This section is designed to answer some of your frequently asked questions about your retirement benefits with PGCPS. If you are unable to find an answer to your question (s), please contact the Payroll and Benefits Office.
Maryland State Retirement Agency (MSRA) frequently asked questions can be accessed here.
1. Who do I call to start the process for retirement?
You will need to contact a Retirement Coordinator in the Payroll and Benefits Office, Sasscer Building, Room 132:
301.952.6200 or pgcps.benefits@pgcps.org
Your Retirement Coordinator will provide guidance to you as you move towards retirement.
2. Can I continue my life insurance after I retire?
Yes, you can continue your life insurance benefits after you retire, if you meet the specified eligibility requirements. Your share of the cost of the health insurance benefits will be deducted from your monthly retirement payment. The Board will continue to contribute towards the cost.For additional information, contact PGCPS Payroll and Benefits Office for details on how to continue your life and health insurance benefits after retirement.
3. What happens to my coverage if I move out of the area?
Contact the Payroll and Benefits Office to update your address and enroll in the Out-Of-Area Plan. More information about the Out-Of-Area Plan can be found here.
4. Can I change my retirement option at any time?
Once you receive your first pension check, you are not allowed to make changes to your option selection.
5. How do I verify my pension amount after retirement?
Contact the Maryland State Retirement Agency to verify your pension amount. Retirement counselors are available weekdays from 8 a.m. to 5 p.m. at 410-625-5555 or toll-free at 1-800-492-5909.
6. How will I receive my pension payment?
It is mandatory that all new retirees receive their monthly retirement payments through electronic fund transfer (direct deposit). Payments are issued on the last business day of each month. The Maryland State Retirement Agency must be notified of any changes made to your bank or financial institution. Forms can be obtained through the Maryland State Retirement Agency to make changes to your direct deposit.
7. Do I have to pay taxes on the monthly retirement payments I receive?
Yes, you are required to pay both federal and state taxes on your Maryland State pension income.
8. Who do I contact regarding my Board sponsored life insurance and my life insurance benefit through the Maryland State Retirement Agency?
Contact the Payroll and Benefits Office regarding your Board sponsored life insurance and the Maryland State Retirement Agency regarding your pension life insurance benefit.
9. If my life insurance is fully paid by PGCPS, why do I pay taxes on it? (Why do I receive a W2?)
The Board of Education pays the full premium cost of life insurance coverage for all eligible employees and retirees through a group insurance policy. IRS regulations (Omnibus Budget Reconciliation Act of 1987), requires that the cost of employer provided group-term life insurance in excess of $50,000 be treated as taxable income to the employee/retiree. If your life insurance benefit is in excess of $50,000 in any calendar year, PGCPS will send a W-2 form to you, and you must report it on your tax filing. You are not paying taxes on the amount of your benefit; you are paying taxes on the cost that PGCPS pays to the insurance company for your benefit in excess of $50,000.
10. Who do I contact in order to convert my group life insurance to an individual policy?
You must contact The Hartford in order to convert your group life insurance to an individual policy within 31 days of your group life insurance reduction or discontinuance.
11. What is an Accelerated Death Benefit (ADB)?
If you become terminally ill and it is determined by your physician (currently licensed in the United States); based on a generally accepted prognostic protocol, that you will not survive more than nine months beyond the date of the request for an ADB, you may be allowed to receive a portion of the face value of your life insurance during your life time. Upon approval by The Hartford, the amount of ADB will be paid to you in a lump sum and is not subject to federal income tax. The face value of your life insurance will be reduced by the amount that you receive for the ADB.
12. How do I submit a request for my Accelerated Death Benefit (ADB)?
You must complete an Aetna Request for ADB Form. If your request is approved by The Hartford, you may receive up to 50% of the amount of your life insurance during your lifetime. The amount of your life insurance will be reduced by the amount of the ADB.
13. How does Medicare coordinate with my group health insurance benefits?
At the time you become eligible for Medicare, you will be converted to a Board-subsidized Medicare Supplemental Insurance plan. Medicare will then be your primary (pays first) carrier and your Board subsidized coverage will be your secondary (pays second) carrier. You must enroll in Parts A and B of Medicare.
14. Can a spouse or dependents of a deceased retiree continue coverage through the Board?
A spouse of a deceased retiree may qualify for continuation of Board-sponsored benefits as long as he/she is not eligible for benefits through their employment, and/or does not re-marry. Dependents of a deceased retiree may qualify for continuation of Board-sponsored benefits as long as they continue to be a “dependent child” under the group health insurance plan(s). The Board has the right to verify this information periodically. Your coverage may be canceled, if you do not provide verification.