The County offers four Pension Plans. Click on the link for a description of each plan.
The Anne Arundel County Retirement and Pension System Board of Trustees is responsible for the management and proper operation of the retirement and pension system. The Board has the power to do all that it considers necessary and to exercise any and all powers under Article 5 of the Anne Arundel Code with respect to the management of the system.
A. You can call the Pension Section 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: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 Pension Section at (410) 222-7400 to schedule a counseling session. The Pension Section 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 Medicate if applicable. You may contact Social Security at (800) 722-1213 for more information or to find the office nearest you.
Q. What are my member contributions under the plan? A. Contributions vary by plan:EMPLOYEES’ 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 PLAN: Your member contribution is 6.75%.
POLICE SERVICE PLAN: Under the current law your member contribution is 7.25%.
FIRE SERVICE PLAN: Under the current law your member contribution is 7.25%.
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). CS 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 current disability leave balance at the time of your retirement. 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 bases of 22 days being the equivalent of one month service and any remainder amount of days numbering at least 11 days less than 22 days counted a one full month. Disability leave hours that equal one day are based on your scheduled hours per day at the date of retirement.
EMPLOYEE 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. There is no maximum percentage of the FABP. 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 (not to exceed 10 years) to a maximum of 70%. You may receive more than 70% for unused disability leave and a maximum of 3 years military credit.
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.
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’ Plan: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.
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 adjustment is the average of the Consumer Price Index ending with March in the year of the adjustment divided by the 12-month average of the Consumer Price Index ending with March in the year preceding the adjustment. Police and fire Service Plan members retiring on or after April 1 and on or before July 1, will have no July adjustment 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.
Cost of Living Adjustment (COLA) InformationIf the plan has not terminated, benefits may be adjusted after retirement. When awarded, benefit adjustments due to COLA’s occur on July 1 each year. There are two different COLAsone is applied to benefits earned (accrued) prior to February 1, 1997, and the other is applied to benefits earned after January 31, 1997. COLA adjustments can be negative but your benefit cannot be less than your initial amount at the time of retirement.
The COLA adjustment generally equals the change in the Consumer Price Index (CPI) from March of the year prior to the increase to March of the year of the increase. The COLA adjustment cannot exceed 3%. The percentage adjustment is applied to the initial benefit (simple increase) based on the pre-February 1, 1997, accrued benefit. The COLA adjustment is proportionately adjusted in the initial year of retirement. You will be provided with a statement indicating these amounts when you receive your first COLA.
Pre-employment active duty military service will count as part of your pre-February 1, 1997 benefit only if you were eligible for such credit prior to February 1, 1997. Generally this means that you must have five years of actual plan service prior to that date. In all other cases, pre-employment active duty military service will count toward your post-February 1, 1997 benefit.
The COLA adjustment equals 60% of the increase/decrease in the CPI and cannot exceed 2.5%. The percentage adjustment is applied to the current benefit (compound increase) based on your post-January 31, 1997, accrued benefit.
If the plan has not terminated, benefits are adjusted after retirement. Benefit increases/decreases occur on July 1 every year. There are two different COLAs one is applied to benefits earned (accrued) prior to February 1, 1997, and the other is applied to benefits earned after January 31, 1997. These amounts are determined prior to the payment of the first COLA and are fixed for as long as COLA payments are made. COLA adjustments can be negative but your benefit cannot be less than your initial amount at the time of retirement.
The COLA adjustment generally equals the change in the Consumer Price Index (CPI). The COLA increase is limited to 4%. The percentage of the adjustment is compounded based on your pre-February 1, 1997, accrued benefit. The CPI change is proportionately adjusted in the initial year of retirement.
The COLA adjustment equals 60% of the increase/decrease in the CPI. There is a maximum increase of 2.5%. The percentage increase/decrease is applied to the current benefit (compound increase) based on your post-January 31, 1997, accrued benefit.
If the plan has not terminated, benefits are adjusted after retirement. Benefits adjustments occur on July 1st each year. There are two different types of COLA - one is applied to benefits earned prior to February 1, 1997, and the other is applied to benefits earned after January 31, 1997. COLA adjustments can be negative but your benefit cannot be less than your initial amount at the time of retirement.
The COLA adjustment generally equals the change in the Consumer Price Index (CPI). The COLA adjustment is limited to 4%. The percentage change is compounded based on your pre-February 1, 1997 accrued benefit. The COLA adjustment is proportionally adjusted in the initial year of retirement. You must be retired by March 1 st to be eligible for a July COLA adjustment during the first year.
The COLA adjustment equals 60% of the increase/decrease in the CPI and cannot exceed 2.5%. The percentage adjustment is applied to the current benefit (compound increase) based on your post-January 31, 1997, accrued benefit. You must be retired (receiving payments) by January 1 st to be eligible for a July COLA in the year you retire and the COLA adjustment is not prorated in the year you retire.
If the plan has not terminated, benefits are adjusted after retirement. Benefit increases/decreases occur on July 1st every year. There are two different COLAs ¾ one is applied to benefits earned (accrued) prior to February 1, 1997, and the other is applied to benefits earned after January 31, 1997. Benefits earned prior to February 1, 1997 are based on your service and Final Average Basic Pay at February 1, 1997. COLA adjustments can be negative but your benefit can not be less than your initial amount at the time of retirement.
The COLA adjustment generally equals the change in the Consumer Price Index (CPI). The COLA increase is limited to 4%. The percentage adjustment is compounded based on your pre-February 1, 1997, accrued benefit. The COLA adjustment is proportionately adjusted in the initial year of retirement. You must be retired by March 1 st to be eligible for a July COLA adjustment during your year of retirement.
The COLA adjustment equals 60% of the increase in the CPI. There is a maximum increase of 2.5%. The percentage adjustment is applied to the current benefit (compound increase) based on your post-January 31, 1997, accrued benefit. You must be retired (begun payments) by January 1 st to be eligible for a July COLA adjustment during your year of retirement.
