Is there any other way to save money for retirement?
Yes, the County offers a 457 Deferred Compensation Plan to all permanent employees. This allows employees to save money voluntarily on a tax-deferred basis. Over 60% of eligible County employees participate in this Program.
Related questions
Pensions & Investments (Human Resources Management)
Currently all the pension plans offered by the County require five years of actual and continuous service as a participant to be eligible for vested benefits. A vested benefit will begin at what would have been the employee's normal retirement date.
No, this is viewed as a pension fund, not a savings account by the IRS. You cannot withdraw any portion of your contributions unless there is an extreme hardship that you could not have foreseen, could not have planned for, and is not covered by insurance.
Yes, if you have your previous employer complete a transfer authorization and elect a County provider.
The maximum that can be deferred yearly is $15,000 for calendar year 2006 or 100% of salary, whichever is lower. The minimum amount which can be deferred biweekly is $10.
All employees enrolled in the County pension plans are required to make biweekly contributions (based on a percentage of salary) to the Plans in accordance with their designated salary plans. Employees enrolled in the Maryland State Pension Plan contribute only once their salary exceeds the Social Security Wage Base ($94,000 in 2006).
The plan offered by the County is administered under the Section 457 of the Internal Revenue Code which is provided exclusively for State and Government employees. Unlike a 401K plan the County does not match the employee contributions. Although the 457 plans are without loan provisions, there are no imposed penalties for money withdrawn by employees prior to age 59½ upon separation of employment.
There are several different types of defined benefit retirement programs offered depending on the position the employee holds. Public safety employees have pension plans that are administered solely by the County. Police officers and firefighters have a defined benefit plan that allows them to retire after 20 years of service; correctional officers can retire after 20 years of service and deputy sheriffs can retire after 20 years of service. Other County employees are enrolled in the State of Maryland's Non-contributory Pension System as well as the Prince George's County Supplemental Pension Plans and may retire after 30 years of service or age 62 with at least 5 years of service. For more detailed information, please refer to the specific Pension Plan document and Summary Plan Description.