State ORP Retirement Benefits Overview and Features
Explore the State Optional Retirement Program (State ORP) as an alternative to defined benefit plans for eligible employees. Learn about the plan's contributions, features, limitations, and disclaimer regarding PEBA-administered programs. Understand who can participate and how the defined contribution plan works for retirement benefits in fiscal year 2025.
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Presentation Transcript
Introduction: defined contribution plan Retirement Benefits Training Fiscal year 2025
Who can participate in the State Optional Retirement Program (State ORP)? Alternative to defined benefit plan for eligible employees. Available to employees of: State agencies; Public school districts; Public higher education institutions; and Participating charter schools. Optional employers, such as municipalities and local governments, are not eligible to participate. View the State ORP at a Glance flyer. 2
Defined contribution plan features Participant self-directs investments, and benefit is balance in their account. Immediate rights to account balance at termination from all covered employment or age 59 . Contributions remitted directly by employer to participant s account with chosen service provider. Account is portable. May roll over savings into account from other qualified retirement plans. Employee contributes rate equal to SCRS employee contribution; and Employer contributes at same rate as SCRS employer rate. 5% of gross pay contributed directly to participant s account with chosen service provider. Remaining employer contribution remitted to SCRS. Can choose how funds are distributed, when eligible. Incidental death benefit for active employees. 3
Defined contribution plan limitations Participant pays administrative and investment management fees. Participant assumes investment risk. Participant assumes longevity risk. No disability protection. No benefit adjustment. Not eligible for monthly benefit from PEBA. 4
Disclaimer This presentation does not constitute a comprehensive or binding representation of the employee benefit programs PEBA administers. The terms and conditions of the employee benefit programs PEBA administers are set out in the applicable statutes and plan documents and are subject to change. Benefits administrators and others chosen by your employer to assist you with your participation in these employee benefit programs are not agents or employees of PEBA and are not authorized to bind PEBA or make representations on behalf of PEBA. Please contact PEBA for the most current information. The language used in this presentation does not create any contractual rights or entitlements for any person. 5
