Saving for Retirement

Montgomery College offers its employees a range of options to save money for retirement. There are three retirement plans; one is only available to certain employees hired before January 1, 1980. All employees who are eligible for benefits, must participate in one of the retirement plans. In addition to the retirement plans, the College offers supplemental retirement annuities that allow  you to save more toward your retirement.

First let's look at the current retirement options, then we'll move on to the supplemental plan.

Primary Retirement Plans

Learn more about the Maryland State Retirement and Pension System.new window

Supplemental Retirement Annuities

In addition to the retirement plans above, you can save more with a Supplemental Retirement Annuity (SRA). This program lets you reduce your taxable income and save for retirement. Each plan offers a variety of fixed and variable accounts in which to invest your funds and allows you to make adjustments to your contribution at any time. Invest with one of the SRA providers.

Annual Contribution Limit
The Internal Revenue Service limits the total amount of retirement contributions each calendar year. Employees may contribute the IRS maximum to both a 403(b) account and a 457(b) account annually.

For 2025, the IRS retirement contribution maximum is $23,500, up from $23,000 in 2024. 
Employees aged 50 (or turning 50 in the applicable calendar year) to 59 and 64 or older can contribute an additional $7,500, for a total of $31,000.

Employees aged 60 (or turning 60 in the applicable calendar year) to 63 can contribute an additional $11,250, for a total of $34,750.

SRA Account Is Required–Do This First
To open a new account, first set up the account with the vendor you select. Then set up your contribution amount in Workday.

Remember, effective March 1, 2025, employee SRA contributions must be made as a percentage of pay. Read the memo (PDF, )  for additional details.