RSP 401(a) Non-Hybrid Membership

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Overall Plan Components

The RSP Non-Hybrid membership provides participants with the opportunity to prepare for retirement by participating in the RSP 401(a) defined contribution retirement plan.

In addition, RSP Non-Hybrid members may participate in the voluntary 457(b) Deferred Compensation Plan (DCP). If you choose to do so, your employer will match the contributions you make to the 457(b) DCP (up to limits described below) with an additional contribution to your RSP 401(a) defined contribution account.

Employer (Baltimore or BCPS) Contributions

Automatic: Your employer will contribute 4% of your earnable compensation to an employer-funded RSP 401(a) defined contribution account.

Matching: As an RSP Non-Hybrid member, your employer will also match contributions you make to your 457(b) DCP account. The match may be as much as 50% of the deferral you make to your 457(b) DCP account, up to 1% of pay. The additional match will be made to the employer-funded RSP 401(a) account.

Note that although you may begin making voluntary deferrals to the 457(b) DCP upon commencing service with the City or BCPS, matching contributions will not begin until your RSP membership is effective (180 days from the date you began service).

Your Required Defined Contributions

Required: You must contribute 5% of your earnable compensation to your RSP 401(a) account. Your contributions will be made automatically through payroll deduction on a pre-tax basis and may reduce your taxable income.

Voluntary Deferred Compensation 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.RetirewithBmore.com, or by completing the enrollment form that is provided to you at new employee orientation or by the RSP itself.

Vesting

You are always 100% vested in your RSP 401(a) defined contribution member sub-account.

You become 100% vested in the RSP 401(a) defined contribution City sub-account after 5 years of eligible vesting service, or if earlier, at age 65 or upon disability or death.

Investing Your Accounts

RSP 401(a) Defined Contribution Account

The RSP Board of Trustees works with investment professionals to establish a competitive fund line-up. You may choose to invest and allocate the contributions you make to this account into any of the funds in the 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.

When You Separate from Service with the City

If you separate from service before you are vested in the RSP 401(a) City sub-account, the account will be forfeited. Your RSP 401(a) member sub-account is always vested. The same is true of your 457(b) DCP account.

If you separate from service, you have the following options for your vested account balance(s):

  • you may leave your account in the plan until a later time; or
  • you may receive your vested account balance as a lump sum, 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.