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The RSP Hybrid membership provides participants with the opportunity to prepare for retirement through participation in both a defined benefit plan (the Baltimore City Employees’ Retirement System (ERS)) and the RSP 401(a) defined contribution retirement plan.
In addition, RSP Hybrid members may participate in the voluntary 457(b) Deferred Compensation Plan (DCP).
For most plan participants, this portion of your retirement benefit is calculated by multiplying 1.0% by the years of pension service you have at retirement. This percentage is then multiplied by your average highest three consecutive years of base salary to determine the amount you will receive at retirement. This will vary for participants who meet certain age and years of service requirements.
This portion is funded by City contributions and by contributions you are required to make. You are required to contribute 5% of your earnable compensation to the Employees’ Retirement System (ERS). You are required to contribute 5% of your earnable compensation before tax to the Employees’ Retirement System (ERS).
This portion of your retirement benefit is based on a contribution the City makes on your behalf to your RSP 401(a) defined contribution account. The City generally contributes 3% of your earnable compensation. However, the City’s contribution may be reduced to 1.5% of your earnable compensation, based on the funding status of the Class D ERS plan.
You have the option to make additional contributions to your 457(b) Deferred Compensation Plan (DCP) account. Voluntary contributions are made on a pre-tax or after tax (Roth) basis and may reduce your taxable income.
If you choose to make voluntary contributions to the 457(b) DCP, you will need to “opt-in” on your enrollment form or complete a separate enrollment form. Note that you may enroll in the 457(b) DCP immediately upon starting employment with the City. You can enroll in the 457(b) DCP via the website, www.RetirewithBaltimore.Com, or by completing the enrollment form that is provided to you at new employee orientation, by your agency HR business partner or by the RSP itself.
For the defined benefit component, you are vested after 10 years of service or upon early retirement (age 55 with at least 5 years of service), normal retirement (age 65 with at least 5 years of service or at any age with at least 30 years of service), disability or death. If you separate from service before you are vested, you will receive your contributions plus interest.
For the RSP 401(a) defined contribution component, you become 100% vested after 5 years of eligible vesting service, or if earlier, at age 65 or upon disability or death.
There are no investment options for your Class D ERS membership.
Employer-Funded RSP 401(a) Defined Contribution Account
The RSP Board of Trustees works with investment professionals to establish a competitive fund line-up. You may either choose how to invest the contributions you and the City make to your RSP 401(a) defined contribution account or choose to have those contributions automatically be invested in a Managed Account service to be personalized based on unique factors based on your goals for retirement age and income.
You may contact the RSP or Nationwide for more information on the investment options.
If you separate from service before you are vested in the RSP 401(a) defined contribution component of your RSP Hybrid membership, your non-vested contributions, plus earnings, will be forfeited.
If you separate from service after you are vested in the RSP 401(a) defined contribution component, you have the following options for your account balance:
- you may leave your account with the RSP until a later time; or
- you may receive your vested account balance as a lump sum or in installments, or convert your account balances to an annuity; or
- you may roll over your account balance to an individual retirement account (IRA) or another employer plan.
If you separate from service before you are vested in your defined benefit component, you will receive the contributions you made to the ERS, plus interest, in a lump sum.
If you separate from service after you are vested but before you are eligible for early retirement, you may receive a deferred vested benefit at a later date.
If you separate from service after you are eligible for early or normal retirement, you may receive an immediate benefit.