Two Maryland State plans are available, depending on when you were hired. The Maryland State Pension Plan is only available to employees hired before January 1, 1980. If you continuously participated, didn't transfer to the Maryland State Retirement Plan, and didn't choose the Optional Retirement Plan, you may still be a member of the Maryland State Pension Plan.
Employees enrolled in the Maryland State Pension Plan contribute 7% of their base annual salary. Participants in the Teachers’ System contribute on a 10-month basis (20 pay periods per academic year), and participants in the Employees’ System contribute on a 12-month basis (over 26 pay periods). This reduction will not be subject to federal taxes; however, it is subject to state and FICA taxes.
While Actively Working
- Survivor protection if you die before retirement
- Disability coverage in the event that you are unable to continue working due to a disabling injury or illness
- A basic monthly benefit allowance based on your age, years of service, and salary
- Options for a continuing allowance to your survivor
- Annual cost-of-living adjustments
If hired prior to July 1, 2011. You qualify for normal service retirement if:
- You have 30 years of eligibility service.
- You are age 62 with 5 years of eligibility service
- You are age 63 with 4 years of eligibility service
- You are age 64 with 3 years of eligibility service
- You are age 65 with 2 years of eligibility service
You are eligible for early retirement if you are age 55 with at least 15 years of eligibility service. However, your benefit is reduced by .5% x the number of months between your age and age 62.
If you stop working for the College before you're eligible for retirement, you may still receive some money. If you have at least five years of eligibility service, you are guaranteed to receive a future benefit for the years and service earned before you left the College.
If hired after July 1, 2011. You qualify for normal service retirement if:
- Your age and years of service equal 90
- You are age 65 with 10 years of eligibility service
You are eligible for early retirement if you are age 60 with at least 10 years of eligibility service. However, your benefit is reduced by .6% x each year prior to the age of 65.
If you stop working for the College before you're eligible for retirement, you may still receive some money. If you have at least ten years of eligibility service, you are guaranteed to receive a future benefit for the years and service earned before you left the College.
Calculating Your Benefit
This is a defined benefit plan - a plan that provides a predictable benefit when you retire.
Here's the formula for normal service retirement:
1. The greater of :
1.2% x Average Final Salary x years of service as of June 30, 1998,
.8% x Final Average Salary up to the Social Security Integration Level (SSIL) x years of service as of
June 30, 1998, plus
1.5% x Final Average Salary over the SSIL x years of service as of
June 30, 1998
2. 1.8% x Final Average Salary x years of service after June 30, 1998.
Final Average Salary – The average of the three highest consecutive annual salaries during your career.
SSIL (Social Security Integration Level) – the average of all the Social Security Wage Bases over the 35 calendar years prior to your year of retirement. The Social Security Wage Base is the maximum amount of earnings subject to the Federal Insurance Contribution Act (FICA) tax. The SSIL changes annually on January 1.
You earn a month of service credit for each month you work and for which contributions are paid. Part-time employees earn part-time credit.
Members of the military can also earn credit for military service. You may claim up to five years of credit for active military duty preceding your membership, however, you must have at least ten years of creditable service in order to apply.
Some people can also buy additional credit. Service may be purchased at full cost for the following types of public employment:
- Federal Government
- Out-of-State municipality
- Non-participating Maryland municipality
- Private, parochial, or out-of-state school (teaching position only)
- Prior service with the State or participating municipality not covered under your current account
Unused sick leave may also be credited to eligibility. If you retire immediately upon terminating employment, you will receive additional creditable service for your accumulated sick leave. For every 22 days of unused sick leave you will receive one month of additional creditable service.