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Comparison FAQ
Contributions and Benefits
Are my contributions to the ORP the same as those required under SERS?
Yes. The Employee Plan Contribution to both plans is exactly the same. The amount of contribution is set by law and can be found in M.G.L. Chapter 32. Plan Contributions under both plans are tax-deferred under the “Employer Pick-up” which is described in Internal Revenue Code Section 414(h)(2).
May I make supplemental contributions to the ORP to enhance my retirement income?
No. The amounts of Employee and Employer Plan Contribution to the Program are specified in the law. There are no provisions for additional contributions. Most ORP participants supplement their retirement plan savings through the Commonwealth’s other tax-favored savings plans (e.g., Tax-Sheltered Accounts, Deferred Compensation Plan).
Rollovers: However, the ORP does accept amounts that are eligible for rollover treatment. This means you may consolidate your other retirement savings under the ORP. Please note that funds you roll into the ORP are treated as plan assets and are subject to the plan’s provisions.
Are ORP benefits portable? SERS?
“Portability” of pension benefits can mean many things. Most participants consider their retirement benefits to be “portable” if they can take their accrued benefit when they terminate employment; allowing their benefit to grow in the future.
- ORP Portability: Defined contribution plans like the ORP are highly portable between employers. You may take your ORP account with you after termination of employment; possibly consolidating it with a subsequent employer’s plan or your own Rollover IRA. The Program’s immediate vesting ensures that you do not forfeit any benefits. Your account remains invested under your direction, allowing opportunities for further growth.
- SERS Portability: Defined benefit plans like the SERS are generally not very portable. The retirement benefit is a reflection of your service and salary with a single employer. Once you leave that employer, benefits cannot be enhanced. Moreover, the delayed "cliff" vesting under SERS means that you forfeit your accrued employer pension if you terminate employment before being vested. Those SERS members who terminate employment after becoming vested remain entitled to an employer pension, but their income will be based on their service and salary at the time of termination.
Do the ORP and SERS affect my Social Security benefits in the same way?
Yes. While the Commonwealth does not participate in the Social Security Administration, many employees accrue Social Security retirement income under “covered” employment with other organizations, or are eligible for benefits through a spouse's earnings record. This is described more fully in the Social Security section or on the Social Security Administration’s 
web site.
Does past military service enhance my ORP benefits? My benefits in SERS?
ORP: No. Past military service does not enhance benefits under the ORP. And, since the ORP provides immediate 100% vesting, any past military service is not need to accrue vesting under the plan.
SERS: Yes. Past military service can be counted towards accruing Years of Creditable Service under the SERS.
Eligible Employees with past military service must carefully consider this aspect of SERS when choosing their retirement coverage.
How do Years of Service affect my retirement income?
Years of Service do not affect your ORP retirement income. Benefits payable under the Program reflect your account balance and payment method. No Years of Service are used to determine your retirement income.
Years of Service directly affect retirement income paid under SERS. The SERS formula used to determine the amount of your monthly incorporates your total Years of Service. Hence, the more Years accumulated, the larger the accumulated income. The State Board of Retirement does not recognize Years of Participation in the ORP when determining a retirement income under SERS.
May I purchase Years of Service under the ORP? SERS?
There are no Years of Service to be purchased under the ORP. As noted above, your retirement income (mostly) reflects the assets you have accumulated during your working years. SERS makes provisions for its participants to purchase (eligible) Years of Service to enhance their monthly pension.
How do Years of Service affect my vesting?
Years of Service do not affect vesting under the ORP. All ORP participants are immediately vested in all benefits payable from their ORP Accounts.
Years of Service directly affect your vesting under SERS. SERS has ten-year “cliff” vesting. This means that you must have ten Years of Creditable Service before you are entitled to the “Employer Pension.” SERS members may purchase (eligible) Years of Service to accelerate their vesting under the plan.
The State Board of Retirement does not accept participation in the ORP to satisfy its service requirement for vesting.
How do Years of Service affect my eligibility for post-employment benefits?
Employees who accumulate ten Years of Creditable Service are eligible for “post-employment” benefits. These benefits are available under two statuses:
- Deferred Retiree: Members of the ORP and SERS who have accumulated ten Years of Creditable Service and are not drawing an income from their plan may purchase life, dental, and health insurance from the GIC; and
- Retiree: Members of the ORP and SERS who have either accumulated ten Years of Service and attained age 55 or accumulated 20 Years of Service and who are drawing an income from their plan may purchase life, dental and health insurance from the GIC. The health insurance premiums are discounted. Monthly premiums are deducted from your retirement income.
ORP Participant Service: The service requirements for post-employment benefits under the ORP are met through a combination of:
- Years of Participation in the ORP; and
- Any Years of Creditable Service on file with the SERS.
SERS Participant Service: The service requirements for post-employment benefits under the SERS are met only through Years of Creditable Service under SERS. The State Board of Retirement allows SERS members to purchase (eligible) Years of Service that will count towards the requirements for post-employment benefits.
The State Board of Retirement does not accept participation in the ORP as evidence of satisfaction of service requirement for post-employment benefits.
Related Links
Comparison of plan structures
Comparison of key features