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Working at Cornell

Contract College Retirement Plans

Choose between a defined benefit pension plan that provides a specified payment amount at retirement OR a defined contribution plan, where assets are based on amounts contributed by the employer, the employee, and the success of investments chosen by the participant.

New York State requires that all regular full-time employees and employees working full-time for at least 12 months, enroll in a New York State retirement plan. You can only waive enrollment if you are a part-time or temporary employee.  If you choose to waive enrollment, complete the front and back of the Contract College Retirement Plan Election form and return the completed form to HR Services and Transitions Center.

Quick Facts

  • Plans:
    • Employees Retirement System (ERS) - a defined benefit pension plan that provides a specified payment amount at retirement
    • SUNY Optional Retirement Program (SUNY ORP) - a defined contribution plan, where assets are based on amounts contributed by the employer, the employee, and the success of investments chosen by the participant
  • Eligibility:
    • hourly employees are only eligible for the ERS pension plan
    • salaried employees may choose between the ERS pension plan and the SUNY ORP Retirement Program; though election must be made within the first 30 days of date of hire; after 30 days, your only enrollment option is the ERS pension plan
    • County Cooperative Extension Association employees are only eligible for the ERS pension plan, unless they have a SUNY ORP contract from prior employment
  • Beneficiaries: It's important to note that the beneficiary functionality in Workday does not integrate with outside vendors.

Plan Options

The ERS Pension Plan

One option is a defined benefit pension plan, called the Employees' Retirement System (ERS) with the New York State and Local Retirement System (NYSLRS). This plan is available for both salaried and hourly employees. 

The benefits provided include:

When you join the ERS pension plan, you are assigned to one of six tiers based on your date of membership. All employees who join after April 1, 2012 are in Tier 6.  Tier 6 members have mandatory contributions between 3 and 6 percent for their entire careers, based on earnings. Information on ERS tiers, contribution rates, etc. can be found at the Comparison of ERS Benefits website.

To find out more about the Employees' Retirement System (ERS) visit "Membership in a Nutshell" on the NYSLRS website.

ERS Credit for Previous Public Service

You may be able to obtain credit for your previous public employment. It is very important that you claim all the service you are entitled to receive, as early as possible, because records documenting your previous service may become lost or destroyed with the passage of time. 

  • Learn more about purchasing service credit by watching this short video.

SUNY Optional Retirement Program (SUNY ORP)

Option two is a defined contribution 401(a) plan called the State University of New York Optional Retirement Program (SUNY ORP). This plan is only available to salaried employees, or past participants of SUNY ORP. 

Benefits are provided under one of six available tiers based on the enrollment date. Employees who join SUNY ORP after April 12, 2012 are Tier 6 members and have a 366-day vesting period in effect from the date of hire. Employees who have a vested prior employer-funded account with any of the SUNY ORP vendors may have the vesting period waived upon confirmation of the prior employer-funded account.

The Tier 6 required Employee Contribution Rate in a given year is based upon wages from the earlier of the two prior calendar years (the two-year look-back) and ranges from 3-6% (see below for details). The Employer Contribution Rate is 8% of gross salary for the first seven years of active SUNY-ORP membership service, and 10% thereafter, upon completion of the seventh year of membership.

Tiers 1 - 5 Contribution Rates

Employer/Employee contribution rates will apply to all members of the SUNY ORP in prior Tiers 1 – 5, as follows:

Employer Contribution Rates

The Employer shall contribute an amount to the Plan in accordance with the following schedule, based on date ORP membership is established (Plan Entry Date):

  • Tier 1 (prior to 7/01/1973) and Tier 2 (7/01/1973 – 7/26/1976)
    • 12% of the first $16,500 of Compensation
    • 15% of Compensation above $16,500
  • Tier 3 (7/27/1976 – 8/31/1983 and Tier 4 (9/1/1983 – 7/16/1992)
    • 12% of the first $16,500 of Compensation
    • 15% of all Compensation above $16,500
  • Tier 5 (7/17/1992 – 3/31/2012)
    • 11% of Compensation for the first seven Years of Membership
    • 13% of Compensation for years after the completion of seven Years of Membership
Employee Contribution Rates

Participants in Tiers 1 through 5 are not required to contribute Employee contributions.  Previously required mandatory contributions are currently paid by NYS as ER contributions. The 10-year time period, has elapsed for all members with a Plan entry date prior to April 1, 2012, as set forth in NYS Education Law section 393.

 Tier 6 Current Contribution Rates

Employer Contribution Rates

8% of compensable salary for the first seven years of SUNY ORP membership, and 10% after the completion of seven years of SUNY ORP membership.

Employee Contribution Rates

The employee contribution rate to be based initially (and upon rehire) on the employee’s projected estimated annual wage.

Wages of $45,000 or less3%
Wages between $45,001 and $55,0003.5%
Wages between $55,001 and $75,0004.5%
Wages between $75,001 and $100,0005.75%
Wages Greater than $100,0006%

Income Tax

  • Federal income tax: employee contributions are made through payroll deduction and are not subject to Federal income tax until distributions are taken.
  • NY State and local income tax: employee contributions are subject to NYS state and local taxes when contributed and are exempt at distribution. For taxation information on SUNY ORP distributions, please refer to the SUNY website.
Employee contributions made prior to January 1, 1990 were subject to Federal income tax. Employee contributions made on and after January 1, 1990 are made pre-Federal income tax.

All contributions are made based upon compensation up to the federal limit, which is determined annually by the IRS.  

Please be advised: Per the written terms of the plan documents that govern SUNY ORP (as administered by SUNY Benefits Administration), while employed with Cornell (full-time, part-time, non-benefits eligible, or in an Endowed position), you are not eligible to take a distribution from SUNY ORP.  If you separate from service from Cornell University and are subsequently re-employed by Cornell University, you are not able to take distributions from your SUNY ORP account (regardless of your position).

 If you retire from Cornell University and return to work, you are subject to the applicable provisions of the Retirement and Social Security Law (which dictates the $35,000 a year earnings limit if you are under the age of 65).  You will not be able to take an in-service distribution from your SUNY ORP account while younger than age 59 1/2 and remain in full-time employment (including Endowed positions).  

Retired employees wishing to take SUNY ORP distributions under the aforementioned circumstance must provide in writing (email is acceptable) that they are retired and have been subsequently re-employed at Cornell University in a less than full-time position. If you retire from Cornell University and return to work, do not plan on taking SUNY ORP distributions OR are not taking SUNY ORP distributions, you may be able to re-enroll in SUNY ORP, regardless of the position and hours you are scheduled to work (the position must be a Contract College position).   Please contact HR Services and Transitions Center, at hrservices@cornell.edu, for more information.  

You are not able to take SUNY ORP distributions (or receive ERS/TRS pension payments) while receiving contributions from, or participating in, any New York State retirement program (i.e. ERS pension plan, TRS pension plan, SUNY ORP).

Comparing Plans

If you're new to Cornell and trying to decide which option is right for you, check out this comparison chart and this video offered by the State University of New York (SUNY). New exempt employees must select which of the two retirement plans in which to participate within 30 days of hire.

Changing between plans

If you are a salaried (exempt) employee and you choose to enroll in the SUNY ORP 401(a) retirement plan, you may not switch to the ERS pension plan even, if you change jobs.

If you are an hourly (non-exempt) employee enrolled in the ERS pension plan and your job status changes to salaried, you will have the option of electing SUNY ORP or remaining in ERS.  You must elect to enroll in SUNY ORP within 30 days of your job status change; after 30 days, you will remain enrolled in the ERS pension plan.

Enrollment

Enrollment in the ERS pension plan is not through Workday but by the completion of Form RS 5420 Employees’ Retirement System Membership Registration. The completed form must be returned to the HR Services and Transitions Center; please do NOT send the form to the address noted in the upper left of the form.

Enrollment in the SUNY ORP plan is not through Workday, but by the completion of the Contract College Retirement Plan Election form. Please review and complete all three pages; all three pages must be returned to the HR Services and Transitions Center within 30 days of your hire/appointment date.

Enrollment in a NYS retirement plan is irrevocable and will continue for all SUNY and Community College employment (including Cornell University Contract Colleges) unless an employee becomes newly eligible to participate in an alternative NYS retirement plan.

Managing your Accounts

ERS Pension Plan with NYSLRS

To find out what tier you are in, sign into Retirement Online and look under 'My Account Summary’. You can also contact the NYSLRS Contact Center at 1-866-805-0990.

SUNY ORP

SUNY ORP participants must use the Retirement@Work portal to select their investment provider (they may have multiple investment providers) and to select an investment alternative based on investment objectives, time horizon, and risk tolerance among other factors, using the four investment providers. Enrolling in SUNY ORP via Retirement@Work does not enroll you in SUNY ORP in Workday.

The four investment providers are:

Failure to select an investment provider will result in SUNY ORP accounts remaining with TIAA until an election is made. SUNY ORP participants may change their investment provider selection at any time.

Managing your Beneficiaries

Beneficiaries for the retirement plans are not designated through Workday.

ERS Pension Plan with NYSLRS

Retirement Online is NY state's self-service tool that provides access to your retirement account information. Sign Up or Sign In to view your current beneficiaries, or designate beneficiaries. The Designation of Beneficiary form (original or a copy) is not sent to Cornell.

For more information, visit Life Changes: Why Should I Designate a Beneficiary?

SUNY ORP

Beneficiary information for your SUNY ORP retirement plan is updated directly through your selected investment provider: