QDRO Corner: Montgomery County Public Schools Employees’ Pension System

Last month we discussed the Maryland State Retirement Pension System (“MSRPS”), which in summary, is available for employees of the State of Maryland.

Employees of the Montgomery County Public School System (“MCPS”) have interest in a second pension system, the Montgomery County Public Schools Employees’ Pension System. To our knowledge, Montgomery County is the only county in Maryland that provides a second pension to employees such as teachers who are participants in the MSRPS.

Some teachers aren’t aware these are two separate plans, and will reference that they have “a pension” as a part of their retirement. If you have a case involving an employee, specifically a teacher, in MCPS, be sure to request all relevant documentation, including pay stubs, to determine whether this party is participating in both plans. Both plans require mandatory contributions, and therefore deductions will appear on the paystub. Eligibility is based on a multitude of factors, but for the most part any permanent (non-temporary) MCPS employee anticipated to work more than 500 hours in their first year of employment will be in both plans.

The two plans have different names, different rules, and different administrators. Therefore, one domestic relations order cannot divide both plans – if your case requires both plans to be divided, you will need two domestic relations orders. In addition, both plans should be addressed separately in any settlement agreement or judgment of divorce. Attorneys Jessica Markham and Leslie Miller litigated this issue in the Montgomery County Circuit Court in 2018.  If you have a dispute about these plans, or need orders drafted, we can prepare them, consult with you or provide expert testimony if needed.