Frequently
Asked Questions (FAQ) about Retirement Plans 
As an educational institution of the State
of Maryland, Montgomery College has access
to state-funded retirement programs that are
offered to employees.
During your working years, you're busy
with your career, family and social life -
but you also need to think about retirement.
A
comfortable, secure retirement requires planning.
You select a retirement program when you begin
employment and your election takes effect on
the first of the month following receipt of
your election form.
Full-time, Faculty, Administrators
and Professional Staff:
These employees are able to choose between the Maryland State Pension
System Plan and the Optional Retirement Plan.
Pension System for Employees and Teachers
of the State of Maryland:
The Maryland State Retirement and Pension System for Teachers is
a contributory plan up to the level of the current Social Security
wage base. Employees are required to contribute 5% of their gross annual
salary deducted over the academic year. This reduction
will not be subject to federal taxes; however, it is subject to state
and FICA taxes. Contributions earn interest
at the rate of five percent (5%). The State contribution to the MSRPS
is determined annually by the State Retirement systems Actuary. There
is a five-year minimum service requirement in order to be vested. This
is a defined benefit plan.
Optional Retirement Plan (ORP):
There are two vendors to select from in the Optional Retirement Plan
(ORP): Fidelity and TIAA-CREF.
Employees do not have a required contribution.
The State of Maryland (or Montgomery College
for certain employees) contributes 7.25% of
the employee’s academic year salary to their
annuity account. Benefits are vested immediately
under the Optional Retirement Plan. This is
a defined contribution plan.
Full-time, Support, Paraprofessional
and Technical Staff:
Support staff employees are automatically enrolled as members of either
the Maryland Teacher’s Pension
System or the Maryland Employees’ Pension System according to state
regulations.
The Teacher’s Pension system requires
a 5% contribution over the academic year. The
reduction will not be subject to federal taxes,
however, it is subject to state and FICA taxes.
Contributions earn interest at the rate of
five percent (5%). There is a five-year minimum
service requirement in order to be vested.
Part-time Employees:
Part-time employees are also eligible for retirement benefits on a
prorated basis. Faculty and professional staff employees can choose
between MSRPS and one of the Optional Retirement Plans. Support,
Paraprofessional, and Technical Staff are automatically enrolled
in MSRPS.
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