Home > For Campus Employees > Optional Retirement Program > Comparison: Optional Retirement Program and State Employees' Retirement System > Comparison Key Features
Comparison of Key Features
Description |
ORP |
SERS |
| Plan Type/ Structure | Defined Contribution | Defined Benefit |
| Internal Revenue Code Section | 401(a) | 401(a) |
| Employee Contribution* | 9% of salary to $30,000, plus 11% of salary above $30,000 |
9% of salary to $30,000, plus 11% of salary above $30,000 |
| Vesting | Immediate 100% | After 10 years of creditable service |
| In-service Withdrawals | Not available | Not available |
| Loans | Not available | Not available |
| Pre-retirement Survivor Benefits** | Group term life insurance provided by the Board of Higher Education | Income may be payable to surviving spouse and minor children |
| Disability Benefits | Long term disability insurance provided by the Board of Higher Education | Disability pension payable to participants with 10 years of service or fewer if disabled on the job. (Participants often purchase supplemental disability insurance through the GIC.) |
| Benefits Payable | Anytime after terminating employment with the Commonwealth | Eligible for retirement with 20 years of service or if 55 with at least 10 years of service |
| Benefit Amounts | Benefit amount is based upon account balance and distribution method selected | Amount of income is based on: - age - length of creditable service - level of salary - group - payment option |
| Payment Options | Variety of payment options ranging from income for your life to lump sum distributions | Lifetime income, payable under options which can provide survivor benefits |
| Plan Investments | Participants select the investments for their own accounts; returns directly affect the level of benefits | Overseen by the State Retirement Board |
| Retiree Healthcare | Provided by the Group Insurance Commission for employees with at least ten years of creditable service and sufficient account funds | Provided by Group Insurance Commission for employees with at least ten years of creditable service |
| Re-employment | A former ORP participant may participate in the ORP immediately upon re-employment in an eligible class | Can buy back any prior service that was refunded for state service of six consecutive months or more which did not have retirement contributions withheld. Must redeposit the appropriate contribution plus accumulated interest |
*Contribution rates for participants hired on or after July 1, 1996.
**Employees may also purchase life insurance through the Group Insurance Commission.
Related Links
Comparison of plan structures
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