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Employees’ and Teachers’ Retirement System

Two Maryland State plans are available, depending on when you were hired. The Maryland State Retirement Plan is available to employees hired after January 1, 1980.

Your Contribution

Employees enrolled in the Maryland State Retirement Plan contribute either 5% or 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

Retirement Benefits

  • 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

Retirement Eligibility

You qualify for normal service retirement if:

  • You are age 60
  • You have 30 years of eligibility service.

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.

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:

1/55 x Average Final Salary x years of creditable service

Final Average Salary – The average of the three highest annual salaries during your career.

Retiring Before Normal Retirement Age

You are eligible for early retirement if you have at least 25 years of eligibility service. However, your benefit is reduced by .5% x the number of months between your age and age 60 or the number of months between 25 and 30 years of eligibility service credit, whichever is less.

Eligibility Credit

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 normal cost for the following types of service:

  • Retroactive/missed service
  • Approved Leave of Absence
  • Redeposit of previously withdrawn service credit

Service may be purchased at full cost for the following types of public employment:

  • Federal Government
  • Out-of-state public school teaching
  • In-state private/parochial teaching
  • Out-of-state municipal employment
  • In-state non-participating municipal employment

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. Sick leave credit cannot be used for meeting eligibility requirements for either service or early retirement.