Maryland Optional Retirement Plan | Montgomery College, Maryland

The Maryland Optional Retirement Plan (ORP) is a defined contribution plan to which the State contributes a percentage of your base annual salary to an approved investment vendor. You then work with that vendor to invest the money in a way that meets your retirement goals.

Contribution

The State currently contributes 7.25% of your base annual salary.

Vendors

You may elect to invest the contributions with: Fidelity Investmentsnew window or TIAA-CREF. new window

You elect to invest contributions among the different investment options offered by the vendor you have selected. The investment vendors will offer a variety of approved investment options including both fixed and variable alternatives

Each May, ORP participants may elect to change vendors. Any change made during the open enrollment election period will take effect with the first pay period of the next academic year.

Vesting

You are immediately fully vested in all contributions made on your behalf. Upon termination of employment you have full ownership of your account.

Benefit

You retirement benefit will be determined by the amount in your ORP account at retirement. Your ORP account is based on State contributions and any investment gains or losses in the investment options you selected. You can elect to receive your account balance in a lump-sum payment, periodic distribution or an annuity. Adverse tax consequences may apply depending on the method of distribution elected and your age upon such distribution.

Eligibility for Retirement

A Montgomery College employee participating in the ORP must meet the same age and service requirements as those employees participating in the Maryland State Pension Plan:

Age 62 with 5 years of eligibility service
Age 63 with 4 years of eligibility service
Age 64 with 3 years of eligibility service
Age 65 with 2 years of eligibility service
30 years of eligibility service, or
Age 55 with 15 years of eligibility service.

Death and Disability Benefits

In the event that you die before retirement, your account balance, including all State contributions and investment earnings, is paid to your designated beneficiary.

The ORP does not provide disability benefits. You would be eligible to receive the full value of your account balance.

Cost-of-Living Adjustments

The ORP benefits do not include annual increases to your accumulated account balances.