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MSRP switches administrator to lower fees; state match restored in budget

Appropriations Committee · February 20, 2026

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Summary

DLS says Maryland Supplemental Retirement Plans switched plan administrators to Empower, cutting administrative fees from 0.775% to 0.335% of assets, which DLS estimates will leave members with about $2.4 million more in FY2026; the committee heard that the reestablished state match is driving growth in participation.

Jacob Cash, DLS analyst, briefed the committee on the Maryland Supplemental Retirement Plans (MSRP). He said MSRP offers three defined-contribution options (401(k), 457(b), and 401(a) match) and that the FY2027 allowance for MSRP is $2.6 million, roughly a 6% increase driven mainly by personnel and shared-services allocations.

Cash told members that the MSRP board selected Empower in April 2025 to replace the prior vendor and that the new contract reduces administrative fees from 0.775% of assets to 0.335%—a change DLS estimates will result in members retaining about $2.4 million in fiscal 2026. He also described that Chapter 100 of 2023 reestablished a state match program (up to $600) and that the match has driven participation growth; DLS asked MSRP to provide further comment on why it anticipates continued high growth.

Rhonda Bell, MSRP’s executive director, affirmed the agency’s support for the governor’s allowance and introduced deputy executive director Nikia Smith. The agency said it has been coordinating vendor transition activities, member outreach and call-center support during implementation.

Analysts recommended concurrence with the governor’s allowance; members asked follow-up questions about participant growth and recent performance benchmarks.