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).

BOARD OF TRUSTEES

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.

EXECUTIVE DIRECTOR

The Executive Director serves as Secretary to the Board of Trustees and is appointed by Board of Trustees.

ADMINISTRATION

Administration oversees three main units: Budget and Fiscal Administration, Member Services, and Operations and Technology.

BUDGET & FISCAL ADMINISTRATION
Budget and Fiscal Administration started as Finance and adopted its present name in January 2021.

This unit is responsible for audit management, budget, contracts, financial accounting operations, general accounting, and procurement.

MEMBER SERVICES
Member Services originated as Participant Services, and was renamed in January 2021 as Member Services.

This unit provides State employees with information on the valuable benefits of planning for retirement beyond their State pension. The Unit educates employees on budgeting and saving for retirement. With State benefit coordinators and human resource officers, Member Services works to ensure that all eligible employees are informed of the education services of the Maryland Teachers and State Employees Supplemental Retirement Plans

The unit's Director and Education Specialists are required to be certified retirement counselors. Education programs are provided monthly through virtual webinars along with visits to State agencies.

OPERATIONS & TECHNOLOGY
Operations and Technology is responsible for inventory management, office administration and maintenance, office phones and business cell phones, parking administration, property management, and records management. The unit also serves as liaison to the Department of General Services and the Department of Information Technology.

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