State Retirement and Pension System Benefits Handbooks
Law Enforcement Officers Pensions System (LEOPS)
Maryland State Retirement & Pension System
The Maryland State Retirement and Pension System (MSRPS) is a defined benefit plan. This means the member qualifies for retirement benefits based upon the member’s length of service, and the benefit is pre-determined based on a formula. Enrollment into the Pension Retirement Plan upon hire is irrevocable.
The MSRPS requires a mandatory 7% pre-tax deduction withheld from each paycheck.
The University contributes a percentage of the employee’s annual salary over 26 pay periods. This percentage fluctuates with each fiscal year. The actual contribution will be reflected on the left hand side of the employee’s pay stub. Please note: the employer contribution is not factored into the employee’s benefit at the time of retirement.
The employee becomes vested in the pension system after 10 years of service (5 years if hired prior to July 1, 2011). If employment is terminated prior to vesting, the member contributions may be refunded. If the member ever withdraws their pension funds, all service credit will be lost. We recommend discussing options with the Pension Agency before withdrawing your funds, as there may be irrevocable consequences after doing so.
Should employment end after the member is vested, their service and contributions will be held until they are to retire and apply for their benefit. Their contributions will continue to earn interest until they start drawing their monthly benefit. Please review Pension Plan & Optional Retirement Program Comparison Chart for more information regarding vesting and retirement eligibility benefits.
MSRPS uses two types of service credit in determining benefits. Eligibility Service is required to qualify for most benefits. It is earned at the rate of one full year of eligibility service in each fiscal year that a member works a minimum of 500 hours (excluding overtime). Creditable Service is credit used to calculate the actual dollar amount of any benefit. It is based on the number of months worked and is determined by comparing the normal hours worked during the fiscal year to the standard hours for the member’s position.
Upon retirement, the Pension System provides the member with a monthly benefit (pension check). The amount of the monthly benefit is determined by a formula: years of service + average final salary.
Additional benefits of pension membership:
- Active death benefit to the designated beneficiary (one-time lump sum payment of the member’s annual salary + accumulated contributions + interest to-date)
- Disability retirement options (Accidental and Ordinary disability)
- Cost of living adjustments after retirement (COLA raises in retirement)
- Members of MSRPS may apply unused sick leave to additional retirement credit when retiring directly from the pension (within 30 days of end of employment). This unused sick leave is applied only in the event of a direct service retirement. If the employee terminates State service without retiring, even if they are vested, the unused sick leave will not be applied at the time of retirement.
For State Retiree healthcare options, please see the State of Maryland Benefits Guide and the Retirement Plan Comparison Chart.
Pre-Retirement Planning
If you are within 12 months of retirement, please email hrbenefits@umbc.edu to schedule a consultation (virtual or in-person) with the Benefits & Wellness team.
Pension Pre-Retirement seminars
Maryland State Retirement and Pension System Online Benefit Estimators
MSRPS Retirement Counseling & General Information
The Mentor (Pension Newsletters)
Archived Documents: