Mandatory and Supplemental Retirement for UMB Employees
UMB offers two types of mandatory retirement plans and several supplemental retirement options. Regular faculty and exempt staff employees must either elect a mandatory retirement plan — the pension plan, which is managed by the Maryland State Retirement and Pension System (MSRPS), or the Optional Retirement Plan (ORP) — as a condition of employment. The plan options are based on each employee’s job classification. Your election to join the ORP or the SRPS is a one-time, irrevocable election and cannot be changed.
Pension Plan
Nonexempt employees must participate in the pension plan (MSRPS), which is a defined benefits plan. Employees retiring from the pension plan may be eligible for retiree health care benefits, provided they receive periodic retirement benefits from the pension plan. Service requirements for retiree health care vary by plan and date of hire. Employees are fully vested after completing 10 years of eligibility service.
Optional Retirement Plan (ORP)
The ORP is a defined contribution plan. Employees retiring from the ORP may be eligible for retiree health care benefits, provided they receive periodic retirement benefits from ORP. Service requirements for retiree health care vary by plan and date of hire. Regular faculty and exempt staff employees must enroll in the pension plan or ORP retirement plan by the first day of work. Employees are immediately fully vested in your total account balance.
Supplemental Retirement Accounts (SRA)
Employees can enroll in an SRA at any time to save additional money toward retirement and possibly have some immediate tax savings. Although some vendors also might offer ORP plans, SRAs are separate. Employees can enroll in these plans anytime.