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Participant FAQ
Who is eligible for ORP coverage?
The ORP covers faculty and senior administrators at all public institutions of higher education. Three criteria must be met and are described in the eligibility section.
How do I enroll in the ORP?
The enrollment process is outlined in the enrollment section.
When is my enrollment effective?
Your actual enrollment in the ORP is effective on the first day of the pay period following receipt of all of your completed enrollment forms by your campus' benefits administrator.
May I change my ORP Provider?
The process to change Providers is outlined in the maintaining an ORP account section.
What is the difference between ORP and the State Employees' Retirement System?
There are many similarities and differences between the two programs.
How will my ORP benefits affect Social Security retirement income?
ORP Participants who are entitled to Social Security retirement benefits will find that the Social Security Administration (SSA) applies "offsets" to benefits for pensions from public employers. This is explained more fully in the Social Security offset section.
Are my ORP contributions tax-deductible?
While the Board of Higher Education cannot provide either tax or legal advice, our understanding of this issue is that the first $2,000 of your Plan Contributions are deductible on your state tax return. All Plan Contributions, employee and employer, are tax-deferred for federal income tax purposes.
We encourage you to thoroughly read the Comptroller's instructions that accompany your Form W-2 from the Commonwealth. These notes address the deduction of employee contributions to state retirement plans, including the ORP.
Please call the Comptroller's Office, or your personal tax advisor, for additional assistance with tax questions.
Is the value of my group life insurance currently taxable?
Yes, the value of employer-provided group term life insurance is subject to current taxation. The amount of this tax is generally considered minimal and is reported on your Form W-2 each year.
Click here to see a sample calculation of the taxable value of this benefit.
How do I apply for payments from the ORP?
You may draw payments (distributions) from the Program at any time after you terminate employment with the Commonwealth. The process for taking distribution is outlined in the payment of benefits section.
Should I purchase Long-Term Disability Insurance from the GIC?
While this is a personal decision to be made by individual participants, the following notes may prove helpful in making that choice.
- ORP Disability Coverage: ORP participants are automatically insured under the Program’s long-term disability policy. The insurance premiums are paid by the Commonwealth as part of the Program’s Employer Plan Contribution.
- GIC Disability Coverage: Employees may purchase long-term disability insurance from the GIC. Premiums are fully paid by employees. This plan is traditionally considered an important supplement to “Retirement Disability” pensions payable under SERS.
- Dual Coverage Offsets: The ORP disability policy and the GIC’s disability policy both include language that “offsets” for the other coverage (benefits from other sources). The result of maintaining this dual coverage is that participants would likely find that they will have lower, total Monthly Income Benefits than expected.
- The GIC plan’s underwriter has reported that they will assume that the full Monthly Income Benefit will be payable by the ORP policy. This means that they will pay only the “Minimum Benefit” under the GIC plan.
- The ORP plan’s underwriter has reported that they will address each case individually and not necessarily assume that the full Monthly Income Benefit will be payable under the GIC policy, but only the minimum.
- Future Insurability: Employees who purchase the GIC disability coverage when they are first eligible are not required to prove their insurability (your good health). Purchasing this coverage after your initial eligibility does require your proof of insurability.
ORP participants who anticipate moving to a position in the future where they will no longer be covered the Program, should carefully consider purchasing the GIC insurance when they are first eligible, obviating the need to prove their insurability at a later date.
What coverages continue during a Leave of Absence?
1. Retirement Plan Contributions
- If your workload during a Leave of Absence (LOA) is sufficient to maintain your eligibility for ORP coverage (usually 50% FTE or greater), then your Employee Plan Contributions and the Commonwealth's Plan Contributions will continue during your leave.
- If your workload during the LOA is less than the amount required for benefits coverage, then no Plan Contributions will be made.
2. ORP Long-Term Disability
- When an ORP Participant stops active work, his or her Long-Term Disability Insurance will continue and employment will be deemed to continue if:
- the Participant is either on a sabbatical or on a leave of absence and receives at least one-quarter pay. Insurance may be continued to the end of 24 months, or, if earlier, the end of such leave. Or,
- the Participant is on a leave of absence approved by his or her institution's board of trustees and receives less than one-quarter pay, as long as such leave is for full-time study for an advanced degree or work in the field of education or research, such as a Fulbright Award, foundation grant, or government project. Insurance may be continued to the end of 24 months, or, if earlier, the end of such leave. Or,
- the Participant is on a leave of absence for pregnancy. Insurance may be continued to the end of four months after the pregnancy ends, or, if earlier, the end of such leave. Or,
- the Participant is on a family or medical leave approved by his or her institution. During such leave, insurance may be continued to the end of six months or, if later, the period required by applicable state or federal law.
- Employment will not be deemed to continue and insurance cannot be continued during a sabbatical or leave of absence unless the sabbatical or the leave for the Participant is set forth in a written document that is dated on or before the leave is to start and shows that the Participant is scheduled to return to active work for his or her institution.
- For a Participant on leave, the Montly Wage Base will be based on the wages payable by his or her institution just prior to the start of the leave.
3. ORP Group Life Insurance
- When an ORP Participant stops active work in an eligible class, his or her ORP Group Life Insurance will continue and employment will be deemed to continue if:
- the Participant is either on a sabbatical or on a leave of absence and receives at least one-quarter pay. Insurance may be continued to the end of 24 months, or, if earlier, the end of such leave. Or,
- the Participant is on a leave of absence approved by his or her institution's board of trustees and receives less than one-quarter pay, as long as such leave is for full-time study for an advanced degree or work in the field of education or research, such as a Fulbright Award, foundation grant, or government project. Insurance may be continued to the end of 24 months, or, if earlier, the end of such leave. Or,
- the Participant is on a leave of absence for pregnancy. Insurance may be continued to the end of four months after the pregnancy ends, or, if earlier, the end of such leave. Or,
- the Participant is on a leave not listed above or is retired, temporarily laid off, or transferred to a class of Employees not eligible for insurance. During such a circumstance, insurance may be continued to the last day of the month in which the event began. Or,
- the Participant is disabled. (The Participant's disability need not be a "Total Disability" as defined in the Certificate of Insurance.) During a disability, insurance may be continued to the end of 12 months after the disability began. Or,
- the Participant is on a family or medical leave approved by his or her institution. During such leave, insurance may be continued to the end of six months or, if later, the period required by applicable state or federal law.
- Employment will not be deemed to continue and insurance cannot be continued during a sabbatical or leave of absence unless the sabbatical or the leave for the Participant is set forth in a written document that is dated on or before the leave is to start and shows that the Participant is scheduled to return to active work for his or her institution.
Are my retirement benefits protected while I'm on active military service?
Yes. Under the Uniformed Services Employment and Reemployment Rights Act (USERRA), you are entitled to the contributions that would have been made under the Program if you had not been away on active military duty. Additionally, these contributions represent Months of Participation in the Program which count towards the service requirement needed to be eligible for post-employment benefits such as Retiree Health Care.
- Employee Plan Contributions: You may make up the contributions that you did not make to the Program while you were away on active duty, although you are not required to make up these amounts. If you choose to make up your missed contributions, you may spread the make-up amounts over the maximum period allowed: up to three times the number of years you were away, but not longer than five years. The Benefits Administrator on your campus will provide a notice of your rights under USERRA and a form for you to indicate your choice about making up your contributions.
- Employer Plan Contributions: The Commonwealth will make up the Employer Plan Contributions that you missed while you were on active duty. You are not required to make up your own contributions in order to receive these Employer Plan Contributions.
Are my Group Life and Long-Term Disability coverages continued when I am called to active duty?
Generally, no. These insurance policies cover employees who are active participants in the ORP: those who are making current contributions to the Plan. However, there may be rare cases when an ORP Participant is called to active duty and, while on military leave, maintains his or her active status in the Plan. In a case like this, where the Commonwealth continues paying the related insurance premiums, you may be covered by both policies:
- The Group Life insurance policy does not carry a "War Exclusion." So, your coverage would continue in full, even while you are in a "war zone."
- The Long-Term Disability policy does have a "War Exclusion." However, the Standard Insurance Company has explained that they'd review individual case circumstances before denying benefits to anyone who became disabled in a "war zone."
Are my Group Insurance Commission benefits continued while I am disabled?
If you become disabled and terminate your employment with your institution, you may continue your Group Insurance Commission (GIC) benefits such as health care, life insurance and dental coverage under one of two situations:
- COBRA: You may continue your insurance coverages through the GIC under COBRA. COBRA ensures your right to keep these benefits for up to 18 months. You must pay the entire cost of your benefits. The GIC administers the program and collects your premiums.
- Disability Retirement: If you meet the eligibility requirements, the GIC will consider you to be a "Disability Retiree." In this case, the GIC offers disabled retirees the same coverage provided to all eligible "retirees." You are eligible for disability retirement if:
- you have completed ten or more Years of Creditable Service; or
- you became disabled on the job at any age (there is no minimum service requirement); and
- your employment with the Commonwealth must be terminated.
You may elect health care, life insurance and dental coverage from the GIC. The premiums for these coverages reflect your "retiree" status and can be greatly discounted. Your monthly premiums will be deducted from your Monthly Income Benefit which is paid under the ORP Long-Term Disability insurance policy. The Board of Higher Education's Policy on deducting your GIC premiums while disabled describes the requirements for premium payment.
Related Links
FAQ for campus benefits administrators [For Institutions]
Massachusetts State Board of Retirement
Social Security Administration