october 2019 understanding your retirement€¦ · 1 understanding your retirement retirement...

E M P L O Y E E S ’ R E T I R E M E N T, P E N S I O N , A N D R E F O R M E D P E N S I O N S Y S T E M

UnderstandingYour Retirement

R E T I R E M E N T

B E N E F I T S

A N D P R O C E S S

Employee and Retiree Service Center ¡ 45 W. Gude Drive, Suite 1200, Rockville, MD 20850301-517-8100 ¡ www.montgomeryschoolsmd.org/departments/ersc

O C TO B E R 2 0 1 9

http://www.montgomeryschoolsmd.org/departments/ersc/

VISIONWe inspire learning by providing the greatest public education to each and every student.

MISSIONEvery student will have the academic, creative problem solving, and social emotional skills to be successful in college and career.

CORE PURPOSEPrepare all students to thrive in their future.

CORE VALUESLearningRelationshipsRespectExcellenceEquity

Board of Education

Mrs. Shebra L. EvansPresident

Mrs. Patricia B. O’NeillVice President

Ms. Jeanette E. Dixon

Dr. Judith R. Docca

Ms. Karla Silvestre

Mrs. Rebecca K. Smondrowski

Ms. Brenda Wolff

Mr. Nathaniel TinbiteStudent Member

Montgomery County Public Schools (MCPS) AdministrationJack R. Smith, Ph.D.Superintendent of Schools

Monifa B. McKnight, Ed.D.Deputy Superintendent

Maria V. Navarro, Ed.D.Chief Academic Officer

Kimberly A. Statham, Ph.D.Chief of School Support and Improvement

Andrew M. Zuckerman, Ed.D.Chief Operating Officer

850 Hungerford Drive Rockville, Maryland 20850 www.montgomeryschoolsmd.org

Employee and Retiree Service Center MONTGOMERY COUNTY PUBLIC SCHOOLS

Rockville, Maryland

October 2, 2019

MEMORANDUM

To: Prospective Retirees

From: Krishnanda A. Tallur, Director

Subject: Understanding Your Retirement

Congratulations to those of you who are nearing the completion of a long and rewarding career with Montgomery County Public Schools (MCPS)! This is an exciting time for you as you approach retirement and reflect on your significant accomplishments. Best wishes also are extended to those who are not yet ready to retire but are seeking information about retirement so they will be prepared when the time comes. It is never too soon to begin planning for your retirement.

A sound retirement plan ensures security for you and your family. It is important that you review Understanding Your Retirement carefully, to acquaint yourself with and develop an understanding of the retirement process. Inside, you will find information on determining your plan membership, pension benefit formulas, postretirement benefit plan information, and other essential details to help you understand and plan your retirement. You also will find information regarding important tasks that should be completed during the 12 months prior to retirement. It is imperative that the Employee and Retiree Service Center (ERSC) receive all of your forms at least 30 days prior to your retirement date. Failure to submit the forms on time will delay your retirement by one month—resulting in the loss of one month’s retirement income and, in some cases, a delay of future cost-of-living adjustments. Montgomery County Education Association unit members should pay particular attention to the special deadlines that impact your unused earned sick leave payout.

Everything you need to plan for your upcoming retirement—this booklet; the Retiree Benefit Summary, which details postretirement health benefit options offered and administered by MCPS; links to necessary retirement forms; a detailed retirement timeline; and more—is available on the ERSC Retirement Planning web page at www.montgomeryschoolsmd.org/departments/ersc/employees/ retirement-planning. In addition, we suggest that you attend a Retirement Informational Session and a Retirement Forms Workshop to discuss the forms you will need to complete. A link to the schedule of these upcoming events is found on the same web page.

Please contact our office at 301-517-8100 or [email protected] for further assistance.

KAT:mjw

Attachment

Approved: ________________________________________ Nicola Diamond, Chief Financial Officer

https://www.montgomeryschoolsmd.org/departments/ersc/employees/retirement-planning/


Table of Contents Retirement Timeline ................................................................................................ 1 Determining Your Plan Membership ................................................................... 2 Contributions Toward Your Pension Plan ............................................................ 3 Service Toward Retirement ................................................................................... 4 Obtaining Additional Service ............................................................................... 5 Unused Earned Leave at the Time of Retirement ............................................. 8 Eligibility for Retirement ....................................................................................... 12 Vested Benefits ..................................................................................................... 16 Calculating Your Retirement Benefit Amount ................................................. 17 Retirement Benefit Payment Options ............................................................... 21 Cost-of-Living Adjustments ................................................................................. 25 Pension Death Benefit ......................................................................................... 27 Postretirement Benefit Plan ................................................................................. 28 Retirement Forms Checklist ................................................................................ 34 Frequently Asked Questions about Retirement .............................................. 37 MCPS 403(b) and 457(b) Plan Vendor ............................................................. 49 Important Contact Information ......................................................................... 50

Understanding Your Retirement 1

Retirement Timeline

9–12 months prior to retirement Requestanestimate**ofbenefitsfromtheMarylandStateRetirement

Agency(MSRA)*and/orusePenPoint,theMCPSonlineself‐servicepensionestimator,toviewandrunMCPScoreand/orsupplementalplanestimates.

Applytopurchaseanyeligibleservice.* Applyforactivedutymilitaryservicecredit.* Prepareyourretirementbudget.

6 months prior to retirement Discussyourbenefit

paymentoptionswithyourfamilyand/orfinancialadvisor.

Reviewretireehealthplanoptions.

3 months prior to retirement Printyourretirement

applicationformsfromtheEmployeeandRetireeServiceCenter(ERSC)website.

Determineyourfederalandstatetaxwithholdingamount.Consultwithyourtaxadvisorforassistance.

Ifeligible,contacttheSocialSecurityAdministrationtoenrollinMedicarePartsAandBifyouand/oryourspouseareorwillsoonbe65orolder.

Reviewyour403(b)and/or457(b)planoptions,includingestablishinganaccountandrolloverofunusedearnedsickand/orannualleavepayout.

MCEAunitmembersretiringJuly1mustsubmitallretirementformstoERSCbyApril1tobeeligibleforpaymentof35percentoftheirunusedearnedsickleavebalance.

1–2 months prior to retirement ReturnallretirementformstoERSC,including403(b)or457(b)salaryreduction

form(s)forrolloverofunusedearnedannualandsickleavepayment,andacopyofyourMedicarecardwithPartsAandB,ifyouand/oryourspouseareeligibleforMedicare.

*FormsareavailableonERSC’sRetirementPlanningwebpage,onPenPoint,orfromERSC.**MSRAprovidescurrentwaittimesforretirementestimatesontheirwebpageat

https://www.sra.maryland.gov/member‐forms

ERSCMUSTRECEIVEALLFORMSatleast30dayspriortoyourretirementdate.Failuretosubmitformswilldelayyourretirementbyonemonth,resultinginthelossofonemonth’sretirementincome.Allretirementsareeffectiveonthefirstdayofamonth.

https://sra.maryland.gov/member-forms


Determining Your Plan Membership Enrollinginapensionplanisamandatoryconditionofyouremployment.Thefirststepinpreparingforyourretirementistodetermineyourpensionplanmembership.Yourfutureretirementbenefitismadeupoftwoportions—acorebenefitandasupplementalbenefit.MontgomeryCountyPublicSchools(MCPS)istheonlyschoolsysteminthestateofMarylandtoofferasupplementalpensionplaninadditiontomembers’coreplans.Temporaryemployeesarenotentitledtoparticipateinthepensionplan.

StateCorePlan:IfyouareamemberoftheStatecoreplan,youreceiveanannualstatementofretirementbenefitsfromtheMSRAdetailingyourprojectedretirementbenefitforyourcoreplan,typicallyinSeptemberforthefiscalyearthatendedJune30.Youalsomayaccessandprintyourcurrentpersonalstatementofbenefitsonlinebyvisitinghttps://www.sra.maryland.gov/pod/personal‐statement‐benefits.YouaccessyourannualstatementofprojectedretirementbenefitsforyourMCPSsupplementalplanonlineviaPenPoint.PleasereviewbothsourcescarefullyandsaveyourMSRAstatementforyourrecords.

MCPSCorePlan:IfyouareamemberoftheMCPScoreplan,youaccessyourannualstatementofretirementbenefitsonlineviaPenPoint.ThestatementdetailsyourMCPScoreandsupplementalplanbenefits,andisupdatedeachyearduringthelastweekofAugust.Pleasereviewyouronlinestatementcarefully.IfyouplantoleaveMCPS,youmaywishtoprintacopyandsaveitforyourrecordsasyouwillnolongerbeabletoaccessPenPoint.

ALLPERMANENTMCPSEMPLOYEESwhoarebudgetedtoworkmorethan500hoursintheirfirstfiscalyearwithMCPSaremembersofbothacoreandsupplementalretirementplan.Dependingonyourposition,youareeitheramemberoftheMarylandStateTeachers’Pension/ReformedSystem(Statecoreplan)ortheMCPSPension/ReformedSystem(MCPScoreplan).AllareapartoftheMCPSsupplementalpensionplan.

https://reprints.sra.maryland.gov/


Understanding Your Retirement

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Contributions Toward Your Pension Plan Allemployeescontributeapercentageoftheirsalarytowardtheirpensionplans.BecauseMCPSoffersbothacorepensionplanandasupplementalpensionplan,employeesmakecontributionstoeachplan.Regardlessofyourcoreplanmembership,youcontribute7percentofyoursalarytoyourcorepensionplanandanadditional0.5percentofyoursalarytoyoursupplementalpensionplan.MCPSalsomakescontributionstowardyourpensionplan;theMCPScontributionsaresignificantlymorethantherequiredemployeecontributions.MCPSmakesannualcontributionstoapensiontrusttofundfutureretirementbenefitsforallMCPSemployees.TheMCPScontributionamountisdeterminedannuallybasedonanactuarialvaluationofplanassetsandliabilities.

YOURPENSIONCONTRIBUTIONSaremandatoryandequalatotalof7.5percentofyoursalary.Contributionsaremadepre‐tax.


Service Toward Retirement Employeesearntwotypesofservicetowardretirementbasedonmembershipintheretirement,pension,orreformedpensionsystems.Eligibilityserviceisusedtodeterminewhenyouareeligibletoretire.Youearnoneyearofeligibilityserviceforeachfiscalyearyouhaveworkedaminimumof500hours.Evenifyouworklessthan40hoursperweek,youwillreceiveoneyearofeligibilityserviceaslongasyouworkatleast500hoursduringthefiscalyear.Ifyoudonotwork500hoursinafiscalyear,thenyoureligibilityservicewillbeproratedbasedonthehoursyouhaveworked.Creditedservice—Creditedserviceisusedtocalculatetheamountofretirementbenefityoureceivewhenyouretire.Employeesearncreditedservicebasedonmembershipintheretirementorpensionsystem.Oneyearofcreditedserviceisdefinedas10monthsfromSeptembertoJune.

Retirementsystem—Youearncreditedservicebasedonyourscheduledhours.ForemployeesenrolledonorafterJuly1,1976,creditedserviceisproratedforpart‐timework.CreditedServiceiscappedat36years.Onceanemployeereaches36yearsofcreditedservice,contributionstotheMCPScoreand/orsupplementalplanscease.PensionandReformedPensionsystems—Creditedserviceisproratedbasedonthenumberofhoursyouarescheduledtoworkinonefiscalyear.

EXAMPLE

Hours Worked Service Earned

40 hours biweekly 1 year of eligibility service; 0.5 year of credited service

60 hours biweekly 1 year of eligibility service; 0.75 years of credited service

80 hours biweekly 1 year of eligibility service; 1 year of credited service


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Obtaining Additional Service Youmaybeeligibletoapplyforcreditorpurchaseofadditionalservice.Increasedservicewillincreasetheamountofyourretirementbenefitandmaypermityoutoretireatanearlierdate.

Granted Service: Active Duty Military Service Youcanclaimamaximumoffiveyearsofmilitarycreditifyou—

returntoworkwithMCPSwithin90daysofdischargefromactiveduty,and donotacceptotherpermanentemploymentbetweenthedateofdischargeand

yourreturntoMCPS.After10yearsofcreditedMCPSservice,youmaybegranteduptoamaximumof5yearsofcreditedserviceforactivedutymilitaryservice.Youmaynotclaimthismilitaryservicewithanyotherretirementorpensionsystem.Thisrestrictionalsoincludesmilitarypensions.Thereisnocosttoobtainmilitaryservicecredit.Oncethemilitaryserviceisgranted,futureretirementbenefitstatementswillreflecttheadditionalservicecredit.Itisyourresponsibilitytoapplyformilitarycreditandcompletetherequiredformswhileactivelyemployed,i.e.,beforeretirementorresignationfromMCPS.Onceyouhaveretiredorresigned,noadditionalcreditmaybeclaimed.ToobtaincreditedserviceinyourMCPSPensionPlanforactivedutymilitaryservice,youmustsubmitMCPSForm455‐18StatementofMilitaryServicetoERSCwithacopyofyourdischargepapersthatshowthedatesofentryanddischargeandtypeofmilitaryservice.Inaddition,ifyouareamemberoftheStatecoreplan,youmustsubmitStateForm43ClaimofRetirementCreditforMilitaryServicetoobtaincreditedservice.LinkstotheseformsareprovidedontheRetirementPlanningwebpagebyselectingtheFormstabandchoosingalinkunderRetirementPreplanningForms. Transfer of Service Ifyouareeligible,thereisnocosttotransferservicetoMCPSfromoneofthefollowingagencies:

AnotherMarylandschoolsystem StateofMarylandgovernment Maryland‐NationalCapitalParkandPlanningCommission(M‐NCPPC)


Whenyoutransferservicefromtheseagencies,youaretransferringnotonlytheserviceyouhaveearnedbutalsoanycontributionsyouhavemadetothatretirementplan.Ifthereisadifferenceinthecontributionsrate,youwillpaythedifference.Tobeeligible,youmusttransferdirectlyintoanMCPSpositionfromanotherposition,withnobreakinservice,andyoumustapplyforthetransferofservicewithinthefirstyearafterchangingpositions.TobeeligibletotransferserviceintotheMCPSplan,yourserviceandcontributionsfromyourpreviousemployermusthavebeeninadefinedbenefitplan.Onceapproved,youwillworkincollaborationwithMCPSandyourpreviousemployertotransferyourserviceandcontributions.Ifyouwerepreviouslyvestedinthepre‐2011pensionplanandarecurrentlyenrolledinthepost‐2011ReformedPensionplan,youmaytransferyourservicetothecurrentactivereformedpensionplanafteroneyearofemployment.Youwillneedtorequesttransferofserviceandyouwillpayanydifferenceinthecontributionsrateplusinterestthroughthetransferdate.

Purchased Service Duringthe12monthsprecedingretirement,youmaybeabletopurchaseadditionalserviceundervariouscategories.Purchasingserviceatretirementcanincreaseyourretirementbenefitamount,andyoumayqualifyforretirementearlierthananticipated.Additionalservicemustbepurchasedatleast90dayspriortoretirement. Asanactiveemployee,youmaypurchaseaminimumofonemonth,uptoamaximumof10years,ifyouwerepreviouslyemployedbyoneofthefollowing:

Federalgovernment Out‐of‐statemunicipality NonparticipatingMarylandmunicipality Private,parochial,orout‐of‐stateschool(teachingonly)

Youpaythefullcostofpurchasedservice.Thecostdependsonage,finalsalary,andtheamountofserviceyouwishtopurchase.Typically,purchasingserviceisexpensiveandcanbepurchasedonlyinyouryearofretirement. Inaddition,previousservicemaybepurchasedforperiodsofthefollowingtypesofqualifiedapprovedleaveofabsence:

Personalillness Birthorlegaladoptionofachild Government‐sponsoredand/or

subsidizedemployment Studyleave

Youmayobtainretirementcreditforthequalifiedapprovedleaveofabsencenotedabovetoamaximumoftwoyears.Ifyouareonpaidqualifiedleaveofabsence,

ITISEXTREMELYIMPORTANTtofileallrequiredpaperworkduringanapprovedleaveofabsencetoensureyoureligibilitytopurchaseservicecreditfortheperiodofleave.


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contributionsarepaidduringthetimeofleaveandyouearnservicecredit.Ifyouareonanunpaidqualifiedleaveofabsence,youmaypurchaseservicefortheperiodofleave,whileonleaveorimmediatelyafterreturningtowork. Youdonothavetowaituntilthetimeofretirementtopurchasecreditforperiodsofapprovedleave.Purchasingqualifiedapprovedleaveofabsencetimeislesscostlywhenitispurchasedimmediatelyafterreturningtowork. Beforeandduringaqualifiedapprovedleaveofabsence,itisyourresponsibilitytofileStateForm46,QualifiedLeaveofAbsenceRequestorNotificationofMilitaryServiceEntrytoMSRAandotherrequiredpaperworktoMCPS.Thiswillensurethatyouareeligibletopurchaseservicecreditfortheperiodofleaveandthattheactiveemployeepensiondeathbenefitwillremainineffectduringtheperiodofleave.Youmustpayanycontributionsmissedduringthequalifiedapprovedleave(plusinterest)tobeeligibleforretirementcredit. Onceyouhaveretiredorresigned,youmaynotrequestadditionalserviceadjustments.Process to Purchase Service MCPScoreandsupplementalplans—YouwillneedtosubmitERSCForm421RequesttoPurchaseService,availableontheERSCwebsite.ERSCwillprovideyouwiththecosttopurchasethisserviceintheMCPScoreandsupplementalplans.State core andMCPS supplemental plan—You will need to submit State Form 26

RequesttoPurchasePreviousServicetotheMSRA.ThisformalsoisavailableontheERSCwebsite.IfyouneedtopurchasethisserviceintheMCPSsupplementalpensionplan,you

will need to forward the notice of cost to purchase service from the state. MCPSwill

provideyouwiththecosttopurchasethisserviceintheMCPSsupplementalpensionplan.

Youmaypurchasesservicewithapersonalcheckorbyrollingoverfundsfroma/an—

traditionalIRA;

eligible employer plan, including a plan qualified under section 401(a) of the

InternalRevenueCodesuchasa401(k)plan,profitsharingplan,definedbenefit

plan,stockbonusplan,ormoneypurchaseplan;

403(b)taxshelteredaccount;or

457(b)planmaintainedbyagovernmentalemployer.

FORMSTOPURCHASESERVICEandotheressentialretirementformsareavailableontheERSCRetirementPlanningwebpage.Search“retirementplanning”fromanyMCPSwebpage.LinkstotheformsarefoundbyselectingtheFormstabandtheappropriate link under the Retirement Preplanning Forms section.


Unused Earned Leave at the Time of Retirement

Unused Earned Sick Leave

Atthetimeofyourretirement,youreceivetwoseparatebenefitsbasedonallofyourunusedearnedsickleavebalance:asickleavepayoffandadditionalcreditedservice.

Sick Leave PayoffYouwillreceivepay,knownasasickleavepayoff,forunusedearnedsickleaveequaltoyourfinalhourlyrateofpayasfollows:

Thesickandannualleavepayoffwillbepaidapproximatelyeightweeksafteryouretire.Employeesmayelecttotaxshelteraportionoftheirleavepayoffusingtheirdefinedcontributionplan[Fidelity403(b)or457(b)]retirementsavingsaccount(s).Youmayshelteraportionofyourleavepayoff.Remember,totalcalendarcontributionswouldincludetheamountyoushelterandtheamountyouhavealreadycontributedduringthecalendaryear.ThistotalamountissubjecttotheIRSmaximumannual(calendaryear)plancontributionlimits.Arrangementsforthedepositoftheleavepayoffintoatax‐deferredaccountmustbemadepriortoretirementandtheform(s)mustbereceivedbyERSC30dayspriortoretirement.Formsanddetailedinformationareavailableatwww.NetBenefits.com/mcps.

MCEA Members MCAAP/MCBOA/SEIU Members With at least five years of service (experience) who submit all State and MCPS retirement forms (based on plan membership) for a July 1 retirement by April 1

35%

With at least 30 years of MCPS service (experience) who submit all retirement forms (based on plan membership) at least 30 days prior to the retirement date.

30%

With at least five years of service (experience) who retire after July 1 or submit all State and MCPS retirement forms (based on plan membership) for a July 1 retirement after April 1

20%

With less than 30, but at least five years of MCPS service (experience) who submit all retirement forms (based on plan membership) at least 30 days prior to the retirement date.

25%

GrossleavepayoffissubjecttoMANDATORYFederalInsuranceContributionsAct(FICA)taxesat7.65%.FICAtaxesandanyremainingbalanceafterrolloverareconsideredtaxablewages.Asaresult,federal,state,andcountytaxeswillbewithheldfromtheleavepayoff.


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Step 1: Apply FICA Taxes Gross Leave Payoff is subject to mandatory Federal Insurance Contributions Act (FICA) tax at 7.65% (6.2% +1.45%)

FICA taxes are considered taxable wages. To allow for the FICA tax payment, you may rollover a portion of your leave payoff. Total calendar contributions would include the amount you shelter and the amount you have already contributed during the calendar year. This total amount is subject to the IRS maximum annual (calendar year) plan contribution limits.

a. Gross Leave Payoff $19,292.00

b. FICA taxes @6.2% $1,196.10 Taxable Wage c. FICA Medicare taxes @1.45% $279.73 Taxable Wage d. Remaining balance after FICA taxes [a - (b+c)] $17,816.16

Step 2: Determine Eligible Rollover Amount Your annual IRS contributions limit for calendar year 2018 is $24,500

e. Amount rolled over to 403(b) $8,500.00

f. Amount rolled over to 457(b) $8,500.00

g. Total amount rolled over to tax deferred plans (e+f) $17,000.00

h. Remaining balance after rollover and subject to tax (d-g) $816.16 Taxable Wage

Step 3: Determine Taxable Wages (h+b+c)

h. Remaining balance after rollover and subject to tax (d-g) $816.16

b. FICA taxes @6.2% $1,196.10

c. FICA Medicare @1.45% $279.73

i. Total taxable wages $2,292.00

Step 4: Determine Taxes

j. Federal Tax $504.24

k. Maryland State tax based on your election $125.73

l. Montgomery County tax $69.97

m. Total taxes $699.94

Step 5: Determine Cash Distribution (h-m)

h. Remaining balance after rollover and subject to tax (d-g) $816.16

m. Total taxes $699.94

n. Total Cash Distribution $116.22

Example:


Additional Retirement Credited Service Creditedserviceisusedtodeterminetheamountofretirementbenefityouwillreceive,andunusedearnedsickleavecanincreaseyourretirementbenefit.Allunusedearnedsickleaveisconvertedautomaticallytoadditionalcreditedserviceatretirement,andtheadditionalcreditedserviceisincludedwhenyourfinalretirementbenefitamountiscalculated.UnusedearnedsickleaveisnotincludedinestimatedcalculationsonPenPoint,sincethefinalbalancecannotbeknownpriortoretirement.Conversionofunusedearnedsickleavetocreditedserviceisonagraduatedscale,asshowninthefollowingchart,withamaximumof20monthsor2yearsofcreditedservicepossible.PleasereviewyourePaystubtodetermineyourcurrenthoursofunusedearnedsickleaveintheEarnedLeave(inhours)box.Compareyourtotalunusedearnedhourstothehourslistedinthe“SickLeaveinHours”columninthefollowingcharttodeterminetheamountofadditionalcreditedserviceyouwillreceive.Pleasenotethat10monthsequalsoneyearofcreditedservice.FormembersoftheStatecoreplan,projectedunusedearnedsickleaveisreportedtotheMSRAonthestateretirementapplicationForm13/23ApplicationforServiceorDisabilityRetirement.Onceretired,45daysaftertheretirementdate,thefinalunusedearnedsickleavebalanceisrecertifiedandreportedtotheMSRA.Ifyouhaveusedsickleaveintheperiodbetweensubmittingretirementformsandtheretirementdate,thefinalunusedearnedsickleavebalancemayresultinarecalculationandadjustmentofyourretirementbenefit.Sick Leave in Hours Credited Service0–87 088–263 1 month264–439 2 months440–615 3 months616–791 4 months792–967 5 months968–1143 6 months1144–1319 7 months1320–1495 8 months1496–1671 9 months1672–2199 1 year

Sick Leave in Hours Credited Service2200–2375 11 months2376–2551 12 months2552–2727 13 months2728–2903 14 months2904–3079 15 months3080–3255 16 months3256–3431 17 months3432–3607 18 months3608–3783 19 months 3784 and up 2 years

ELIGIBILITYSERVICEdetermineswhenyouqualifyforaretirementbenefit.CREDITEDSERVICEisusedtodeterminetheamountofyourbenefit.Unusedearnedsickleavedoesnotcounttowardeligibilityserviceandcannotbeusedtoaccelerateyourretirementeligibility.Similarly,additionalcreditedservicebasedonunusedearnedsickleavecannotbeusedtoaccelerateretirementeligibilityforretirementsystemmembers.


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Unused Earned Annual Leave MCPS12‐monthemployeesreceiveapayoffforunusedearnedannualleaveatretirementaccordingtotheprovisionsofthebargainingunitcontracts.Eachunioncontractspecifiesthefollowingmaximumnumberofhoursforwhichyoumaybepaid:

Hoursinexcessofthemaximumarepaidfollowingtheunusedearnedsickleaverules.

Unused Earned Personal Leave Theunusedearnedpersonalleaveisnotpaidoffatresignationorretirement. Unused Earned Leave Payments Thesickandannualleavepayoffwillbepaidapproximately45daysafteryouretire.Employeesmayelecttoshelteraportionoftheremainingbalanceoftheirsick,personal,andannualleavepayoff(afterSocialSecuritytaxes)totheirdefinedcontributionplan[Fidelity403(b)or457(b)]retirementsavingsaccount(s).TheamountyoucanshelterissubjecttotheIRSmaximumannualplancontributionlimits.Arrangementsforthedepositoftheleavepayoffintoatax‐deferredaccountmustbemadepriortoretirementandtheform(s)mustbereceivedinERSC30dayspriortoretirement.Ifyouhavenegativepaidsick,annualorpersonalleavebalances,youwillbebilledfortheexcesspaidleaveafteryourretirementdate.

Union Affiliation Maximum Hours MCEA 240 SEIU Local 500 320 MCAAP/MCBOA 360


Eligibility for Retirement EligibilityforretirementisbasedonyoursystemmembershipandyourstartdatewithMCPS.Ifyouareeligiblefornormalretirement,youmayretirewithafull,unreducedretirementbenefit.Youmaychoosetoretiresoonerthanyournormalretirementdateifyoumeetearlyretirementrequirements.Ifyouchoosetoretireearly,youwillreceiveareducedretirementbenefit.Thissectionprovidesrulesandexamplesforbothnormalandearlyretirement.

Retirement System EmployeeshiredpriortoJanuary1,1980,whoaremembersoftheRetirementSystem,qualifytoretireasfollows:

Retirement System Members (closed to new employees as of December 31, 1979)

Type of Retirement

Normal Retirement 30 years of credited service—at any age OR Age 60 with at least 5 years of credited service

Early Retirement 25 years of credited service—any age

Penalty for Early Retirement

MCPS State

1 year 2% 6%

2 years 5% 12%

3 years 9% 18%

4 years 14% 24%

5 years 20% 30%


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Pension System Pensionsystemmembersqualifytoretireasfollows:

Pension System Members Hired On or Before June 30, 2011

Type of retirement Retirement qualifications

Normal Retirement

30 years of eligibility service—at any age OR Age 62 with at least 5 years of eligibility service OR Age 63 with at least 4 years of eligibility service OR Age 64 with at least 3 years of eligibility service OR Age 65 with at least 2 years of eligibility service

Early Retirement 15 years of eligibility service AND age 55

Lifetime Penalty for Early Retirement

6% per year (.5% for each month prior to age 62; maximum penalty=42% )*

*The penalty for early retirement is permanent and continues each year, even after you reach your normal retirement age.

NORMAL RETIREMENT EXAMPLE This example shows a full retirement benefit for an employee at age 52 with 30 years of eligibility and credited service and an average final salary of $85000.

Monthly

benefit Yearly benefit

Supplemental benefit $350.86 $4,210.32 Core benefit $3,442.50 $41,310.00 O $3 93 6 $4 20 32

EARLY RETIREMENT EXAMPLE This example shows a reduced retirement benefit for an employee who retires early at age 60 with 24 years of eligibility and credited service and an average final salary of $85,000. This employee would take a 6 percent penalty for retiring two years early.

Monthly benefit

before reduction Monthly benefit

with reduction Yearly benefit

before reduction Yearly benefit with reduction

Supplemental benefit $315.29 $277.45 $ 3,783.45 $ 3,329.43

Core benefit $2,932.50 $2,580.60 $35,190.00 $30,967.20 TOTAL $3,247.79 $2,858.05 $38,973.45 $34,296.63


*The penalty for early retirement is permanent and continues each year, even after you reach your normal retirement age. Disability Retirement Intheunfortunateeventthataninjuryorillnesspermanentlyincapacitatesyou,preventingyoufromperformingyourjobduties,disabilityretirementmaybeavailabletoyou.DisabilityRetirementisatwo‐stepprocess.Thefirststepistoapplyfordisabilitybenefits.Thesecondstepistocompletearetirementapplicationinordertoactuallyretire,providedyouareapprovedfordisabilityretirement.Important:Donotdelayinapplyingfordisabilityretirement;theapplicationandapprovalprocessescanbelengthy.Twotypesofdisabilityretirementareavailable:ordinarydisabilityandaccidentaldisability.Ordinary Disability Thisbenefitisavailabletoemployeeswhobecomepermanentlyincapacitatedduetoillness.Youareeligibletoapplyforordinarydisabilitybenefitsif—

youareaPensionsystemmemberhiredonorbeforeJune30,2011whohasaminimumoffiveyearsofeligibilityservice,oryouareaReformedPensionsystemmemberhiredonorafterJuly1,2011withaminimumof10yearsofeligibilityservice;

youarepermanentlyincapacitatedandunabletoperformyourjobdutiesduetomedicalreasons;

youarenoteligibleforaccidentaldisability;and noalternativeassignmentisavailableforwhichyouarequalifiedorcapableof

performing.

Reformed Pension System Members Hired on or after July 1, 2011

Type of retirement Retirement qualifications

Normal Retirement Age 65 with at least 10 years eligibility service

OR Age + Years of Eligibility Service = 90

Early Retirement 15 years eligibility service AND age 60

Lifetime Penalty for Early Retirement 6% per year (.5% for each month prior to age 65; maximum penalty=30%)*


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Ifyouareatnormalretirementageorolder,theordinarydisabilityretirementbenefitwillequalyourpensionatyournormalretirementdateandyouractualcreditableservicewillbeusedintheretirementbenefitcalculation.Ifyouarenotyetatyournormalretirementage,yourpensionwillbecalculatedusingyourAverageFinalSalary(AFS)andthecreditableserviceyouwouldhavereceivedifyouhadcontinuedinserviceuntilnormalretirementage.Ifyouareretiringonordinarydisability,youwillneedtobeonactiveemployeestatus(workingoronapprovedleave)tocontinuehealthinsuranceintoretirement.PleasereviewthePostretirementBenefitPlansectioninthisbooklettolearnabouteligibilityrequirementstocontinuehealthbenefitsintoretirement. Accidental Disability Thisbenefitisavailabletoemployeeswhobecomepermanentlyincapacitatedduetoajob‐relatedaccident.Youareeligibleforaccidentaldisabilityif—

yourdisabilitywastheresultofajob‐relatedaccident, youarepermanentlyincapacitatedandunabletoperformyourjobdutiesdueto

medicalreasons,and noalternativeassignmentisavailableforwhichyouarequalifiedorcapableof

performing.Ifyouareatnormalretirementageorolder,theaccidentaldisabilityretirementbenefitwillequalyourpensionatyournormalretirementdateandyouractualcreditableservicewillbeusedintheretirementbenefitcalculation.Ifyouarenotyetatyournormalretirementage,yourpensionwillbetheactuarialequivalentofyouraccumulatedcontributionsatthetimeofretirementplus66⅔percentofyouraveragefinalsalarylessanydisabilityallowancepayableundertheMarylandStateTeachers’PensionSystem.Ifyouareretiringonanaccidentaldisabilityretirement,youwillneedtobeonactiveemployeestatus(workingoronapprovedleave)tocontinuehealthinsuranceintoretirement.Youwillbeeligibletocontinueretireehealthbenefitsatthelowestretireecostshareof36percent.

STATELAWMANDATESthatanemployeemayreceiveeitheraworkers’compensationpaymentoradisabilityretirementpayment.Ifyouarereceivingaworkers’compensationpaymentandhaveretiredondisability,yourmonthlyState/MCPSdisabilityretirementbenefitmaybereduced.


Vested Benefits Ifyouresignemploymentbeforeyouqualifyforretirementbutafterearningtherequiredyearsofeligibilityserviceforvesting,theretirementbenefitearnedasofyourresignationdatewillbepaidbeginningatyournormalretirementage.Thisiscalledavestedbenefit.Youarenoteligibletoreceivehealthinsurancewhenyoucommenceyourvestedbenefitpayment.Vestingrequirementsaredependentonyourretirementorpensionorreformedpensionplan,whichisbasedonthedateyouwerehiredwithMCPS.EmployeeswhowerehiredonorbeforeJune30,2011,areconsideredvestedafterfiveyearsofeligibilityservice.IfyouhavefiveormoreyearsofeligibilityserviceandyouterminateemploymentwithMCPS,youarevestedandeligibletoreceiveafutureretirementbenefitbasedonyourserviceandearningsatthetimeofresignation.Yourbenefitwillbepaidtoyouatyourearlyornormalretirementagefortheplan,dependingonyourplanmembership.Youmaychoosetoreceivethisfuturebenefitoryoumaychoosetoreceiveyourcontributionsandinterestinonelumpsumafteryourresignation.YoumayelecttoreceivealumpsumrefundofyourcontributionsandinterestortorolloverfundsintoanIndividualRetirementAccount(IRA),RothIRA,oraqualifiedplansuchasa403(b)or457(b).Ifyouchoosetoreceivearefundofyourcontributionsandinterest,youwillnotbeeligibleforafuturevestedbenefit.EmployeeswhowerehiredonorafterJuly1,2011,areconsideredvestedafter10yearsofeligibilityservice.Ifyouhave10ormoreyearsofeligibilityserviceandyouterminateemploymentwithMCPS,youarevestedandeligibletoreceiveafutureretirementbenefitbasedonyourserviceandearningsattimeofresignation.Yourbenefitwillbepaidtoyouatyourearlyornormalretirementagefortheplan.Youmaychoosetoreceivethisfuturebenefitoryoumaychoosetoreceiveyourcontributionsandinterestinonelumpsumuponyourresignation.YoumayelecttoreceivealumpsumrefundofyourcontributionsandinterestortorolloverfundsintoanIndividualRetirementAccount(IRA),RothIRA,oraqualifiedplansuchasa403(b)or457(b).Ifyouchoosetoreceivearefundofyourcontributionsandinterest,youwillnotbeeligibleforafuturevestedbenefit.

IFYOURESIGNBEFOREyouarevested,youwillreceivearefund,oryoumayrolloveranyaccumulatedemployeecontributionsandinteresttodate.Youwillnotbeentitledtoanyfuturevestedbenefit.


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Calculating Your Retirement Benefit Amount Benefit Formula Components BoththeRetirementandPensionSystemsaredefinedbenefitplans—yourretirementbenefitisbasedonaformula.Theseretirementbenefitformulasusetwokeycomponents:CreditedServiceandAverageFinalSalary(AFS).Credited Service Employeesearncreditedservicebasedonmembershipintheretirementorpensionsystem.Oneyearofcreditedserviceisdefinedas10monthsfromSeptembertoJune.See“ServicetowardRetirement”inthisbookletformoredetails.Average Final Salary (AFS) AFSisanaverageofyourearningsoveraspecifiedperiodoftime.TheperiodoftimeusedisdeterminedbyyourmembershipintheretirementorpensionsystemandtheyearyouwerehiredwithMCPS.Ifyouareapart‐timeemployee,theannualsalary(salaryyouwouldhaveearnedasa1FTE)isusedtocalculateyouraveragefinalsalary.

MembersoftheRetirementSystem—Thehighestthreeyearsofsalaryduringyourcareer. MembersofthePensionSystem—Thehighestthreeconsecutiveyearsofannualsalaryduringyourcareer

EXAMPLE EmployeejoinedMCPSin2000andisretiringJuly1,2019.Hishighestthreeyearsofannualsalarywere$57,000,$58,710,and$60,471.Hisaveragefinalsalaryis$58,727([$57,000+$58,710+$60,471]÷3)


MembersoftheReformedPensionSystem—Thehighestfiveconsecutiveyearsofannualsalaryduringyourcareer

Formulas Used to Calculate Your Benefit Amount Usingthesecomponents,eachsystemusesitsownformulatocalculateretirementbenefits.Inaddition,yourbenefitformulaiscalculateddifferentlybasedonthedateyouwerehiredwithMCPS.Thefollowingchartsdefineeachsystem’sbenefitformulaandspecifywhichformulaapplies.Retirement System EmployeeswhowerehiredwithMCPSpriortoJanuary1,1980,andwhoarestillmembersoftheRetirementSystemreceivearetirementbenefitbasedonthefollowingformula:

Benefit Formula

Core Benefit 1.8181% x Average Final Salary (AFS) x Credited Service

Supplemental Benefit .18181% x AFS x Credited Service

EXAMPLE EmployeejoinedMCPSonJuly1,2011,andwillretireJuly1,2021.Herfivehighestyearsofannualsalarywere$68,300,$70,000,$71,700,$73,400,and$75,160.Heraveragefinalsalaryis$71,712([$68,300+$70,000+$71,700+$73,400+$75,160]÷5)


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Pension System BenefitformulasdifferforemployeeswhoaremembersofthePensionSystem,basedondateofhire.

Pension System Members (hired on or before June 30, 2011)

Core Benefit *

Calculate the greater of: .008 x Average Final Salary (AFS) up to the SSIL plus .015 x AFS in excess of the SSIL multiplied by years of credited service prior to 7/1/98 OR

.012 x AFS x years of credited service prior to 7/1/98.

Plus .018 x AFS x years of credited service after 7/1/98

Supplemental Benefit*

.0008 x AFS up to the SSIL plus .0015 x AFS in excess of the SSIL multiplied by years of credited service to 7/1/98 plus .002 x AFS x years of credited service on or after 7/1/98.

The formula was enhanced on July 1, 2006. As a result, the enhanced formula provided above applies to employees who were active on July 1, 2006, or were hired after July 1, 2006.

Reformed Pension System Members (hired on or after July 1, 2011)

Core Benefit

1.5% x Average Final Salary (AFS) x credited service

Supplemental Benefit

.2% x AFS x credited service

SSIListheSocialSecurityIntegrationLevel.TheSSILfor2019is$80,500.TheprojectedSSILfor2020is$83,200.


Retirement Benefit Statements and Estimates

Employeesintheretirement,pension,andreformedsystemshaveaccesstoayearlyelectronicretirementbenefitstatementthatoffersaprojectionofcoreand/orsupplementalnormalandearlyretirementbenefits.Theseprojectionsarebasedontheaboveformulasandontheassumptionthattheemployeewilltakethemaximumbenefitoption,withnobenefitspayabletoabeneficiaryaftertheemployee’sdeath.

PenPointprovidesaccesstoemployees’retirementbenefitstatements,whicharepreparedeachyearasofJune30.AbriefsummaryofyourretirementbenefitsisavailableonthePenPointhomescreen;alinktothefullbenefitstatementisontherightsideofthescreenunder“TakeAction.”YoualsowillfindlinksunderTakeActiontoaprintabletutorialthatbrieflyaddressesbenefitstatementcontentandtoanFAQandglossaryguidewithanswerstocommonquestionsaboutemployeepensionbenefitsanddefinitionsofpensionterms.

EmployeeswhoaremembersoftheMCPScoreplanwillseeboththeirprojectedcoreandsupplementalretirementbenefitsontheiryearlyretirementbenefitstatement.MembersoftheStatecoreplanwillbeabletoaccesstheirMCPSretirementbenefitstatementusingPenPoint,butwillonlyseetheirMCPSsupplementalbenefit.Statecoreplanmembersreceiveaseparatepersonalstatementofretirementbenefits(PSB)eachyearfromtheMSRA,typicallyinSeptember.Fortheseemployees,theMSRAstatementandthePenPointstatementarebothneededtodeterminetheirtotalprojectedretirementbenefit.ThePBSalsoisavailableonlineathttps://sra.maryland.gov/pod/personal‐statement‐benefits.

Inaddition,PenPointprovidesyouwithseveralpredeterminedretirementestimates.Theseincludeestimatesbasedonyourearlyandnormalretirementdatesaswellasanestimate“asoftoday,”whichiscalculatedasifyouremploymentwereendingtoday.Inaddition,youmayrunestimatesofyourfutureMCPSretirementbenefitsbasedonotherscenariosbyusingthePenPointestimatortool.VideotutorialsonusingPenPointareavailableontheMCPSRetirementPlanningwebpageoryoucanreviewthePenPointtutorialforbasicstepsonusingthesystem.

PenPointestimatesprovidegreaterdetailthanyouryearlyretirementbenefitstatement.Whenyouretire,youwillbeabletochooseoneofseveraldifferentpaymentoptionsthataffectbothhowmuchyouwillreceiveand,ifyouchoose,howmuchyourbeneficiarywillreceiveintheeventofyourdeath.Aretirementestimatecanhelpyoudeterminewhichbenefitoptiontochoosebyprovidingpersonalizedfiguresbasedonyourageandthatofyourbeneficiaryforeachoption.

MCPSRETIREMENTBENEFITSTATEMENTSareupdatedeachyearduringthelastweekofAugustandareavailableonPenPoint.




Retirement Benefit Payment Options Whenyouretire,youwillbeabletochooseoneofseveraldifferentpaymentoptionsthataffectbothhowmuchyouwillreceiveandhowmuchyourbeneficiarywillreceiveintheeventofyourdeath.Foreachoption,theamountyourbeneficiarymayreceivereducesyourmonthlybenefitpayment.Howmuchthebenefitisreducedisbasedonyourageatretirementandtheageofyourbeneficiary.Forthatreason,someoptionsdonotallowyoutochangeyourbeneficiaryafterretirement,evenifyourbeneficiarypredeceasesyou.Yourchoiceofpaymentoptiondoesnotimpactthehealthbenefitsavailabletoyouoryoureligibledependentsatretirementoryourcovereddependentsafteryourdeath.

Itisimportanttoconsidereachoptioninlightofyourindividualplansandsituation.Whenselectingapaymentoption,youshouldconsiderthefollowingquestions:

HowmuchincomewillIrequireatretirement? WhatothersourcesofincomewillIhave? Whatismylifeexpectancyandthatofmybeneficiary? DoIneedtoprovidecontinuingbenefitstoaspouseorotherbeneficiaryafter

mydeath?

Employeeswhoreceivetheircorebenefitfromthestatehaveadditionalpaymentoptionchoices.InformationisavailableontheMSRAwebsiteathttps://sra.maryland.gov/orbycalling1‐800‐492‐5909.

Employeeswhosecoreand/orsupplementalbenefit(s)is/areprovidedbytheMCPSEmployees’Retirement/Pension/ReformedPensionsystemshavefivechoices,listedonthenextpage.

YOURPAYMENTOPTIONELECTIONmaynotbechangedonceyoureceiveyourfirstretirementcheck.Itisveryimportanttodiscussyourretirementincomerequirementswithyourfamilyandfinancialplannerpriortocompletingyourfinalforms.

https://sra.maryland.gov/


1. Maximum (State Basic Allowance) Thisoptionprovidesthehighestlifetimebenefitwithallpaymentsceasinguponyourdeath.Youneedtonameabeneficiaryforthisoptionintheeventsomethingshouldhappentoyoubeforeyoureceiveyourfirstretirementcheck.Onceyoureceiveyourfirstretirementcheck,therewillbenofurtherpaymenttoabeneficiary.

2. Option A(State Option 4)

Thisoptionprovidesasmallermonthlybenefitthanthemaximumoption.Atthetimeofyourdeath,anyremainingbalanceofyourcontributions—plusinterestatretirement—ispaidinalumpsumtoyournamedbeneficiary(ies).Thisoptionensures,ataminimum,thereturnofyouremployeecontributionsplusinterest.Ifyouelectthisoption,youmaynamemorethanoneprimaryorcontingentbeneficiarywhensubmittingyourfinalretirementapplication.Yourbeneficiary(ies)maybechangedatanytime.

3. Option B (State Option 1)

ThisoptionprovidesasmallermonthlybenefitthanOptionA.Atthetimeofyourdeath,anyremainingbalanceofthepresentvalueofyourbenefitispaidinalumpsumtoyournamedbeneficiary(ies).Thepresentvalueofyourbenefitistheannualbenefitamountatretirementmultipliedbyanactuarialfactorbasedonyourage.Thisamountisreducedbythepaymentsreceivedpriortoyourdeathtodeterminetheremainingbalance.Thisoptionensures,atminimum,thereturnofboththeemployeeandemployercontributionsplusinterest.Ifyouelectthisoption,youmaynameoneormoreprimaryorcontingentbeneficiaries.Yourbeneficiary(ies)maybechangedatanytime.

4. Option C (State Option 3)

ThisoptionprovidesasmallermonthlybenefitthanOptionB.Theinitialbenefitisbasedonyourage,andtheageofyourbeneficiaryatretirement.Yourdesignatedbeneficiarycannotbechangedafterretirement.Atthetimeofyourdeath,50percentofyourmonthlyretirementbenefitwillcontinuetobepaidtoyournamedbeneficiaryeachmonthforhisorherlifetime.Ifthebeneficiarypredeceasesyou,allbenefitsceaseatyourdeath.

FOROPTIONSCANDDundertheMCPSplans,youcannotchangeyourbeneficiaryafterretirement,evenifyourbeneficiarypredeceasesyou.


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5. Option D (State Option 2)

ThisoptionprovidesasmallermonthlybenefitthanOptionC.Theinitialbenefitisbaseduponyourageandtheageofyourbeneficiaryatretirement.Yourdesignatedbeneficiarycannotbechangedafterretirement.Atthetimeofyourdeath,100percentofyourmonthlyretirementbenefitwillcontinuetobepaidtoyournamedbeneficiaryeachmonthfortheirlifetime.Ifthebeneficiarypredeceasesyou,allbenefitsceaseatyourdeath.

Mandatory Lump Sum Retirement Benefit Payment (de minimis payment) IfyourmonthlyretirementbenefitfromMCPSislessthan$100,youwillreceivethepresentvalueofyourretirementbenefitinonelumpsumpaymentwithnobenefittoyournamedbeneficiary.Thislumpsumpaymentismandatoryandisalsoknownasademinimispayment.Thepresentvalueoftheretirementbenefitisactuariallydeterminedbyusinginterestandmortalitytables.Thiscalculationincludesbothcreditforfuturecost‐of‐livingincreasesandthepresentvalueofthefunds.YoumayelecttoreceiveyourdeminimispaymentinalumpsumortorolloverthefundsintoanIndividualRetirementAccount(IRA),RothIRA,oraqualifiedplansuchasa403(b)or457(b).

The following page offers a comparison chart to assist you in determining which retirement benefit payment option is best for you.

ANEMPLOYEEWITHANMCPSCOREAND/ORSUPPLEMENTALBENEFITmaynotelectabeneficiarywhoismorethan10yearsyoungerthanherselforhimselfforOptionD,unlessthebeneficiaryisaspouseordisabledchild.ANEMPLOYEEWITHASTATECOREBENEFITmaynotelectabeneficiarywhoismorethan10yearsyoungerthanherselforhimselfforstateOptions2and5,unlessthebeneficiaryisaspouseordisabledchild.


Retirement Benefit Payment Options Comparison

Payment Option Your lifetime retirement benefit

Retirement benefit to designated beneficiary after your death

Maximum Highest Benefit None

Option A

(State 4) Second Highest

One Time Cash Payment = Lump sum of account minus retirement benefits received

Option B

(State 1) Third Highest

One Time Cash Payment = Lump sum of present value minus retirement benefits received

Option C

(State 3) Fourth Highest

50% of retirement benefit continues for lifetime of designated surviving beneficiary

Option D

(State 2) Lowest

100% of retirement benefit continues for lifetime of designated surviving beneficiary


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Cost-of-Living Adjustments Yourbenefitisadjustedduringyourretirementyearsbasedonanannualcost‐of‐livingadjustment(COLA).Typically,aCOLAisappliedtoyourretirementbenefiteachyear. When You Receive a COLA ThedatewhenyouwillreceiveyourfirstCOLAdependsonthedateyouchoosetoretire.TheCOLAisaddedtoMCPScoreandsupplementalplanbenefitsasofJanuary1eachyearandtotheStateTeachers’Pension/RetirementPlan(Statecoreplan)benefitsasofJuly1eachyear.MembersoftheMCPScoreand/orsupplementalplanmustberetiredforatleastonemonthasofJanuary1toreceiveaCOLA.MembersoftheStatecoreplanmustberetiredforonefullyearasofJuly1beforereceivingaCOLA.Thismeansthatinsomeinstances,retiringonemonthlaterwillresultinaone‐yeardelayinreceiptofyourfirstcost‐of‐livingadjustment.IfanegativeCOLAiscalculated,itisallowedtoaccumulatefromyeartoyearandoffsetanyfuturepositiveCOLAadjustments. How COLAs Are Calculated BoththeStatecoreplanandtheMCPScoreplanusetheConsumerPriceIndex(CPI)tocalculateyourcost‐of‐livingadjustment.TheU.S.DepartmentofLaborpublishestheannualCPI,anditisthemostwidelyusedmeasureofinflation.TheCPIprovidesinformationaboutpricechangesinthenation’seconomytogovernment,business,labor,andprivatecitizensandisusedasaguidetomakeeconomicdecisions.ForbenefitsbasedoncreditedserviceearnedpriortoJuly1,2011,theannualCOLAyoureceiveasaretireewillbeappliedaccordingtotheannualCPIwitha3percentcap,withnoadditionalconditions.TheCOLAforallserviceearnedpriortoJuly1,2011,isappliedinthesamewayregardlessofyourcoreplanmembership.

INSOMEINSTANCES,retiringonemonthlaterwillresultinaone‐yeardelayinreceiptofyourfirstcost‐of‐livingadjustment.


ForbenefitsbasedonthecreditedserviceearnedafterJuly1,2011,theannualCOLAyoureceiveasaretireewillbecalculateddifferentlyfrombenefitsbasedoncreditedserviceearnedpriortothistime.TheStatecoreplanandMCPScoreandsupplementalplanswillhandleCOLAsforthisperiodoftimedifferently.

StatecoreplanmembersYouwillreceiveaconditionalCOLAforbenefitsbasedoncreditedserviceearnedafterJuly1,2011.AconditionalCOLAisappliedonlyifcertainconditionsaremetforthatyear.IftheStateTeacherPensionTrust’sinvestmentreturnsmeettheirexpectationsfortheyear,thenaCOLAwillbeappliedthatisequaltotheCPIwitha2.5percentcap.Iftheplandoesnotdoaswellasexpectedduringtheyear,thentheadjustmentwillbeequaltotheCPIbutwillcapat1percent.ForadditionalinformationabouttheconditionalCOLA,pleasevisittheMSRAwebsiteathttps://sra.maryland.gov/.

MCPScoreplanmembersYouwillreceiveaCOLAforbenefitsbasedoncreditedserviceearnedafterJuly1,2011,whichwillbebasedontheCPIandcapat2percent.NoadditionalconditionswillbeappliedtoobtaintheannualCOLA.

Countysupplementalplanmembers(allemployees,regardlessofcoreplanmembership)YouwillreceiveaCOLAforbenefitsbasedoncreditedserviceearnedafterJuly1,2011,whichwillbebasedontheCPIandcappedat2percent.NoadditionalconditionswillbeappliedtoobtaintheannualCOLA.



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Pension Death Benefit Theretirementplanoffersbenefitsforyourdesignatedbeneficiary(ies)intheeventofyourdeathpriortoretirement.ThisbenefitisseparatefromtheMCPSlifeinsurancebenefit.Coverageforanactiveemployeeiseffectiveafteryouhavecompletedoneyearofcreditedservice.Thepensiondeathbenefityourdesignatedbeneficiary(ies)iseligibletoreceiveisbasedonyourstatusatthedateofdeath.Working—Not Eligible to Retire Ifyouarenoteligibletoretireatanearlyornormalretirement,yourdesignatedbeneficiary(ies)receivesaone‐timepaymentequaltoyourannualsalaryatthedateofdeath,plusarefundofanyaccumulatedmembercontributionswithinterest.Ifyouareonleaveatthedateofdeath,theleavemustbeanapprovedleaveofabsencetoqualifyforthedeathbenefit.Working–Eligible to Retire Ifyouareworkingbuteligibletoretireonanearlyornormalretirement,andifyoursurvivingspouseisdesignatedasyoursoleprimarybeneficiaryatthedateofdeath,yourspousehastheoptionofreceivingthemonthlylifetimebenefitthatyouwereeligibleforatthedateofdeathinsteadofaone‐timepaymentofsalaryandcontributionswithinterest.Theeligibilityforretirementalsomakesasurvivingspouseeligibleforhealthinsurance,iftheemployeewaseligibleforhealthinsuranceatthetimeofdeath.Ifyouareworkingbuteligibletoretireatthedateofdeath,andyoudonothaveasurvivingspousenamedasyoursoleprimarybeneficiary,thenyourbeneficiary(ies)willreceiveasinglepaymentequaltoyourannualsalaryandareturnofallaccumulatedmembercontributionswithinterest.

YOUMUSTfileallrequiredpaperworkwithMSRAandMCPSbeforeandduringanapprovedleaveofabsencetomaintainyoureligibilityforthepensiondeathbenefit.

ITISIMPORTANTtokeepyourpensionplanbeneficiary(ies)current,evenifyouarenotnearingretirement.UseMCPSForm455‐5forMCPScore/supplementalplanbeneficiariesandStateForm4forStatecoreplanbeneficiaries.


Postretirement Benefit Plan Medical, Dental, Prescription, Vision, and Life Insurance Coverage MCPSoffersandadministershealthbenefitsintoretirementforemployeeswhoretirednormal,early,orondisability.Ifyouresignemploymentbeforeyouqualifyforretirement,youarenoteligibletoreceivehealthinsurancewhenyoucommenceyourvestedbenefit.YouneedtoretirefromactiveMCPSemploymentwithretirementbenefitpaymentscommencingatthetimeofseparationfromemploymentinordertocontinueMCPShealthbenefitsasaretiree.Medical,dental,prescription,vision,andlifeinsurancebenefitsworkdifferentlywhenyouarearetireethanwhenyouareanactiveemployee.ThefollowingsectionoffersanoverviewofMCPSretireehealthbenefits.Completeinformationaboutmedical,dental,prescription,vision,andlifeinsuranceoptions,aswellasonWellnessInitiativescanbefoundintheRetireeBenefitSummary,availableontheERSCwebsite.Youmayelecttocontinue,add,orcancelcoverageatretirement.Youmustmakeanelectionforeachcomponentofthebenefitplan.Ifyouchoosetocoveryoureligibledependent(s)atretirement,theymustenrollinthesamecoverageinwhichyouenroll.Spousesand/ordependentswhowereeligibleforcoverageatthetimeofyourretirementmaybeaddedorreenrolledduringafutureOpenEnrollment.SubmitMCPSForm455‐22RetireeBenefitPlanEnrollment,withyourretirementformstoERSCatleast30dayspriortotheeffectivedateofyourretirement.If,afterretirement,youmoveoutoftheserviceareaforyourhealthplan,youandyourcovereddependentsmayneedtotransfertoadifferentplan(see“MovingoutoftheServiceArea”inthisbooklet).AdditionalinformationisavailableintheRetireeBenefitSummary.

Eligibility for Postretirement Benefits RetireeswithatleastfivecumulativeyearsofMCPS‐eligibleserviceareeligibleforpostretirementbenefitsifthey—

haveacurrenthiredatethatispriortoJuly1,2006,withnobreakinemployment;or

retiredonorbeforeJuly1,2011;or werehiredpriortoJuly1,2011,withatleast30years

ofeligibleserviceintheStatecoreplan;or werehiredpriortoJuly1,2011,andwereatleast55yearsofageasofJuly1,2011.

Retireeswithatleast10cumulativeyearsofMCPS‐eligibleservicewhoretireafterJuly1,2011,andwho—

werehiredonorafterJuly1,2006,andbeforeJuly1,2019;and wereunder55yearsofageasofJuly1,2011.

IFYOUWERENOTELIGIBLEforbenefitscoverageasanactiveemployee,youand/oryourdependent(s)willnotbeeligibleforbenefitscoverageafteryouretire.


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RetireeswhowerehiredorrehiredonorafterJuly1,2019,withatleast10continuousyearsofMCPS‐eligibleservicefromthemostrecenthireorrehiredateatthetimeofretirement.Ifyouretireonordinarydisability,theaboveeligibilityrulesapplytocontinueyourhealthinsuranceintoretirement.

Postretirement Benefit Plan Cost Asaresultofchangestocost‐sharingstructuresimplementedonJuly1,2011,retireebenefitplancostswilldifferdependingontheyearyouwerehiredwithMCPS,yourlengthofservice(eligibilityservice),andtheyearyouretire(d).EmployeeswhoretiredonorbeforeJuly1,2011,continuetopay36percentofthecostofretireebenefitsandMCPScontinuestopay64percent.RetireeswhomeetoneoftheconditionsbelowaregrandfatheredaslongastheyhaveatleastfivecumulativeyearsofeligibleservicewithMCPSuponretirement:

Anyonewhosehiredate(ormostrecenthiredateorrehiredate)waspriortoJuly1,2011,whowasatleast55yearsoldasofJuly1,2011;or

Anyonewhosehiredate(ormostrecenthiredateorrehiredate)waspriortoJuly1,2006;or

Anyonewhosehiredate(ormostrecenthiredateorrehiredate)waspriortoJuly1,2011,whoretire(d)withatleast30yearsofserviceintheStatecoreplan.

Ifyouareinoneofthesegroups,youcanfindthecostofyourbenefitsintheRetireeBenefitRateSchedulesavailableontheERSCwebsite.

Ifyouarearecentretiree,werehiredonorafterJuly1,2006,anddonotmeetthegrandfatheringrequirements,thecostofyourretireebenefitswilldependonyouryearsofMCPS‐eligibleserviceatretirement,asfollows:

MCPS-eligible Service Upon Retirement Retiree Cost MCPS Cost

10 up to 15 years 60% 40%

15 up to 20 years 50% 50%

20 or more years 36% 64% Ifyouaresubjecttotherevisedcost‐sharingstructures,tobeeligibleforretireebenefitsyoualsomusthave—


Atleast10cumulativeyearsofeligibleservicewithMCPSifyouwerehiredpriortoJuly1,2019;or

Atleast10yearsofcontinuousyearsofeligibleservicewithMCPSifyouarehiredonorafterJuly1,2019.

Thosewhoareaffectedbythesechangescandeterminetheirbenefitcostintheapplicableratechartfoundinthe2020RetireeBenefitRateSchedules. Changes to CoverageMoving Out of the Service Area Retireeswhomoveoutoftheirhealthplan’sserviceareamayneedtotransfertoanotherhealthplanthatisauthorizedtoserveretireesintheirnewlocation.PleasereviewtheRetireeBenefitSummarybookletfordetailsonOutofAreaCoverage.IfyouarecurrentlyenrolledintheDMOdentalprogram,youshouldcontactAetnatoseeiftheyhaveparticipatingDMOprovidersinyournewlocation.IftherearenoparticipatingDMOprovidersinyournewlocation,youwillbemovedautomaticallytothePPOdentalplanifyouwishtocontinuedentalcoverage.PleasenotifyERSCinadvanceofyourchangeofaddresstopreventanydisruptioninyourhealthordentalcoverage. Mandatory Medicare Parts A and B Enrollment InordertocontinueyourMCPS‐sponsoredretireemedicalandprescriptionbenefits,youand/oryourspousemustenrollinPartsAandBofMedicarewhenfirsteligible(usuallyatage65orifyoureceivedisabilitybenefitsfromSocialSecurity).YoushouldcontactSocialSecurityat1‐800‐772‐1213threemonthspriortoeligibilitytobegintheprocessofenrollinginMedicarePartsAandB.Ifyouand/oryourspouseareeligibleforMedicarewhenyouretire,Medicarewillprovideyourprimarymedicalcoverageasofyourretirementdate,andtheMCPSplanwillprovideyoursecondarymedicalcoverage.

Ifyouand/oryourcovereddependent(s)deferredenrollmentinMedicarePartBbecauseyouwereactivelyemployed,youmustcontacttheSocialSecurityAdministration(SSA)atleastthreemonthspriortoyourretirementdatetoenrollinMedicarePartsAandBtocoincidewithyourretirementdate.Ifyouareoverage65,inordertoenrollinMedicarePartB,youmustprovideFormCMS‐L564E:RequestforEmploymentInformationtoSSA.MCPSwillverifythatyouand/oryourdependentwereactivelycoveredwithMCPSandthereforeenrollmentinMedicarewasdeferred.Inaddition,youwillneedtosubmitFormCMS‐40B:ApplicationforEnrollmentinMedicarePartBtoSSA.

FAILURETOENROLLinMedicarePartsAandBANDtosubmitacopyyourMedicarecardwithPartsAandBtoERSCwillresultincancellationofyourMCPS‐sponsoredretireemedicalandprescriptionbenefits.


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YoumustsubmitacopyofyourMedicarecardwithPartsAandBtoERSC60dayspriortotheeffectivedateofMedicarecoverageorwithyourretirementformsifeligibleforMedicareatretirement.

Pleasenotethatifyou(oryourdependent)receivedisabilitybenefitsfromtheSocialSecurityAdministrationafterretirementandbecomeeligibleforMedicare,youMUSTenrollinMedicarePartsAandBinordertoremainontheMCPSRetireeBenefitPlan.Medicare Part D MCPShasmadeavailableaMedicarePartDprescriptiondrugbenefitprogramtoMedicare‐eligibleretireesand/ortheirMedicare‐eligibledependents.Private,Medicare‐approvedPartDprescriptionplansalsoareavailable,butifyouopttoenrollinaprivateplan,neitheryounoryourdependentswillbeabletoenrollorcontinueintheMCPSPartDplan.MostMCPSretireeselecttocontinuetheirMCPSprescriptioncoverageanddonotenrollinaprivateMedicarePartDplan. Continuation of Coverage for Dependent Children Benefitscoverageforadependentchildautomaticallyendsattheendofthemonthinwhichheorsheturns26formedicalandprescriptionplans.Benefitscoverageforadependentchild’sdentalandvisionplansautomaticallyendsonSeptember30followingthedependentchild’s23rdbirthday.Whenyourdependent(s)isnolongereligibleforcoverageundertheMCPSplan,heorshemayelecttocontinuecoverageundertheprovisionsoftheFederalConsolidatedOmnibusBudgetReconciliationAct(COBRA).COBRApermitsthemtocontinueinsurancecoverageforalimitedperiodbypayingthefullcostofcoverage.ERSCwillproviderateinformationuponrequest.Inmanycases,youngadultscanpurchaseanindividualpolicydirectlywithanyhealthprovideratalowercost.Adding Dependents to Your Benefit Plan Newspousesanddependentchildrenwhoarenoteligibleforcoverageatyourretirementarenoteligibleforbenefitsafteryouretire.Eligibledependentchildrenmaybeaddedtoyourretireebenefitplanuptoage26.Iftheyarebetweentheagesof24and26,however,theymayonlybeaddedformedicalandprescriptionbenefits.Toenrollachildinyourretireebenefits,youmustcompleteMCPSForm455‐22RetireeBenefitPlanEnrollment. Canceling Coverage YoumayremoveadependentfromyourplanasofthelastdayofanymonthbysubmittingMCPSForm455‐22,RetireeBenefitPlanEnrollmenttoERSCwiththedesiredeffectivedateofthechange.Youmayelecttocancelallcoverageasofthelastdayofanymonth.Oncecanceled,youand/oryoureligibledependentsmayreenrollforcoverageonlyduringaretireeOpenEnrollmentperiodorasaresultofaqualifyingevent.Toreenroll,youmustprovidewrittenverificationthatyouandyourdependents


wereenrolledcontinuouslyforthecategoriesofcanceledcoverageunderanotherplanforthepreceding12months.ChangesmustbesenttoERSCbythe5thofthemonthtobeeffectivethefollowingmonth.Retiree Open Enrollment MCPSprovidesanannualOpenEnrollmentperiodallowingretireestomakechangestotheirbenefitplan.OpenEnrollmentforretireeswilltypicallytakeplaceduringfourweeksbeginninginmid‐October,withallchangeseffectiveJanuary1.Youwillreceivenotificationofanychangesinprogramsandratesinadvance.Youalsowillbeinvitedtobenefitfairstomeetwithrepresentativesfromeachprovidertobetterunderstandanychangestoyourplanandtoansweranyquestionsyoumayhave.ERSCbenefitsspecialistsareavailabletoanswerquestionsbyphoneat301‐517‐8100orviae‐[email protected],pleasereviewtheRetireeBenefitSummary,availableontheERSCwebsite.Wellness Initiatives Eachyear,ifyouarearetireewhoisnotyeteligibleforMedicareandyouarecoveredbyanMCPS‐providedmedicalinsuranceplanthroughCareFirstorKaiserPermanente,youhavetheopportunitytoreduceyourcontributionstoyourhealthinsurancebyparticipatingintheWellnessInitiativesprogram.Toreceivetheincentives,youhaveayeartocompleteabiometrichealthscreeningandahealthriskassessment.Youmust,however,completethembetweenthefirstdayoffallOpenEnrollmentandtheFridaybeforethenextOpenEnrollmentbeginsayearlater.Onceyouhavecompletedyourbiometrichealthscreeningand/orhealthriskassessment,theincentive(s)willgointoeffectJanuary1ofthecalendaryearthatfollowsthedeadline.IfyouareanewretireeandarenoteligibleforMedicare,youmustcompleteabiometrichealthscreeningandahealthriskassessmentasaretireetoreceivetheincentivesandreduceyourcontributiontoyourretireehealthinsurance.Anyincentivecreditedwhileyouwereanactiveemployeecoveredbyanemployeemedicalplanwillnotcarryovertoyourretireehealthplan.

Life Insurance Coverage Life Insurance Continuation Atretirement,youmayelecteithertocontinuelifeinsurancecoverageortocancelyourcoverage.Ifyouelecttocancelyourcoverage,youarenotpermittedtoreenroll.Atretirement,theamountoflifeinsuranceinforceis42.5percentofyourbasicactivelifeamount.Foreachofthenextfouryears,ontheanniversaryofyourretirement,thelifeinsuranceamountwillbereducedby7.5percentoftheactivelifeamount.Onthe4thanniversaryofyourretirement,thelifeinsuranceamountbecomes12.5percentoftheactivelifeamountandwillremainatthatlevelforyourlifetime,aslongasthepremiumsarepaid.


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MonthlypremiumsforlifeinsurancecanbefoundintheRetireeBenefitRateSchedulesavailableontheERSCwebsite.Premiumswillbededucteddirectlyfromyourretirementbenefitpayments.Ratesforretireelifearesubjecttochange.Thefollowingchartgivesanexampleofthelifeinsurancereduction.

Examples of Life Insurance

Reduction

Active Life Value (2 times salary at retirement) = $160,000

1st Year $68,000 2nd Year $56,000 3rd Year $44,000 4th Year $32,000 5th Year $20,000

Theoptionallife,basicdependentlife,andoptionaldependentlifeinsuranceplansceaseatretirement.Youmayconverttheseplans,aswellasthedifferencebetweenthebasiclifeinsuranceandtheinitialretireelifeinsuranceamount,toanindividualpolicythroughMetLifewithin30daysoftheeffectivedateofyourretirement.Ifyouareinterestedinaconversionpolicy,contactMetLifeforconversioninformationat1‐800‐638‐6420.Coveragecannotbedeniedandnoevidenceofinsurabilityisrequired.TheconversionformshouldbereturnedtoERSCforverificationofyouractiveemployeecoverage.

ITISIMPORTANTtokeepyourlifeinsurancebeneficiary(ies)current.MCPSForm455‐22RetireeBenefitEnrollment,availableontheERSCwebsite,isoneoftheformsyoumustsubmitpriortoretirement.TheLifeInsuranceBeneficiaryDesignationsectionofthisformisusedtoupdatebeneficiaryinformationforyourlifeinsurance.


Retirement Forms Checklist RetirementformsareavailableontheRetirementPlanningwebpagebyselectingtheFormstabathttp://www.montgomeryschoolsmd.org/departments/ersc/employees/retirement‐planning/

Ifyouwishtorolloveryourunusedearnedsick,andannualleavepaymentsintoyourFidelity403(b)or457(b)plan,visitwww.NetBenefits.com/mcps.

AllcompletedformsmustbereceivedbyERSCatleast30dayspriortoyourretirementdate.MCEAunitmembersmustsubmitboththeStateandMCPSformsbyApril1foraJuly1retirementdatetoreceivethe35percentpayoutforunusedearnedsickleave.IfApril1fallsonaweekend,yourretirement/resignationformsmustbesubmittednolaterthanthelastbusinessdaypriortoApril1.

Required Forms for MCPS Core and/or Supplement Plans:

455-2 Application for Retirement Youwillusethisformtoelectyourretirementdate,paymentoption,andbeneficiary.IfyouelectOptionCorD,youmustincludeacopyofyourbeneficiary’sbirthcertificateoravaliddriver’slicense.

455-5 Designation of Beneficiary/Beneficiaries Youwillusethisformtonamebeneficiary(ies)

GP-82519 Aetna Electronic Funds Transfer (EFT) Authorization FormThisisarequireddirectdepositform.Attachavoidedcheck,bankstatement/letter,ordepositslipwiththeform.

281-50 MCPS Employees’ Retirement/Pension System Federal and Maryland State Withholding Request Youmayelecttohavebothfederalandstatetaxeswithhelddirectlyfromyourretirementcheck.Ifyoudonothavetaxeswithheld,thenyoumayneedtofileestimatedquarterlytaxes.Ifyouaremovingtoanotherstate,youneedtodetermineifyourretirementincomeistaxableinthatstate.Consultyourtaxadvisorforinformation.

455-22 Retiree Benefit Plan Enrollment Youmayelecttocontinueorcancelyourhealthplancoverage.YoumustselecteitherOptionAorOptionBforprescriptiondrugcoverageifyouelectcoveragethroughCaremark.Youalsomayusethisformtocancelyourcoverage,tocancelyourlifeinsurance,ortotransferyourcoveragetoyourspouseifthatspouseisanactiveMCPSemployee.(TheactivespousemustcompleteMCPSForm455‐20toaddyoutotheactiveplanandthisneedstobesubmittedwithyourretirementformspacket.)Thisformalsocanbeused



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toupdateyourlifeinsurancebeneficiary(ies).Ifyouoryourspouseareorwillbe65orolderasoftheretirementdate,youwillneedtoincludeacopyoftheMedicareCardwithPartsAandB.

480-4 Notice of Termination of Employment

UsethisformtonotifyMCPSandyoursupervisorofyourintentiontoretire.GiveonecopytoyoursupervisorandincludeacopywithyourcompletedretirementformstoERSC.

455-26 Application for Lump Sum (De minimis) Retirement Distribution

Ifyourmonthlyretirementbenefitislessthan$100,youwillusethisformtoelectyourretirementpaymentdistribution.YoumayrunanestimateonPenPointtodetermineifyouareeligibleforamandatorylumpsumpaymentinsteadofamonthlyretirementbenefit.Youmustprovidethename,address,andtheaccountnumberofthefinancialinstitutionifyouarerollingoveryourlumpsumretirementdistributionintoanIRA,RothIRA,oraQualifiedPlan(403(b),457(b)).

MCPS Optional Forms Out-of-State Income Tax Withholding form

Ifyouaremovingtoanotherstate,youneedtodetermineifyourretirementincomeistaxableinthatstate.Ifyourretirementincomeistaxable,youmayelectstatetaxesforanyStatetobewithhelddirectlyfromyourMCPSretirementcheck.

455-1 Change in Personal Information

455-28 403(b) Leave Payout Contribution Agreement UsethisformtorolloveryourleavepayofftoyourFidelityaccount.

455-29 457(b) Leave Payout Contribution Agreement

UsethisformtorolloveryourleavepayofftoyourFidelityaccount. CMS-40B Application for Enrollment in Medicare Part B (Medical Insurance) CMS-L564E Request for Employment Information

Ifyouoryourdependentisovertheageof65atretirement,iscurrentlyonMCPShealthinsurance,andplanstocontinuehealthinsuranceintoretirement,thisformneedstobecompletedbyanERSCbenefitsspecialist.ThisformconfirmsthatyouwerecoveredbyanMCPS‐providedhealthinsuranceplanuntilyourretirementdate.YouwillneedtotakebothformsCMS40BandCMSL564EtotheSocialSecurityAdministrationtoenrollinMedicarePartB.


Required Forms for State Core Plans: 13/23 Application for Service or Disability Retirement

Usethisformtoelectyourretirementdate,paymentoption,andbeneficiary.IfyouelectOption2,3,5,or6,youmustincludeacopyofeitheryourbeneficiary’sbirthcertificateorvaliddriver’slicenseasproofofyourbeneficiary’sdateofbirth.

4 Designation of Beneficiary UsethisformtonamemorethanonebeneficiaryforPaymentMaximum,Option1or4.

766 Federal and Maryland State Tax Withholding Request Form YoumayelecttohavebothfederalandMarylandStatetaxeswithhelddirectlyfromyourretirementcheck.Ifyoudonothavetaxeswithheld,thenyoumayneedtofileestimatedquarterlytaxes.Ifyouaremovingtoanotherstate,youmayneedtofileestimatedtaxesinthatstate.Consultyourtaxadvisorforinformation.

85 Electronic Funds Transfer Sign-up Form

Thisisarequireddirectdepositform.Yourfinancialinstitutionmustcompleteitsportionoftheform.


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Frequently Asked Questions about Retirement About Your Plan MembershipQ. Does it matter whether I receive my core plan benefits from the Maryland

State Teachers’ Pension Plan or the MCPS Pension Plan?

A.ThecorebenefitprovidedbytheMarylandStateTeachers’PensionPlanandtheMCPSpensionplansareequivalent.TheStateplanpermitsmembershipbaseduponjobsandfunctions.EmployeeswhoarenoteligibleforStateplanmembershipareeligibleforenrollmentintheMCPSPlanandreceivebenefitsfundedbyMCPS.

Q. Does my plan membership change if I take a different job with MCPS?

A.No.Onceyouareenrolledinacoreplanandyoudonothaveabreakinservice,youwillremaininthatplanregardlessofchangesinyourjoborassignment.

Q. How can I confirm my plan membership?

A.YourcoreandsupplementalplanmembershipisshownonyourMCPSRetirementBenefitStatementavailableonPenPoint.Tolearnmoreaboutplanmembership,see“DeterminingYourPlanMembership”inthisbooklet.

About Your Retirement Benefit Statement Q. How do I access my retirement benefit statement?

A.Toaccessyourretirementbenefitstatement,fromtheERSCRetirementPlanningwebpage,clickonthePenPointlog‐inbutton.UseyourOutlookuserIDandOutlookpasswordtologintoPenPoint.Clickonthe“BenefitStatement”linkfoundunder“TakeAction”onthePenPointhomepage.


Q. What do I need to do with my retirement benefit statement?

A.Theinformationinyourretirementbenefitstatementaboutyourprojectedbenefitsmaybeusedinconjunctionwithyourfinancialplanningforretirement.Inaddition,youshouldreviewalloftheinformationcarefully,andpromptlye‐mailtheEmployeeandRetireeServiceCenter(ERSC)[email protected],youshouldsaveorprintyourstatement,asaccesstoPenPointendswhenyouremploymentends.

Q. How often will I receive future retirement benefit statements?

A.EachyearduringthelastweekofAugust,yourretirementbenefitstatementwillbeavailablewithinformationupdatedthroughthepreviousfiscalyear.AllyearlystatementsremainavailableonPenPointforviewingonlineandmaybeprintedorsavedasafileonyourowncomputer.

About Your Retirement Benefit Amount Q. How much do I and MCPS contribute to my pension plan?

A.Youcontributeatotalof7.5percentofyourannualsalarytoyourpensionplan.MCPScontributessignificantlymore.Allemployeecontributionstothepensionplanaremadepre‐taxandaremandatory.Tolearnmoreaboutpensionplancontributions,see“ContributionsTowardYourPensionPlan”inthisdocument.Contributionsaremadeover20payperiodseachyear,fromSeptembertoJune.

Q. How is my retirement benefit amount determined?

A.TheMCPSPensionPlanisadefinedbenefitplanwhereyourbenefitamountisdeterminedbytheplanformulausingyouryearsandmonthsofcreditedserviceandyouraveragefinalsalary.

Q. Does the amount of my contribution affect my retirement benefit?

A.No.Althoughcontributionsaremandatory,yourcontributionbalancedoesnotaffecttheamountofyourbenefitatretirementaslongasyouhavemadeallrequiredcontributionswhileemployed.TheMCPSPensionPlanisadefinedbenefitplanratherthanadefinedcontributionplan.


Q. How can I obtain an estimate of my retirement benefits for each of the options described in this booklet?

A. TheMCPSretirementbenefitstatementyoureceiveeachyeardoesnotoffer

detailsaboutthebenefitsyouwouldreceiveundereachofthepaymentoptions

availabletoyou,asdescribedin“RetirementBenefitPaymentOptions”sectionof

thisbooklet.Toobtainestimatedretirementbenefitsundereachpayment option,

youcaneitherreviewoneofthepredeterminedestimates(Benefitasof Today,

EarlyRetirement,andNormalRetirement)onthePenPoint“My Retirement”

page,oryoucanrunyourownestimatebasedondifferent scenarios.Alinkto

videoinstructionsforusingPenPointcanbefoundonthe ERSCRetirement

Planningwebpage.Or,youwillfindalinktoaprintable tutorialonthePenPoint

homescreenunder“TakeAction.”

IfyouareamemberoftheStatecoreplan,youmayrequestanestimateofyour

retirementbenefitbysubmittingStateForm9ApplicationforanEstimateof ServiceRetirementAllowanceavailablefromtheMSRAwebsiteathttps://sra.maryland.gov/stimatesfromthestatemaytakebetween2to3

monthstoreceive.Youmaycheckthecurrentwaittimetoreceiveanestimateof

yourStatecorebenefitbyvisiting:https://sra.maryland.gov/member‐forms.

About Vesting

Q. What is a vested benefit?

A. Avestedbenefitisabenefitthatispaidtoyouatearlyornormalretirementage,evenifyouhaveresignedfromMCPSpriortobeingeligibletoretire,providedthatyoumeetvestingrequirementsandhavenotwithdrawnyouraccumulatedPensioncontributionsandinterest.Tolearnmoreaboutvestedbenefits,see“EligibilityforRetirement”inthisbooklet.Employeeswhocollectavestedbenefitarenoteligibleforpostretirementhealthbenefits.




Q. What happens to the contributions I made to my pension plan if I resign from MCPS before I am vested?

A. IfyouarenotvestedandresignfromMCPS,youmayelecttoeitherrolloveryour contributionsandaccruedinterestintoanothertax‐deferredplansuchasan IndividualRetirementAccount(IRA),RothIRA,orthebalancemaybesent directlytoyouafterthemandatory20percenttaxwithholdingshavebeen deducted.See“EligibilityforRetirement”inthisbooklettolearnmore.

R. What are my options if I am vested and terminate employment?

A. IfyouarevestedandresignfromMCPSpriortoretirement,youmayelectto receiveafuturemonthlyvestedbenefitatyournormalorearlyretirementage, oryoumayelecttoreceivearefundofyourcontributionsplusinterest,oryou mayelecttorolloveryouraccumulatedcontributionsandinterestintoan IndividualRetirementAccount(IRA),RothIRA,oraQualifiedPlansuchasa 403(b)or457(b).Ifyouelectthefutureretirementbenefit,youmustleaveyour contributionsandinterestintheplan.Ifyouelecttherefundorrolloveroption, youmustmakeyourrequestonline.MCPSwillmailyouapostcard45daysafter yourresignationwithinstructionsforrequestingarefundorrollover.Ifyouelect therefundorrolloveroption,youwillnotreceiveamonthlyvestedbenefit beginningatyournormalretirementage.Inaddition,youwillforfeittheannual contributionsMCPShasmadetothepensiontrusttofundyourfutureretirement benefit.Note:Whenyoucommenceyourvestedbenefityouarenoteligible toreceivehealthinsurance.TheMSRAdoesnotautomaticallyofferyouthe withdrawalofyourcontributionsandinterest;youmustrequesttherefundby usingStateForm5ApplicationforWithdrawalofAccumulatedContributions. Reviewcurrentwaittimesforprocessingarefund/rolloverofpension contributionsat:https://sra.maryland.gov/member‐forms.

S. In the Vested Benefits section of my retirement benefit statement, the status is listed as “non-vested” with a benefit amount of zero. What does this mean?

A. IfyourstatementhasazerounderVestedBenefits,youhadnotyetearnedthe requiredyearsofeligibilityserviceattheendofthefiscalyearwhenthe statementswereprepared.



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Q. Why does my retirement benefit statement display a vested amount that is higher than my early retirement benefit?

A.Yourvestedbenefitistheamountyouwillreceiveifyouterminateemployment

asofthedateshownontheretirementbenefitstatementandwaituntilthefirstofthemonthfollowingnormalretirementagetobegincollectingthevestedbenefit.Yourearlyretirementbenefitallowsyoutobegincollectingyourretirementbenefitearlier,dependingonyournumberofyearsofeligibilityserviceandthedateyouwerehired.However,anearlyretirementreductionorpenaltyreducestheamountofyourbenefitforyourlifetimewhenyouelecttoretireearly.Asaresult,thevestedbenefitamountpayableatyournormalretirementagemaybehigherthanyourearlyretirementbenefit.Earlyretirementpenaltiesdifferdependingonyourplanmembership.Tolearnmoreaboutearlyretirementpenalties,see“EligibilityforRetirement”inthisbooklet.Ifyouretireearly,youwillbeeligibleforhealthbenefitsaslongasyoumeetthehealthbenefiteligibilityrulesasdescribedinthe“PostretirementBenefitPlan”sectionofthisbooklet.

About Your BeneficiariesQ. I selected beneficiaries for my pension plan, but do not see any listed on

my retirement benefit statement. Does this mean that there is no record of my beneficiary designations?

A.No.Beneficiaryinformationiscurrentlystoredonlyonpaperforms.Inthefuture,beneficiaryelectionsmaybemadeinelectronicformat,atwhichtimebeneficiaryinformationwillbeaddedtoyourannualstatement.

Q. How can I verify my current beneficiary designations?

A. Beneficiaryinformationcannotbeprovidedoverthetelephoneorviae‐mailduetoprivacyconcerns.IfyouareunsureaboutyourbeneficiaryelectionthenyoushouldcompleteanewbeneficiaryformandsubmittheformtoERSC.IfyouareamemberoftheStatecoreplan,youalsowillneedtoupdateyourbeneficiarywiththestate.Changingyourbeneficiarydesignationsdoesnotaffectyourlifeinsuranceor403(b)or457(b)accounts.YoumayupdateyourlifeinsurancebeneficiarybysubmittingMCPSForm455‐20EmployeeBenefitPlanEnrollment.YoumustcontactFidelitytochangeyourretirementsavingsaccountbeneficiary(ies).


Q. How can I update my beneficiary information?

A.Beneficiarydesignationformsareavailableonline.MembersoftheMCPScoreand/orsupplementalplanswillneedtosubmitMCPSForm455‐5DesignationofBeneficiary/Beneficiaries.MembersoftheStatecoreplanalsowillneedtosubmitStateForm4DesignationofBeneficiary.Oncecompleted,forwardMCPSForm455‐5toERSCandStateForm4totheMSRA.

About Planning an Upcoming Retirement Q. Can I make an appointment to speak to a retirement counselor?

A.No.TheEmployeeandRetireeServiceCenter(ERSC)isnotabletoprovideindividualretirementcounseling.However,youmayattendaRetirementInformationalSessionforemployeeswhoareconsideringretirementwithinthenexttwoyears.Topicsforeachinformationalsessionincludeatimelineforretirement,eligibility,benefitformulas,leavepayout,postretirementhealthandlifeinsurance,andforms.ERSCstaffwillbeavailabletoanswerquestions.AfterattendingoneofERSC'sinformationalsessionsanddownloadingyourretirementforms,youmaywanttoattendaRetirementFormsWorkshop.Duringtheseworkshops,ERSCstaffmemberspresentallrequiredretirementforms,explainhowtocompletethem,andanswerquestions.FordetailsaboutupcomingInformationalSessionsandFormsWorkshops,pleasevisittheRetirementPlanningwebpageontheERSCwebsite.

Q. Is there an advantage to working beyond my normal retirement date?

A.Yes.Ifyoucontinuetoworkbeyondyournormalretirementdateyouwillcontinuetoearnadditionalretirementcredit.Additionally,ifyourearningsincrease,youraveragefinalsalarywillbehigher.Ahigheraveragefinalsalaryand/oradditionalservicewillresultinagreaterretirementbenefitamountwhenyoueventuallyretire.ThereisnocapontheamountofservicecredityoumayearnifyouarememberoftheStatecoreplanortheMCPSPensionorReformedPensionplans.Pleasenote,however,thatformembersoftheMCPSRetirementPlan,thereisacapof36yearsofcreditedservice,inaccordancewiththeplanrules.Onceanemployeereaches36yearsofcreditedservice,contributionstotheMCPScoreand/orsupplementalplanscease.


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Q. What happens to my earned leave when I retire or resign?

A. Whenyouretire,youwillreceiveretirementservicecreditforyourunusedearnedsickleave,aswellaspaymentforapercentageofyourunusedearnedsickleavebasedonyourunionmembershipandothercriteria.Inaddition,12‐monthemployeeswillbepaidforunusedearnedannualleave,uptoamaximumnumberofhoursallowedunderemployeeassociationcontracts.Forcompletedetails,seethesection“UnusedLeaveattheTimeofRetirement”inthisbooklet.Ifyouresignfromyouremployment,youwillbepaidforunusedearnedannual,uptoamaximumnumberofhoursallowedunderemployeeassociationcontracts.Yourunusedearnedsickleaveisbasedonunionmembershipandothercriteria.Forcompletedetails,seethesection“UnusedLeaveattheTimeofRetirement”inthisbooklet.

Q. When should I submit my retirement forms?

A.AllretirementformsmustbesubmittedtoERSCatleast30dayspriortotheeffectivedateofyourretirement.DONOTsendanyformsdirectlytotheMSRA.Failuretosubmitformsatleast30dayspriortoyourexpectedretirementdatewillresultinadelayedretirementandlossofretirementincome.

Q. Is there any benefit to submitting my retirement forms early?

A.Yes.EmployeesrepresentedbyMCEAwillreceiveahighersickleavepayoffiftheyelecttoretireJuly1andsubmitfinalretirementformstoERSCbyApril1.IfApril1fallsonaweekend,yourretirement/resignationformsmustbesubmittednolaterthanthelastbusinessdaypriortoApril1.MCEAmemberswhosubmittherequiredStateandMCPSretirementformsbyApril1willreceivepaymentfor35percentpayoutoftheirunusedearnedsickleave.Theyarenotrequiredtohave30yearsofservicetobeeligibleforthehigherbenefit.MCEAunitmemberselectingtoretireatanyothertimeorwhodonotsubmittheretirementformsforaJuly1retirementbyApril1willbepaid20percentoftheirunusedearnedsickleave.


Q. How will I notify my supervisor or principal?

A.YouwillneedtocompleteandsubmitMCPSForm480‐4,NoticeofTerminationofEmploymentfromMCPS.ProvideacopyoftheformtoyoursupervisororprincipalandsubmitanothercopywithalloftherequiredretirementformstoERSC.OnceERSChasapprovedyourretirementforms,theOfficeofHumanResourcesandDevelopment(OHRD)isinformedofyourintentiontoretire.YoursupervisororprincipalmaycontactthestafferatOHRDtoconfirmyourretirementdate.

Q. May I retire on any day of the month?

A.No.Allretirementsmustbeeffectiveonthefirstdayofamonth.

About Pay and Benefits during Retirement Q. When do I receive my retirement benefit payment?

A. TheMCPScoreandsupplementalplanpaymentsaremadeonoraboutthefirstdayofthemonthforthatmonth.Ifthefirstisonaweekendoraholiday,thepaymentispostedonthefirstbankingdayofthemonth.MSRApaymentsaremadeonoraboutthelastdayofthemonthforthecurrentmonth.

Q. How will I receive my retirement benefit payment?

A.AetnawilldeposityourfirstMCPScoreand/orsupplementalpaymentviadirectdepositintoyourselectedbankaccount.Foremployeeswhoreceivetheircorebenefitfromthestate,MSRAwilldeposititviadirectdepositormailthefirstchecktoyourhomeaddress.Subsequentpaymentswillbedirectlydepositedtoyourselectedbankaccount.

Q. May I receive my retirement checks at my home address?

A.No.BothMCPSandtheMSRArequiredirectdeposit.


Q. If I move after retirement, who must be notified?

A. Youwillneedtonotifyallofthefollowingagenciesinwriting:

EmployeeandRetireeServiceCenter

Montgomery County Public Schools

45WestGudeDrive,Suite1200

Rockville,Maryland20850

Phone:301‐517‐8100

E‐mail: [email protected]

MarylandStateRetirementAgency(onlyformembersoftheStatecoreplan) 120EastBaltimoreStreet

Baltimore,Maryland21202

1‐800‐492‐5909

https://sra.maryland.gov/Aetna,Inc.LargeCasePension,RT11

151FarmingtonAvenue

Hartford,Connecticut06156‐8740

1‐800‐952‐2700

R. How will my benefits be affected if I work during retirement?

A. If,asanemployee,youreceivebothyourcoreandsupplementalbenefitsfromMCPS,youwillnothaveareductioninyourretirementbenefitsifyoureturntoworkforMCPSinatemporaryorsubstitutepositionorinanypositionwithanotheremployer.However,ifyoureturntoworkforMCPSinapermanentposition,yourMCPSsupplementalpensionpaymentwillbesuspended,andyouwillbeenrolledinthecurrentPensionplan.

IfyouarecoveredundertheStateTeachers’Retirement/Pensionsystems,returningtoworkwithMCPSinacontractual,substitute,ortemporarypositionmayresultinanearningslimitation,unlessyouraveragefinalsalaryascalculatedatretirementis$25,000orless.YourearningslimitisprintedontheNoticeofRetirementAllowancethatyoureceivefromtheMSRAuponretirement.Ifyourcompensationfromemploymentafterretirementexceedsyourearningslimit,youwillneedtorepaythedifferenceoryourbenefitmaybereduced.PriortoacceptingworkwithMCPS,youmustnotifyMSRAinwritingofyouranticipatedearnings.Earningslimitsdonotapplyifyouhavebeenretiredformorethanfiveyears.WiththeexceptionofaJanuary1retirementdate,thefive‐yearperiodbeginsonJanuary1oftheyearfollowingtheyearofretirement.Ifyouretiredearly,theearningslimitappliestoallparticipatingemployersforthefirst12monthsofyourretirement.Afterthefirst12months,the


earningslimitappliesonlyifyoureturntoworkforMCPS.Anemployeeisnoteligibletoreenrollinthestatepensionplanonceretiredandrehired.

Marylandlawrequiresabonafideseparation(atleasta45‐daybreak)betweentheeffectivedateofyourretirementandthedateyoureturntoworkwithanyemployerthatparticipatesintheStateRetirementandPensionSystem(SRPS).ThisruleappliesevenifyouretiredfromanemployerthatwithdrewfromtheSRPS.AllunitsoftheMarylandStategovernment,includingtheUniversityofMarylandSystem,areconsideredtobeoneemployerunderreemploymentrules.

Thereareadditionalrulesforemployeeswhoretireondisability.PleasecontactMSRAat1‐800‐492‐5909orvisithttps://sra.maryland.gov/ foradditionalinformation.

Q. Will I receive a cost-of-living adjustment to my retirement benefit?

A. Yes.Theretirementbenefitincludesaprovisionforannualcost‐of‐livingadjustments(COLA)equaltothechangeintheConsumerPriceIndex(CPI).IftheCPIispositive,youwillreceiveacost‐of‐livingincrease.IftheCPIisnegative,youwillreceivezerocost‐of‐livingadjustment.Therewillnotbeanegativecost‐of‐livingadjustment.FormoreinformationaboutwhenyoureceiveaCOLAandhowtheCOLAiscalculated,pleasesee“Cost‐of‐LivingAdjustments”inthisbooklet.

Q. How will I pay for my health insurance after I retire?

A. Yourinsurancepremiumwillbedeductedfromyourcoreretirementcheck.Ifyourmonthlyinsurancepremiumexceedsyourretirementbenefit,thenyouwillbebilledmonthlyforyourpremiumandyouwillreceiveaninvoicefromtheMCPSDivisionoftheController.MCPSisunabletomakepartialpremiumdeductionsfrompensionchecks.Eitherthefullamountofpremiumisdeductedorthefullamountisbilledtotheretiree.Ifbilled,andtheinvoiceisnotpaidwithin30days,yourbenefitswillbesubjecttocancellation.


Q. If I predecease my spouse after I retire, will he or she be covered for health insurance?

A. Yourspousemaycontinuecoverageafteryourdeath,providedthatheorsheis eligibleunderyourplanattimeofyourretirement.Premiumswillbededucted eitherfromacontinuingretirementbenefitorthespousewillbebilledmonthly forpremiums.

R. How and when can I apply for my benefits from Social Security?

A. ContacttheSocialSecurityAdministrationseveralmonthspriortoyourbenefit commencementdateat1‐800‐772‐1213.Youmayapplyforbenefitsasearlyas age62,andcanrequestanestimateofyourbenefitsfromSocialSecurity.Visit theSocialSecuritywebsiteatwww.ssa.govtolearnmoreaboutyourSocial Securitybenefits.

S. Is my retirement payment taxable?

A. Yes.Tohavetaxeswithheld,youwillneedtosubmitMCPSForm281‐50 Employee’sRetirement/PensionSystemFederalandMarylandStateWithholding Request,andStateForm76FederalandMarylandTaxWithholdingRequestForm. PleaseseetheRetirementFormsChecklistinthisbookletforfurtherdetails.You willwanttoconsultyourtaxadvisorregardingthechangeofyourstatusat retirement.

T. Can I be reimbursed by my flexible spending account for expenses incurred after I retire?

A. No.Flexiblespendingaccountscoverexpensesincurredwhileyouareanactive employee.Youcannotbereimbursedforeligibleexpensesthatoccuronorafter yourretirementdate.Youmaysubmitclaimsuntiltheapplicabledeadlinefor anyservicesrenderedpriortoyourretirementdate.

https://www.ssa.gov/


Q. How and when can I apply for distribution of funds from definedcontribution plans [403(b) and/or 457(b) accounts]?

A. Participantsenrolledina403(b)planmaybeginwithdrawalsatage59½,evenifstillemployed.IRSpenaltieswillapplyifyouretireandmakewithdrawalsbeforeage59½.Thereareexceptions.Consultwww.irs.govforfurtherinformation.Participantsina457(b)planmaybeginwithdrawalsuponseparationofserviceprovidedthattheydonotreturntoworkforMCPS.Ifthe457(b)planparticipants,postretirement,arere‐employedbyMCPSinanycapacity,withdrawalsarenotpermittediftheyareunderage70½.403(b) and/or457(b)benefitsaretaxableintheyearofwithdrawal.TorequestyourwithdrawalifyourvendorisFidelityInvestments,contactFidelityat1‐800‐343‐0860.IfyouhavequestionsaboutthewithdrawalprocesswithavendorthatpreviouslyparticipatedintheMCPSplan,pleasecontactthatvendordirectly.Contactinformationforpreviousvendorsisavailableonwww.NetBenefits.com/mcps.

R. Will I have access to my Outlook account, ePaystub, or PenPoint(retirement benefit statements) after I retire?

A. No.YouwillnotbeabletoaccessyourOutlookaccount,orPenPoint(retirementbenefitstatements)aftertheeffectivedateofyourretirement.However,throughtheMCPSself‐servicesystem,retireesandotherformeremployeesmayaccesstheirpayandtaxdocuments.Formoreinformation,pleasevisit:http://www.montgomeryschoolsmd.org/departments/ersc/retirees/retiree‐pay‐taxes.aspx

https://nb.fidelity.com/public/nb/mcps/home

https://www.montgomeryschoolsmd.org/departments/ersc/retirees/retiree-pay-taxes.aspx


Montgomery County Public Schools 403(b) and 457(b) Plan Vendor

Fidelity Investments www.netbenefits.com/mcps 800-343-0860

Fidelity Investments is the sole administrative service provider for the 403(b)/457(b) plans for MCPS. You can log in at www.netbenefits.com/mcps to create an account and to make transactions. For assistance, telephone 1-800-343-0860.

Reminders

1. You may be eligible to roll over earned leave payments directly to your 403(b) or 457(b)account with Fidelity Investments. You can obtain Leave Payout Request forms by visitingthe website at www.netbenefits.com/mcps under the Tools & Resources tab. LeavePayout forms may not be submitted unless your 403(b) and/or 457(b) account is open.You can set up your account on the website if you do not already have one.

2. It is important for retirees who have a 457(b) plan to understand the distribution rules andrestrictions if considering a return to work for MCPS in any capacity. The IRS permitsdistributions by retired or terminated employees, regardless of age, or those over the ageof 70 ½. However, once retirees accept a temporary position or makes themselveseligible to be a substitute teacher, their employment status changes from retired toemployee and they are ineligible to take a distribution from a 457(b) plan, unless they areage 70 ½.The 403(b) plan permits distributions at age 59 ½, regardless of employment status. IRSpenalties will apply if you take distributions before age 59 ½. There are exceptions.Consult www.irs.gov for further information.

If you have MCPS 403(b)/457(b) accounts with a vendor that previously participated in the MCPS plan, visit www.netbenefits.com/mcps and click on the Tools & Resources tab for contact information.

As a plan participant, you are responsible for the review and selection of any and all investment options. You must review them carefully before making any investment decisions. Neither MCPS nor any of its employees has any liability or responsibility for investment options that you select.






Important Contact Information

EmployeeandRetireeServiceCenterMontgomeryCountyPublicSchools45WestGudeDrive,Suite1200

Rockville,MD20850

www.montgomeryschoolsmd.org/departments/erscE‐mail:[email protected]:301‐517‐8100

Aetna,Inc. LargeCasePension,RS2A151FarmingtonAveHartford,CT061561‐800‐952‐2700

AetnaDMODentalPlan1‐800‐843‐3661www.aetna.com

CareFirstBlueChoiceHMO1‐800‐545‐6199www.carefirst.com

CareFirstPreferredDental(PPO)In‐network:1‐888‐755‐2657www.carefirst.com/mcps

CaremarkPrescription1‐800‐378‐7558www.caremark.com

DavisVision(providedthroughCareFirst)1‐800‐783‐5602www.carefirst.com/mcps

KaiserPermanenteHMOandPrescriptionPlans1‐800‐777‐7902www.kp.org

MarylandStateRetirementAgency120EastBaltimoreStreetBaltimore,MD212021‐800‐492‐5909https://sra.maryland.gov/

Medicare1‐800‐633‐4227www.medicare.gov

VoyaFinancial(lifeinsurance)1‐888‐253‐9582x4012985

MetLife(lifeinsurance)1‐800‐638‐6420www.metlife.com/mybenefits

MCPSRetireesAssociationwww.montgomeryschoolsmd.org/departments/mcpsretirees

SocialSecurityAdministration1‐800‐772‐1213www.ssa.gov

https://www.montgomeryschoolsmd.org/departments/mcpsretirees/

M C P S N O N D I S C R I M I N A T I O N S T A T E M E N T

Montgomery County Public Schools (MCPS) prohibits illegal discrimination based on race, ethnicity, color, ancestry, national

origin, religion, immigration status, sex, gender, gender identity, gender expression, sexual orientation, family/parental

status, marital status, age, physical or mental disability, poverty and socioeconomic status, language, or other legally or

constitutionally protected attributes or affiliations. Discrimination undermines our community’s long-standing efforts to create,

foster, and promote equity, inclusion, and acceptance for all. Some examples of discrimination include acts of hate, violence,

insensitivity, harassment, bullying, disrespect, or retaliation. For more information, please review Montgomery County Board

of Education Policy ACA, Nondiscrimination, Equity, and Cultural Proficiency. This Policy affirms the Board’s belief that each

and every student matters, and in particular, that educational outcomes should never be predictable by any individual’s actual

or perceived personal characteristics. The Policy also recognizes that equity requires proactive steps to identify and redress

implicit biases, practices that have an unjustified disparate impact, and structural and institutional barriers that impede

equality of educational or employment opportunities.

For inquiries or complaints about discrimination against MCPS staff *

For inquiries or complaints about discrimination against MCPS students *

Office of Employee Engagement and Labor RelationsDepartment of Compliance and Investigations850 Hungerford Drive, Room 55Rockville, MD [email protected]

Office of the Chief of StaffStudent Welfare and Compliance850 Hungerford Drive, Room 162Rockville, MD [email protected]

* Inquiries, complaints, or requests for accommodations for students with disabilities also may be directed to the supervisorof the Office of Special Education, Resolution and Compliance Unit, at 240-740-3230. Inquiries regarding accommodations or modifications for staff may be directed to the Office of Em ployee En gagement an d La bor Relations, De partment of Compliance and Investigations, at 240-740-2888. In addition, discrimination complaints may be filed with other agencies, such as: the U.S. Equal Employment Opportunity Commission, Baltimore Field Office, City Crescent Bldg., 10 S. Howard Street, Third Floor, Baltimore, MD 21201, 1-800-669-4000, 1-800-669-6820 (TTY); or U.S. Department of Education, Office for Civil Rights, Lyndon Baines Johnson Dept. of Education Bldg., 400 Maryland Avenue, SW, Washington, DC 20202-1100, 1-800-421-3481, 1-800-877-8339 (TDD), [email protected], or www2.ed.gov/about/offices/list/ocr/complaintintro.html.

This document is available, upon request, in languages other than English and in an alternate format under the Americans with

Disabilities Act, by contacting the MCPS Department of Communications at 240-740-2837, 1-800-735-2258 (Maryland Relay),

or [email protected]. Individuals who need sign language interpretation or cued speech transliteration may contact the MCPS

Office of Interpreting Services at 240-740-1800, 301-637-2958 (VP) or [email protected]. MCPS also

provides equal access to the Boy/Girl Scouts and other designated youth groups.

July 2019

https://www2.ed.gov/about/offices/list/ocr/complaintintro.html

Published by the Department of Materials Management for the Employee and Retiree Service Center0155.20 • Editorial, Graphics & Publishing Services • 9.19 • 2400 Copyright © 2019 Montgomery County Public Schools

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