Montgomery County Public Schools employees could receive up to 60 percent of their final salary after retirement under a new pension plan approved Tuesday.
“A competitive benefit package is critical to our ability to recruit and retain the best and continue to make progress,” said Board Vice President Sharon Cox.
The Board of Education asked the County Council for $13.2 million in next year’s budget to cover the improvements. After 2009, the cost will drop to $8 million a year as teachers pick up more of the expense under the proposal. Employees’ contributions to the plan increase to 5.5 percent of their income from 3.3 percent.
Montgomery’s is the only Maryland school system that offers its employees a higher pension than teachers elsewhere in the state, at about 10 percent more retirement income. Maryland’s teachers union led a campaign for the improvements this year, calling their pension one of the worst in the nation. Under the current pension plan, Montgomery teachers can receive up to 46 percent of their final salary.
The change also affects 4,800 Montgomery schools service workers not eligible to participate in the state retirement system.
By comparison, county employees can earn up to 2 percent of their total income for each year of service, up to 36 years, givingthem 72 percent to retire on. Public safety employees end up with the same percentage, but can retire in about 30 years.
“The board’s passage of the improved supplement provides an incentive for the best educators to come here to stay with us through an entire career,” said Bonnie Cullison, president of the teachers union.
The County Council is considering the board’s $1.8 billion budget request as part of its overall $3.9 billion budget proposal. The county budget is expected to be completed Wednesday.
Though the pension measure is competing with $55 million in budget additions, Council Members Mike Subin and Steve Silverman announced their support early.
“MCPS competes for teachers and other staff directly with Fairfax County and other major metropolitan areas beyond the state of Maryland,” they wrote in a letter supporting the increase.
