Benefits Handbook

Employees’ Pension System

Reformed Contributory Pension Benefit

For members enrolled on or after July 1, 2011

Prepared by

The Maryland State Retirement Agency

120 East Baltimore Street

Baltimore, Maryland 21202-6700

410-625-5555

1-800-492-5909

Revised April 2021

 Transferred from the Retirement System to the Pension System after April 1, 1998,

 Terminated employment before June 30, 1998, and were vested (i.e. entitled to a future

benefit), or

 Are currently employed by a participating governmental unit that elected not to

participate in the Contributory Pension Selection and/or the Alternate Contributory

 Are currently employed by a participating governmental unit that elected to participate in

Contributory Pension Selection: Town of Emmitsburg, Town of Frostburg, Town of

Middletown, and Town of Taneytown.

members who were employed as members on June 30, 2006, or who became employed as

members after June 30, 2006 and before July 1, 2011.

(a) Was vested prior to July 1, 2011 and has not withdrawn member contributions or retired;

Benefit.

 When membership ends

 How your benefits are funded

 How you earn service credit

 What benefits are provided

 What the eligibility requirements for the different benefits are

 How to calculate benefit income

 How to file for benefits

 What you need to know after retiring

 Where to get help with your retirement questions

resolve them.

Retirement Agency offers a number of resources to keep you informed of benefit matters affecting you

participant portal. Please see our website at sra.maryland.gov for more information. The Retirement

Agency creates an annual Personal Statement of Benefits for you each fall, and publishes newsletters, The

● clerk of the circuit court;

● register of wills;

● State's Attorney; and

● sheriff;

5) a legally authorized additional employee or agent of the State Racing Commission;

employee with Employees' Pension System or Employees’ Retirement System membership on

membership continues in the Employees’ Pension System.

 An official, elected or appointed for a fixed term;

 An employee of the Governors’ office;

 An employee of the Senate or House of Delegates;

 A member of the Prince George’s County Board of License Commissioners;

 An employee of Dorchester County who is not and has not previously been a member of the

county’s general pension and retirement program or any other plan sponsored by Dorchester

an individual who is or is entitled to be a member of any other State system;

2) a contractual, emergency, or temporary extra employee;

3) an individual who is employed under a federal public service employment program;

6) an employee who is not a member of a State system and who accepts a position with less than

7) a nonfaculty employee of the Baltimore City Community College who elects to participate

Application for Membership (Form 1) and to provide a document to verify your date of birth. The Form 1

provides the Retirement Agency with the basic information needed to create your membership record.

You are also strongly encouraged to complete and submit a Designation of Beneficiary (Form 4),

although it is not necessary for your enrollment. The Form 4 allows you to designate the individual or

Your spouse, disabled children, children under 26, or your dependent parent may be entitled to a special

It is also very important that the beneficiaries you have on file with the Retirement Agency be kept

Members may update their beneficiary designation at any time using the mySRPS secure member portal.

At some time in your career, you may need to take an unpaid leave of absence, which may affect your

service credit accrual. If your employer approves your leave of absence, you may qualify to purchase

affected.

if you die while on an approved qualifying leave, your pre-retirement death benefits remain in effect.

credit.

employment or, if you separate from employment, within 60 days after your leave of absence expires.

Your membership ends if you:

 Are separated from employment for more than four years,

 Withdraw your accumulated contributions,

benefits now or in the future. Check with your personnel office or contact the Retirement Agency before

Pension System.

To be eligible to request such a transfer of service:

be a member of the Employees’ Pension System, and

 You must request the transfer of your service credit within one year of becoming a

member of the Employees’ Pension System. To request a transfer of your service you

 You must transfer from your previous system and deposit into the Employees’

Eligibility for Military Service Credit

You may be eligible to claim additional service credit for your U.S. military service if:

 You did not and will not receive credit for this military service under any other pension system,

 For military service that occurred prior to your enrollment date in SRPS, you must have at least

 Induction into the armed forces of the United States for training and service under the Selective

Training and Service Act of 1940 or a subsequent act of a similar nature;

 Membership in a reserve component of the armed forces of the United States on active duty or

 Enlistment into the armed forces of the United States; or

 Active duty with the commissioned corps of the Public Health Service, the National Oceanic

Prior to retirement, and upon attainment of 10 years of service credit earned through employment,

you may claim up to a maximum of five years of service credit for the following types of military

duty:

For service in the National Guard or U.S. Armed Forces Reserves, four months of military

points), up to a maximum of 36 months of military credit; or

To apply for military credit, either preceding or interrupting your membership, complete and submit

to the Retirement Agency a Claim of Retirement Credit for Military Service (Form 43). Attach a

23 or similar form).

 Normal cost

 Full cost

Normal Cost

To complete a “normal cost purchase” an eligible member must pay the member contributions that would

 Missed Membership Service—A period of time during eligible employment when contributions

Service (Form 26) and attach verification of your employment, indicating your entrance and termination

 a political subdivision in the State,

 an out-of-state school as a teacher,

 the federal government,

 an out-of-state political subdivision,

 a public or nonpublic school as a teacher, or

 a postsecondary school as a teacher.

Request to Purchase Previous Service (Form 26) and attach verification of your employment, indicating

 Traditional IRA;

 Eligible Employer Plan, including a plan qualified under section 401(a) of the IRC such as a

401(k) plan, profit sharing plan, defined benefit plan, stock bonus plan, or money purchase plan;

 IRC Section 403(a) annuity plan;

 IRC Section 403(b) tax sheltered annuity; or



Eligible Section 457(b) deferred compensation plan maintained by a governmental employer

days after terminating employment with a participating employer to be eligible to receive creditable

a Special Death Benefit, your designated beneficiaries will receive a single payment consisting of

your accumulated contributions plus an amount equal to your annual earnable compensation

(your salary for working the normal time in your position) at the time of death.

you be aware of the disability provisions of your plan.

Please be aware that disability retirement entails a two-step process. Step 1, applying for disability

permanently disabling mental or physical condition resulting from an on-duty accident without your

Eligibility Requirements

Two Types of Disability

Board of Trustees.

 You submitted a properly completed Statement of Disability (Form 20) and Preliminary

accident.

Board of Trustees.

Step 1: Applying for Disability Benefits

Filing Requirements

your claim until the medical board and the SRPS Board of Trustees decide your claim. If the SRPS Board

Retirement (Form 13-23) to the Retirement Agency to actually retire.

 Job description: The medical board evaluates the medical condition in relation to your job duties.

Your supervisor must sign and date the job description.

 All pertinent medical records: Medical information from your doctor(s) in support of your claim

pertinent medical data.

 Application for an Estimate of Disability Retirement Allowances (Form 21A): This form authorizes

 Employer’s First Report of Injury

 Copies of any Workers’ Compensation decisions, awards or pending claims.

If you answer “yes” to the questions that follow, you may file for disability benefits. Contact the

Retirement Agency immediately.

General Requirements for Disability Benefits

 Are you a member?

place without your willful negligence?

 Did your claimed accident occur within five years of the date that you submitted a properly

The medical board reviews cases on a regular basis. The physicians serving on the medical board

represent a range of medical specialties. Members of the medical board are appointed by the SRPS Board

of Trustees. In some cases, the medical board will request an evaluation by a consulting physician at the

Retirement Agency’s expense for the purpose of providing an independent medical opinion.

Notification

The Agency notifies the claimant of the Board of Trustees’ claim decision on the medical board’s

recommendation.

Agency.

Eligibility

A normal vested allowance is payable after reaching age 65 and separating from all employment with a

Your ordinary disability benefit is calculated as follows:

1.50% x $50,000 x 44 = $33,000 (Annual Basic Allowance)

NOTE: A claim must be approved by the medical board and the Board of Trustees before the Retirement

Agency can issue an estimate of benefits. An application for disability retirement must be filed at that

time in order to actually retire.

** Normal Annuity Factor – This is a number set according to age. The Retirement Agency consults an

NOTES:

 A disability claim must be approved by the medical board and the Board of Trustees before the

As you prepare for retirement, there is a general timetable you should try to follow in order to get the best

service from the Retirement Agency. The timetable below illustrates the best time frames during which

you can comfortably begin to file some of the required forms and make the necessary contacts with the

upcoming seminars and to register for the seminar most convenient to you, visit our website,

submit a Request to Purchase Previous Service (Form 26) to the Retirement Agency.

Six Months Prior to Retirement

benefits.

Two Months Prior to Retirement

certificate, valid driver’s license) for your beneficiary.

All retirement forms are available through your personnel office. You also can print most of the forms

contributions may not be deducted from your compensation during your reemployment.

 You are a retired teacher or principal, meeting certain guidelines and returning to work in certain

 Your last employer prior to retirement was a unit of state government, you are reemployed by any

will be subject to the earnings limitation. After you have been retired for 12 months, you will be subject

retirement (all units of Maryland state government, including the University System of Maryland, are

considered one employer).

Ordinary Disability Retirement

If you are retired under an ordinary disability retirement, you are subject to the earnings limit until

 You are under age 65,

 You are employed by a participating employer at an annual compensation that is at least equal to

If your disability benefit is suspended, it can only be reinstated on the first day of the month following the

Review the following table for reemployment provisions that apply to you.

and Normal

Vested

Retiremen

Disability

suspended (see “Suspension of Disability Retirement” above).

Key to numbers in the chart

1. No salary restrictions apply. Retiree will continue to receive full monthly allowance regardless of

employment income.

2. Retirement allowance generally is reduced $1 for every $1 earned in excess of earnings limit.

are:

 elected to office as local officials or constitutional officers of a participating county;

 reemployed by the Maryland Department of Health as contractual health care practitioners in

certain positions (please contact a retirement benefits specialist for further details);

 temporarily assigned to sit as a judge in a State Court under certain circumstances (please contact

 reemployed on a contractual basis for not more than 4 years in an authorized position as a parole

premiums.

date, the 10-year period begins on January 1 of the year following the year of retirement. Ordinary

this information, you must keep the Retirement Agency apprised of any address changes during your

January, the Retirement Agency issues an IRS Form 1099-R to all retirees. This tax statement provides

The State Retirement Agency does not provide tax advice. Payment of tax is your responsibility. You

tax liabilities.

attachment. These situations may occur, however, in cases involving divorce, alimony, child support, and

The Retirement Agency's automated phone system is accessible for the hearing impaired.

To protect the confidentiality of member accounts, a member must enter his or her Social Security

number and four-digit personal identification number (PIN) before accessing personal account

that cannot be provided by phone or letter. While walk-in counseling appointments are welcome, we

Baltimore, Maryland 21202-6700