Chapter VI: Retirement, Disability and Death Benefits

Full time teaching faculty of SUNY Potsdam are eligible to elect one of three different retirement programs:

1. New York State Teachers' Retirement System (TRS)
2. New York State Employees' Retirement System (ERS)
3. The Optional Retirement Program established by law, under which State University has designated the Teachers Insurance and Annuity Association and the College Retirement Equities Fund (TIAA-CREF) as the insurers.

Full time professional employees of SUNY Potsdam are eligible to elect one of two different retirement programs:

1. New York State Employees' Retirement System (ERS)
2. The Optional Retirement Program established by law, under which State University has designated the Teachers Insurance and Annuity Association and the College Retirement Equities Fund (TIAA-CREF) as the insurers.

Part time employees who are appointed with other than a "term" appointment may join either ERS or TRS, or the SUNY Optional Retirement Program.

Full time employees must elect to join one of these plans within thirty (30) days of their appointment. This is the only opportunity they will have to make an election. If they do not make an election within this period, they will be required to join TRS, if teaching faculty, and ERS if professional staff. Each of these programs offers certain advantages. You should consider each program in relation to your own particular needs and objectives.

Each of these retirement programs is briefly summarized in the following pages. Additional information can be obtained from the Human Resource's Office.

Supplemental Retire Plans - SUNY Voluntary Savings Program

SUNY provides employees with an additional opportunity to save for their retirement through the SUNY 403(b) Plan and the NYS Deferred Compensation Plan.  Participating in a voluntary savings plan is a great way to build your retirement savings and allows for retirement savings on a pre- and post-tax basis.  All employees who receive a W2 from SUNY are eligible to participate.

Both plans allow employees to have money deducted from their paychecks on a pre- and post-tax basis to help supplement their post-retirement income from Social Security, employer sponsored pension plans, and personal savings.

Through the pre-tax option, your contributions, plus earnings, are not taxed until you withdraw the funds, allowing for even greater savings through tax-deferred growth. Usually this will be during your retirement, when your income may fall within a lower tax bracket.

Through the post-tax option, your contributions are taxed at the time you make them (via payroll deduction), and when you withdraw the funds (contributions or earnings), you are not taxed. Use of the post-tax option may help you maintain a balance against tax rates that increase over time.

www.osc.state.ny.us/retire

Benefits vary by tier level. Membership in each tier is generally determined by the date of an employee's appointment. Presently there are six (6) tiers.
Employees who join the ERS on or after January 1, 2013, are tier 6 members.

Membership is effective as the date your application is received by ERS. Tier 6 members may retire at age 62, or later, with full benefits, or as early as age 55 with reduced benefits. If you have 30 years or credited service, you can retire with no reductions.

ERS is a contributory retirement system. Beginning, April 1, 2013, for the first three (3) years of NYSLRS membership, your contribution rates are based on annual wage when you enrolled (before federal income taxes); during your years of membership, and the State funds the balance of your benefits. After three (3) years, your contribution rate is based on the last completed State fiscal year for the upcoming fiscal year.

A member with 5 or more years service is eligible for a vested benefit which entitles you to retirement allowances as early as age 55.

In the event an employee with less than 5 years of service credit terminates employment, his/her contributions, plus interest, may be withdrawn upon request.

The formulas noted below will generally apply for the members retiring at age 62 or later for a Tier 3 or Tier 4 member:

• with at least 5, but fewer than 20 years of service credit, the benefits is 1/60th (1.66%) of final average salary* for each year of credited service.
• with 20 or more years of service credit, the benefit is 1/50th (2%) of final average salary for final year salary for each year of credited service (up to 30 years) and 3/200th (1.5%) of final average salary for each year of credited service over 30 years.
• Additional information concerning this plan is contained in the pamphlet, The Summary Plan Description for Members, or can be obtained from the Employees Retirement System (518)- 474-7736.

https://www.nystrs.org/

TRS is divided into tiers, membership in which is generally determined by your date of appointment. At present there are six (6) tiers. Employees who join the TRS on or after January 1, 2013, are Tier 6 employees.

Membership in TRS for full time employees is effective as of entry into eligible service. You contribute a percentage of your gross salary during your years of membership and the State also make contributions based upon your salary. Your contributions are determined by your tier.

A member with 5 or more years of service credit is entitled to a reduced benefit at age 55 (if member has less than 30 years of credited service).

In the event an employee with less than 5 years of service credit terminates employment, his/her contributions, plus interest, may be withdrawn upon request.

The retirement benefit formulas noted below will generally apply for members retiring at age 62 or later:

• With at least 5, but fewer than 20 years of service, the benefit is 1.66% of final average salary* for each year of service.
• With 20 or more years of service, the benefit is 2% of final average salary (up to 30 years), and 1.5% of final average salary for each year of service over 30 years.

*Final Average Salary -- Average salary with certain limitations, for the highest salaried three consecutive years to employment. Additional information can be obtained by calling TRS at 800-348-7298 ext. 6250.

Eligibility for the SUNY ORP is limited to employees in the Unclassified (e.g., UUP and MC-13) service who are full-time, part-time UUP employees with Term appointments, MC employees who are at least half-time, and employees designated as eligible under local community college contract.

There are currently four Investment Providers available under the SUNY ORP. Their web sites, phone numbers, and a listing of the agents assigned to assist the employees at each campus are provided below.

Corebridge Financial (formerly AIG Retirement Services)
1-800-445-2542
Campus Representative: Alysia Miller
Email: Alysia.miller@aig.com
Phone: 518-801-6144

 Fidelity
1-800-343-0860
Campus Representative: Bill Stark
Email: William.stark@fmr.com
Phone:  716-270-7732

TIAA
1-800-842-2252
Campus Representative: Turkessa Amoah
Email: Turkessa.Amoah@tiaa.org
Phone: 315-477-9009

Voya
1-800-584-6001
Campus Representatives: Steve Donella Jr. OR Hellen Chambers
Email: Stephen.Donellajr@voyafa.com or Helen.Chambers@voyafa.com
Phone:  Steve: (315) 682-3532, Helen: (315) 682-2872

Each of the companies that comprise the SUNY Optional Retirement Program enjoy enviable reputations in their industry and offer a variety of investment choices.

Your employer cannot give you advice with regard to how to invest your retirement plan contributions. You should discuss this with the representative of the company you select. However, among the things you should consider when making this decision are: the degree of risk you are willing to assume, other sources and types of income you except will be available during retirement, and the value to you of broad diversification of the types of investments underlying you pension annuity income.

Membership in the SUNY Optional Retirement Program is effective at your entry into State service. Contributions to the plan for employees hired before July 26, 1976 (Tiers 1 and 2) are:

Contributions to the plan for employees hired between July 27, 1976 and June 30, 1992 (Tiers 3 and 4) are:

Contributions to the plan for employees hired on or after July 1, 1992 (Tier 4A) are:

Contributions

Allowable contribution limits follow the definitions contained within §390 of Education Law, §131 of  retirement and Social Security Law, and §415 and §401(a)(17) IRS annual contribution limits, and are not subject to the newly imposed caps and limitations applicable to Tier VI ERS/TRS members.

The current required Employee Contribution Rate in a given year is based upon regular compensation, as follows:

• Wages of $45,000 or less: 3%
• Wages of $45,000.01 to $55,000: 3.5%
• Wages of $55,000.01 to $75,000: 4.5%
• Wages of $75,000.01 to $100,000: .75%

• Wages of more than $100,000: 6%

Note: All SUNY employees participating in the ORP on or after January 1, 1996 will have their contributions made on their regular compensation up to $170,000. For employees participating in the ORP, plan contributions will not be made on regular compensation in excess of $330,000.

Employees who do not own contracts with the companies noted above and elect the SUNY Optional Retirement Program will have State contributions made on their behalf once they complete 366 days of service. At the end of 366 days of service, the State will make a single lump sum contribution with interest for this initial period and then make regular bi-weekly contributions thereafter. If you do not serve at least 366 days, no State contributions will be made.

The employee contributions deducted during the first 366 days, plus interest, will be transmitted at the end of the 366 day period. If service does not continue for 366 days, the employee contributions and accumulated interest will be refunded.

You will receive quarterly reports from your pension plan administrator for each account, listing all activity during the quarter: premiums paid, interest credited, accumulation units (shares) purchased, and the value of your total accumulations. The actual amount of your retirement income will depend on the number of years you participate in the plan, the amount of premiums paid each year, your age at retirement, your investment experience, the incomeoptions(s) you select, and other factors.

Detailed information concerning your retirement plan options can be obtained from the Office of Human Resources.

If you have previous service with a public employer in New York State or military service, please notify the Office of Human Resources. You may be eligible to receive credit (and/or tier reinstatement).

Upon completion of one (1) year full-time service with SUNY, faculty and professional staff employees will automatically be enrolled in this long term disability plan. Also, part-time (non-casual) faculty and professional staff employees will also be enrolled after one year of service. If your immediate prior employer provider a long-term disability plan which provided similar benefits, you may be entitled to a waiver of the 1-year service requirement.

The objective of this plan is to ensure that a substantial part of your income will be protected in the event of a catastrophic illness or injury of long-term (more than six months) duration. There is no cost to you for this protection.

The plan provides an income of 60 percent of your basic monthly salary, to a maximum of $7,500 per month; and also contributes a monthly premium to your regular retirement plan while disabled. These benefits will begin following six months of total disability, and will continue during disability until age 65, or death, whichever occurs first. Upon reaching age 65, unless you were 60 or older when your disability began, in which case benefits are payable in accordance to a schedule, disability benefits cease, and your retirement annuity begins.

Workers' Compensation is 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 disease. It is essential that you report any job-related accident immediately to your supervisor.
Failure to do so could mean loss of benefits.

Employees who incur an occupational injury or disease may also be eligible for benefits provided under the New York State Workers' Compensation Law. Reporting all work-related injuries and illnesses is critical to ensuring that workers' compensation claims are handled properly. Here are the steps you take to report a work-related injury or illness:

• If you haven't done so already, notify your supervisor.
• Complete an Accident/Injury Report and submit it to your supervisor within 24 hours of the incident.

State employees must also call the Accident Reporting System toll-free number 888-800-0029 to report a work-related injury or illness.

The U.S. Social Security Administration provides a disability benefit to employees who are disabled to the extent that they cannot perform substantial gainful work; and who are fully insured – that is, have the necessary amount of quarters of coverage. The amount of disability benefit is the employee's Primary Insurance Amount (PIA) at the time he/she became disabled. There is a "waiting period" of five full consecutive months from the time a disability is determined until benefits begin. Additionally, disability benefits may be reduced if the employee is receiving payments under a workers' compensation or another disability plan. Additional information concerning this benefit can be obtained from the Social Security Administration, (phone: 800-772-1213).

If an employee dies while in State service, beneficiaries may be entitled to receive death benefit payments, depending upon the Retirement System the employee elected.

1. NYS Retirement System Benefits (ERS Only)
   Ordinary Death Benefit - After one year of service, the death benefit two equals the deceased member's salary. After two years of service, the benefit equals two times salary, and after three 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 on the member's age when last joining the retirement system.
   
   At age 61, the death benefit two will be reduced by 3 percent each year you continue in service. It will not be reduced below 70 percent of the ordinary death benefit payable.
   
   The death benefit is payable after retirement. It will be reduced by 50 percent at the time of retirement, and by an additional 25 percent upon completion of the first year of retirement. At the beginning of the third year of retirement, the benefit will equal 10 percent of the benefit in force at age 60, if any, or at the time of retirement, if retirement preceded age 60.
    

2. NYS Retirement System Benefits (TRS Only based on Tier)

• Tier 1 Calculation:

  • One-twelfth of your last 12 months of regular compensation for each year of service, to a maximum of three times your earnings; OR

  • The Death Gamble Benefit.  Please contact TRS at 800-348-7298, ext. 6110 for more information.  (Note: To be eligible for the this increased benefit, you must be eligible to retire without any service credit-related reductions in your pension.)

• Tiers 2-6 Calculation (All members joining on or after January 1, 2001):

  • After one year of service, the benefit equals the deceased member’s salary.  After two years of service, the benefit equals two times salary, and after three years of service, the benefit equals the maximum of three times salary.

  • The benefit is reduced after age 60 by 4% per year, up to a maximum of 10% at age 70. (Reductions begin at age 61; age is not rounded and the reduction is not prorated.)

    The death benefit is payable after retirement. It will be reduced by 50 percent at the time of retirement, and by an additional 25 percent upon completion of the first year of retirement. At the beginning of the third year of retirement, the benefit will equal 10 percent of the benefit in force at age 60, if any, or at the time of retirement, if retirement preceded age 60.

3. Accidental Death Benefits
   In addition to the above outlined ordinary death benefits, accidental death benefits are payable on behalf of members who die as the direct result of on-the-job accidents. There is no minimum service requirement for the accidental death benefit.
   
   The accidental death benefit is paid only is an employee dies as a result of an accidental on-the-job injury and the Worker’s Compensation Board (WCB) issues a determination providing for payment of a death benefit under the Worker’s Compensation Law.  The accidental death benefit is $50,000 paid to the employee’s surviving spouse and children.  If there are no beneficiaries, the benefit is paid to the deceased employee’s estate.
   
   IMPORTANT! Supervisors should keep the Office of Human Resources (267-4816) informed in any case of serious injury or illness of an employee, which may result in either disability or death. This is necessary in order for the employee to apply for all applicable disability/survivor benefits and to counsel family members.

4. SUNY Optional Retirement Plan (ORP) Benefits
   Should an employee who selected the ORP die before his/her annuity benefits begin, the full accumulations (both the employee's and the State's contributions and all investment earnings) are payable to the employee's designated beneficiary. Death benefits after retirement, if any, will be determined by the retirement income option selected.
   
   Detailed information concerning this benefit can be obtained from the Office of Human Resources.

5. Survivor's Benefit Program for State Employees
   This program ensures a minimum death benefit for your survivors, should you die and not otherwise qualify for an ordinary death benefit that is equal to one half of your annual salary. This program also supplements the ordinary death benefit payment from your retirement system. The maximum benefit is $10,000 and the minimum benefit is $2,000.
   
   This benefit is free to you, and you automatically participate in the plan after you have been employed for 90 days, providing you work at least 20 hours per week, or your annual salary was at least 1,000 hours times the State minimum wage, and your salary was paid directly from state funds.
   
   Detailed information concerning this program is contained in the pamphlet, The Survivor's Benefit Program for State Employees, can be obtained from the Office of Human Resources.
    
6. Social Security Benefits
   The U.S. Social Security Administration may provide a death benefit for those who are either currently insured or fully insured. The exact amount payable is determined by such factors as salary at the time of death, number and age of dependents, and whether any of the dependents has a disability. A lump-sum benefit of $255 may also be payable. Additional information concerning these benefits can be obtained from the Social Security Administration (Phone 800-772-1213).