Human Resources & EO

Optional Retirement Plan (ORP)

The Optional Retirement Plan (ORP) is administered by the Board of Higher Education.  This plan is only offered to Faculty, Deans, Vice Presidents and Presidents who work at least 50% full-time schedules as an alternative to the State Employees' Retirement Plan.  New hires in these specific job categories are given 90 days in which to decide which retirement plan they wish to enroll in.  Your 90 day period typically is the first day that you are actively at work or the date you first become eligible to participate based on a new job classification covered by the ORP.  The decision to join either the Optional Retirement Plan or the State Employees' Retirement plan in most instances is an "irrevocable" choice.  Temporary faculty employees who are hired for one year are paid from September 1 to August 31.  If you are re-hired for the next year, your contract starts on Sept. 1 (therefore there is no break in service so whatever retirement plan you choose the previous year continues automatically into the next calendar year).  ORP participants cannot be vested in the State Employees Retirement System (SERS) as well as any plan governed by Chapter 32 of Massachusetts General Laws, including the Massachusetts Teacher's Retirement System (MTRS), and many county retirement plans. 

The Optional Retirement Plan is a "defined contribution" plan that provides income based on the investment performance of your individual account balance.  Employees choose how to invest their money.  The State Employee's Retirement System (SERS) is a "defined benefit" plan that provides predictable and guaranteed income (benefits are calculated using a formula).  Under either plan you are required to make the same mandatory employee contribution (9% of salary and any salary over $30,000 an additional 2% or 11%).  New employees are immediately put into the State Retirement plan.  Employees who do not decide within 90 days which plan they want will be defaulted into the State Employees' Retirement Plan.  Employees in the ORP must choose one of three providers:  AIG Retirement, Lincoln Financial Group or TIAA-CREF.  You may change providers once every 12 months, but not more often.  Applications and other paperwork can be obtained by the Campus Benefits Coordinator and all ORP paperwork must be processed in Human Resources in order for the change of plans to become finalized. You are vested immediately in the money in your ORP account. 

Employees are not able to buyback former state service or prior military service under the ORP.  The service requirements for Retiree Insurance Benefits for ORP participants are met through a combination of years of participation in the ORP and any years of creditable service on file with the State Board of Retirement.  You need a total of 10 years of creditable service at age 55 or 20 years of creditable service to retire at any age. 

Faculty employees who have taught at other State Colleges or Universities "out of State", can buyback their service from previous out-of-state work only in the State Employees' Retirement Plan (not in the Optional Retirement Plan).

The Board of Higher Education administers the Optional Retirement Plan.  For additional information check out their website at:  http://www.mass.edu/home.asp

Contact Information:

If you have any questions about your participation in the Optional Retirement Program direct your questions to the Benefits Coordinator in Human Resources or contact the Plan Administrator:

     E-Mail:  ptsaffaras@bhe.mass.edu

     Direct Mail: 
                 Peter H. Tsaffaras
                 Plan Administrator
                 Optional Retirement Program
                 Board of Higher Education
                 One Ashburton Place, Room 1401
                 Boston, MA 02108-1696

Dedicated ORP Information Line:  617.994.6935
Web:  www.mass.edu/orpsplit.asp
E-mail:  orp@bhe.mass.edu

Commonwealth's Contribution:

The Commonwealth's gross contribution is 5%.  Currently 4.3% is the amount credited to the participants' ORP accounts.  The remaining 0.700% pays for administrative overhead, long term disability insurance, and group life insurance.  These employer contributions are calculated with each payroll cycle (26 per year), and are remitted to the ORP providers as soon as administratively feasible after the calculation is completed.

Employees with ten or more years of service can receive GIC health insurance and other benefits in retirement.  Employees who have ten years of service and are under age 55 who leave state employment can also "defer" their retirement.  Contact your Benefits Administrator for more information on deferred retirement benefits.