State Teacher Plans for Maryland

Many teachers do not have access to low-cost choices in their 403(b) plans. Of the 19 district 403(b) plans that we have graded so far in Maryland, 5 districts have an A rating, 1 district has a B rating, 6 districts have a C rating, 4 districts have a D rating, and 3 districts have an F rating.

If you are a teacher in Maryland, here are the state teacher plan options that are available to you.

Maryland SRPS

Most states still offer a traditional formula-based pension. Under this type of arrangement an educator would receive a percentage of their final year's salary until death that is based on some combination of years worked, age, and salary. Some states have made pension plans less generous to new hires, and some states have replaced traditional pensions with 401(k)-type plans.

More information about the Maryland SRPS plan is available directly from the pension website, and Karl Fisch's book on the Maryland pension is available here. Pension plan information for other states is also available for reference through this state pension search tool. This data is shared with us by Karl Fisch, and it is current as of January 1, 2025.

Applicable to All Teachers

Social Security

Maryland teachers also pay into Social Security

Administrative Fee for Supplemental Plans

None

New Teachers Hired On or After 1/1/2024

Defined Benefit

Employee: 7%; Employer: 4.96%; State: 11.29%

Multiplier

1.5%

Average Salary

Highest 5 years

Normal Retirement

Rule of 90 (age plus years of service is greater than or equal to 90)
Age 65 with 10 years of service

Cost-of-Living Adjustment (COLA)

CPI and investment returns 2.5% cap

Veteran Teachers Hired Prior to 1/1/2001

There are no additional benefit tiers between the new teacher and veteran teacher tiers compared here. The exact transition date between these tiers is not relevant to this comparison.

Defined Benefit

Employee: 7%; Employer: 4.96%; State: 11.29%

Multiplier

1.2% for years prior to 6/30/98
1.8% for years after 6/30/98

Average Salary

Highest 3 years

Normal Retirement

Any age with 30 years of service
Age 62 with 5 years of service
Age 63 with 4 years of service
Age 64 with 3 years of service
Age 65 with 2 years of service

Cost-of-Living Adjustment (COLA)

CPI 3% cap on portion earned prior to 6/30/11
2.5% cap on portion earned after 6/30/11 and investment return input

Maryland 457(b)

Every state operates a 457(b) plan that serves governmental workers like police, fire, and state government officials. These plans are generally excellent, and in many cases they are superior to the 403(b) offerings available in school district plans. Most states allow educators to participate in these plans; unfortunately, about a dozen do not.

Find out more about how we rate state 457(b) plans and view plans in other states.

Green Maryland Teachers & State Employees Supplemental Retirement Plans

Maryland teachers are not eligible to contribute to this plan.

Fees

0.076% admin fee, $0 account fee, and a low index fee

Record Keeper

Empower

Target Date Fund

T. Rowe Price CITs

NOTE: Recently switched from Nationwide to Empower (Fall 2025).

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