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State Retirement Plan Information: State University of New York Optional Retirement Plan (ORP)

The Optional Retirement Plan is a defined contribution plan designed to provide retirement contributions for certain eligible employees of the Contract Colleges at Cornell University State supported units through a five (5) split tier contribution system.

Summary Plan Description

Eligibility
In general, all full-time faculty and exempt staff members of Contract Colleges are eligible for the ORP. Part-time faculty at Contract Colleges who have "term appointments" are also eligible. New exempt employees must select which retirement plan (ORP or NYSERS) in which to participate within 30 days of hire. This election is irrevocable. Once the ORP is elected, an application must be completed and participation in the ORP begins immediately

ORP has separate contribution rates based on the date of hire and plan participation. For those employees who do not have current TIAA-CREF employer-funded contracts established at another institution, a 366-day escrow or delayed vesting period is in effect from the date of hire. Contributions are deducted from your salary and held in Albany by the State of New York. At the end of the 366-day period, contributions are sent to TIAA-CREF. For those employees who have current contracts, vesting is immediate and contributions are submitted directly to TIAA-CREF.
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Contribution Rates
Tier Date of Membership Employer Contribution Employee Contribution
1 Prior to July 1, 1973 12% of first $16,500.00 of salary, plus 15% of salary above $16,500.00 No contribution required
2 Between July 1, 1973 to July 26, 1976 12% of first $16,500.00 of salary, plus 15% of salary above $16,500.00 No contribution required
3 Between July 27, 1976 to August 31, 1983 9% of first $16,500.00 of salary, plus 12% of salary above $16,500.00 3% required *
4 Between September 1, 1983 to July 16, 1992 9% of first $16,500.00 of salary, plus 12% of salary above $16,500.00 3% required *
4A On or after July 17, 1992 8% of salary for first seven years of service then 10% for subsequent years 3% required*

*The 3% mandatory employee contribution is made under Section 414(h)(2) of the Internal Revenue Code (IRC). Federal income taxes are deferred on the contribution, but New York State and any local taxes would still apply. Beginning April 1, 2008, the 3% employee contribution is phased out after 10 years of participation. All earnings compound tax deferred until you retire.

Effective January 1, 2008 contributions are limited to $230,000 of regular compensation.
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Investments
All contributions are submitted to TIAA-CREF. Each participant selects an investment alternative based on investment objectives, time horizon, and risk tolerance among other factors. TIAA-CREF will transfer contributions if a participant elects an alternative vendor for the investment of their account. Together, these vendors offer over 120 investment funds. Quarterly statements are mailed directly to the participant's home or sent on line to the participant by the investment vendor. The quarterly Vendor Performance Summary is available on line for your convenience.
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Participating Vendors

  • ING
    (800) 677-4636

To set up a personal appointment with the investment vendors, call:

  • TIAA-CREF
    (877) 209-3144
  • ING
    (888) 883-6320
  • Metlife
    (315) 521-1830
  • AIG/VALIC
    (800) 892-5558, ext. 88174

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Transfers
Under the SUNY ORP, it is possible to make transfers of variable account accumulations to alternate funding vehicles approved by SUNY: ING, Met Life and AIG/VALIC. There is no charge for transfers within the Plan.

You can complete a Direct Transfer Form each time you want to make a transfer. A minimum of $1,000 must be transferred from any one account, or the entire account balance, if less. To make a transfer, call TIAA-CREF at (800) 842-2776 to request a Direct Transfer Form.
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Distributions
If you are not yet separated from service, federal tax law generally prohibits you from receiving income based on salary reduction contributions made after December 31, 1988, and on earnings credited after that date on all your salary reduction contributions. The exception is if you become disabled as defined under the IRS code. Additional restrictions will apply to amounts you transfer from a mutual fund custodial account to your annuities.

You are eligible to receive distributions from your account once you have separated from your service with Cornell and any SUNY employer.

You can postpone your distribution until the beginning date required under federal tax law. Generally, the law requires that you begin to received income by the April 1st of the year following the year you turn age 70 ½ or the year you retire whichever is later. If you don’t begin income from your annuities by the required date, you may have to pay a substantial tax penalty on the amount your should have received.

Loans are available from this plan under certain circumstances. Contact the investment vendor for specific information.

Hardship withdrawals are available from this plan to meet certain financial needs. Contact the investment vendor for specific information.

Withdrawals are permitted if you are receiving benefits under the university's long term disability program. Contact the investment vendor for specific information.

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