MARYLAND TEACHERS & STATE EMPLOYEES SUPPLEMENTAL RETIREMENT PLANS

ORIGIN & FUNCTIONS


Supplemental retirement plans are voluntary plans that enable State employees and teachers to save for retirement and secure tax advantages. These plans allow for tax-sheltered income deferral; tax-deferred annuity (primarily for employees of State & local educational institutions); profit sharing; and salary reduction.

For Maryland State employees, the first such plan - a deferred compensation program - was initiated in 1974: first by the Governor (Executive Order 01.01.1974.19), and then by the General Assembly (Chapter 433, Acts of 1974).

Created in 1985, the Board of Trustees of the Maryland Teachers and State Employees Supplemental Retirement Plans administers the State's supplemental retirement plans (Chapter 741, Acts of 1985). These State plans originated from three sources. In 1963, the Board of Trustees of the Teachers Retirement System established the Maryland Teachers' Tax-Deferred Annuity Plan (Internal Revenue Code sec. 403(b)). The Maryland State Employees 457 Deferred Compensation Plan formed in 1974 (Chapter 433, Acts of 1974). For State employees, a 401(k) Savings and Investment Plan began in 1984 (Internal Revenue Code sec. 401(k); Chapter 746, Acts of 1984).

For State employees covered by the Employees' Contributory Pension System and contributing to an employer-sponsored supplemental retirement plan, the State of Maryland 401(a) Match Program was authorized effective July 1, 1999. If funded in the State budget, the Program may match up to a maximum contribution of $600 per employee per year (Chapter 530, Acts of 1998).

Through an administrator, the Board oversees administration and management of the plans. It also provides investment education programs to State employees and supports State agency personnel officers. To finance its operations, the Board charges a fee on member accounts, based on a percentage of assets in the plans.

The nine members of the Board of Trustees are appointed to four-year terms by the Governor who names the chair (State Personnel & Pensions Article, secs. 35-101 through 35-602). The Board meets at least quarterly. Each Board member serves on at least one committee, either the Audit Committee, the Executive Committee, or the Investment Committee.

Maryland Constitutional Offices & Agencies
Maryland Departments
Maryland Independent Agencies
Maryland Executive Commissions, Committees, Task Forces, & Advisory Boards
Maryland Universities & Colleges
Maryland Counties
Maryland Municipalities
Maryland at a Glance


Maryland Manual On-Line

Search the Manual
e-mail: mdmanual@mdarchives.state.md.us


This information resource of the Maryland State Archives is presented here for fair use in the public domain. When this material is used, in whole or in part, proper citation and credit must be attributed to the Maryland State Archives. PLEASE NOTE: Rights assessment for associated source material is the responsibility of the user.


Tell Us What You Think About the Maryland State Archives Website!


[ Archives' Home Page  ||  All About Maryland  ||  Maryland Manual On-Line  ||  Reference & Research
||  Search the Archives   ||  Education & Outreach  ||  Archives of Maryland Online ]

Governor     General Assembly    Judiciary     Maryland.Gov

Copyright September 29, 2015 Maryland State Archives