Early Retirement Incentive Program for 2010
Revised July 23, 2010

Frequently Asked Questions

1. What titles are eligible to participate in Part A of the ERI?

• At this point in time Binghamton University is including all titles on the faculty/staff payroll to participate in the Early Retirement Incentive.

2. If I elect Health Insurance into retirement with individual coverage, can I change to family in the future?

• Yes, you are permitted to change your insurance based on the same eligibility parameters as a regular employee.

3. How do you know if the proper final leave record is on file with Human Resources?

• Your final record will need to include the last day that you work at Binghamton University and approved by your supervisor. It then is turned in to the Human Resources office. If you have a question regarding whether this is completed or not you may contact HR.

4. To participate in Part A of the ERI, do I have to be a full time employee?

• No, part time service will be prorated and your ORP payment will then be calculated accordingly.

5. Do state and federal taxes get deducted from my pension checks?

• State taxes are not deducted from your pension checks but federal taxes are deducted.

6. Is Medicare and social security deducted from my pension checks?

• No, neither of these deductions are taken from your pension checks.

7. How does the 27.75 years of ERS service credit work?

• If you are to participate in Part A of the ERI, you would have 27 months added onto your years of service which would take you over the 30 year service mark and eliminate any age penalty to employees 55 or older.

8. Does Chapter 45 and/or Part B offer a benefit for an employee with over 30 years of service?

• No they do not, they are for individuals with 25-30 years of service between the ages of 55 and 61.

9. How do I change from participating in the Voluntary Separation Program to the Early Retirement Incentive?

• Notification would need to be sent to Human Resources along with notification to the applicable retirement system prior to the scheduled retirement date.

10. Can I choose to not receive a lump sum if I am in ORP?

• No. However, the taxable payment would only occur if your ERI payments exceeded the 415 limits for both your ORP and your 403(b). For 2010 those limits are $49,000 each.

11. If I want to participate in Part A and I am 4 months short of 55 will I still have the full 5% penalty?

• Yes, there is no differentiation between the months and years of age, just the years.

12. If I want to participate in Part B but I am 4 months short of 55. Can I still participate?

• No. You must be at least age 55 to participate in Part B.

13. What date is the actual retirement date if my last day of work is December 22, 2010?

• Your actual retirement date would be December 23, 2010.

14. Were there changes in the dates to the various Parts of the ERI?

• Yes, there have been two changes to the open dates.

15. Is the ceiling cap raised if I have over 40 years of service?

• Yes, under Part A the pension factor limitation for Tier I and 2 members is 85% under this incentive. To determine your actual ERI benefit each individual situation should be addressed with the appropriate retirement system.

16. If I retire can I come back to work part time?

• It would permissible as long as you meet the guidelines of the Section 212 earnings limit. However, the University does have to meet cost savings to pay for the ERI. It would be up each Vice Presidential area to determine which temporary positions are permitted.

17. In Part A, do the 10 or more years of creditable service need to be continuous?

• No they do not. However, service must be “creditable” to be eligible for the ERI. This information would be able to be verified with the appropriate retirement system.

18. In Part A, when will the 3 cash payments take place, if necessary?

• The payments will occur over 2 years.

19. If the payments occur in 2011 but are for 2010, which year’s tax defer limits are applicable?

• 2010’s limits since you would be not employed in 2011, 2011 limit does not apply.

20. If I am under 55 years old do I still have to pay Medicare and Social Security?

• If you are not working and are collecting a pension then neither of these deductions will occur. If you begin working then the deductions would be taken out of your actual paycheck.

21. In order to get 75% of my Final Average Salary how many years of service do I need to have?

• Tiers 1 and 2 members need 37.50 years of service credit which could include military service, Article 19, ERI and sick leave credits.

22. When will letters of interest be sent out to my home address?

• The letters will be mailed to home addresses early next week.

23. I am in ORP and I have 40 years of service and I am in Tier 1, can the 45% cap be lifted?

• No, there are no exceptions to the 45% cap under this incentive.

24. Are there ever increases in a pension payment?

• There are cost of living adjustments that occur for cost of living for individuals that are over 62 years of age and have been retired for 5 years. However, these increases are very modest.

25. If I have military service will it be included in my years of service and be applied to Part A?

• Yes, all credited years of service may be applied. A handy guide would be your annual statement that was received earlier in the month.

26. How often do the cost of living adjustments in pensions occur?

• Once you become eligible (see #24) they would be calculated annually.

27. Can I set up an appointment with ERS electronically or do I have to call them on the phone?

• You would need to contact ERS by telephone only at this point. They are taking thousands of calls daily therefore it is important to get an appointment scheduled to speak to a representative.

28. I received my annual statement for service, is part time prorated?

• Yes

29. If I leave on 12/22/2010 when would I expect my first pension check?

• Typically the first “advance check” (partial) takes 6 to 8 weeks. A final calculation which will result in full pension checks thereafter takes 6 months to receive. However, you are retroactively made whole when that occurs.

return to top