Retirement planning is a significant aspect of anyone's financial journey, and employees within the State University of New York (SUNY) system have the advantage of the SUNY Optional Retirement Program (ORP). The SUNY ORP is a retirement plan designed to offer employees flexibility, choice, and potential growth for their post-employment years. In this blog post, we will delve into the details of the SUNY ORP plan.
The SUNY ORP is a defined contribution retirement plan available to eligible employees of SUNY institutions. It offers an alternative to the traditional New York State Employees' Retirement System (ERS) and the New York State Teachers' Retirement System (TRS).
Under the ORP, employees (hired after 4/1/2013) contribute a percentage of their salary, and the funds are invested in a range of investment options. The current required Employee Contribution Rate in a given year is based upon regular compensation, as follows:
The current Employer Contribution Rate is 8% of gross salary for the first seven years of active membership service, and 10% thereafter.
One of the key advantages of the SUNY ORP plan is its portability. Unlike traditional pension plans, which tie employees to a specific employer or state system, the ORP allows participants to take their retirement savings with them if they move to another participating institution or leave the SUNY system altogether. This is why most professors choose the ORP as its offers the flexibility to switch universities over their career without sacrificing their retirement savings.
The SUNY ORP plan provides investments from Corebridge (formerly AIG), Fidelity, TIAA, and Voya. Here is a quick summary of each option:
If you are looking for financial planning, we work with SUNY employees by using the low cost providers (TIAA and Fidelity) and then offer our financial planning services for an additional monthly fee. You can learn more about our services here.