Home > For Campus Employees > Optional Retirement Program > Choosing A Retirement Plan > Comparison of Key Features
Comparison of Key Features
| Description | SERS | ORP |
| Plan Type | Defined Benefit | Defined Contribution |
| Internal Revenue Code Section | 401(a) | 401(a) |
| Your Contribution* | 9% of salary to $30,000, plus 11% of salary above $30,000 |
9% of salary to $30,000, plus 11% of salary above $30,000 |
| *Contribution rates for participants hired on or after July 1, 1996. | ||
| Vesting | After 10 years of Creditable Service | Immediate 100% |
| In-service Withdrawals | Not Available | Not Available |
| Loans | Not Available | Not Available |
| Pre-retirement Survivor Benefits* | Income may be payable to surviving spouse and minor children | Group term life insurance provided by the Board of Higher Education |
| *Participants in both plans may also purchase life insurance through the Group Insurance Commission. | ||
| Disability Benefits | Disability pension payable to participants with 10 years of service. Benefits are payable to participants with less than 10 years of service if they are disabled on the job.* | Long term disability insurance provided by the Board of Higher Education |
| *SERS Participants often purchase supplemental disability insurance through the Group Insurance Commission. | ||
| Benefits Payable | After attaining 20 years of service or if 55 with at least 10 years of service | Anytime after terminating employment with the Commonwealth |
| Benefit Amounts | Amount of income is based on: - Age - length of creditable service - level of salary - group - payment option |
Benefit amount is based upon account balance and distribution method selected |
| Payment Options | Lifetime income, payable under options which can provide survivor benefits | Variety of payment options ranging from income for your life to lump sum distributions |
| Plan Investments | Overseen by the State Retirement Board | Participants select the investments for their own accounts; returns directly affect the level of benefits |
| Retiree Healthcare | Provided by Group Insurance Commission for employees with at least ten years of creditable service | Provided by the Group Insurance Commission for employees with at least ten years of creditable service* |
| *ORP Retirees must maintain sufficient funds in their accounts to be eligible for Retiree Benefits. | ||
| Re-employment | Can buy back any prior service that was refunded for state service of six consecutive months or more which did not have retirement contributions withheld. Must redeposit the appropriate contribution plus accumulated interest | A former ORP participant may participate in the ORP immediately upon re-employment in an eligible class |