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Retirement Savings: Saving for the Future


The pension is designed to provide a level of income to retirees based on a number of factors including length of employment and salary. Benefits-eligible Montgomery County Public Schools (MCPS) employees, are required to be members of either the Maryland State Teachers Pension plan or the MCPS Employees Pension System for a core retirement benefit. 

In addition, all benefits-eligible employees receive a supplemental retirement benefit through the MCPS Employees Pension System.  Employees share the cost of the pension by contributing a combined 7.5% of salary to the plans through paycheck deductions.

The Board of Investment Trustees is responsible for the investment and management of the assets of the MCPS pension plans.

Retirement saving plans (defined contribution plans)

MCPS offers two voluntary retirement savings plans to employees that are designed to supplement income in retirement received from a pension and other sources.  The amount of income available in retirement from the plans will vary based on the amount of contributions and the performance of investment selections over time.  The plans - the 403(b) and the 457(b) plans - are based on guidelines from the Internal Revenue Service (IRS).  Employees are allowed to contribute a certain amount every year up to a limit reviewed annually by the IRS.  Contributions provide tax advantages because the amount is deducted from taxable income before federal income tax is calculated.

The only vendor approved to accept contributions to the MCPS 403(b) and/or 457(b) plans is Fidelity Investments.  Employees select the amounts they would like to have deducted from their paychecks.  Employees also select investments from an investment menu designed and monitored by the Defined Contribution Investment Committee.