Last summer, the City Council voted allowing the City employees joining the Maryland State retirement plan (5-3, Catlin, Wojahn and Kabir opposed)
Currently, the City employees contribute to a plan called 401A plan, which is a defined contribution plan. In this plan, the City makes a 6.5% contribution to all employees towards their retirement. The contribution is invested in mutual funds with a vesting period of 5 years. The current 401A plan does cost the employee nothing.
According to City’s Human Resource department, so far 80% of employees have expressed interest in joining the plan. City will be joining the Maryland State Retirement and Pension System as of July 1, 2014! The HR is still waiting for a few more voters.
The enrollment process for the plan will start in early April.