Here are some answers
to Frequently Asked Questions |
Have a question about the plan's withdrawals? Does SUNY make a company match?
The SUNY ORP FAQ may have the answers. Click the link to download or continue reading.
What is the Optional Retirement Program?
The Optional Retirement Program (ORP) is a defined contribution plan for certain eligible employees of SUNY. Under a defined contribution plan, the benefit at retirement is dependent upon the amount contributed and the performance of the investments within a funding vehicle. MetLife’s Financial Freedom Account (FFA) variable annuity is an approved funding vehicle for the SUNY ORP.
What is MetLife's Financial Freedom Account?
MetLife's Financial Freedom Account (FFA) variable annuity is a retirement savings vehicle designed to help you accumulate assets for retirement and provide you with income during retirement.
Am I eligible to participate?
Generally, full-time faculty and professional staff members of SUNY are eligible for the ORP. Part-time faculty and staff who have "term appointments" are also eligible.
How much can I contribute?
New employees must contribute 3% of their salary. Employees who began participating in the ORP before July 26, 1976 are not required to contribute.
Can I make catch-up contributions?
Catch-up contributions cannot be made to an Optional Retirement Program. You may be able to defer more of your income by purchasing another tax-deferred account, such as a 403(b). To learn more about how you can defer taxes on more of your income, speak with your benefits administrator.
Does SUNY make contributions too?
SUNY employees hired on or after July 17, 1992 will receive an employer ORP contribution of 8% of gross salary for the first seven years of employment and 10% of gross salary thereafter (per federal regulations, contributions are based on the first $200,000 of gross salary). Different employer contribution rates apply for employees hired before July 17, 1992.
When am I vested?
You are immediately vested if you have a retirement contract with any of the four current ORP providers (MetLife, TIAA-CREF, AIG VALIC, ING). All new employees are vested in the employer contribution after 366 days of service.
How many funding options can I choose from?
You may choose from a number of variable funding options and the Fixed Interest Account (FIA). The Financial Freedom Account provides funding options across conservative, moderate, and aggressive risk levels. It offers diversification across asset classes along with growth and value investment styles.
Can I make withdrawals?
You can take a cash withdrawal under the following circumstances:
- If you have separated from service.
- If you are receiving benefits under the school's long-term disability insurance plan.
- If you qualify for a financial hardship withdrawal.
Hardship withdrawals may be made:
-for medical expenses for yourself, spouse and dependents in excess of 7.5% of adjusted gross income.
- to prevent foreclosure on or eviction from your principal residence.
No early withdrawal charge will apply to these withdrawals. Distributions will be subject to federal income tax as ordinary income.
If you receive a distribution from the ORP before you reach age 59½, an IRS 10% premature distribution penalty may apply if your retirement or separation from service with SUNY occurred before you reached age 55 and you do not qualify for any other exception to this penalty. You must begin receiving distributions from the ORP by the April 1st following the later of the year you retire or the year you reach age 70½ (your "required beginning date").
Can I make transfers among the funding options?
You can make unlimited transfers among the variable funding options. (Restrictions may apply. See the prospectus for details.)
Transfers from the Fixed Interest Account in excess of 20% of the Fixed Interest Account balance are subject to a five-year declining charge of 7%, 6%, 5%, 4%, 3%.
May I take a loan from my account?
Loans are available on your ORP account. Generally you are allowed one loan per provider per twelve-month period. The amount is not to exceed the lesser of 50% of your accumulated value or $50,000. For a contract loan (collateralized), a participant must keep 125% of any outstanding loan balance in a separate loan account until the loan is paid off.
Is there a guaranteed death benefit?
The Financial Freedom Account provides a guaranteed death benefit to help protect your beneficiaries against loss should you die before the annuity payout period begins. The death benefit is the greatest of:
- Account balance
- Highest account balance as of 12/31 of any fifth contract anniversary less partial withdrawals, charges and fees, or
- The total of all of your purchase payments less any partial withdrawals. In each case, less any outstanding loans.
How will I receive my monies when I retire?
When you decide to receive income, usually when you retire, the Financial Freedom Account offers several choices (see limitations below):
- Lump sum payment.
- A series of monthly, quarterly, semiannual or annual payments under a systematic withdrawal program in an amount or percentage you select, and that you may change or stop at any time. (Note that this is not a lifetime income annuity and you may outlive your account balance under this option.)
- A series of monthly, quarterly, semiannual or annual payments beginning at your required beginning date for the amount required under IRS minimum distribution regulations. (Note that this is not an income annuity arrangement and you may outlive your account balance under this option.)
- An irrevocable lifetime annuity payout that is guaranteed to pay for your lifetime or, if selected, for the joint lifetimes of you and another individual.
- An irrevocable annuity payout that makes payments for a guaranteed period you select, not to exceed your life expectancy.
Ordinary income taxes apply to withdrawals. Withdrawals before age 59 1/2 are generally prohibited. Some exceptions apply.
Are there additional features offered with FFA?
MetLife's FFA offers more features such as:
- the Equity GeneratorSM1, an automated investment strategy. The Equity Generator is designed for investors who do not wish to risk principal but want to potentially earn more than current fixed rates.
- a guaranteed Minimum Distribution Service. MetLife will automatically compute the minimum withdrawal required by federal tax law for the individual Financial Freedom Account. MetLife will guarantee the calculation against federal tax penalties, based upon the information provided.
- an asset allocation questionnaire. Our questionnaire can help you decide which mix of funding options is right for you, by helping you determine your investment goals, time horizon and risk level.
1The Equity Generator is a dollar cost averaging strategy that involves continuous investment in securities regardless of fluctuating prices. You should consider your financial ability to continue purchases through periods of low-price levels. Equity Generator cannot guarantee a profit or protect against loss.
What are the fees associated with FFA?
You will pay a Separate Account charge that is no more than 0.95% of your average account value. You will also pay an investment-related charge for the investment choices you select, which covers portfolio management fees and operating expenses. The amount of the investment-related charge varies by investment choice. See the prospectus for the specific charges.
How will I receive account updates?
Each quarter, you will receive a Financial Freedom Account statement containing comprehensive account information, including fund performance, contributions, and withdrawals. You may also access your account information virtually 24 hours a day, 7 days a week online with MetLife eSERVICESM or by calling 1-800-560-5001. You can access MetLife eSERVICESM via MetLife's website designated especially for SUNY ORP, www.metlife.com/suny .
Like most insurance policies and annuity contracts, MetLife's policies and contracts contain exclusions, limitations, reductions of benefits, surrender charges and terms for keeping them in force. Financial Freedom Account variable annuity has limitations. There is no guarantee that any of the variable investment options in this product will meet their stated goals or objective. The account value is subject to market fluctuations so that, when annuitized or withdrawn, it may be worth more or less than its original value. Product availability and features may vary by state. All product guarantees are based on the financial strength and claims paying ability of Metropolitan Life Insurance Company.
To learn more about MetLife’s Financial Freedom Account or to open an account with MetLife, contact your Financial Services Representative. Our Financial Services Representatives are available to work with you and assist you with your retirement planning needs.
Pursuant to IRS Circular 230, MetLife is providing you with the following notification: The information contained in this document is not intended to (and cannot) be used by anyone to avoid IRS penalties. This document supports the promotion and marketing of insurance products. You should seek advice based on your particular circumstances from an independent tax advisor.
MetLife, its agents, and representatives may not give legal or tax advice. Any discussion of taxes herein or related to this document is for general information purposes only and does not purport to be complete or cover every situation. Tax law is subject to interpretation and legislative change. Tax results and the appropriateness of any product for any specific taxpayer may vary depending on the facts and circumstances. You should consult with and rely on your own independent legal and tax advisors regarding your particular set of facts and circumstances.
In general, if any conflicts occur between this material and the plan documents that define the plan, the plan documents will govern. All information regarding the Financial Freedom Account for SUNY ORP has been approved and reviewed by SUNY.
The Financial Freedom Account variable annuity is offered by prospectus only, which is available from your registered representative or by calling 800-560-5001. You should carefully consider the product’s features, risks, charges and expenses, and the investment objectives, risks and policies of the underlying portfolios, as well other information about the underlying funding choices. This and other information is available in the prospectus, which you should read carefully before investing. Product availability and features may vary by state. All product guarantees are based on the financial strength and claims-paying ability of Metropolitan Life Insurance Company.
Financial Freedom Account (FFA) variable annuity is issued by Metropolitan Life Insurance Company (Policy Form No. G.4333-7), 200 Park Avenue, New York, NY 10166 and distributed by MetLife Investors Distribution Company (member FINRA), 5 Park Plaza, Suite 900, Irvine, CA 92614. Securities, including variable products, offered through MetLife Securities, Inc. (member FINRA/SIPC), 200 Park Avenue, New York, NY 10166. Metropolitan Life Insurance Company, MetLife Investors Distribution Company, and MetLife Securities, Inc. are MetLife companies.
Policy Form G. 4333-7 MLR19000172004 L05085540[exp0509][NY] | 
