FAQs - General Retirement Benefits

Q. Where can I get information about my retirement account?

A. You can call the Benefits Department at (410) 222-7400 and speak to a staff member or to schedule an appointment to discuss your retirement benefits.

Q. When  will I be eligible to retire?

A. Each plan is different:

Employees’ Plan: If hired before 7/1/99 normal retirement age is 60 or completion of 30 years of service. If hired on or after 7/1/99 normal retirement is age 60 with 5 years of service or completion of 30 years of service. Early retirement is age 50 with 20 years of service.

Detention Officers’ & Deputy Sheriffs’ Plan: For Class I employees, normal retirement age is age 50 with 5 years of service or 20 years of Actual Plan Service. For Class II employees, normal retirement age is age 50 with 5 years of service. Early retirement is 20 years of service.

Police Plan:  Normal retirement is 20 years of service or age 50. If hired after the effective date of Bill 90-01 normal retirement is 20 years of service or age 50 with 5 years of service.

Fire Plan:  Normal retirement is age 50 with 5 years of service. After 7/1/2002 normal retirement will be 20 years of service with no age requirement. Early retirement is 20 years of service.

Q. May I retire before or after the normal retirement date?

A. Yes, you may retire before your normal retirement date provided you are eligible for early or disability retirement.

Q. Who should I notify once I have decided to retire from Anne Arundel County Government?

A. You should notify your immediate Supervisor of your intention to retire in a timely manner. You should contact the Benefits Department at (410) 222-7400 to schedule a counseling session. The Benefits Department will notify your Department of your retirement only after you have submitted a Retirement Application. You may contact your local Social Security Administration Office to find out what benefits you are eligible for or to enroll in Medicare if applicable. You may contact Social Security at (800) 772-1213 for more information or to find the office nearest to you.

Q. What are my member contributions under the plan?

A. Employees’ Retirement Plan: Your member contribution is 4% for Tier 1 Employees. Tier 2 is a non-contributory plan and employees do not make contributions.

Detention Officers’ and Deputy Sheriffs’ Retirement Plan:  Your member contribution is 5%.

Police Service Retirement Plan:  Your member contribution is 5%.

Q. How is pension service calculated and credited?

A. Pension benefits are calculated based on a formula which is the plan percentage rate multiplied by your final average basic pay (FABP ) multiplied by the number of years of credited service (CS). Credited service includes continuous employment with the County, purchased or eligible transferred service with the State of Maryland or a political subdivision of the State, pre-plan military service (up to 36 months) and disability leave service. Absence from employment for active duty military service may also be counted as creditable service (In-Plan military service). Disability leave will be counted as service with the County on the basis of 22 days being the equivalent of one month service and any remainder amount of days numbering at least 11 days but less than 22 days counted as one full month. Disability leave hours that equal one day is based on your scheduled hours per day at the date of termination.

Employees Plan Formula

Tier 1: 2% X FABP X CS to a maximum of 60%, plus 2% of FABP for eligible disability leave service and credited pre-plan military service (up to 3 years);

Tier 2: 1% X FABP X CS

Detention Officers’ and Deputy Sheriffs’, Police & Fire Plan Formula

2 ½%  X FABP X CS (1^st 20 years), plus 2% X FABP X CS (after 20 years) to a maximum of 70%, plus 2% of FABP for eligible disability leave service and credited pre-plan military service (up to3 years).

Q. What happens to my annual leave?

A. If eligible, you will be paid for any unused annual leave balance. Your payment will normally be paid two weeks after your final paycheck.

This check is mailed to your address of record even if you have direct deposit of your paycheck. Remember, annual leave is reported as wages and is subject to all applicable taxes.

Q. What happens to my compensatory leave?

A. Please refer to Article 8, Section 1-207 of the Anne Arundel County Code and Section H-7 of the Employee Relations Manual for the policy and procedure.

Q. What are my pension payment options?

A. There are four pension payment options under the Employees’ Retirement Plan:

1. Modified Cash Refund Option: This option gives you lifetime monthly pension payments. At your death, if the total benefits you received do not equal your total retirement contributions plus accrued interest through your date of retirement, the difference will be paid to your beneficiary in a lump sum.  This is the normal form of payment for a participant of the Employees’ Plan.
2. Joint & Survivor Option: This option gives you a reduced monthly benefit to provide a lifetime guarantee to your joint annuitant (normally your spouse). Payments are guaranteed to you for life. At your death, your joint annuitant will receive lifetime monthly payments in a pre-selected percentage, 100%, 80%, 66 2/3% or 50%, of your benefit.
3. Joint & Survivor Pop-up Option: This option gives you a reduced monthly benefit to provide a lifetime benefit to you and your joint annuitant. At your death, your joint annuitant will receive lifetime payments in a pre-selected percentage, 100%, 80%, 66 2/3% or 50%, of your benefit. If your joint annuitant should predecease you, your monthly pension benefit will “Pop-Up” (increase) to the maximum allowance under the Modified Cash Refund Option.
4. Social Security Adjustment Option: This option gives you a larger monthly benefit until Social Security payments begin at age 62 and smaller payments thereafter. The intention is to provide you with a nearly level total income from both sources from date of retirement until death. Your benefits are guaranteed  for your lifetime, at your death, if the total benefits you received do not equal your total retirement contributions plus accrued interest through your date of retirement, the difference will be paid to your beneficiary in a lump sum.

Police Service & Fire Service Retirement Plans: These public safety plans offer a single life annuity as the normal form of payment for unmarried participants with a five-year guarantee to the named beneficiary from the date of retirement.  Married participants receive an unreduced 100% Joint & Survivor Option as the normal form of payment.

Detention Officers’ and Deputy Sheriffs’ Retirement Plan: This Plan offers a single life annuity as the normal form of payment with a five year guarantee to the named beneficiary from the date of retirement. Married participants may elect a reduced 100%, 80%,66 2/3% or 50% Joint & Survivor option.

Q. Will my monthly pension amount change after I retire?

A. Yes. Each July eligible retirees will receive an annual Cost-of-Living Adjustment (COLA). The yearly increase is the average of the Consumer Price Index ending with March in the year of the increase divided by the 12-month average of the Consumer Price Index ending with March in the year preceding the increase. Police and Fire Service Retirement Plan members retiring on or after April 1 and on or before July 1, will have no July increase the first year of retirement. Additionally, approximately 30 - 60 days after retirement your benefit may be retroactively adjusted based on any change in your final salary or disability leave balance used to determine your benefits.