Purpose:
The purpose of this bulletin is to provide agencies with instructions to update Tier 6 employees’ Savings Plans pages due to the two-year look back.
Affected Employees:
Tier 6 SUNY ORP and VDC members are affected.
Background:
On March 16, 2012, the Governor signed legislation authorizing the creation of a new Tier 6 pension plan. Members of this tier enrolled in a retirement system after March 31, 2012. (Please see Payroll Bulletin No. 1256)
Effective April 2013, employee contribution rates are based on an employee’s annual wage, as required by legislation.
Once a Tier 6 member has reached three (3) calendar years of membership, an employee’s contribution rate is based on annual pensionable salary from the earlier of the two prior calendar years. *
*Total salary should include ORP/VDC pensionable salary of all jobs, including salary not in PayServ.
Employee Contribution Rates:
| Wages | Contribution Rate |
|---|---|
| $45,000.00 or less | 3% |
| $45,000.01 to $55,000.00 | 3.5% |
| $55,000.01 to $75,000.00 | 4.5% |
| $75,000.01 to $100,000.00 | 5.75% |
| $100,000.01 and Greater | 6% |
Benefit Plans and Narrative Descriptions:
SUNY and NYSED
| Benefit Plan | Description | Time Participating |
|---|---|---|
| T6SU08 | SUNY ORP-T6-3-6PCT-ER8PCT | < = 7 Years |
| T6SU10 | SUNY ORP-T6-3-6PCT-ER10 PCT | > 7 Years |
VDC Agencies
| Benefit Plan | Description |
|---|---|
| T6VDCB | VDC T6-3-6PCT-ER8PCT |
Effective Dates:
These updates are effective in Administration paychecks dated January 3, 2024, and Institution paychecks dated January 11, 2024.
Agency Actions:
SUNY Office of University-Wide Benefits, as the ORP and VDC Plan Administrator, will utilize the reports from the Multi-Vendor Coordinator record keeper to calculate the 2024 two-year look back contribution rates.*
*The Multi-Vendor Coordinator, TIAA will provide a report to each campus/agency of employee records that need to be reviewed. The report is based on information provided to the record keeper. If the 2022 compensation has not been provided to the Multi-Vendor Coordinator, the campus/agency must ensure they have captured all compensation, when determining if a rate change is needed.
The Savings Plans page must be updated for members with a Payroll Status of Active, Leave of Absence, Leave with Pay, and Terminated, prioritizing active records over terminated records.
Update Percent of Earnings/Contribution Rate:
Agencies must adhere to the Agency Submission Schedule when updating the Savings Plan panel in PayServ.
- Open the Savings Plans page. (Main Menu > Benefits > Enroll In Benefits > Savings Plans)
- Enter the Empl ID into search box.
- Click Search.
- Select the correct Empl Rcd number for corresponding Job Record (if multiple records exist).
- Insert row within Coverage panel and enter the payroll period begin date into the Deduction Begin Date and Coverage Begin Date fields.
- Enter the employee’s Date of Membership into the Election Date field.
Note: Carry the same election date forward from the previous row. - Enter the employee’s Benefit Plan into the Benefit Plan field.
Note: Carry the same Benefit Plan forward from the previous row. - Enter the appropriate Percent of Earnings/Contribution Rate, dependent upon the employee’s total ORP/VDC pensionable earnings.
- Save transaction.
- Enter General Comments: “ORP/VDC Savings Plans page updated for 2024 Two Year Look-Back.”
Questions:
Questions regarding the two-year look back rates, calculations and data may be directed to SUNY Office of University-Wide Benefits.
Questions regarding PayServ entries may be directed to the Payroll Retirement mailbox.