GREENVILLE — Montcalm Community College (MCC) amended its optional retirement plan as the recent changes to state retirement system eliminated the need for ORP.
During Tuesday’s MCC Board of Trustees meeting, James D. Lantz, vice president for administrative services, presented to the board the amendment.
Lantz explained the plan was put into place to for employees who moved from state to state and not in one long enough to meet requirements, resulting in the benefits not being able to transfer.
“There is no need for the optional retirement program from this point forward,” Lantz said.
In a document presented to the board, Lantz stated new employees will have a choice between the Pension Plus Hybrid Plan and a defined contribution plan intended to provide similar benefits.
For employees hired after Sept. 12, MCC’s attorney prepared a resolution to end ORP.
“Employees already in our ORP will continue to have employee and employer contributions at the same rate as before,” Lantz stated in his document.
In the amendment, the eligibility section reads: An eligible employee who was a member of the Michigan Public School Employees Retirement System (MPSERS) on Feb. 1, 1998, may continue membership in MPSERS or may elect to participate in the plan and retain a limited membership in MPSERS. An employee who becomes eligible after Jan. 31, 1998, and prior to Sept. 12, 2012, may elect to participate in the plan by filing an election form within 90 days after the date on which the employee qualifies as an eligible employee.
If an eligible employee does no elect to participate in this plan, the employee will become a member in MPSERS. Any employee hired or rehired after Sept. 11, 2012, will no be eligible to participate in the plan.
The board of trustees approved the amendment during the meeting.
“(Employees) have two options from the state now,” noted MCC President Robert Ferrentino.