Payroll Changes of General Interest for the New Fiscal Year

1. Increments

   Increments for Regular Payroll will be handled as follows:

   Pay Period ending 7/01/08 Increment adjustments are posted to this pay for the first day of July 2008.

   Pay Period ending 7/15/08 incremented salaries are fully implemented.

   Increments for University of Maryland Payroll will be handled as follows:

   UMCP,UMES, UMCES, UMBI, USM:  Pay Period ending 7/05/08 Increment adjustments are posted to this pay for the first 5 days of July 2008.

   Pay Period ending 7/19/08 incremented salaries are fully implemented.

   UMBC, UMB UMUC:  Pay Period ending 7/19/08, new salaries posted, including the adjustment for the period July 1 - July 5, 2008.

2. Cost of Living Payments

   The 2% cost of living increase will be implemented beginning 7/1/08.

3. Bi-weekly Salary

   Bi-weekly salary will revert back to normal (non-leap year) calculation for fiscal year 2009. 

4. Employees' contribution to the State Employees' Alternate Pension system (ST EMP ALT PEN) and State Teachers' Alternate Pension System (ST TCH ATL PEN) will increase from 4% to 5% for Fiscal 2009.

   Retirement deduction for the Regular System will be calculated based on 27 pays as there are 27 pay period ending dates in fiscal year 2009.

5. Match of Employee Contributions to Maryland Supplemental Retirement Plans (457, 403(b), and/or 401 (k), Dollar for Dollar up to $600 for Fiscal Year 2009

   The following conditions apply to match program:

   • Membership in the State Employees’ Alternate Contributory Pension system (ST EMP ALT PEN on pay stubs) is required. 
   • Active participation in one of the three Supplemental Retirement Plans is also required.  These are identified on the pay stub as: DEF COMP, 403-B TSA PLAN, or 401K-SAVE.

     All three plans are sponsored by the Maryland Supplemental Retirement Plans (MSRP) and are administered by Nationwide.

   • Employees who are working at institutions of higher education who meet the retirement membership requirement (ST EMP ALT PEN) can meet the second requirement by being a participant in one or more deductions such as FDLTY 403B, FDLTY 457B, TIAA 403B or TIAA457B in lieu of or in combination with one or more Nationwide administered plans.
   • One employee can have several “SRA” deductions.  The sum of all the “match” deductions in all state employment for each employee during fiscal year 2009 cannot exceed $600.00.

Important Note

The “MSRP Match” is based on contributions made on pay dates that occur during a fiscal year.  After the last pay date in Fiscal Year 2008 (June 25, 2008 for Regular System and June 27, 2008 for the University system), the Employer Match approved for fiscal year 2008 will end  and contribution totals will return to zero. The MSRP Match contributions for fiscal year 2009 will begin again on the first pay date in Fiscal Year 2009 (July 9, 2008 for Regular system and July 11, 2008 for the University system).  It is very important for participating employees to retain the last pay stub of the fiscal year as well as the last pay stub of the calendar year for their records.  Both stubs are required to provide a complete picture of their contributions and the state’s match.