NOTE 8 RETIREMENT BENEFITS (CONTINUED)
equals 1.5% of the member’s five-year AFS multiplied by the number of years of creditable service. A member may retire with reduced benefits at age 60 with at least 15 years of eligible service. Benefits are reduced by 0.5% per month for each month remaining until the retiree reaches the normal retirement service age. The normal retirement service age is 65, with a maximum reduction of 30%. For members of the Officers’ Plan, hired on or before June 30, 2011, vesting occurs once members have accrued at least five years of eligible service. For members hired on or after July 1, 2011, vesting occurs once a member has accumulated ten years of eligible service. Members are eligible for full retirement benefits upon the earlier of attaining age 50 or accumulating 25 years of eligible service regardless of age. Generally, the annual pension allowance for a member equals 2.0% of the member’s AFS, up to a maximum of benefit of 65% of AFS (approximately 32.5 years of creditable service). The Officers’ Plan does not provide for early retirement. Funding Policy Each of the above plans is funded by contributions from its members and contributions from the State and participating governmental agencies. The MDTA’s required contributions are estimated by annual actuarial valuations using the entry age normal cost method with projection and other actuarial assumptions adopted by the Board of Trustees. Members of the Retirement Plan, Pension Plan, and Officers’ Plan are required to contribute 5% to 7% of earnable compensation. The MDTA’s contributions, which equal 100% of the annual required contributions, for the three years ended June 30, 2024, 2023, and 2022 are as follows:
2024 $35,057 28.8%
2023 $31,080 28.7%
2022 $27,555 27.2%
MDTA contribution Percentage of payroll
Pension Disclosures MDTA recognizes the long-term obligations for pension benefits as a liability on the Statement of Net Position and to more comprehensively and comparatively measure the annual cost of pension benefits. The components of the State of Maryland’s net pension liability as reported by the Maryland State Retirement and Pension System at the measurement date:
State of Maryland's Net Pension Liability Components June 30
2024 $ 21,429,179 277,371 1.29%
2023 $ 18,651,793 241,431 1.29%
2022 $ 13,934,828 175,534 1.26%
State of Maryland's Net Pension Liability MDTA's Net Pension Liability MDTA's Proportion of Net Pension Liability
70 | Maryland Transportation Authority | Notes to the Financial Statements ($ in thousands)
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