New Hire Retirement Selection
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It is important that you select a retirement program by your first day of employment. If you do not make a retirement selection by your first day of employment you will be defaulted to either the Employees’ or Teachers’ Reformed Pension System. Once enrolled in a retirement program, you may not change it at any point in your service with the State of Maryland.
Regular Status, Nonexempt Employees
The University participates in the State Retirement and Pension System and membership is required as a regular status, Nonexempt employee. Membership as a Nonexempt employees is in the Employees Pension and it begins with your enrollment date and ends on your last day of employment. Benefits of the Employees Pension can be found here.
Regular Status Exempt employees and Faculty
Regular status exempt employees and faculty are eligible for one of two retirement programs.
- State Retirement and Pension System (SRPS)
- Optional Retirement Programs (ORP) through either TIAA or Fidelity
Enrollment in a retirement program is a condition of employment as stated in the Annotated Code of Maryland. If you do not make a retirement selection by your first day of employment you will be defaulted to either the Employees’ or Teachers’ Reformed Pension System. While membership in either the Pension or ORP is irrevocable, and cannot be changed during the course of state employment, members of the ORP can change their vendor (TIAA or Fidelity) at any time.
Step 1: Compare Your Options
Resources
Some Things To Consider
The following are some questions to ask yourself before choosing your retirement program. If you have any questions, or need more information, contact your Benefits Services Counselor:
- How long do you plan on working for the University or the State of Maryland? Keep in mind that the State Retirement and Pension System’s benefits are based on your length of service — while the Optional Retirement Program is based on the amount of money contributed to your account.
- How comfortable are you with investing your money? Are you able to take risks? How long do you have until you retire? To be an effective investment manager, you need to make a commitment to review and manage your account. Our Retirement Vendors have Financial Advisors who can help in the planning process.
- Do you have any other sources of retirement income (e.g., spouse’s retirement plan)?
- Do you prefer a guaranteed retirement, disability or death benefit or a benefit based upon your investment decisions?
- How much money will you actually need to have when you retire?
- Have you evaluated Retiree Health Benefit eligibility for both plans? Have you considered whether you and/or your spouse or dependents also need access to Retiree healthcare or will they qualify through their employer?
Step 2: Complete Your Enrollment Forms
State Retirement & Pension System
Pension Enrollment Form (Faculty / Exempt)
Pension Enrollment Form (Non-Exempt)
Optional Retirement Program
I’ve picked a Retirement Plan, what happens next?
Congratulations if you’ve completed Step 2 and submitted your retirement plan selection form.
- Your Paycheck: You will notice pension contributions deducted from your paycheck.
- On the left side of your paycheck, under “Ret/Pen Sub”, that will show the contributions from the University.
- On the right side of your paycheck, you will see Pension Contributions made by you (7%).
- Contributions for Faculty are over 20 paychecks (they stop in the Summer) and for Nonexempt and Exempt Staff are over 26 paychecks.
- Online Account Access: In the coming weeks, you will get mail from the Maryland State Retirement Agency prompting you to set up an online account.
- Beneficiary: Be sure to follow these steps to ensure you have selected a Beneficiary and they have the correct beneficiary associated with your Pension Account.
- Annual Statements: You will also get yearly Pension Statements (typically in the Fall).
- Your Paycheck: You will notice ORP employer contributions on your paycheck.
- On the left side of your paycheck, under “Ret/Pen Sub”, that will show the contributions from the University.
- On the right side of your paycheck, you will see ORP contributions of $0.00.
- While there are no deductions for the ORP, but you are encouraged to open a Supplemental Retirement Account to ensure you’re saving enough for retirement.
- Contributions for all ORP members are over 20 pays (they stop in the Summer)
- Online Account Access: You will receive communication in the upcoming weeks via mail from your selected retirement vendor welcoming you to the plan and providing additional resources and information to set up an online account.
- Beneficiary: Once you have online Account Access, be sure to add a beneficiary.
- Managing Your Assets: You can manage your account balance online. If you need help, schedule an appointment with a financial advisor.
If you have any questions about your retirement plan, please consider reviewing our retirement knowledge articles or contact your Benefits counselor directly.
ARHU, EXST, INFO, LIBR
Mercedes Lindsay, Benefits Services Counselor
lindsaym@umd.edu
ARCH, BMGT, EDUC, UGST, VPSA- except Res Facilities
Shara Edmonds, Benefits Services Counselor
sedmond5@umd.edu
AGNR, BSOS, CMNS, ENGR, GRAD, JOUR, PRES, SPHL, SVPAAP, USG, VPA, VPF, VPR
Stacy Sims, Benefits Services Counselor
ssims@umd.edu
DIT, PLCY, VPUR, VPSA – Res Facilities
Gigi Ndiaye, Benefits Services Counselor
nndiaye2@umd.edu