Retirement
- Maryland State Retirement and Pension System (SRPS)
- Optional Retirement Program (ORP)
- Supplemental Retirement Accounts
Regular, Non-Exempt Employees: are enrolled in the Maryland State Retirement Pension System (SRPS) at the time of employment.
Regular, Faculty and Exempt Staff: have the option of enrolling in the SRPS or selecting an Optional Retirement Plan (ORP)*. This is a one-time irrevocable decision.
*For Regular Faculty and Exempt Staff: If you have enrolled in the SRPS or ORP with previous State of Maryland employment, then you will be required to enroll in the same plan as your previous enrollment.
- Plan Comparison Chart (PDF) (Choosing a Retirement Program): compares SRPS and ORP
- State of Maryland Health Benefits Guide (Eligibility by Employee/Retirement Type section): Health Benefits eligibility and subsidy in retirement vary between the SRPS and the ORP account, so we highly encourage those selecting a plan to review the Benefits Guide for further information (found on left side menu of State of MD Health Benefits website).
*Enrollment in SRPS and ORP plans both require an enrollment packet to be completed and submitted to the Human Resources Office by the first day of employment.
Maryland State Retirement and Pension System (SRPS): This is a defined benefit plan managed through the State Retirement Agency. These plans provide a benefit based upon the employee's age, salary and years of service. The plan requires an employee contribution that is non-taxable for federal tax purposes. The plan provides early retirement, disability and survivor benefits, as applicable. New employees are vested (guaranteed a benefit) after completing ten years of eligible service. Other plan features include the conversion of unused sick leave to add creditable service at the time of retirement, subsidized health insurance benefits for those who have completed 25 years of service, and cost of living adjustments during retirement when applicable.
State Retirement Agency Resources:
- Website: www.sra.state.md.us
- Phone: 1-800-492-5909
- mySRPS: a secure website that allows eligible SRA pension plan participants to get information and make transactions related to their retirement account. Click this link to reach mySRPS.
- Seminars, Webinars and Videos: Members have access to resources to prepare for retirement and learn about their benefit through SRPS. On the website home page, click on “Members” to access additional resources.
Optional Retirement Program (ORP): This is a defined contribution plan that provides a benefit based upon the employee's accumulated account balance. Salisbury University contributes the equivalent of a percentage of the employee's salary (currently 7.25 percent), on a fiscal year basis, to the employee's ORP account. These contributions are spread over 20 pay periods beginning with the first pay in the Fall Semester (no contributions are made during the Summer months). Employees are not permitted to contribute or rollover funds into the ORP account. Early retirement and death benefits are based upon the employee's ORP account balances, though a federal penalty tax may apply. Contributions are vested 100% immediately.
For all ORP participants, the retiring employee will need at least 25 years of credible service with the ORP to be eligible for full state subsidy for any dependent coverage under retiree health benefits. Part-time employment applies at a pro-rated amount of credible service credit. (For example, for a 12-month employee, 50% employment for one year is equal to 6 months of service. Periods of no pay receive no credible service credit.) Dependents who have health benefit coverage under an OPR retiree are not eligible for partial subsidy.
For resources, such as available vendors, benefits handbook and performance of the Optional Retirement Program, please visit the SRPS Optional Retirement Program page. Each vendor has plan and investment information available on their website.
Current ORP Vendors:
Fidelity Investments: 1-800-343-0860
TIAA: 1-800-842-2252
Supplemental Retirement Accounts (SRA)
Overview: Supplemental Retirement Accounts (SRA) are voluntary retirement savings plans that allow employees to contribute a portion of their salary before taxes to an investment plan of their choice. These plans help employees supplement their retirement income by offering the opportunity to save in addition to traditional pension or retirement benefits.
Key Features:
- Contribution Options: Employees can select from a variety of investment options within each SRA plan. These plans are designed to give employees flexibility in managing their retirement funds.
- Contribution Limits: Contribution maximums for SRAs are set by the Internal Revenue Service (IRS). It is important for employees to be aware of these limits to avoid exceeding the annual contribution cap.
- Employee Responsibility: Employees are responsible for ensuring their contributions do not exceed the allowable maximum for the calendar year. It is advised that employees regularly track their contributions to stay within limits.
- Tracking Contributions: Year-to-date (YTD) contributions can be viewed on the official paycheck stub in POSC (Payroll Online Services Center). This allows employees to monitor their progress toward the contribution limit.
Accessing Pay Advice: To view YTD contributions and other pay details in POSC, employees will need their pay advice number. If you need assistance or do not have your pay advice number, please contact the Salisbury University Payroll Office at payroll@salisbury.edu.
Vendor and Plan Options
| Account Option | USM (Fidelity, TIAA) | State of Maryland (MSRP – Nationwide) |
|---|---|---|
| 403b (Pre-tax) | Yes | Yes |
| 403b (ROTH) | Yes | No |
| 457b (Pre-Tax) | Yes | Yes |
| 457b (ROTH) | No | Yes |
| 401k (Pre-tax) | No | Yes |
| 401k (ROTH) | No | Yes |
Plan Details and Contribution Election Locations
- USM Vendors – Fidelity and TIAA:
- Website: USM Retirement at Work
- Contribution Elections: Can be made online through the vendor portal.
- State of Maryland Vendor – MSRP (Nationwide):
- Website: MSRP - Maryland DC
- Paper Forms Available: To make or change elections for all MSRP account types, use the MSRP Participation Agreement for Pre-Tax and Roth Retirement Savings Accounts
Vendor Contact Information
Fidelity: 1-800-343-0860
TIAA: 1-800-842-2252
Nationwide (MSRP): 1-800-545-4730
Contribution Match Eligibility
Most members of the Employees' Pension System are eligible to receive a $600 match to their contributions each fiscal year. The fiscal year for this program runs from July 1 to June 30. This means that members can receive up to $600 in matching contributions from their employer during this time period, contingent upon their own contributions to a supplemental retirement account. It is important for members to contribute within the eligible timeframe to maximize this benefit.