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 a supplemental retirement annuity that lets you 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

Your role at the College determines which retirement plans are available to you.

If you are:

  • Full-time faculty, administrator (full-time or part-time), or paraprofessional staff (full-time or part-time), you may be able to choose the Maryland State Pension System Plan or the Optional Retirement Plan.
  • Full-time and part-time support or technical staff members are automatically enrolled in the appropriate Maryland State Plan - either the Maryland Teachers' Pension System or the Maryland Employees' Pension System.
  • If you were hired before January 1,1980, you may have elected to participate in the Maryland State Retirement Plan. You can still participate in that plan under certain conditions.
  • Part-time employees can participate in a 403(b) program.

 

Maryland State Pension Plan

Key Points:
  • Employees contribute 7% of salary
  • MD state also contributes
  • Vests in 10 years if hired after July 1 2011
  • Vests in 5 years if hired prior to July 1, 2011
  • Defined benefit plan

Maryland State Retirement Plan

Key Points:
  • Employees contribute 7% of salary
  • MD state also contributes
  • Vests in 10 years
  • Defined benefit plan
  • Limited to Employees hired before January 1, 1980

Optional Retirement Plan

Key Points:
  • Employees not required to contribute
  • MD state contributes 7.25% of salary
  • Vests immediately
  • Defined contribution plan

Supplemental Retirement Plans

In addition to the retirement plans above, you can save more with a Supplemental Retirement Account (SRA).

This program lets you reduce your taxable income and save for retirement. Each plan provides a variety of fixed and variable accounts in which to invest your funds and allows you to make changes in the amount you contribute at any time.  Invest with one of the SRA providers.

  • ING/Voya: Jeffrey Wheeler, CRPC (703) 405-7880
  • TIAA-CREF: Telephone Counseling Center (800) 842-2776
  • AXA Equitable: Mark S. Purisch (301) 840-1551
  • Valic: Brian Misterek (410) 980-0025

The Internal Revenue Service limits your annual SRA contribution to $18,500 (or $24,500 if you are over 50 or will turn 50 this year) to both a 403(b) and a 457 (b) annually.

To open a new account, first set up the account with the vendor you select. Then set up your contribution amount in Workday.

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