Retirement

Retirement
All certain eligible regular county employees* are required to participate in the Frederick County Employees Retirement Plan. This plan is a Defined Benefit Plan and retirement benefits are payable at the employee’s normal, early or delayed retirement date. Retirement benefits might also be payable if the employee terminates employment or becomes disabled, or to the beneficiary in the event of the employee's death. Each of these benefits is discussed in greater detail in the Summary Plan Description of the Frederick County Employees Retirement Plan (SPD).

Outline of Major Benefits
Below is a brief outline of the major benefits provided through the plan for individuals hired on or after July 1, 2012. For more in-depth information, please refer to the SPD.

Note: *Employees hired to work for Frederick County Public Libraries are required to participate in the State Retirement and Pension System of Maryland instead of the Frederick County Employees Retirement Plan.

Member Contribution
  • Uniformed - 9%
  • Non-Uniformed - 6%
Service Retirement Eligibility
  • Uniformed
    • Age 55 with 5 years of eligibility service
    • Any age with 25 years eligibility service
  • Non-Uniformed
    • Age 65 with 10 years of eligibility service
    • Any age with 30 years of eligibility service
Service Retirement Benefit
  • Uniformed - ((2.5% x Average 3 Highest Salary Years) x Years of Creditable Service up to 20); plus ((2.0% x Average Pay) x Years of Service in excess of 20 years, to a maximum of 8 years)
  • Non-Uniformed - (1.67% x Average 3 Highest Salary Years) x Years of Creditable Service up to 36 years.
Vesting (Deferred Allowance)
  • Uniformed - At least 5 years of eligibility service, benefit payments begin at age 55 based on service, salary and termination of employment
  • Non-Uniformed - At least 10 years of eligibility service, benefit payments begin at age 65 based on service, salary and termination of employment.
Cost of Living Adjustment to Retirement Allowance
  • Limited to 1% per year compounded annually.
Lump Sum Death Benefit
  • Uniformed - If not vested, the beneficiary receives employee's contributions in a lump sum payment.
  • Non-Uniformed - If not vested, beneficiary receives employees' contributions plus interest in a lump sum payment; and a payment of 1 times the employee's annual budgeted salary.
Lifetime Annuity Death Benefit
  • If vested, or if death occurs in the performance of duty, the beneficiary will receive a lifetime payment from the plan based on the calculation of either a line of duty or ordinary disability.
Note: In addition to the eligibility and creditable service the employee earns while working for Frederick County, he/she may, in some cases, receive additional credit for service under other governmental retirement systems; service with other governmental educational employers; approved leaves of absence; military service, or unused sick leave.

(updated October 2015)