Take advantage today
Eligibility for the State University of New York ORP is limited to:
- employees in the unclassified (e.g., UUP and MC-13) service who are full-time,
- part-time faculty and staff who have term appointments
- part-time Management Confidential employees
- employees designated as eligible under local community college contract.
Starting early has its advantages
The State University of New York ORP is a defined contribution New York State Public Retirement Plan. Individual retirement benefits will depend on the value upon distribution of annuity contracts purchased on behalf of electing employees through employer and required employee contributions.
New York ORP does not accept rollovers from other retirement plans, traditional IRAs or Roth IRAs.
Vesting is a participant’s right of ownership to the money in his or her plan account.
- Vesting in employer contributions occurs after 366 days of active service. This period may be waived for employees coming to State University of New York with active employer sponsored retirement annuity contracts from one of the State University of New York currently authorized investment providers. All contributions will become the property of, and all investments will be directed by, the participant upon vesting.
- Employees are always vested in their contributions.
Accessing your money before retirement
The State University of New York ORP is designed to allow retirement at any age.
- Distributions from ORP contracts are permitted any time after separation from services, subject to an IRS 10% penalty for distributions prior to age 59½, unless separating from service after reaching the normal retirement age of 55.
- Inservice distributions are not allowed.
- Other allowed distributions include: certain hardship withdrawals, loans, QDRO account distributions, and distributions made upon your separation from service, death or disability.
Federal tax law requires that retirement income begin by April 1 of the calendar year following the later of: (1) the calendar year in which you reach age 72 (age 70½ if born before July 1, 1949), or (2) the calendar year in which you terminate employment.
Loan provisions in the plan make it possible to access your account, subject to certain limitations, without permanently reducing your account balance. Defaulted loan amounts (not repaid on time) will be taxed as ordinary income and may be subject to a 10% federal tax penalty if you are under age 59½.
Employees may borrow up to 50% of the accumulated value of their contracts, subject to IRS regulations. Current IRS regulations set a maximum aggregate loan balance of $50,000.