How is a 403(b) different from the Maryland State Teachers Pension plan or the MCPS Employees Pension system?
The Maryland State Teachers Pension plan and the MCPS Employees Pension system are defined benefit plans (also know as DB plans) for MCPS school personnel. Employees are automatically enrolled upon employment in one of these two plans based on job classification. Generally, employees who work directly with students are enrolled in the state plan, while employees who do not are enrolled in the school’s plan. The Office of Human Resources will determine your status upon employment. Both plans have the same features and provide the same benefits. Employees automatically contribute a percentage of their salary pre-tax to the plan they are enrolled in. Currently employees contribute 5.5 percent of their salary. The school system also makes a contribution on behalf of the employee. In general, pension plans provide an income in retirement based on years of service, a retirement factor determined by the plan administrators, and average final salary. A 403(b) plan is a defined contribution (al
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- How is a 403(b) different from the Maryland State Teachers Pension plan or the MCPS Employees Pension system?
