In Maryland a deferred compensation program was initiated in 1974 for State employees first by the Governor (Executive Order 01.01.1974.19) and then by the General Assembly (Chapter 433, Acts of 1974).
Created in 1985, the Board of Trustees of the Maryland Teachers and State Employees Supplemental Retirement Plans administers the State's supplemental retirement plans (Chapter 741, Acts of 1985). These State plans originated from three sources. In 1963, the Board of Trustees of the Teachers Retirement System established the Maryland Teachers' Tax-Deferred Annuity Plan under Internal Revenue Code 403(b). The Maryland State Employees 457 Deferred Compensation Plan formed in 1974 (Chapter 433, Acts of 1974). For State employees, a 401(k) Savings and Investment Plan began in 1984 (Internal Revenue Code sec. 401(k); Chapter 746, Acts of 1984.)
For State employees covered by the Employees' Contributory Pension System and contributing to an employer-sponsored supplemental retirement plan, the State of Maryland 401(a) Match Program was authorized effective July 1, 1999. As funded in the State budget, the Program matches up to a maximum contribution of $600 per employee per year (Chapter 530, Acts of 1998).
Through an administrator, the Board oversees administration and management of the plans. It also provides investment education programs to State employees and supports state agency personnel officers.
To finance its operations, the Board charges a fee on member accounts, based on a percentage of assets in the plans. for FY2009, the fee is .05% of assets.
The nine members of the Board of Trustees are appointed to four-year terms by the Governor who names the chair (State Personnel & Pensions Article, secs. 35-101 through 35-602). The Board meets at least quarterly. Each Board member serves on at least one committee, either the Audit Committee or the Investment Committee.
July 1, 2009
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