Chapter 617 of the Laws of 2007 amends NYS Education Law, Article 8-B, Section 392 2(c) and Article 125-A, Section 6252 2(c), eliminating the mandatory employee contribution for members who have ten (10) or more years of membership in the Optional Retirement Program (ORP). ORP members who have ten (10) or more years of membership will receive a reduction in employee contributions over a phased-in period, ultimately eliminating the employee contribution.
Payroll Bulletin No. 809 describes these changes that began in April 2008.
Effective April 1, 2009, affected employees’ contributions were further reduced as outlined in Chapter 617 of the Laws of 2007.
Effective April 1, 2010, any employee who is a member of the ORP, has an active retirement plan row with a Participation Election of “Elect,” has the Retirement Plan Type of 7Z (TIAA/CREF) and has ten (10) or more years of membership will automatically change to non-contributory status.
Note: Based on a legal review by OSC Counsel, employees who have ten (10) or more years of membership in the ORP are eligible for the reduction in contribution regardless of any break(s) in service.
As previously determined by OSC Counsel, a break in service impacts the “continuance in service” provision of Section 392(4) of the Education Law, and therefore cannot be included toward the completion of the 366 Day Suspense or 7 year periods.