Prince George's County Pension Plans

Public Safety (Police, Fire, Deputy Sheriffs, and Correctional Officers)

Prince George's County, Maryland has adopted separate single-employer, contributory defined benefit pension plans covering County personnel in the Police Department and Fire Department, deputy sheriffs and correctional officers. The Prince George's County Police Pension Plan was established effective May 1, 1962; the Prince George's County Fire Service Pension Plan was effective July 1, 1966; the Deputy Sheriffs and Correctional Officers Comprehensive Pension Plans were effective July 1, 1996.

The total cost to fund the pension plans is determined through an actuarial valuation process every two years. The required employer and employee contribution rates are determined through the collective-bargaining agreements. The County is responsible for contributing the remaining amounts necessary to fund the actuarially determined contribution requirement. Administrative costs of the Plans are financed through investment earnings. Participant contributions are held in a Trust Fund and are included as plan assets for the sole purpose of providing benefit payments. Upon separation from employment, and before normal retirement age, a participant may elect to receive a refund of contributions - including interest credited at a rate of 5% per annum. If a participant has at least 5 years of credited service, an option of receiving a pension annuity upon attaining the normal retirement age is available. The County is responsible for contributing the remaining amounts necessary to fund the actuarially determined contribution requirement. Administrative costs of the Plans are financed through investment earnings.

Police, firefighters, Deputy Sheriff and Correctional officers may retire at age 55 or after 20 years of actual service, with a payment of 60% of average final salary. They receive additional credit for service after 20 years, up to a maximum payment of 85% of the employee's average final salary.

These public safety pension plans also provide disability retirement benefit provisions.

Maryland State Retirement & Pension Systems (Non-Public Safety Employees)

Effective January 1, 1980, the Employees' Pension System (EPS) was established by the State of Maryland. In most circumstances, EPS participants do not contribute to this plan, however, employees with earnable compensation in excess of the social security taxable wage base are required to contribute 5% of that compensation.

After separation from employment, an EPS member is eligible for vested pension allowances upon reaching age 62, provided that at least five years of eligibility service was accumulated prior to separation. Normal retirement is based on one of the following:

• 30 years of eligibility service
• age 62 with 5 years of eligibility service
• age 63 with 4 years of eligibility service
• age 64 with 3 years of eligibility service
• age 65 with 2 years of eligibility service

Early retirement is eligible at age 55 with at least 15 years of eligibility service, however, there is a 6% per year reduction in benefits. The EPS also provide benefits for disability retirement.

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