Guide to the SUNY Retirement Programs

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.

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.

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.

New employees must contribute 3% of their salary. Employees who began participating in the ORP before July 26, 1976 are not required to contribute.

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 MetLife SUNY Representative.

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.

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.

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.

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").

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%.

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.

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:

1. Account balance
2. Highest account balance as of 12/31 of any fifth contract anniversary less partial withdrawals, charges and fees, or
3. The total of all of your purchase payments less any partial withdrawals.

In each case, less any outstanding loans.

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 59½ are generally prohibited. Some exceptions apply.

MetLife's FFA offers more features such as:

• The Equity Generator^SM1, 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.

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.

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 eSERVICE^SM or by calling 1-800-560-5001. You can access MetLife eSERVICE^SM via MetLife's website designated especially for SUNY ORP, www.metlife.com/suny.

The 403(b) Voluntary Supplemental Retirement Account (SRA) is a tax-deferred retirement program that allows eligible employees of SUNY to set aside a portion of their pay on a pre-tax basis. The contributions to the SRA may be invested in MetLife’s Financial Freedom Account (FFA) variable annuity, an approved funding vehicle for the SUNY SRA.

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.

You are eligible to participate in the SRA upon employment.

You can determine the percentage of your salary you’d like to contribute in pre-tax dollars, up to the IRS limits. For 2009, the federal general limit is $16,500.

If you are age 50 or older in 2009, you can contribute an additional catch-up contribution of $5,500. After 2009, the general and catch-up contribution limits will be subject to cost of living increases.

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.

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 SRA 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 SRA by the April 1st following the later of the year you retire or the year you reach age 70½ (your "required beginning date").

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%.

Loans are available on your SRA 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.

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:

1. Account balance
2. Highest account balance as of 12/31 of any fifth contract anniversary less partial withdrawals, charges and fees, or
3. The total of all of your purchase payments less any partial withdrawals.

In each case, less any outstanding loans.

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 59½ are generally prohibited. Some exceptions apply.

MetLife's FFA offers more features such as:

• The Equity Generator^SM1, 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.

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.

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 eSERVICE^SM or by calling 1-800-560-5001. You can access MetLife eSERVICE^SM via MetLife's website designated especially for SUNY ORP, www.metlife.com/suny.