The Maryland State Retirement & Pension System issued the following notice which applies to Faculty & Staff enrolled in Optional Retirement Program (ORP).
Under the Federal Coronavirus Aid, Relief, and Economic Security (CARES) Act, the Maryland State Retirement and Pension System approved coronavirus-related distributions from the ORP for eligible active employees. Please refer to the document linked above for details.
*The ORP plans are offered to exempt staff and faculty, in which employer funds are contributed into a TIAA or Fidelity 403b.
**This message does not apply to member of the Pension Plan.
**This message is specifically for the ORP, however, provisions were also passed under the Supplemental Retirement Account (SRA) - details for the SRA plans can be found in the following message.
Here are a few key provisions of Coronavirus related distributions permitted under the ORP:
- A participant who is diagnosed with the virus SARS-CoV-2 or with coronavirus disease 2019 (COVID-19) by a test approved from the Centers for Disease Control and Prevention;
- A participant whose spouse or dependent is diagnosed with the virus SARS-CoV-2 or with COVID-19 by a test approved from the Centers for Disease Control and Prevention;
- A participant who suffers adverse financial consequences as a result of being quarantined, being furloughed or laid off or having work hours reduced, or being unable to work due to lack of child care as a result of such virus or disease; or
- A participant who experiences adverse financial consequences as a result of closing or reducing hours of a business owned or operated by the participant due to such virus or disease.
- A participant must certify that he or she is an eligible participant in order to receive a coronavirus- ted distributions.
One or more coronavirus-related distributions may be taken from the ORP during the period beginning April 21, 2020, and ending December 31, 2020.
- Limited to $100,000 in aggregate per participant from all retirement plans and IRAs
- Not subject to the 10% early distribution penalty tax
- Reported as taxable the year of distribution, but, unless the participant elects immediate taxation, taxed to the participant as ordinary income over three years
- Not eligible for direct or indirect rollover, and not subject to 20% tax withholding; rather, 10% withholding applies unless the participant elects out of withholding
- May be repaid into an eligible retirement plan or IRA within three years of distribution