Massachusetts Optional Retirement Program (ORP)

The Massachusetts Department of Higher Education is ORP plan administrator. The DHE's ORP website provides:

• Guidance on choosing between the ORP and MSERS
• A comparison of MSERS and ORP benefits
• Information about drawing benefits from the ORP
• ORP retiree eligibility for MA Group Insurance Commission benefits

Faculty and staff who are eligible* to enroll in the Optional Retirement Program (ORP) may do so within the first 180 days of benefited employment (dates reflected in a Notice of Eligibility form provided eligible employees by UMass Amherst Human Resources). ORP enrollment is irrevocable.

* Generally these benefited faculty and staff whose positions are exempt from overtime and who are not vested in the Massachusetts State Employees' Retirement System (MSERS / defined benefit plan / pension system) are eligible to enroll in the ORP. Where this information differs from a determination by the plan administrator (MA Dept. of Higher Education Retirement Plans Unit) or plan documents prevail, the latter shall prevail.

To enroll in the ORP:

1. 1. Choose an ORP provider. Information on the available providers is available on the MA Dept. of Higher Education's ORP website.
    
2. Establish your provider account online by going to the ORP Enrollment Center (under "Establish your new Provider Account" on the ORP website)  and, upon completion of that process, print the confirmation page that shows you have enrolled on a Massachusetts ORP.
   
   Please note: you must open a new provider account specific to the Massachusetts ORP even if you already have a separate account with that provider.
    
3. Complete and return the ORP Enrollment Forms to UMass Amherst Human Resources with your ORP enrollment confirmation page (#2 above).

If you have funds in the Massachusetts State Employees' Retirement System (MSERS) and wish to roll those funds into your ORP account. 

Note:

• If you are establishing an account with TIAA, you will be required to enter the access code MU87.
• If you are establishing your account prior to your hire date and encounter an error, please use the current date as your hire date. This will not impact the effective date of your contributions.

Contact:

• UMass Amherst Human Resources (AskHR; telephone 413.545.6113)
• Massachusetts Department of Higher Education (telephone 617‐994‐6976)

You may be eligible for income in retirement from a number of sources including, but not limited to:

• As a member of the ORP, please work with your ORP vendor (Fidelity or TIAA) to evaluate and initiate your ORP income options. it is important to begin this process at least five (5) months prior to your anticipated retirement date if you intend to secure health insurance benefits through the MA Group Insurance Commission (see below) and in order for your University benefits (payment of unused sick time, continuation of University e-mail address, etc) to transition without interruption.
• Social Security Administration: remember to inform your Social Security contact that you will be subject to the Windfall Elimination Provision and Government Pension Offset. These two federal provisions may impact your Social Security income while drawing your MSERS pension.
   
• If you have a voluntary pre-tax retirement account (eg, a University 403b and/or Massachusetts 457/SMART plan) contact your vendor (Fidelity, TIAA and/or Empower Retirement) to discuss retirement income from that/those account(s).

Additional helpful resources:  

• MA Group Insurance Commission information for retirees & the GIC Retiree Benefit Decision Guide
• MA Department of Higher Education information for ORP Retirees

If you are retired (drawing a retirement income from the MA ORP):

• GIC Health and Basic Life Insurances: the GIC will continue to offer a non-Medicare health insurance plan to you (and your eligible dependent/s) at the retiree rate so long as you are not eligible for Medicare Part A at no cost. The GIC Retiree Benefits Decision Guide provides an overview of retiree insurance plan coverages and premiums.

  If you (or anyone covered under your GIC health insurance plan) is eligible for Medicare Part A at no cost, you must enroll in Medicare Parts A & B if you wish to continue any health insurance through the MA Group Insurance Commission. At that time Medicare Parts A & B become your primary coverage and the GIC will offer you a Medicare supplement plan (inclusive of prescription coverage).

  Contact the Social Security Administration to confirm if you or your dependent(s) will be eligible for Medicare Part A at no cost. If ineligible for Medicare Part A at no cost the GIC offers continuation of a health insurance that is not a Medicare supplement.
   

• GIC Optional Life Insurance (OLI): you may continue your GIC term OLI insurance for as long as you wish, or cancel or reduce that coverage effective the first day of any future month. For most retirees (based on age at retirement) the GIC OLI premiums increase significantly upon retirement (for premiums please reference the GIC Retiree Benefits Decision Guide. Premiums approximately double when you turn 70 years of age and again each five years thereafter.
   
• GIC Long Term Disability (LTD) Insurance: your GIC LTD insurance coverage ends upon retirement. If you became disabled prior to retirement and are drawing GIC LTD payments upon retirement, those payments will be reduced in the amount of your MSERS pension (minimum monthly payments may continue.)
   
• HCSA: You may not incur GIC HCSA eligible expenses after your retirement (unless you continue coverage under COBRA by making post-tax contributions to that account, undermining your tax-savings for participating). If you enroll in the GIC HCSA for the calendar year in which you retire, please take this into account when estimating your annual election amount & ensure you have spent at least as much as you have contributed to the HCSA by your retirement date.

• Payroll-deducted Home / Auto Insurances: these premiums will not be deducted from your retirement income. Some providers will continue to provide a discount if you pay premiums via a transfer from a bank account. Please contact your insurance company directly to explore options. 
   
• Met/Hyatt Legal Insurance: your Met/Hyatt Legal insurance coverage ends upon retirement. You may continue the coverage for one year thereafter by prepaying the premium. Contact Met/Hyatt Legal directly to make arrangements.
   
• Dental Insurance: the dental insurance you have as an employee ends following your retirement. You have two options for dental insurance based on your former University employment. If dental insurance coverage is important to you, explore these and other dental coverage options (eg, through the MA Health Connector, the AARP and other).

1. COBRA: you may continue your employee dental insurance plan for up to 18 months (up to 36 months through MA Public Employees Fund for members of AFSCME Unit A and PSU/MTA Units A&B) by paying 102% of the premium. Your dental plan administrator will send a COBRA notice to your home. If you wish to continue your current coverage under COBRA, return the COBRA enrollment form to that administrator. COBRA dental premiums are not deducted from your monthly MSERS pension or ORP payments; you will need to make direct premium payments to the plan administrator.
    
2. GIC Retiree Dental Plan: you may enroll in the GIC Retiree Dental Plan (plan information in the GIC Retiree Benefit Decision Guide) upon retirement, upon involuntary loss of coverage under another plan (for instance expiration of coverage under COBRA, above) or during the GIC open enrollment (end of April/beginning of May each year with coverage effective July 1) any year. Please note that if you enroll in the GIC Retiree Dental Plan and later cancel your coverage, you are not eligible to re-enroll in the future.
    
3. Other: you may choose to purchase dental insurance through the Commonwealth Connector, another organization...or not to purchase dental insurance. You are not required to purchase dental insurance.

• University Paid Leave Accruals & Compensatory time: non-MSP members are paid for unused vacation leave, 20% of unused sick leave and compensatory time after retirement. MSP members receive a longevity payment (1.5 days of pay for each full year of service to the University). These payments are typically issued one-to-two payperiods following your last payment for time worked.

          This payment will be the net of federal income taxes (22%) and MA state taxes (income and Paid Family Medical Leave/PFML). You may elect to tax-defer some or all of sick/vacation payments into a University 403b or Massachusetts 457/SMART account, within IRS limits. If you wish to do this you must make these arrangements in the calendar month prior to payment.  

For university purposes retirement from the ORP means one is eligible for MA Group Insurance Commission (GIC) retiree insurance benefits & drawing off an ORP account as a retiree (criteria online here: https://www.mass.edu/forfacstaff/orp/retiree.asp).

In order to retire from the ORP:

1. Draft an ORP Retiree Checklist and work with your ORP vendor (TIAA or Fidelity) to complete that form and submit it to the MA Department of Higher Education with the forms requesting standard monthly withdrawals from your ORP account. In order to be an “ORP retiree” eligible for insurance through the GIC your standard monthly withdrawals from the ORP need to meet this definition of Retiree Income.
 

2. Complete and submit a GIC Status Change Form 1a to UMass Human Resources.

In response to receipt of the GIC Status Change Form :

• If you are currently purchasing GIC health insurance coverage to individual/s who are eligible for Medicare Part A at no cost, UMass Human Resources will provide you a completed federal Request for Employment Information (CMS-L564) form. The Medicare-eligible individual(s) will submit this form to the Social Security Administration (SSA) with a completed federal Medicare Part B application.
  
  The CMS-L564 form allows SSA to complete the Medicare Part B enrollment outside of the federal open enrollment period and to waive the late Medicare Part B enrollment penalties so long as the applicant was continuously covered under a health insurance plan established through active employment.
   
• The GIC will write to anyone covered under your GIC health plan who is Medicare eligible requesting their selection of a Medicare Supplement Plan GIC Retiree Benefit Decision Guide. Medicare Parts A&B will become primary coverage and the GIC Medicare Supplement Plan will provide secondary coverage inclusive of prescription coverage (inclusive of a Medicare Part D plan).
   
• Contact the DHE requesting confirmation of your months of service and that you’ve initiated a request to withdraw funds from your ORP account.
   
• Request your department to generate a “personnel action form” reflecting your retirement in HR Direct.
   
• For ORP retirees whose positions are covered by the MSP collective bargaining agreement, Human Resources will ask the payroll team to process your MSP longevity payment following your retirement. This is bargained payment of 1.5 days of salary for each full-time-equivalent year of creditable university service.