective upon completion of 42 days of continuous service assuming a timely enrollment. For most employees Prescription Drug coverage is now provided through the health insurance option they have elected. Co-payments are generally, if not always required and generally if a generic drug is available, the cost of such generic substitute is the basis upon which the prescription drug program determines the amount it will pay. Specific information can be obtained by contacting the Office of Human Resources.

Health Insurance Coverage After Retirement
If an employee meets specific criteria, they will be eligible to continue health insurance in retirement. In general, they must have completed at least ten (10) years of service, and be a member of a state administered retirement system. Eligible employees may also be able to use sick leave credits available to them at the time of retirement to create an actuarial account that is used to reduce the employee share of the health insurance premium.

Life Insurance
The State does not pay for life insurance beyond that which is available through the Survivor's Benefit Program (see death benefits above) or from the retirement program in which the employee participates.

Group life insurance programs are available to employees depending upon the collective negotiating unit to which they belong. Such group plans may provide term insurance at lower premiums than employees could purchase on their own. For managerial/confidential employees who are not eligible to be represented for collective negotiations, the State has provided a group rate life insurance program (again, M/C employee pays premium). In addition to making some group life insurance available to employees it represents, United University Professions (UUP) provides a $6,000 life insurance benefit to the employees it represents who elect membership rather than just paying agency fees.

For more information, M/C employees should contact their campus Human Resources Office and represented employees should contact their campus union representative.

Long Term Care
The State does not pay for long term care insurance. However, in order to give employees an opportunity to purchase long term care insurance at group rates the State issued a request for proposals (RFP) and entered into a contract under which MedAmerica will provide long term care insurance to State employees. Participation in this long term care insurance plan shall be at the option of the employee and shall be paid for solely by the employee. You will find links to the enabling legislation authorizing the establishment of a long care insurance plan for State employees and to MedAmerica's website in the references at the end of this section.

Retirement Systems

Classified Service Employees have only one retirement program option.

Full-time classified service employees, serving on other than temporary appointments, must join the New York State Employees' Retirement System (ERS). (ERS) is a defined benefit plan (a retirement program under which the retirement benefit to be paid is some percentage of final average salary based on years of service at retirement rather than simply the return of investment from a retirement fund).

Part-time classified service employees, and both full-time and part-time classified service employees serving on temporary appointments, may join the retirement system but they are not required to do so.

Unclassified Service Employees (SUNY Professional Service) have options.

Full-time unclassified service employees have a menu of retirement programs from which to choose. However, they must make their election and complete their retirement application within 30 days of their initial appointment. If they fail to do so, they must join the New York Teachers' Retirement System (TRS*). The program election form can be found in the packet of benefit materials provided to new appointees by the campus Human Resources Office or is available on the Internet under forms at the end of this section. The retirement program options for SUNY full-time unclassified employees who make a timely (30 days from effective date of appointment) election are:

  1. the New York State Employees' Retirement System (ERS), a defined benefit plan with a five-year vesting period; or
  2. the New York State Teachers' Retirement System (TRS), a defined benefit plan with a five-year vesting period; or
  3. the Optional Retirement Program (ORP), a defined contribution plan (a retirement program under which an employee contributes a percentage of salary and the return on investment determines the retirement benefit) with a 366 day vesting period under which contributions remitted through TIAA-CREF can be invested with TIAA-CREF, or in alternative funding vehicles available with:
      • AIG Valic, or
      • ING, or
      • MetLife
        In order to prevent disruption of work and undesired solicitations, there are guidelines governing access to employees by representatives of the optional retirement program funding vehicles. For more information follow the link to the Guidelines for ORP Representatives in the references at the end of this section.

    Retirement Suspension Account
    Until the completion of the 366 days for vesting in the ORP, retirement contributions on behalf of an employee are held in a "suspension" account. If an employee leaves SUNY employment before the completion of 366 days, the State's contribution returns to the State and the employee's contribution returns to the employee. If the employee remains employed at the completion of 366 days since initial appointment, both the State's and the employee's contributions held in suspense are forwarded to the appropriate retirement funding vehicle vendor (ING, MetLife, TIAA-CREF, Valic) and the employee thereafter has a fully vested account with that vendor.

    *Most SUNY unclassified service faculty and staff joined the New York State Teachers' Retirement System before enabling legislation made the optional retirement program (ORP) available to SUNY full-time unclassified employees in 1964. SUNY requested the ORP as it evolved from Teachers Colleges to a university system because there was the need for a more flexible retirement program option (shorter vesting period and greater transferability), to enhance SUNY's ability to attract the best qualified faculty and staff. Understandably, TRS lobbied the legislature for some concessions since it stood to lose a large number of members and future memberships. The major concession was that full-time unclassified service employees would have to elect the ORP within 30 days of appointment else they would have to join TRS instead. There were also conversion provisions that allowed employees with memberships in ERS or TRS who elected to participate in the ORP when it first became available to either withdraw that membership to continue it. If employees continued their membership and completed enough years of service to meet the vesting requirement in ERS/TRS (at the time 10 years), they could become vested in both their chosen defined benefit system (ERS or TRS) and the ORP. Of course their ERS/TRS benefit at retirement would not be much since it would be based upon their actual years of service and earnings record while active in that system. Many faculty and staff who would have had this dual retirement membership as a result of electing the ORP in 1964 have now retired but there are a few such employees remaining in service as of 2004.

Part-time unclassified service employees do not have to join a retirement system. However, if they already have a current membership in TRS, they must continue such membership, or, if eligible, elect to participate in the ORP.

Part-time unclassified service employees in the SUNY professional services negotiating unit (faculty and professional employees) may elect to participate in either the New York State Employees' Retirement System (ERS) or the New York State Teachers' Retirement System (TRS) without qualification, or they may elect to participate in the Optional Retirement Program if and when they are appointed on a "term" appointment. In the case of the Optional Retirement Program, the effective date for participation is the date of appointment to a term appointment if the employees elect to participate in the optional retirement program within 30 days of their initial "term" appointment whether it occurs upon initial appointment or thereafter. If such part-time employees fail to elect to participate in the ORP within 30 days of first eligibility they may still make such election (unless they have otherwise joined ERS/TRS since becoming eligible to elect the ORP) and their election date, not the date of their term appointment, will be their participation effective date.

Part-time unclassified service managerial/confidential employees may elect to participate in any of the retirement programs upon initial appointment or at any time thereafter. If they elect to participate within 30 days of appointment their membership date will be their appointment effective date. If they fail to elect a program within 30 days of appointment, their membership date will be the date of election.

Graduate/Teaching Assistants
Graduate/Teaching Assistants do not have to join a retirement system. However, if they already have a current membership in TRS, they must continue such membership. Graduate/Teaching Assistants who are not already members of ERS may elect to join either ERS or TRS.

Note: Employees who are not required to join a retirement program (part-time employees or classified service employees serving on temporary appointments) who choose not to participate because of the requirement that they contribute 3% of their salary to the retirement system for the first 10 years should consider the following:

  • If they leave employment before they have vested, they may have their 3% contribution refunded.
  • Part-time classified service employees or those serving on a temporary appointment who elect to participate will have an earlier vesting date and service credit for their part-time service if they later become full-time. Also, they protect themselves from potential changes in the retirement laws that might affect benefits.
  • Part-time unclassified service employees who join ERS or TRS who later receive "term" appointments making them eligible for participation in the ORP can benefit from such participation. In the event that retirement laws change they will retain the tier that they had when they first joined ERS or TRS. Also, if they have completed at least 366 days of membership in ERS/TRS with SUNY and are still active in ERS/TRS when they first become eligible for the ORP, they will be immediately vested and contributions will immediately be made to their defined contribution retirement account.
  • Part-time unclassified service employees who are not initially eligible for the ORP who do not join a retirement system for which they are eligible and later elect to participate in the ORP when they receive term appointments are not vested until they have participated for 366 days.

Vesting
Vesting basically means that if you leave State service after completing enough time for vesting, you will have some benefit for your service available when you reach retirement age for your tier.
For the defined benefits programs (ERS and TRS) vesting requires the completion of 5 years of credited service. In the optional retirement program (ORP) vesting occurs after 366 days of participating service for full-time unclassified service employees and for part-time unclassified service employees initially appointed to term appointments. For part-time unclassified service employees who did not receive initial term appointments vesting occurs 366 days from the first date of eligibility (effective date of first term appointment) providing the employee filed a timely election, or 366 days from the participation election date if they miss the 30 day deadline.

Refunding of 3% Contribution
If an appointee participating in a retirement program in a tier where the 3% employee contribution is required separates from service before vesting occurs, such employee is eligible for a refund of the 3% contribution withheld. Affected employees should contact their Human Resources when separating from service for assistance in filing for the refund.

Pension Benefits
Pension benefits, (defined benefit plans) and contribution requirements (defined contribution plan), have been adjusted for SUNY retirement programs during the last few years and employee benefits now depend upon the employee's retirement tier. Retirement tiers are determined by an employee's date of first and continuing membership in a defined benefit program or first participation and continuance in SUNY's optional retirement program (ORP).

For ERS and TRS the tier assignment follows transfers between State agencies as long as there is no break in membership. For the ORP, since it is a SUNY only optional retirement program, the tier will follow transfers between campuses but prior participation in an ORP outside of SUNY will not count for tier assignment but will provide for immediate vesting if the appointee has existing ORP contracts from another university.

Benefits by Tier

Tier 1

Tier 2

Tier 3
The laws of 1998 improved the retirement benefits for Tier 3 members of the defined benefit plans. Check with the retirement system for details.

Tier 4
The laws of 1998 improved the retirement benefits for Tier 4 members of the defined benefit plans. Check with the retirement system for details.

Tier 4+ (Only applies to the Optional Retirement Program)

Loans
Employees may be able to obtain loans from their retirement programs under certain circumstances and within limitations imposed by retirement law or SUNY policy. Interested employees should contact their retirement system (NYS Employees' or NYS Teachers' system), or their vendor (AIG-Valic, ING, MetLife, or TIAA-CREF) if they participate in SUNY's Optional Retirement Program (ORP). Loans were not available to particpants in the ORP until the SUNY Board of Trustees adopted enabling policy in 2004 as follows:

"The SUNY Board of Trustees has adopted a resolution permitting loans in the Optional Retirement Program. Employees will be permitted to take one loan per carrier per twelve month period. The total amount borrowed from any one carrier may not exceed 50% of the accumulated value of the employee's contracts. Carriers may have their own regulations which result in a lesser amount of funds being available.

All loans are subject to IRS regulations. Current IRS regulations set a maximum loan balance of $50,000. This balance applies to all loans from an employer's retirement and tax-deferred savings plans combined. It is the responsibility of the employee to see that they do not exceed this limit.

Loan provisions also apply to tax-deferred annuities provided by TIAA-CREF.

Employees should be aware of the consequences of loan default. Defaults are taxable as ordinary income in the year in which they occur. In addition, employees under the age of 59 1/2 may be subject to an additional 10% federal tax penalty. Loan default also reduces the retirement income an employee will receive."

A link to the SUNY Board of Trustees Policy relating to loans for ORP participants is available in the references at the end of this section along with the loan provisions for the NYS Employees' and Teachers' retirement systems.

Cash Withdrawals Policy for participants in SUNY's Optional Retirement Program (ORP)
The SUNY Board of Trustees has established policies that allow particpants in SUNY's Optional Retirement Program to take cast withdrawals from their retirement accounts under certain circumstances. The proposal for the policy, the policy, and the specific policy under which hardship withdrawals may be authorized can be found in the links under references at the end of this secton -- look for subjects begiinning with "ORP".

Tax Deferred Annuities
Depending upon their category of employment, SUNY employees may participate in a Tax Deferred Annuity or Supplemental Retirement Annuity program. These programs allow employees to save for retirement on a tax-deferred basis. Employees who elect to participate can have their salary reduced by an amount (not to exceed a maximum exclusion allowance defined by the internal revenue code) each pay period. Depending on the collective bargaining unit to which their work/title is assigned, employees have different options for investing this savings for retirement. Income from these investments will supplement the retirement income of participating employees and, after retirement, the first $20,000 drawn from these accounts each year is not subject to New York State Income Taxes.

Currently the employees have the following vendors and programs from which to choose for their tax deferred retirement savings. They should also review the Deferred Compensation section above for related information.

Investment Product Vendor Eligible Employees
Supplemental Retirement Annuities (SRA) *ING UUP
Supplemental Retirement Annuities (SRA) Fidelity (Mutual Funds) M/C, UUP
Supplemental Retirement Annuities (SRA) TIAA-CREF M/C, UUP
**Tax Deferred Annuities (TDA) TIAA-CREF All Employees
*Through an SRA with ING, employees represented by UUP have the opportunity to choose to invest with any investment vendor licensed to do business in New York State. **Tax Deferred Annuities are like SRAs except that until SUNY policy changes in 2004, the access to funds was more restricted. As a result of these policy changes participants in TDAs also have the ability to borrow from their funds and to make cash withdrawals following separtion from service.

You can find more information about a particular vendor by following the "Benefits Links" link in the references at the end of this section. More information about these tax deferred retirement savings programs, including salary reduction agreement forms and, as required in some cases, applications, are available from the Human Resources Office. An SUNY-wide acceptable salary reduction agreement form is also available from the Salary Reduction Agreement link under forms at the end of this section. SUNY campuses encourage employees to investigate and participate in these programs to enhance their retirement benefits if at all possible.

[Note: Prior to 1999 participants in SRA/TDA programs could only change their salary reduction agreements once each year. As a result of changes in the laws and subsequent changes in the SUNY plan, participants have been able to change their salary reduction agreements up to four times per year since 1999. In 2004 the four times per year restriction was eliminated and participants can now change their agreements for any payroll period throughout the year.]

Tuition Assistance
There are several tuition assistance programs available for eligible employees of SUNY. Included are tuition waiver and tuition reimbursement programs. Employees represented by UUP may also take courses for credit at their campus or other SUNY institutions on a "space available" (Article 46, current UUP Agreement) basis. SUNY is also experimenting in the area of tuition support for dependents. For more information about support for employees and their dependents desiring to take courses at SUNY campuses, contact the Human Resources Office.

Unemployment Insurance
State employees are covered by unemployment insurance on the same basis as employees in private industry. Whenever employees become potential targets for layoff or retrenchment the Human Resources Office will provide them information about these benefits. For employees who want to know more about these benefits, you are encouraged to contact the New York State Department of Labor for informational brochures. You can also find more information at the NYS Department of Labor's website listed in the references at the end of this section.

Workers' Compensation
Workers' Compensation benefits are intended to protect employees against loss of income or loss of employment when they are necessarily absent from work because of an on-the-job injury or an illness or disease for which a causal relationship has been established. Employees must notify their supervisors and Human Resources immediately of injuries or determination that an illness or disease is work related. Failure to do so could result in the loss of benefits. For more information follow the Workers' Compensation link in the references at the end of this section.

Reference(s):

Benefit Links (Retirement Systems/Providers and other carriers)

Deferred Compensation Program
http://nrsretire.nrsservicecenter.com/nrs/?Site=NYSDCP

Flex Spending Account (Dependent Care Advantage Health Care Spending Account)
http://www.flexspend.state.ny.us/

Guidelines for Optional Retirement Program (ORP) Funding Vehicle Representatives

Health Insurance Legislation (Article XI, Civil Service Law)
http://assembly.state.ny.us/leg/?cl=18&a=29

Health Insurance Information from NYS Department of Civil Service (Select "Executive Branch")
http://www.cs.state.ny.us/ebd/

Loans for NYS Employees' Retirement System members

Loans for NYS Teachers' Retirement System members

Loans from retirement funds for ORP participants (SUNY Policy)

Long Care Insurance Enabling Legislation (Article XI-A, Civil Service Law)
http://assembly.state.ny.us/leg/?cl=18&a=30

MedAmerica (Long Term Care Provider)
http://www.yourlongtermcare.com/group/index.jsp?accessCode=hp1zz

ORP Cash Withdrawal Policy Proposal

ORP Cash Withdrawal Policy

ORP Cash Withdrawal for Hardship Policy

Social Security Administration
http://www.ssa.gov/SSA_Home.html

SUNY Benefits Website
http://www.esc.edu/services/sunybenefits.nsf/home

Unemployment Insurance
http://www.labor.state.ny.us/html/

Workers' Compensation (What is it?)
http://www.goer.state.ny.us/Benefits/workerscomp.html

Form(s):

Health Insurance Transaction Form (PS-404) [for all eligible employees except graduate/teaching Assistants] (MSWord Template)

Health Insurance Transaction Form (PS-404G) [for eligible graduate/teaching assistants] (MSWord Template)

ORP Retirement Program History Sheet (C2752-480)

Salary Reduction Agreement (TDA/SRA) (MSWord) or (PDF non fill-in) or (PDF fill-in)

TIAA-CREF Action Request (AC1767) (MSWord fill-in) or (PDF non fill-in) or (PDF fill-in)

Tuition and Fee - Application for Asistance/Waiver (B-140W) (MSWord fill-in) or (PDF non fill-in) or (PDF fill-in)