ORP & VDC savings plan panels & arrears (if applicable) must be entered manually in PayServ to begin deductions for new or returning members. Agencies are responsible for enrolling employees who are newly eligible and for confirming information for returning members. Agencies may encounter returning members who have transferred from a state-affiliated institution or have prior service with NYS. The Retirement Plans page in PayServ shares archived retirement plan information which should be reviewed by agencies when determining an employee’s ORP/VDC plan information. Returning employees with prior ORP/VDC service may require adjusted dates on the Suspense Page due to a break in service. New employees with prior qualifying service may require a suspense waiver.
New members’ contribution rates are determined using their projected annual salary and should be calculated by the agency prior to PayServ entry. Agencies are responsible for populating the Savings Plan panel in PayServ with the correct Benefit Plan, election date, and contribution rate, as well as calculating and entering any applicable arrears. OSC audits these entries for accuracy and verifies eligibility in the ORP.
When an employee’s ORP or VDC Savings Plans panel is added retroactively, the employee may have received paychecks from which mandatory contributions should have been withheld. Arrears allow the employee to make those mandatory pre-tax contributions in a future paycheck(s). Employees must make these arrears payments to receive the corresponding employer match contribution for the missed paychecks. The Payroll Bulletin: New Additional Pay Earns Codes (V Codes) in PayServ provides guidance on determining the correct deduction code and calculating arrears. Agencies are responsible for calculating and entering applicable arrears. OSC is responsible for auditing these entries for accuracy.
Suspense Waiver Verification Requirements:
ORP and VDC members must complete a 366-day vesting period before their contributions are invested. These contributions are held in escrow until the employee completes the vesting period. ORP and VDC members can waive any unmet portion of their 366-day suspense period if they have an existing employer-funded, vested contract with any of the participating ORP/VDC investors. SUNY employees can also use prior New York State service and/or previous enrollment in NYSLRS to qualify for a waiver. Suspense waivers are processed using the Form AC-1767 – ORP/VDC Waiver Request, found on the OSC website.
Service Dates/Breaks in Service:
Members of the ORP & VDC have several significant service dates to meet that determine vesting status and rate of the employer match. New members begin in suspense (non-vested) status; they become vested after 366 days of service, or sooner if they meet the requirements to waive the suspense period.
After 7 years of service, members of the ORP receive a 2% increase to the employer match in contributions. The VDC plan is locked at an 8% rate of employer contribution, regardless of years of service.
ORP members in Tiers 1 – 5 (enrolled prior to 04/01/2012) were only required to make mandatory employee contributions for first 10 years of membership, even with breaks in service.
For Tier 6 members of ORP/VDC, a separation from state service of a full day or more qualifies as a break in service. These breaks in employment do not count towards an employee’s 366 or 7-year service dates. The agencies are responsible for recalculating these dates using the ORP/VDC Breaks in Service Calculator.
Employee service dates are tracked on the Suspense Page in PayServ. When an employee with an active ORP/VDC membership and unmet service dates is terminated, their adjusted hire date and unmet 366 day and/or 7 years suspense dates are removed from the suspense page to prevent the employee from vesting or receiving an increase in employer contributions. If the employee is rehired, the agency must complete OSC’s ORP/VDC Breaks in Service Calculator to determine the new adjusted hire date and submit it to OSC’s Retirement and Savings Plans team for review. OSC is responsible for verifying the accuracy of the calculations and making updates to the Suspense Page in PayServ.
Rehired employees with blank dates on their Suspense Page appear on the NBEN742A/B report available in Control-D. Agencies are responsible for checking this report weekly. More information can be found in Payroll Bulletin: Calculating Projected 366 Day Completion Date and/or Projected 7 Year Completion Date for Optional Retirement Program (ORP) and Voluntary Defined Contribution (VDC) Members.
ORP and VDC members have a 366-day suspense period that begins on their election date. If they separate from State service on or before completing their 366th day, the funds remain held in escrow. If the employee is not returning to State service, they have the option to request a refund of the employee contributions that they have paid into their escrow fund thus far. The employee will also receive the interest earned on their employee contributions while the money was held in Escrow. Refunding the employee’s contributions will forfeit the accompanying employer contributions. Suspense refunds are processed using the Form AC-1781 – Application for Refund of Employee ORP/VDC Contributions, found on the OSC website.
Once a Tier 6 member has completed their 3rd calendar year of membership in a retirement/savings plan, their mandatory contribution rate is adjusted based on the annual pensionable salary from two years prior. Depending on the employee’s earnings, this may increase or reduce the employee’s contribution rate. Each retirement system follows its own procedure for implementation.
Information related to the ORP and VDC two year look back can be found in the current year Two-Year Look Back Payroll Bulletin. Revised information is published annually near the end of the calendar year.
Last Updated September 2026