ORIGIN & FUNCTIONS
The Board of Trustees of the Maryland Teachers and State Employees Supplemental Retirement Plans was created in 1985 to administer the State's supplemental retirement plans (Chapter 741, Acts of 1985). The State's supplemental retirement plans originated from three sources. In 1963, the Board of Trustees of the Teachers Retirement System established the Maryland Teachers' Tax-Deferred Annuity Plan. The Maryland State Employees Deferred Compensation Plan was formed in 1974 (Chapter 433, Acts of 1974). For State employees, a Savings and Investment Plan under Internal Revenue Code sec. 401(k) began in 1984 (Chapter 746, Acts of 1984.)
Supplemental retirement plans are voluntary plans for tax-sheltered income deferral, tax-deferred annuity, profit sharing, and salary reduction. They enable State employees and teachers to secure tax advantages. The 401(k) Transfer Account was authorized by an Internal Revenue Service private letter ruling, effective December 31, 1990.
The Board's nine members are appointed to four-year terms by the Governor who names the chair (State Personnel and Pensions Article, secs. 35-101 through 35-602).
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