Termination of Employment
|
Your SUSORP Options upon Terminating Employment
|
|---|
| The primary purpose of the SUSORP is to provide retirement income to participating State University System employees when they retire. However, as an ORP participant, your fund value is totally vested after you have executed a contract. Therefore, you will not lose any benefits from the plan simply by terminating your employment before you are ready to actually retire. The following paragraphs describe your options.
|
|
Your Voluntary Contributions
|
|---|
| No ORP restrictions apply to any voluntary contributions that you have made to the SUSORP, other than those that may be contained in the contract(s) you have selected.
|
|
Employer Contributions on your Behalf
|
|---|
| If you terminate your employment, you will have two options with respect to any contributions your employer has made to the SUSORP on your behalf:
|
- You can retain the investment contract(s) you have previously selected or elect to transfer your funds at any time to another investment company approved under the ORP, if your contract or contracts allow for such transfer. In either case, you would be leaving your funds in the SUSORP. With no additional contributions, your moneys would change over time only through future investment gains, less losses and expenses, until your eventual retirement. You could also choose to transfer your employer-paid funds to other investment opportunities. (Note that the Internal Revenue Service imposes certain restrictions on how long you may wait before you begin to receive income from your ORP contracts.) For more information on the benefit options available to you, please see Benefits.
- You can elect to use your SUSORP fund to purchase an annuity or select another form of distribution as explained under Benefits. If you choose to buy a lifetime annuity, your periodic income will be based on the size of your fund, your age, and the annuity purchase rates in effect at that time. Remember, the younger you are when you begin receiving payments, the less your periodic income will be because your annuity payments will be expected to continue over a longer period of time. (Note that your annuity payments will be considered earned income and will therefore be subject to federal taxation.)
|
| E-mail your SUSORP comments or questions to us. Please include your name, mailing address, e-mail address, the last four digits of your social security number (SSN), and your phone number if you require an answer from us.
|
