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 29, 2025 and Institution paychecks dated February 6, 2025.
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 2025 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. Beginning in 2024, this report will be available in Plan Focus, and TIAA will provide campuses and agencies with a job aid explaining the new process. The report is based on information provided to the record keeper. If the 2023 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 Record 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 2025 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.