The
Match is Back!
For FY 2006 (July 1, 2005 to June
30, 2006) the match to employee contributions to the 401(k), 457 and 403(b) has
been funded for up to $400. This
means that for every dollar you contribute in FY 2006, the state will contribute
a dollar on your behalf until the maximum of $400 is reached. With each new fiscal
year, the match starts again at the level funded in the state budget.
Who is eligible for the
match?
To be
eligible for the match under current law, you must be a state employee and a
member of the State Employees "Modified" Pension System (employees 2% system).
You are a member of the modified pension system if the abbreviation ST EMP
PEN-MOD appears under your deductions on your paycheck stub.
You also must make contributions to
one of three supplemental retirement plans sponsored statewide to get the match.
All state employees are eligible for the 457 and 401(k) plans. State employees
whose work assignments are within state educational institutions also are
eligible for the MSRP 403(b) plan. (Note: Higher education state
employees eligible for the match may also select a 403(b) plan from alternate
providers. For more information, please contact your employee benefits
office or your supplemental retirement account provider.)
To get the full $400 match for FY
2006, you will need to contribute about $16 per biweekly pay, assuming 26 pay
periods. Full-time, part-time, and contractual employees may participate
in the supplemental retirement plans but only state employees in the state
employees modified pension plan will get the match.
Where does the state match money
go?
A
separate plan, called the 401(a) Match Plan, is set up for you. The state's
contributions are then deposited into your account under this plan. The state's
contributions appear on the left side of your pay stub under state paid
benefits. It will read, "Match to MSRP." Your 401(a) account will appear on
your quarterly statement from NRS.
If you do not specify where you want
your 401(a) money invested, the allocations to your 401(a) plan will be directed
to the same investment options as your 457, 401(k), or 403(b) contributions.
Changes to your 401(a) account
must be made separately from those of your other accounts. You can
make an exchange or allocation change by calling the
If I am not participating in the
state supplemental retirement plans, what do I need to do to get the
match?
You need
to enroll in one of the three supplemental retirement plans sponsored by the
state. To enroll, call the Enrollment Hotline at 1-877-628-2499 or go to
www.MarylandDC.com. Your 401(a) plan account will be established at the
time you enroll. And by the way, there is no need for new employees to wait
before using the supplemental retirement plans.
To
Enroll
Click here to enroll or call the Enrollment
Hotline at 1-877-628-2499.