Maximize Your MCPS Employee Benefits This Enrollment Season
Quick Facts You Should Know
Pension + Supplemental Pension
Contribute 7.5% of salary; formulas vary by hire date (pre/post July 2011)
403(b) and 457(b) Plans
Both available through Fidelity—traditional and Roth options. Maximize deferrals in both.
Dependent Care FSA
Save taxes on childcare/eldercare—up to $5,000 per household/year.
Retiree Health Coverage
Your hire date determines when you qualify and how much of the premium MCPS pays.
Group Life Insurance
Free basic coverage = 2x annual salary. Optional buy-up available up to $200,000.
Key Considerations and Mistakes to Avoid
Relying only on employer LTD coverage: 50% income replacement may leave a large shortfall.
Overlooking life insurance reductions in retirement: Coverage shrinks to as little as 12.5% unless converted.
Confusing FSA rules: FSAs don’t roll over like HSAs; plan contributions carefully.
Missing out on dual savings opportunities: Employees can contribute to both a 403(b) and 457(b).
Ignoring hire date rules: Pension formulas, retirement ages, COLA protections, and retiree health costs differ significantly pre-/post-2011 hires.
A Case Study
Lilo, an MCPS teacher
Lilo earns $110,000 per year. She is married with a young daughter and wants to build a strong financial foundation. Her top goals include protecting her family with adequate life insurance, starting her daughter’s college savings, and understanding her path to retire early at 55.
After our benefits review:
● We identified that her basic life insurance (2x salary) would leave her family underprotected. We helped her evaluate the buy-up options and compare with private term life to secure adequate coverage.
● Lilo was paying for childcare but had not used the Dependent Care FSA—we showed her how she could save $1,500/year in taxes by enrolling.
● We calculated her pension eligibility and explained how her 2014 hire date places her in the Reformed Pension System, which requires age + service = 90 for unreduced benefits. Since her goal is to retire at 55, we mapped out a strategy to maximize her 403(b) + 457(b) accounts to supplement her pension and close the gap.
● To start her daughter’s college fund, we outlined the benefits of a 529 plan, including potential state tax deductions and tax-free growth for qualified expenses.
By aligning her MCPS benefits with her family’s goals, Lilo increased protection, found annual tax savings, and built a roadmap for early retirement.
Learn More
This material is provided by Aether Financial Group for educational purposes only. We are not affiliated with, endorsed by, or acting on behalf of Montgomery County Public Schools or its benefits providers. While we make every effort to ensure the accuracy of information based on available resources, benefits details should always be confirmed directly with MCPS Human Resources and the official plan providers. Nothing herein should be construed as legal, tax, or benefits administration advice.