Massachusetts Board of Higher Education

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ADMINISTRATOR FAQ

Frequently asked questions

Coverage and initial enrollment
Providers and enrollment changes
Drawing benefits

Coverage and Initial Enrollment

Who is eligible for ORP coverage?
The ORP covers faculty and senior administrators at all public institutions of higher education. Three criteria must be met:

Participants must be employed in one of the following positions:
- Faculty
- Chancellors and Vice Chancellors
- Presidents and Vice Presidents
- Deans
- Senior Administrators I, II, III, or IV at the University of Massachusetts
Participants must meet the minimum workload requirement:
- The workload for eligibility is the standard Chapter 32 definition: generally, 50% FTE. This is the same as the workload requirement for the State Employees' Retirement System (SERS).
Participants must not be vested in the State Employee Retirement System (SERS) or any other plan operating under Chapter 32 (e.g. Teachers' Retirement; County Plans; etc.).

What is the ORP Election Period?
Eligible employees must select their retirement plan coverage (either the ORP or SERS) within ninety (90) calendar days of initial eligibility for the ORP. An employee's initial eligibility is (typically) the first day that he/she is actively at work. The election is irrevocable. If no election is made, the employee's retirement coverage will default to the SERS.

What forms must I provide to a newly eligible employee?
Visit the forms section.

What is the ORP Plan Entry Date?
The ORP Plan Entry Date and the Insurance Coverage Start Date are the first day of the payroll period (Sunday) following the administrator's receipt of all completed ORP enrollment forms (ORP Enrollment/Change Form, Insurance Enrollment/Change Form, Form SSA-1945, SERS withdrawal request, Provider account application). For example, if an employee enrolls on January 2, 2004, the Plan Entry Date and Insurance Coverage Start Date will be Sunday, January 12, 2004, the beginning of the next pay period.

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Providers and Benefits

How do participants change ORP Providers?
Participants may change Providers any time after a 12-month period has elapsed since either enrollment or the last change, by performing the following steps:

Complete new ORP Enrollment/Change Form, indicating a "Change in Provider" (completed by the participant and delivered to you).
Complete new Provider Account Application (completed by participant and delivered to you).
Forward the completed ORP Enrollment/Change Form and Provider Account Application to the Plan Administrator.
Have campus payroll administrator enter the new ORP participation code on HR/CMS (state and community colleges) or E*MPAC (University of Massachusetts), which ensures future contributions are sent to the new Provider.
Retain copies for on-site personnel folder.

How are funds transferred between ORP Providers?
There are no restrictions on transferring current assets between ORP Providers. Transfers are conducted without Employer authorizations.

Participants should be aware of any charges imposed by their Provider for transferring either out of or into their funds.
Providers may not supply information about participants' June 30, 2004, account balances when they transfer assets to another Provider.
These balances are subject to the "old money" rules for lump sum payments. However, each Provider will make this information available to the participant upon request. Participants should be certain that their new Provider accurately records this information to ensure the "old money" lump sum rules are preserved for future distributions.

What is the process for termination of an ORP Participant?
Termination of an ORP participant involves two important functions:

First, provide information about ORP benefits to the terminating employee. This includes the group term life insurance and long-term disability insurance conversion forms. Please direct terminating participants to the ORP Web pages for information about drawing benefits. The conversion forms should be part of the employee's exit interview/package and would likely accompany information about their other health and welfare benefits, including COBRA details and the GIC Form 1.
Second, it is important to collect information about terminating participants and report it to the Plan Administrator as soon as possible. Please report terminations to the BHE via the "ORP Change Participant Status Forms" on our Forms page. For employees who are eligible for post-employment benefits from the GIC, please remember to write "ORP" prominently in the top right corner of the GIC Form 1. These efforts help the GIC identify the terminating employee as an ORP participant, ensuring the employee is correctly assigned to their Provider's Agency at the GIC.

What is the process for insurance conversion?
Group Life (GL) and Long-Term Disability (LTD) coverage may be converted to individually-owned insurance contracts upon the following:

GL: after leaving a covered class of employee and termination of employment with the Commonwealth.
LTD: termination of employment with the Commonwealth.

The process for conversion includes the following:

Conversion forms must be provided immediately to terminating participants. Enter the policy number on the form (Group Life Insurance: 137863-A; Long-Term Disability: 137863-B).
Conversion forms are available in hard copy from the Plan Administrator and online at AdminEase. Visit our forms page for instructions on accessing AdminEase.
Participants wishing to convert coverage send the form directly to Standard Insurance using the address on the form. Standard Insurance will then contact the Plan Administrator to complete the conversion process.

How should life insurance beneficiary changes be processed?
Life insurance beneficiaries may be changed at any time.

Provide the Insurance Enrollment/Change Form available on our Forms page to the participant.
Participants must return the original, completed version of this form to the Plan Administrator.
Participants should retain a copy for their records.

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Drawing Benefits

What is the process for drawing retirement benefits?
Retirement plan benefits are payable any time after termination of employment with the Commonwealth.

Participants contact their respective Provider(s) to request forms to apply for a distribution.
Participants send their forms to the Plan Administrator for confirmation of their eligibility to draw benefits
- The Plan Administrator may contact the on-site administrator to confirm the participant's termination date.
- The Plan Administrator sends the original form directly to the Provider and sends a copy to the Participant.

How are benefit payments distributed?

Normal form of payment is a Joint and Survivor Annuity for married participants and a Single Life Annuity for unmarried participants.
Alternative forms of payment: participants may select any other form of payment offered by their Provider(s).
Lump Sum Distributions: Participants may select lump sum distributions according to this rule which is applicable to Plan Contributions made after June 30, 2004, and investment earnings thereon ("new money"):
- Participants age 55 and older: any time after termination of employment with the Commonwealth.
- Participants younger than age 55: no lump sum distribution is available.
Grandfathered Assets: Participants' assets in the program on June 30, 2004 ("old money"), as well as future earnings thereafter, may be paid as a lump sum under these rules:
- Participants age 55 and older: any time after termination of employment with the Commonwealth.
- Participants younger than age 55: any time after termination of employment with the Commonwealth only if the distribution is rolled over to either a subsequent employer's plan or a Rollover IRA.
ORP Providers maintain the current value of Participants' account balances as of June 30, 2004, and administer lump sum payments under the rules noted above.
Small Sum Distribution: Participants who terminate employment with the Commonwealth and whose total account balance in the Program is less than $5,000 may draw this amount as a full lump sum at any age.

What is the process for distributing long-term disability benefits?
A brief description of coverage and benefits may be found in the brochure (.PDF) on long-term disability insurance.

Provide a disability claim form to any ORP participant who requests one. Disability claim forms are available in hard copy from the Plan Administrator and online at AdminEase. Visit our forms page for instructions on accessing AdminEase.
Give the "Employee Statement" and "Physician Statement" to the ORP participant. The participant is responsible for the completion and mailing of these sections. Pre-addressed envelopes are included in the application package. (Forms printed online do not include envelopes. The correct mailing address is at the top of the first page of each section.)
Complete as much of the "Employer Statement" as possible, and then send it (and the pre-addressed envelope) to the Plan Administrator for review and authorization. Contact the Plan Administrator for assistance in completing the form.
The Plan Administrator will send the completed form to the Standard Insurance Company. The Plan Administrator may contact you for additional assistance during the claim adjudication process.

What is the process for distributing accelerated death benefits through Group Life Insurance?
A brief description of coverage and benefits may be found in the brochure (.PDF) on Group Life Insurance.

Provide an Accelerated Death Benefits (ADB) claim form to any ORP participant who requests one. ADB claim forms are available in hard copy from the Plan Administrator and online at AdminEase. Visit our forms page for instructions on accessing AdminEase.
Give the "Employee Statement" and "Physician Statement" to the ORP participant. The participant is responsible for the completion and mailing of these sections. Pre-addressed envelopes are included in the application package. (Forms printed online do not include envelopes. The correct mailing address is at the top of the first page of each section).
Complete as much of the "Employer Statement" as possible, and then send it (and the pre-addressed envelope) to the Plan Administrator for review and authorization. Contact the Plan Administrator for assistance in completing the form.
The Plan Administrator will send the completed form to Standard Insurance Company. The Plan Administrator may contact you for additional assistance during the claim adjudication process.
SPECIAL TAX NOTICE concerning group term life insurance for active participants:
- Amounts of employer-provided group term life insurance in excess of $50,000 are subject to current income taxes and Social Security taxes.
- The Commonwealth calculates these amounts of taxable, imputed income and reports them to affected participants on Form W-2.

What is the process for distributing death benefits through Group Life Insurance?
A brief description of coverage and benefits may be found in the brochure (.PDF) on Group Life Insurance.

Campus-based Benefits or Human Resources personnel report a death to the Plan Administrator. It will be helpful if the campus-based personnel provide contact information about the deceased employee's immediate survivors, when it is available.
The Plan Administrator will determine the deceased participant's group life insurance beneficiary/beneficiaries.
The Plan Administrator will file the death claim in conjunction with the deceased's group life beneficiaries.
- This process involves the completion of "Beneficiary Statements" by each beneficiary. The Plan Administrator will distribute and collect these Statements.
- The Plan Administrator will complete the "Employer Statement" and will likely contact immediate survivors for information needed on this form.
- The Plan Administrator will solicit a certified death certificate from a beneficiary.

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Related Links
Participant/Campus Employee FAQ
Standard Insurance Company