SUNY ORP

Payout Options

Withdrawals

You may withdraw all or part of your account value during the accumulation phase, subject to plan administrator certification in writing that you are eligible, both as to the timing and form of distribution. Withdrawals from the fixed interest options are subject to certain restrictions and may be subject to a Market Value Adjustment. Withdrawals prior to age 59½ may be subject to an IRS 10% premature distribution penalty tax.

Options at retirement or separation from service

There are a number of distribution options available to you when you leave the employment of SUNY, many of them designed to help keep your accumulated funds from losing purchasing power due to inflation. Your options include:

A full or partial withdrawal (may be subject to federal withholding and possible tax penalties)

A systematic payout specifying a percentage, a dollar amount, or a time period. To qualify for this option, your should have an account balance of $3000 and it will be a minimum payment of $250.00 per month (account remains fully invested)

Payments guaranteed for your lifetime or for a specified period (guarantees based on the claims-paying ability of ING Life Insurance and Annuity Company)

Account can be separated for multiple beneficiaries in order to “stretch” the distributions from your retirement plan

Your representative can review the alternatives with you and help you choose one that best meets your needs.

What happens if I die before I retire?

If you die before you retire, the beneficiary you designated may elect to receive the total current cash value of your account or select one of the several settlement options. If your beneficiary is your spouse and he or she wants to defer receipt of the income, he or she can opt for this up to December 31 of the year you would have reached 70½ or, if later, the end of the year following your date of death.

If your beneficiary is not your spouse, the current cash value must either be applied to an annuity option within one year of your death or paid to your beneficiary within five years of your death.

You should consider the investment objectives, risks, charges and expenses of the variable products and the underlying fund options carefully before investing. The contract and fund prospectuses contain this and other information. You may obtain a prospectus by contacting your ING representative or the Company at the address listed below. Please read the information carefully before investing.

Variable annuities are long-term investments for retirement. Withdrawals prior to age 59½ may be subject to a 10% IRS premature distribution penalty tax. Amounts distributed will be taxed as ordinary income in the year the money is distributed. Account values fluctuate with market conditions, and when surrendered the principal may be worth more or less than its original amount invested. Tax deferral is provided by your employer’s plan, not by the annuity, so investing in an annuity does not provide you any additional tax-deferral benefit. Annuities may be subject to additional fees and expenses to which other tax-qualified plan funding vehicles may not be subject. However, annuities provide features and benefits such as lifetime income payments and death benefits which may be valuable to you.

Neither ING or its affiliated companies or representatives provide tax or legal advice. Please consult a tax adviser or attorney before making a tax-related investment/insurance decision.

Insurance products issued by ING Life Insurance and Annuity Company. Financial planning and securities offered through ING Financial Advisers, LLC (member SIPC), One Orange Way, Windsor, CT 06095-4774, or other broker/dealers with which it has a selling agreement.