Plain Text Law

Subtitle 1 – Employees’ Retirement System

Current through 2026-07-17. Source: City of Balt., Md., Ord. 26-129. Published by the Baltimore City Department of Legislative Reference.

Balt., Md., Code art. 22, § 1 (2026)

§ 1 Definitions.Copy Citation

(1)Retirement System.
“Retirement System” shall mean the Employees’ Retirement System of the City of Baltimore as defined in <cite data-path="|22|§2">§ 2 of this subtitle</cite>.
(2)Employee.
(i)In general.
“Employee” means, except as provided in subparagraph (ii) of this paragraph, any of the following:
(A)
any permanent officer or employee of the Mayor and City Council of Baltimore, including any officer or employee of an agency, department, unit, subdivision, or instrumentality of the Mayor and City Council;
(B)
any permanent officer or employee, by whatever authority appointed, whose salary or compensation is paid by the Mayor and City Council of Baltimore, except when the City acts only as an agent for the convenience of disbursing payroll funds;
(C)
any employee of the Baltimore City Public School System who is not eligible to participate in the Maryland State Retirement and Pension System;
(D)
any employee of the Maryland Department of Public Safety and Correctional Services who:
1.
was a City employee working at the Baltimore City Jail when the State assumed administration of the Jail in July 1991; and
2.
on becoming a State employee, elected to remain a member of this System;
(E)
any employee of the Baltimore Museum of Art or of the Walters Art Museum who was employed by either museum on or before June 30, 2014, except that, after termination of that employment, if the employee is rehired on or after July 1, 2014, the employee no longer is an “employee” for purposes of this subtitle; and
(F)
the State’s Attorney for Baltimore City.
(ii)Exclusions.
“Employee” does not include:
(A)
any “elected official”, as defined in <cite data-path="|22|§17A|(2)">§ 17A(2) of this article</cite> for purposes of membership in the Elected Officials’ Retirement System of the City of Baltimore; or
(B)
any “employee”, as defined in <cite data-path="|22|§30|(2)">§ 30(2) of this article</cite> for purposes of membership in the Fire and Police Employees’ Retirement System of the City of Baltimore.
(iii)In cases of doubt.
(A)
In all cases of doubt, the Board of Trustees determines who is an “employee” under this subtitle.
(B)
A determination by the Board under this subparagraph is final and binding on all persons, subject to the rights of appeal and review under <cite data-path="|22|§15">§ 15 of this subtitle</cite>.
(3)Member.
“Member” shall mean any person included in the membership of the system as provided in §§ 3 and 9 of this subtitle.
(4)Board of Trustees.
“Board of Trustees” shall mean the Board, provided in <cite data-path="|22|§5">§ 5 of this subtitle</cite>, to administer the Retirement System.
(5)Minor child.
“Minor child” means the child of a member, former member, or retiree who has not attained age 22.
(6)Service.
“Service” shall mean service as an employee as described in paragraph (2) of this section, and paid for by the City of Baltimore, while a member of the Employees’ Retirement System; and any service purchased, repurchased or transferred, by appropriate deposit or redeposit of funds, plus interest, to cover such periods, or any service credited under any other section of this subtitle and under Maryland State law.
(7)Prior service.
“Prior service” shall mean service rendered prior to January 1, 1926 for which credit is allowable under the provision of <cite data-path="|22|§4|(a)">§ 4(a) of this subtitle</cite>, subject to the qualifications set forth in <cite data-path="|22|§4|(d)">§ 4(d) of this subtitle</cite>.
(8)Beneficiary.
“Beneficiary” shall mean any person in receipt of a pension, an annuity, a retirement allowance, or other benefit as provided by this subtitle.
(9)Regular interest.
(i)
“Regular interest” means:
(A)
for the accumulation of Class A or Class B member contributions, interest at 5.25% per year, compounded annually; and
(B)
for the accumulation of Class C or Class D member contributions, interest at 3% per year, compounded annually.
(ii)
“Regular interest” for valuation purposes means:
(A)
for fiscal years beginning on or before July 1, 2015:
1.
7.75% before benefit payments commence; and
2.
6.55% after benefit payments commence;
(B)
for fiscal years beginning on July 1, 2016, and on July 1, 2017:
1.
7.5% before benefit payments commence; and
2.
6.5% after benefit payments commence; and
(C)
for fiscal years beginning on or after July 1, 2018:
1.
7.0% before benefit payments commence; and
2.
6.5% after benefit payments commence.
(iii)
“Regular interest” for the purpose of determining actuarial equivalents means interest at 4.5% per year, compounded annually.
(10)Accumulated contributions.
“Accumulated contributions” means the sum of all the amounts deducted from the earnable compensation of a member, and any other additional amounts contributed by the member as provided in this subtitle, together with regular interest as provided in paragraph (9) of this section and pursuant to the provisions of §§ 7, 8 and 9 of this subtitle.
(11)Average final compensation.
Average final compensation:
(i)
For any member who terminates employment with the City prior to January 1, 1994, except as noted in subparagraphs (a) and (b) below, “average final compensation” shall mean the average annual earnable compensation for any period of 3 successive years of service during which his earnable compensation was highest; or if he had less than 3 years of service, then the average annual earnable compensation during his total years of service. “Earnable compensation” shall mean the annual salary authorized for the member. It shall not include overtime pay, differential pay, environmental pay, hazardous duty pay, pay for conversion of leave or other fringe benefits, or any like additional payments. Beginning with the 1<sup>st</sup> day of the 1<sup>st</sup> full pay period after July 1, 1975, the provisions of this paragraph shall apply to members who retired on or after April 19, 1974, up to and including June 30, 1975. However, no retroactive payments shall be made to members who retired before July 1, 1975. Beginning July 1, 1975, the provisions of this paragraph shall apply to all members who retire on or after July 1, 1975.
(a)
For members who retired during the period beginning with July 1, 1973, up to and including April 18, 1974, the term “average final compensation” shall be the same as is provided in paragraph (11)(i); however, no retroactive payments shall be made with respect to any period prior to the 1<sup>st</sup> day of the 1<sup>st</sup> full pay period after July 1, 1975. It is further provided with respect to members who retired during the period July 1, 1973, through April 18, 1974, inclusive, or their beneficiaries, that they shall receive the adjustment required under this paragraph to the extent that it exceeds the benefit provided under § 6(n) and <cite data-path="|22|§6|(o)">§ 6(o) of this article</cite> as amended from time to time.
(b)
Beginning July 1, 1984, any member who retired between January 1, 1926 and April 18, 1974, or the member’s beneficiary, shall have the retirement allowance portion of the total retirement benefit recalculated on the member’s average final compensation as defined in § 1(11)(i). The total difference between the average final compensation calculated at the time of retirement and the calculation based on average final compensation based on 3 years shall be added to the present annual allowance being received. However, no retroactive payments for any increases shall be made to eligible beneficiaries of deceased members and members retired before April 19, 1974.
(ii)
For any member who is an employee on or after January 1, 1994, “average final compensation” means the average of the member’s annual earnable compensation on January 1 for 3 successive years of service when the member’s earnable compensation is the highest. If the member is in service on January 1 for less than 3 successive years, then average final compensation means the average annual earnable compensation during this total years of service. “Earnable compensation” means the annual salary authorized for the member. It does not include overtime pay, differential pay, environmental pay, hazardous duty pay, pay for conversion of leave or other fringe benefits, or any like additional payments.
(12)Annuity.
“Annuity” shall mean payments for life derived from the “accumulated contributions” of a member.
(13)Pensions.
“Pensions” shall mean payments for life derived from money provided by the City of Baltimore. It shall not include additional benefits provided under §§ 6(n) and 6(o) of this subtitle.
(13a)Payments; Retirement dates.
(i)
All retirement allowances or other benefits that are calculated on an annual basis shall be payable for each month in a year. Payments shall be made in periodic installments, as determined from time to time by the Board of Trustees, and the monthly allowance shall be computed by dividing the annual allowance by 12.
(ii)
All retirement dates for all Class A, B, C, and D members shall fall on the 1<sup>st</sup> of a month.
(14)Retirement.
“Retirement” shall mean withdrawal from active service with a retirement allowance or pension, granted or deferred under the provisions of this subtitle. However, the deferment of the receipt of the retirement allowance or pension must be at the option of the member.
(15)Retirement allowance.
“Retirement allowance” shall mean the sum of the “annuity” and the pensions.
(16)Annuity reserve.
“Annuity reserve” shall mean the present value of all payments to be made on account of any annuity or benefit in lieu of any annuity computed upon the basis of such mortality tables as shall be adopted by the Board of Trustees and regular interest.
(17)Pension reserve.
“Pension reserve” shall mean the present value of all payments to be made on account of any pension or benefit in lieu of any pension computed upon the basis of such mortality table as shall be adopted by the Board of Trustees and regular interest.
(18)Total retirement benefits.
“Total retirement benefits” shall mean the sum of the “annuity” and the “pensions”, and any additional annual benefits, including §§ 6(n) and 6(o), payable to a retiree or his beneficiary as provided for under this subtitle.
(19)Actuarial equivalent.
“Actuarial equivalent”, for purposes of determining the amount of an optional retirement benefit under this subtitle, means a benefit of equivalent value when calculated using:
(i)
regular interest for actuarial equivalent purposes; and
(ii)
mortality assumptions based on the following tables:
(A)
for retirements effective on or before June 30, 2016, the UP-84 mortality table with no set forward, except that in the case of disability retirements under this subtitle, the table is set forward 9 years; and
(B)
for retirements effective on or after July 1, 2016, the RP-2000 mortality tables for males and females set forward 2 years and projected 15 years using 50% of Scale AA and then blended 50% for males and females.
(20)Actuary.
“Actuary” shall mean the person or persons designated as hereinafter provided.
(21)Pronouns.
The male pronoun shall include the female pronoun or vice versa.
(22)Actuarial reserve.
“Actuarial reserve” shall mean the present value of a benefit due the member, based on such interest and mortality tables as are adopted by the Board of Trustees upon the advice of the actuary for the Retirement System.
(24)Fiscal year.
“Fiscal year” shall be the 12- month period beginning on July 1 of each year and ending on June 30 of the following year, both these dates included therein, or such alternate dates as shall be mandated by law for the Mayor and City Council.
(25)Hours of work.
“Hours of work” shall mean in the computation of service as provided in § 9(c), the prescribed number of regular working hours in a fiscal year, exclusive of overtime, as set forth in an employee’s job classification.
(26)Normal retirement date.
“Normal retirement date” shall be for all Class C members the 1<sup>st</sup> day next following the member’s having attained age 65.
(27)Panel of hearing examiners.
“Panel of hearing examiners” shall mean the panel of hearing examiners provided for in § 5(l) and § 9(p).
(28)Parity time period.
“Parity time period” shall mean a period of time equal to the service credit a former Class A, Class B, or Class C member had acquired at the time such former member terminated employment with the City, plus any additional service credit for any employment for which the former Class A or Class B member would have been eligible to receive service credit on the date of reemployment, whether by purchase or repurchase, or by transfer of the applicable funds, had he continued his previous City employment and his Class A or Class B membership.
(29)Primary Social Security benefit.
“Primary Social Security benefit” for all Class C members shall mean the estimated annual primary Social Security benefit, as determined by the actuary, to which such Class C member was or would become entitled to upon reaching the age of 65, based on the Social Security Act in effect on January 1 of the year of the member’s termination, normal retirement, early retirement, postponed retirement, or ordinary disability. In making the determination, the actuary shall conclusively presume (whether actual or not) that the member has always been a covered employee under the Social Security Act and that the member’s earnable compensation (as defined in § 1(11)), which would be treated as wages for purposes of the Social Security Act, has increased at a rate determined by the actuary, the amount to which the member is entitled shall not be reduced because of any Social Security entitlement by reason of a spouse, age of spouse, dependents, or any Social Security disability which the member, the spouse or dependents may suffer, or any Social Security, or Social Security offset income earned by the member. For purposes of computing a member’s primary Social Security benefit, if a Class C member has not reached the age of 65 years as of the date on which benefits are determined, City earnable compensation (as defined in § 1(11)), which would be treated as wages for purposes of the Social Security Act after his retirement or termination of employment, shall be deemed to be at the same rate as the rate in effect as of the date benefits are determined.
(30)Covered compensation.
Covered Compensation:
(i)
For any Class C member who was an employee on or after June 28, 1991, and who terminates employment with the City on or before June 28, 1993, “covered compensation” shall mean for any member on any date, an annual amount determined on the basis of the federal Social Security Act as in effect on the 1<sup>st</sup> day of the fiscal year during which the determination is made. Such annual amount shall equal the average of the taxable wage bases (as defined herein) in effect for each calendar year during the 35-year period ending with the calendar year which ends immediately prior to the earlier of: (a) July 1 of the fiscal year in which the member terminates City employment; or (b) the calendar year in which the member attains age 65. “Taxable wage base” means, with respect to any calendar year, the maximum amount of earnings which may be considered wages under § 3121(a)(1) of the Internal Revenue Code of 1986, as amended.
(ii)
For any Class C member who was an employee on or after June 29, 1993, “covered compensation” shall mean for any member on any date, an annual amount determined on the basis of the federal Social Security Act as in effect on the 1<sup>st</sup> day of the fiscal year during which the determination is made. Such annual amount shall equal the average of the taxable wage bases (as defined herein) in effect for each calendar year during the 35-year period which ends with the calendar year prior to the earlier of: (a) the January 1 which is one year prior to January 1 of the calendar year in which the member terminates employment with the City; or (b) January 1 of the calendar year in which the member attains age 65. “Taxable wage base” means, with respect to any calendar year, the maximum amount of earnings which may be considered wages under § 3121(a)(1) of the Internal Revenue Code of 1986, as amended.
(31)Present value.
“Present value” means the amount determined using:
(i)
regular interest for valuation purposes under paragraphs (9)(ii)(b)1. or (9)(ii)(c)1. of this section; and
(ii)
mortality assumptions based on the table in effect under the definition of “actuarial equivalent” in paragraph (19)(ii) of this section.
History: Ord. 26-553
History: Ord. 50-1410
History: Ord. 53-769
History: Ord. 59-1864
History: Ord. 58-1263
History: Ord. 58-1261
History: Ord. 64-425
History: Ord. 67-995
History: Ord. 72-237
History: Ord. 73-419
History: Ord. 74-552,
History: Ord. 75-975
History: Ord. 75-1058
History: Ord. 77-378
History: Ord. 79-1055
History: Ord. 79-1126
History: Ord. 84-029
History: Ord. 86-731
History: Ord. 86-767
History: Ord. 91-777
History: Ord. 92-086
History: Ord. 93-263
History: Ord. 95-466
History: Ord. 98-290A
History: Ord. 00-052
History: Ord. 05-173
History: Ord. 07-422
History: Ord. 12-044
History: Ord. 13-144
History: Ord. 14-216
History: Ord. 16-488
History: Ord. 16-576
History: Ord. 20-459
Balt., Md., Code art. 22, § 2 (2026)

§ 2 Name and date operative.Copy Citation

A retirement system is hereby established and placed under the management of the Board of Trustees for the purpose of providing retirement allowances, pensions and other incidental benefits under the provisions of this subtitle for employees of the City of Baltimore who become members of this retirement system. It shall be known as the “Employees’ Retirement System of the City of Baltimore”. The Retirement System so created shall begin operation as of January 1, 1926.
History: Ord. 26-553
History: Ord. 75-1058
History: Ord. 79-1055
Balt., Md., Code art. 22, § 3 (2026)

§ 3 Membership.Copy Citation

(a)In general.
Membership in the Retirement System shall begin not earlier than January 1, 1926. The membership shall consist of the following:
(1)
All persons who become employees before July 1979 and all employees who enter or reenter the employment of the City of Baltimore after January 1, 1926, but before July 1, 1979, with the exception of those employees who are required to join either Maryland State or other retirement systems, may become members on their own application, and all those employees who complete two years of employment thereafter shall become members of the Retirement System as a condition of employment.
(2)
All persons who become employees and all employees who enter or reenter the employment of the City of Baltimore on or after July 1, 1979, are subject to <cite data-path="|22|§9">§ 9 of this article</cite>. However, notwithstanding anything to the contrary, any Class A or Class B member who is laid off, placed on a reemployment list, and returns to City employment from the reemployment list shall immediately once again become a Class A or Class B member.
(3)
The Board of Estimates may authorize membership for any class of part-time employees. That membership may only be prospective.
(b)Dual membership precluded.
(1)
A member may not make contributions to, receive any pension or retirement allowance from, or accrue any service credit in any other pension or retirement system of the City of Baltimore while at the same time accruing service credit in this system.
(2)
The prohibition set forth in paragraph (1) of this subsection does not apply to contributions made to or benefits received from:
(i)
the Baltimore City Municipal Deferred Compensation Plan; or
(ii)
the Social Security System established by the Act of Congress known generally as “The Social Security Act of 1935”, as amended from time to time.
(c)Officials.
The Board of Trustees may deny the right to become members to any class of elected officials, or any class of appointed officials, whose terms are fixed by law, or it may, in its discretion, make optional with persons in any such class their individual entrance into membership. Any elected official or any appointed official whose term is fixed by law who is now a member or who hereafter becomes a member of the Employees’ Retirement System may, at any time, resign from said system and be entitled, on demand, to the return of his accumulated contributions. However, such elected or appointed official, whose term is fixed by law, shall have the right at his option to continue membership in the Retirement System following the end of the term of office for which he was last elected or appointed. Such right shall be contingent upon such person’s making all the payments which would have been made by him and also by the City had he continued to hold such elective or appointive office. Such payments shall be based on the current rate of compensation such person would have received, had he remained in office. Within 30 days following the end of the term of office for which said official was last elected or appointed, in order to exercise such option, said official shall be required to deposit the remainder of all the payments in advance for the current fiscal year which would have been paid had he continued to hold such elective or appointive office. Thereafter, such payments shall be made in annual amounts, in advance, within 30 days of the beginning of each and every fiscal year. Such payments shall entitle said official to the same service credit that he was receiving as a member prior to his leaving office. Upon the attainment of age 60, such official shall be entitled to receive a service retirement allowance as provided for under the provisions of <cite data-path="|22|§6|(b)">§ 6(b) of this subtitle</cite>, computed as if he were a member retiring from service at age 60. Should a member so electing die before attaining age 60, the amount of his accumulated contributions with interest to the date of his death shall be paid to his estate, or to such person as he shall have nominated by written designation duly acknowledged and filed with the Board of Trustees at the time of his retirement. Such deceased member’s beneficiary or his estate shall not be entitled to any benefit under this subtitle other than the return of the deceased member’s accumulated contributions.
(d)Termination of employment.
(1)Class A or B members.
If a Class A or Class B member terminates employment with the City and is not eligible for any benefits under this subtitle:
(i)
he or she ceases to be a member of this System; and
(ii)
his or her accumulated contributions, if any, will be refunded (with regular interest credited through the date of termination).
(2)Class C members.
If a Class C member terminates employment with the City for more than 30 consecutive days and is not eligible for any benefits under this subtitle:
(i)
she or he ceases to be a member of this System; and
(ii)
her or his accumulated contributions, if any, will be refunded in accordance with <cite data-path="|22|§9|(m)|(7)">§ 9(m)(7) of this subtitle</cite>.
(3)Class D members.
If a Class D member terminates employment with the City for more than 30 consecutive days and is not eligible for any benefits under this subtitle:
(i)
he or she ceases to be a member of this System; and
(ii)
his or her accumulated contributions will be refunded in accordance with § 9.2(k)(6) of this subtitle.
(e) - (f)
(g)Classes of membership.
On and after January 1, 1954, there shall be 2 classes of members to be known as Class A and Class B members, and beginning July 1, 1979, there shall be a 3<sup>rd</sup> class of members to be known as Class C members, and to be defined as follows:
(1)
Class A members shall be all new employees before July 1, 1979, who enter the membership on or after January 1, 1954, and any members in service on January 1, 1954, who elect on a form approved by the Board, to contribute at a rate of contribution computed to provide an annuity at age 60 of 1/120 of average final compensation, multiplied by the number of years of service after March 31, 1954. Any school crossing guard, police department meter monitor or linemen transferred to this system pursuant to <cite data-path="|22|§30|(2)">§ 30(2) of this article</cite> shall be classified in this system as a Class A member, and shall not be charged with any deficit resulting from the difference in contribution rates between the Fire and Police Employees’ Retirement System and this system in the calculation of said member’s retirement allowance at the time of retirement. The pension at service retirement on account of each year of prior service for Class A members shall be 1/60 of average final compensation, and the pension on account of each year of service since January 1, 1926 shall be 1/120 of average final compensation.
(2)
Class B members shall be members in service on January 1, 1954, who do not elect, prior to April 1, 1954, to contribute at the higher rate applicable to Class A members. The term “Class B members” also includes those members in service who do not become Class A members pursuant to the provisions of this subsection. The pension at service retirement on account of each year of prior service for Class B members shall be 1/65 of average final compensation, and the pension on account of each year of service since January 1, 1926, shall be 1/130 of average final compensation. Any time on or after December 1, 1975, any Class B member in the Retirement System may elect to become a Class A member. Such election shall be contingent upon said member’s depositing, by a lump sum payment or by an increased rate of contribution, the amount necessary to obtain an annuity savings account balance equal to the balance such account would contain if said member had elected to become a Class A member on January 1, 1954. Said payments by the member to obtain Class A membership shall be paid in full 90 days before the effective date of his retirement. If said payments are not paid in full at the time of the member’s retirement or death, any retirement benefits payable shall be the actuarial equivalent of the payments made by the member.
(3)
Class C members shall be all members as defined in § 9(a).
(4)
Class D members shall be all members as defined in § 9.2(a).
History: Ord. 26-553
History: Ord. 27-113
History: Ord. 45-168
History: Ord. 53-767
History: Ord. 58-1387
History: Ord. 58-1262
History: Ord. 59-1774
History: Ord. 53-899
History: Ord. 56-218
History: Ord. 65-702
History: Ord. 67-1039
History: Ord. 75-1058
History: Ord. 76-187
History: Ord. 79-972
History: Ord. 79-1055
History: Ord. 97-168
History: Ord. 07-422
History: Ord. 14-216
History: Ord. 16-488
Balt., Md., Code art. 22, § 4 (2026)

§ 4 Service creditable.Copy Citation

(a)Statement of service.
Under such rules and regulations as the Board of Trustees shall adopt, each member who was an employee at any time during the year 1925 and who becomes a member during the year 1926, shall file a detailed statement of all service as an employee rendered by him prior to that date for which he claims credit, including all service creditable to him under any other retirement system supported wholly or in part by the City of Baltimore at the time he becomes a member of this system, and of such other facts as the Board of Trustees may require for the proper operation of the Retirement System.
(b)Computation of service.
(1)Classes A and B – General.
For Class A and Class B members, the Board of Trustees shall, subject to Title 4 {“Administrative Procedure Act – Regulations”} of the <cite data-path="|general">City General Provisions Article</cite>, fix and determine by appropriate rules and regulations how much service in any year is equivalent to a year of service, or proportion thereof, but in no case shall more than 1 year of service be credited for all service in any 12-month period, nor shall the Board of Trustees allow credit as service for any period of more than 1 month’s duration during which the employee was absent without pay. In the case of former members of the General Assembly of Maryland who become or who have become members of the Retirement System, each full year of membership in the General Assembly shall be credited as a year of service, regardless of whether payment for such service was on a per diem or per annum basis. In any event, a member who vacated or otherwise relinquished his position as a member of the General Assembly before the end of the term for which he was elected, shall be given full credit up to the date of his separation from this position, regardless of whether payment for such service was on a per diem or per annum basis.
(2)Classes A and B – Additional service credit.
(i)
Notwithstanding anything to the contrary, any Class A or Class B member who was an employee of the City of Baltimore on January 1, 1996, and who separates from service with the City on or after January 1, 1996, and on or before December 31, 1996, shall receive:
1.
additional years of service credit equal to the greatest of:
A.
1 year;
B.
1/6 of the number of years of existing service credit (rounding any part of an existing year to the next highest year) that the eligible member has acquired as of the date of separation from City employment; or
C.
1/45 of the member’s compensable leave days. For purposes of this § 4(b)(2)(i)1.C., “compensable leave days” shall be the total of vacation, personal leave, and 1/3 of the number of sick leave days that the member has accumulated as of May 1, 1996, or, if earlier, the effective date of the member’s separation from service. For purposes of calculating “compensable leave days” only, employees of the Baltimore City Police Department who were hired prior to July 1, 1973, and who, under Baltimore City Police Department personnel policies, do not accumulate sick leave days shall be deemed to have accumulated 6 sick leave days for each year of employment with the Police Department as of May 1, 1996. “Compensable leave days” shall not include accumulated vacation and personal leave cashable on other than a 1-for-1 basis, K-days, compensatory time, or any other leave not enumerated in the above definition. The Department of Finance shall provide to the Retirement System a report showing, for each member who is an employee of the City of Baltimore, his or her accumulated balance of “compensable leave days” as defined herein as of May 1, 1996, or, if earlier, the effective date of the member’s separation from service; and
2.
for a member whose retirement is effective on or after May 1, 1996, and on or before July 31, 1996:
A.
an additional retirement benefit equal to 5% of the member’s total retirement benefit, after crediting the additional years of service granted under subparagraph (i)1 of this paragraph, payable in the same manner as the member’s total retirement benefit;
B.
the same post retirement benefit increase that is payable as of January 1, 1997, to other eligible retirees and beneficiaries, notwithstanding any waiting period otherwise required under this subtitle for eligibility; and
C.
payment of his or her retirement benefits beginning as of the member’s date of retirement, even if, notwithstanding the normal 30-day waiting period required by this subtitle for benefits, the date of retirement is less than 30 days after the date of application.
(ii)
Notwithstanding anything to the contrary, any Class A or Class B member who was any employee of the City of Baltimore on June 30, 1995, and who, on or after July 1, 1995, and on or before December 31, 1995, was removed from his or her regular permanent position with the City without fault (within the meaning of <cite data-path="|22|§6|(a)|(11)">§ 6(a)(11) of this subtitle</cite>), shall receive additional service credit calculated under § 4(b)(2)(i)1.A. and B, but without regard to § 4(b)(2)(i)1.C or 2 above.
(iii)
The additional service credits and benefits granted under this § 4(b)(2) shall not be applicable to Class A or Class B members who are terminated for cause as defined by Civil Service Rule 56.
(iv)
The additional service credit granted under this § 4(b)(2) shall be added to the service credit that the member has acquired at the date of separation, and the new total service credit shall be used to determine all other benefit and service eligibility under this subtitle as if the new total were the member’s service credit at the time of separation. For purposes of this § 4(b)(2), the date of separation of service shall be the date of cut-off as shown on the member’s cut-off notice.
(v)
Should a Class A or Class B member who has been separated from service and who has received additional service credits and benefits under this § 4(b)(2) return to City employment, the additional service credits and benefits granted under this § 4(b)(2) shall be forfeited and voided and the member’s previous service credit and applicable benefits as of the member’s date of separation and prior to the inclusion of any additional service credit or benefit shall be restored to full force and effect.
(vi)
All additional benefit payments provided herein shall be prospective from the effective date of this § 4(b)(2) or the member’s date of retirement, whichever is later.
(vii)
The additional service credit granted under this § 4(b)(2) shall provide credit towards benefits in the Employees’ Retirement System only and shall not be transferable to any other retirement or pension system.
(viii)
To the extent any additional benefit provided to any member by this § 4(b)(2) constitutes a discriminatory benefit under regulations applicable to governmental plans issued by the Secretary of the Treasury under Internal Revenue Code § 401(A)(4) (when such regulations are effective), such additional benefit for any member shall be null and void.
(3)Class C.
The service of Class C members shall be computed and credited under the provisions contained in § 9(c).
(4)Class D.
The service of Class D members shall be computed and credited under the provisions contained in § 9.2(c).
(c)Verification of service.
Subject to the above restrictions and to such other rules and regulations that, subject to Title 4 {“Administrative Procedure Act – Regulations”} of the <cite data-path="|general">City General Provisions Article</cite>, the Board of Trustees adopt, the Board shall verify, as soon as practicable after the filing of such statement of service, the service therein claimed.
(d)Prior service certificates.
Upon verification of the statement of service, the Board of Trustees shall issue prior service certificates certifying to each member the length of service rendered prior to January 1, 1926, with which he is credited on the basis of his statement of service. So long as membership continues a prior service certificate shall be final and conclusive for retirement purposes as to such service, provided, however, that any member may, within 1 year from the date of issuance or modification of such certificate, request the Board of Trustees to modify or correct his prior service certificate. When membership ceases, such prior service certificate shall become void. Should the employee again become a member, such employee shall enter the system as an employee not entitled to prior service credit except as provided in §§ 6(b)(12), 6(d)(9), and 6(f)(9) of this subtitle.
(e)Military personnel – benefits, membership, and service credit during employment.
(1)Scope of subsection.
This subsection applies only to a member of this system who:
(i)
on account of military service, as defined in paragraph (8) of this subsection, is on unpaid leave of absence from paid City employment;
(ii)
does not withdraw any of his or her accumulated contributions, unless he or she redeposits the sum withdrawn as provided under paragraph (2) of this subsection;
(iii)
within 1 year after he or she leaves military service, or any longer period during which his or her employment rights are protected by federal law, is reemployed by the City of Baltimore as a regular and permanent employee;
(iv)
does not take any employment, other than employment described in item (iii) of this paragraph or temporary employment after the member:
(A)
applied for reemployment in his or her former classification or position in the City service; and
(B)
was refused immediate reemployment for causes beyond his or her control; and
(v)
applies for service credit with the system.
(2)Redeposit of accumulated contributions; payment methods, deadline; pro rata credit.
(i)
If a member of this system who is absent from employment for military service withdraws any of his or her accumulated contributions and redeposits into the system the sum withdrawn, with regular interest at the annuity savings fund rate from the date of withdrawal to the date that the redeposit is completed, the member, if otherwise qualified, is entitled to the benefits of this section as if the withdrawal had not been made.
(ii)
The redeposit of accumulated contributions:
(A)
may be made by a single payment or an increased rate of contribution; but
(B)
must be completed before the member’s retirement date.
(iii)
The redeposit of accumulated contributions shall be credited pro rata at the time each payment is made.
(3)Retention of status and rights as a member.
Except as otherwise provided in this subsection, a member of this system who is reemployed under paragraph (1)(iii) of this subsection retains the status and rights as a member during a period of absence from employment for military service.
(4)Service credit.
A member of this system shall receive service credit for a period of absence from employment while in military service if:
(i)
the reemployment of the member under paragraph (1)(iii) of this section is paid employment; and
(ii)
membership in this system is a requirement of that employment.
(5)Transfer of service credit.
A member of this system who receives service credit for military service under this subsection may transfer the credit to another state or local retirement or pension system.
(6)Contributions.
(i)
Except as otherwise provided in subparagraph (ii) of this paragraph, a member of this system who is reemployed under paragraph (1)(iii) of this subsection and is otherwise qualified to retain the status and rights of a member during a period of absence from employment for military service, shall be credited with, at the City’s sole account and expense:
(A)
the contributions, if any, that the City would have made on behalf of the member if the member had not been absent; and
(B)
the contributions that the member would have made on his or her own behalf if the member had not been absent.
(ii)
On a member’s terminating City employment, the member is not entitled to withdraw any part of the contributions credited to his or her account under this paragraph, including the annuity portion attributable to City contributions made under this paragraph, except in the case of death while in City service or retirement from City service.
(iii)
The Board of Trustees shall refund to a member any contributions made to the System during a period of absence from employment for military service when the member is otherwise exempted under this paragraph from paying contributions into the system.
(iv)
On termination of a member’s employment during or after a leave of absence for military service, the member, member’s beneficiary, or member’s estate is entitled to a refund of the member’s accumulated contributions, plus interest, in lieu of any other system benefit, excluding contributions made by the City under subparagraph (i) of this paragraph.
(7)Benefits unavailable during absence.
A member of this system, the member’s beneficiary, or the member’s estate is not entitled to line-of-duty disability benefits or line-of-duty death benefits arising from the member’s death or disability during a period that the member is absent from employment for military service.
(8)“Military service” defined.
(i)
In this subsection, “military service” means any:
(A)
“service in the uniformed services”, as defined by and interpreted under 38 U.S.C. § 4303(13); or
(B)
“military Service”, as defined by and interpreted under State Personnel and Pension Article § 38-101(d);
(ii)
“Military service” includes active duty, active duty for training, initial active duty for training, and inactive duty training (such as drills), under competent authority, on a voluntary or involuntary basis, in the Army, Navy, Marine Corps, Air Force, Coast Guard, Public Health Service Commissioned Corps, the Army National Guard, the Air National Guard, the Maryland National Guard, as well as the reserve components of each of these services, and any other category of persons designated by the President or the Governor of the State of Maryland in time of war or national or state emergency.
(9)Rules and regulations.
Subject to Title 4 {“Administrative Procedure Act – Regulations”} of the <cite data-path="|general">City General Provisions Article</cite>, the Board of Trustees may adopt rules, resolutions, and regulations to carry out this subsection.
(f)Credit for military service prior to employment.
Notwithstanding any other provisions of this subtitle, upon proper application to the Retirement System, up to 3 years of credit shall be granted for military service, as defined in <cite data-path="|22|§4|(e)">§ 4(e) of this subtitle</cite>, to any Class A or Class B member who has served in the military prior to employment with the City, provided:
(1)
if the member terminates employment on or before December 31, 1995, the member has acquired at least 10 years of service and has attained at least age 60, or the member has acquired 30 or more years of service, regardless of age; or
(2)
if the member terminates employment on or after January 1, 1996, the member has acquired at least 10 years of service and has acquired at least age 60, or the member has acquired 20 or more years of service, regardless of age.
(3)
However, a member shall not be awarded credit if he has received credit for a period of military service under any other retirement system for which retirement benefits have been or will be received by him; however, this exclusion does not apply to any such credit provided through Federal Old-Age and Survivors Insurance (Social Security), or to any benefits provided under Title 3 or Title 10, Chapter 67, §§ 1331 through 1337 of the U. S. Code. In addition, the military service credit herein provided shall not exceed 3 years. The City shall make all necessary contributions to the pension and annuity funds for the funding of military service credit.
(g)Rules and regulations.
Subject to Title 4 {“Administrative Procedure Act – Regulations”} of the <cite data-path="|general">City General Provisions Article</cite>, the Board of Trustees is hereby authorized to issue rules and regulations to carry out the provisions of this section, notwithstanding any present rules and regulations to the contrary
History: Ord. 26-553
History: Ord. 43-920
History: Ord. 46-303
History: Ord. 46-458
History: Ord. 47-854
History: Ord. 56-369
History: Ord. 74-552
History: Ord. 75-1058
History: Ord. 79-1055
History: Ord. 79-1126
History: Ord. 81-552
History: Ord. 86-663
History: Ord. 86-767
History: Ord. 95-632
History: Ord. 96-006
History: Ord. 96-051
History: Ord. 05-173
History: Ord. 14-216
History: Texts Conformed 02/22/21
Balt., Md., Code art. 22, § 5 (2026)

§ 5 Administration; Board of Trustees.Copy Citation

(a)Responsibility vested in Board.
(1)
The general administration and the responsibility for the proper operation of the Retirement System and for making effective the provisions of this subtitle, subject to the provisions contained in § 5, § 6, and <cite data-path="|22|§9">§ 9 of this subtitle</cite>, are vested in a Board of Trustees, which shall be organized immediately after 3 of the trustees provided for in this section have qualified and taken the oath of office.
(2)
(i)
At the written request of the Finance Director and on a majority vote of the Board’s members, the Board may serve in a fiduciary capacity for other City trust funds.
(ii)
The Board may not unreasonably withhold the approval required by subparagraph (i) of this paragraph.
(iii)
For each City trust fund that the Board serves under this paragraph (2), a Memorandum of Understanding between the Board and the Director of Finance must be executed and approved by the Board of Estimates.
(b)Members.
The Board shall consist of 10 trustees as follows:
(1)
The City Comptroller.
(2)
the Director of Finance.
(3)
the Chief Executive Officer (CEO) of the Baltimore City Public School System, or the Chief Financial Officer of the Baltimore City Public School System, if designated by the CEO.
(4)
(i)
2 members of this System to be elected by the membership of this System under rules and regulations that, subject to Title 4 {“Administrative Procedure Act – Regulations”} of the <cite data-doc="City of Balt., Md., Ord. 25-037" data-path="|general">City General Provisions Article</cite>, the Board of Trustees adopts to govern the election. These members shall serve for terms of 4 years each, staggered as provided for the trustees first elected under this paragraph (4). These members shall possess experience in relevant institutional investment management or a related field.
(ii)
A member elected to serve as trustee under this paragraph (4), who retires during his or her term of office after having served more than 2 years in office and who begins receiving a retirement benefit, will continue to serve for the balance of his or her term of office.
(5)
(i)
2 residents of the City of Baltimore, to be appointed by the Mayor, subject to confirmation by the City Council, as provided in <cite data-doc="City of Baltimore, Md., Charter" data-path="IV|§6">City Charter Article IV, § 6</cite>, each to serve for terms of 4 years concurrent with the Mayor’s term of office.
(ii)
1 of these trustees shall possess commercial banking experience or similar financial experience.
(iii)
As of his or her appointment and during his or her entire term of office, a trustee appointed under this paragraph (5) may not be an employee.
(6)
(i)
2 residents of the City of Baltimore or a surrounding county, to be appointed by the Mayor, subject to confirmation by the City Council, as provided for in <cite data-doc="City of Baltimore, Md., Charter" data-path="IV|§6">City Charter Article IV, § 6</cite>, from recommendations made by the President of the City Council, to serve for a term of 4 years concurrent with the Mayor’s term of office.
(ii)
As of his or her appointment and during his or her entire term of office, a trustee appointed under this paragraph (6) may not be an employee.
(iii)
A trustee appointed under this paragraph (6) shall possess at least 5 years of institutional investment, insurance, taxation, accounting, or finance experience.
(7)
1 retiree of this System to be elected by the retirees under rules and regulations that, subject to Title 4 {“Administrative Procedure Act – Regulations”} of the <cite data-doc="City of Balt., Md., Ord. 25-037" data-path="|general">City General Provisions Article</cite>, the Board of Trustees adopts to govern the election. This member shall serve for a term of 4 years, staggered as provided for the trustee first elected under this paragraph (7). This member shall possess experience in relevant institutional investment management or a related field.
(8)
Notwithstanding <cite data-doc="City of Baltimore, Md., Charter" data-path="IV|§8">City Charter Article IV, § 8</cite>, which ordinarily requires minority party representation, the election or appointment of Trustees under this subsection shall be made without regard to political affiliation, including those Trustees holding their positions ex officio.
(9)
(i)
The Board of Trustees is an “agency” and a “board” within the meaning of and subject to the standards and requirements of the Baltimore City Public Ethics Law (City Code <cite data-doc="City of Balt., Md., Ord. 25-037" data-path="|8">Article 8</cite>). Each Trustee is a “public servant” and an “official” within the meaning of and subject to the standards and requirements of the Baltimore City Public Ethics Law. And each employee of the Board is a “public servant” and an “employee” within the meaning of and subject to the standards and requirements of the Baltimore City Public Ethics Law.
(ii)
In addition to the standards and requirements contained in the Baltimore City Public Ethics Law, Trustees and Board employees may not engage in any of the following activities or hold any of the following interests, as these activities or interests are defined in the Baltimore City Public Ethics Law.
1.
No Trustee or Board employee may do business with any system, plan, or trust administered by any of the following (collectively, the “City Benefit Plans”):
A.
the Board of Trustees of the Employees’ Retirement System of the City of Baltimore;
B.
the Board of Trustees of the Fire and Police Employees’ Retirement System of the City of Baltimore;
C.
the Board of Trustees of the Elected Officials’ Retirement System of the City of Baltimore;
D.
the Board of Trustees of the Retirement Savings Plan of the City of Baltimore; and
E.
the Committee of the City of Baltimore Deferred Compensation Plan.
2.
No Trustee or Board employee may be employed by or have a financial interest in any person or entity doing business or seeking to do business with any City Benefit Plan.
3.Trustees and Board employees; Gifts.
A.
Notwithstanding City Code <cite data-doc="City of Balt., Md., Ord. 25-037" data-path="|8|§6-28|(3)">Article 8 {“Ethics”}, § 6-28(3) {“Gifts: Qualified exemptions; travel, etc., expenses”}</cite>, no Trustee or Board employee may accept any gift or any payment, free admission, or expense reimbursement for attendance at a conference, seminar, or similar meeting, or for related food, travel, lodging, or entertainment, if the gift or the payment, free admission, or reimbursement is, directly or indirectly, from:
i.
any person or entity engaged in an activity or providing a product or service that the Trustee knows or has reason to know has been marketed to a City Benefit Plan or is of a type that the Trustee reasonably would expect to be marketed to a City Benefit Plan; or
ii.
any trade, professional, or other association that has members engaged in an activity or providing a product or service that the Trustee knows or has reason to know has been marketed to a City Benefit Plan or is of a type that the Trustee reasonably would expect to be marketed to a City Benefit Plan.
B.
Subparagraph 3.A does not preclude application of the qualified exemptions contained in City Code <cite data-doc="City of Balt., Md., Ord. 25-037" data-path="|8|§6-28|(1)">Article 8, § 6-28(1) {“food or beverages .. consumed ... in ... presence of ... donor”}</cite>, § 6-28(2) {“gift ... [of] insignificant value”}, § 6-28(5) {“gift ... [exempted by] Ethics Board”}, or § 6-28(6) {“gift from a spouse, parent, child, or sibling”}, subject to the qualifications of § 6-29 {“Exemption limitations”}.
4.
No funds of this System or of any system, plan, or trust administered by the Board of Trustees may be used to pay for the attendance of a Trustee or Board employee at any conference, seminar, or similar meeting, or for related food, travel, lodging, or entertainment, unless that attendance has first been approved by the Board of Estimates in accordance with the Administrative Manual of Baltimore City, AM-240-3 {“Board of Estimates Approval”}.
5.
No Trustee or Board employee may engage in any activity that requires registration as a lobbyist with the City Ethics Board.
(iii)
The City Ethics Board shall administer and enforce this paragraph (5) in accordance with the administrative and enforcement provisions of the Baltimore City Public Ethics Law.
(c)Vacancies.
If a vacancy occurs in the office of a trustee, the vacancy shall be filled for the unexpired term in the same manner as the office was previously filled.
(d)Compensation.
The trustees shall serve without compensation, but they shall be reimbursed for all necessary expenses that they may incur through service on the Board.
(e)Oath of office.
Before assuming office, each trustee shall, within 30 days after his or her appointment or election, take an oath of office that, so far as it devolves on him or her, the trustee will diligently and honestly administer the affairs of the Board, and that he or she will not knowingly violate or willingly permit to be violated any of the provisions of law applicable to the Retirement System. This oath shall be subscribed to by the member making it and certified by the Mayor before whom it is taken and shall be immediately filed in the office of the Director of Finance.
(f)Voting.
Each trustee shall be entitled to 1 vote in the Board; 3 votes shall be necessary for a decision by the trustees at any meeting of said Board.
(g)Rules and regulations.
Subject to the limitations of this subtitle, and subject to Title 4 {“Administrative Procedure Act – Regulations”} of the <cite data-path="|general">City General Provisions Article</cite>, the Board of Trustees shall, from time to time, establish rules and regulations for the administration of the funds created by this subtitle and for the transaction of its business. Furthermore, the Board of Trustees shall adopt and administer uniform rules and regulations applicable to all members and shall not discriminate in favor of or against any members so that all members in like circumstances shall be treated the same.
(h)Officers; Third-party services.
(1)Officers.
(i)
The Board of Trustees shall elect a Chair and a Vice-Chair from among its members.
(ii)
The System’s Executive Director serves as the Secretary to the Board.
(2)Retention of third-party services.
(i)
As the Board of Trustees deems necessary from time to time, the Board shall engage actuarial and other third-party services as required to transact the business of the System.
(ii)
The retention of these services is subject to the approval of the Board of Estimates as required by <cite data-doc="City of Baltimore, Md., Charter">the City Charter</cite> and, subject to Title 4 {“Administrative Procedure Act – Regulations”} of the <cite data-path="|general">City General Provisions Article</cite>, by the rules and regulations of the Board of Estimates.
(i)Records.
The Board of Trustees shall keep in convenient form such data as shall be necessary for actuarial valuation of the various funds of the Retirement System and for checking the experience of the system.
(j)Proceedings.
The Board of Trustees shall keep a record of all of its proceedings which shall be open to public inspection. It shall publish annually on or before November 1 a report showing the fiscal transactions of the Retirement System for the year ending on the preceding June 30, the amount of the accumulated cash and securities of the system, and the last balance sheet showing the financial condition of the system by means of an actuarial valuation of the assets and liabilities of the Retirement System. The Board shall submit said report to the Mayor and shall furnish copies thereof to the heads of the various departments for their use and the use of the members employed therein.
(k)Legal advisor.
The City Solicitor of the City of Baltimore shall be the legal advisor of the Board of Trustees.
(k-1)Auditor.
The Board of Estimates of the City of Baltimore from time to time shall select an independent auditor for the Employees’ Retirement System; the auditor shall report his findings annually to the Board of Estimates and to the Board of Trustees and said audit reports shall be public record.
(m)Duties of actuary.
The Board of Trustees, with the approval of the Board of Estimates, shall designate a qualified actuary who shall be the technical adviser of the Board of Trustees on matters regarding the operation of the funds created by the provisions of this subtitle, and shall perform such other duties as are required in connection therewith.
(n)Tables and rates.
Immediately after the establishment of the Retirement System, the actuary shall make an investigation of the mortality, service and compensation experience of the members of the system, and on the basis of such investigation, he shall recommend for adoption by the Board of Trustees such tables and such rates as are required in subsection (o). The Board of Trustees shall adopt tables and certify rates, and as soon as practicable thereafter, the actuary shall make a valuation based on such tables, and rates, of the assets and liabilities of the funds created by this subtitle.
(o)Experience study.
(1)Actuary to conduct and report to Board.
At least once in each 4-year period, the actuary shall conduct and present to the Board of Trustees an experience study of the mortality, service, and compensation experience of the members and beneficiaries of this System.
(2)Board to certify actuarial assumptions.
Taking into account the results of the experience study, the Board of Trustees shall adopt and certify for the System the mortality, service, compensation, and other actuarial assumptions it deems necessary for the actuary to determine the annual contribution by the City to this System.
(p)Annual valuation.
On the basis of such tables or rates as the Board of Trustees shall adopt, the actuary shall make an annual valuation of the assets and liabilities of the funds of the system together with adjustments for actual experience as may be necessary.
(q)Subpoena power.
The Board of Trustees and the panel of hearing examiners may, in the enforcement of this subtitle, issue subpoenas, compel the attendance and testimony of witnesses and the production of books, papers, records, and documents relating to payroll records, and necessary for hearings, investigations, and proceedings. Any such subpoena shall be served by the Sheriff of Baltimore City or any of his deputies. In case of disobedience to a subpoena, the Board of Trustees may apply to a court of appropriate jurisdiction for an order requiring the attendance and testimony of witnesses and the production of books, papers, records, and documents. Said court, in case of contumacy or refusal to obey any such subpoena, after notice to the person subpoenaed, and upon finding that the attendance or testimony of such witnesses or the production of such books, papers, records, and documents as the case may be, is relevant or necessary for such hearings, investigations, or proceeding of the Board of Trustees and the panel of hearing examiners, may issue an order requiring the attendance, and testimony of such witnesses and the production of such books, papers, records and documents, or any of them, and any failure to obey such order of the court may be punished by the court as contempt thereof.
(r)Indemnification of persons serving in fiduciary capacity.
(1)Authorized.
The City shall indemnify every person who is made, or is threatened to be made, a party to any action, suit, or proceeding, including administrative and investigative proceedings by reasons of his or her service in a fiduciary capacity to the Employees’ Retirement System of Baltimore City, in accordance with and subject to the conditions of this section.
(2)
“<em>Service in a fiduciary capacity” defined</em>.
(i)
In this section,“service in a fiduciary capacity” means:
(A)
the exercise of any authority, control, or policy-making function, including acts of commission or omission, concerning the management or administration of the Employees’ Retirement System of Baltimore City,
(B)
the exercise of any authority, control, or policy-making function, including acts of commission or omission, concerning the management or disposition of the assets of the System, or
(C)
the exercise of any authority, control, or policy-making function, including acts of commission or omission, concerning the management or administration of any other City trust fund for which the Board serves as a fiduciary under subsection (a)(2) of this section.
(ii)
The term includes:
(A)
membership on the Board of Trustees of the Employees’ Retirement System of Baltimore City,
(B)
membership on the advisory investment committee,
(C)
service as Administrator or Deputy Administrator of the Employees’ Retirement System,
(D)
service as a staff member engaged in policy-making functions in the performance of her or his duties and responsibilities, and
(E)
service as the Director of Finance, the custodian of the assets of the Employees’ Retirement System of Baltimore City as named in <cite data-doc="City of Baltimore, Md., Charter">the Baltimore City Charter</cite>.
(3)Included expenses.
If, with respect to a civil, administrative or investigative action, suit, or proceeding, the person acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interest of the Employees’ Retirement System of Baltimore City or of any City trust fund for which the person serves as a fiduciary under subsection (a)(2) of this section, and, with respect to a criminal action, had no reasonable cause to believe his or her conduct was unlawful, then indemnification shall be against those expenses, including reasonable attorneys’ fees, judgments, fines, and accounts paid in settlement that were actually and reasonably incurred by the person in connection with the proceeding.
(4)Effect of termination of any suit or proceeding.
The termination of any suit or proceeding, in any manner, does not of itself create a presumption that the person did not act in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interest of the Employees’ Retirement System or of any City trust fund for which the person serves as a fiduciary under subsection (a)(2) of this section, and with respect to a criminal action or proceeding, had reasonable cause to believe that his or her conduct was unlawful.
(5)Exceptions to indemnification.
Indemnification may not be made:
(i)
with respect to any suit, claim, or matter as to which the person was adjudged to be liable for gross negligence or willful misconduct in the performance of his or her duty to the Employees’ Retirement System or to any City trust fund for which the person serves as a fiduciary under subsection (a)(2) of this section;
(ii)
for an independent contractor furnishing services to the Employees’ Retirement System; or
(iii)
with respect to any matter occurring prior to June 1, 1978.
(6)Insurance provided.
The City shall provide insurance for every person eligible for indemnification under this section against any liability asserted against her or him or incurred by her or him arising out of the person’s status as fiduciary. The City may provide self-insurance for this purpose, in whole or in part, under terms and conditions satisfactory to the Board of Estimates. If the City fails to provide adequate insurance coverage, or if the City fails to provide indemnification under this section, a fiduciary is not required to pay amounts attributable to the liability described in this section by reason of the failure of the City to provide the indemnification, and the City is liable for those amounts. In suits or other actions brought against the City, the City may assert the defense of governmental immunity or any other defense available to the City.
(7)City Solicitor.
The sole and final determination of eligibility of a person for indemnification with respect to a particular action, suit, or proceeding, and the approval of the reasonableness of all fees, expenses, and settlements, is vested in the City Solicitor.
(s)Actuarial funding method.
Effective retroactively with the year beginning July 1, 1988, and through the year ending June 30, 2013, the Retirement System shall be funded by using the projected unit credit cost method. Effective retroactively with the year beginning July 1, 2013, the Retirement System shall be funded by using the entry age normal cost method.
History: Ord. 26-553
History: Ord. 68-065
History: Ord.
History: Ord. 75-1058
History: Ord. 78-845
History: Ord. 79-1055
History: Ord. 79-1126
History: Ord. 86-767
History: Ord. 89-275
History: Ord. 91-825
History: Ord. 96-006
History: Ord. 04-672
History: Ord. 04-822
History: Ord. 05-173
History: Ord. 07-422
History: Ord. 11-566
History: Ord. 12-044
History: Ord. 13-191
History: Ord. 14-216
History: Ord. 16-488
History: Ord. 16-576
History: Ord. 17-068
History: Texts Conformed 02/22/21
History:
Balt., Md., Code art. 22, § 6 (2026)

§ 6 Benefits for Class A and Class B members.Copy Citation

(a)Service retirement benefits for any Class A or Class B member who was an employee on or after June 29, 1989.
Any Class A or Class B member in service may retire upon written application to the Board of Trustees, if the application specifies the date on which the member desires to be retired, which date must be the 1<sup>st</sup> day of a month and not less than 30 days nor more than 90 days following the filing of the application, and if, on the date so specified, the member shall have attained age 60 and acquired at least 5 years of service or shall have acquired 30 years of service, regardless of age, even if, during the application period, the member has separated from service. Upon retirement from service, a Class A or Class B member who has attained the age of 60, shall be entitled to receive the maximum service retirement allowance which shall consist of:
(1)
an annuity which shall be the actuarial equivalent of his accumulated contributions at the time of retirement; and
(2)
(i)
for any Class A or B member who retires before June 30, 1993: a pension, which together with his annuity, shall be equal to 1.85% in the case of a Class A member, and 1.70% in the case of a Class B member, of his average final compensation multiplied by the number of years of service credit. However, for members who terminate employment with the City before June 29, 1990, the preceding sentence shall be read by substituting “1.84%” for “1.85%”, and by substituting “1.69%” for “1.70%”.
(ii)
for any Class A or B member who retires after June 29, 1993, and on or before March 31, 2001: a pension, which together with his annuity, shall be equal to 1.875% in the case of a Class A member, and 1.725% in the case of a Class B member, of his average final compensation multiplied by the number of years of service credit.
(iii)
for any Class A or B member who retires on or after April 1, 2001: a pension that, together with his or her annuity, is equal to 1.935% in the case of a Class A member, and 1.785% in the case of a Class B member, of his or her average final compensation multiplied by the number of years of service credit.
(3)
The additional annuity provided as a result of voluntary excess contributions permitted under §§ 8(a)(2) and 8(a)(4) shall be payable and shall not be used in determining the pension payable under § 6(a)(2).
(4)Retirement with 30 or more years of service.
(i)
Provided, however, that upon retirement from service on or before June 28, 1993, a Class A or Class B member who has not attained the age of 60, but has acquired 30 years or more of service, shall be entitled to receive the maximum service retirement allowance which shall consist of an annuity as provided for in § 6(a)(1), plus the actuarial equivalent of the pension provided for in § 6(a)(2); or such member may elect at the time of retirement to have his service retirement allowance deferred to commence upon the attainment of age 60, in which event the annuity shall be the actuarial equivalent of his accumulated contributions, with regular interest accumulated thereon, to age 60, and the pension payable shall be in the amount computed as provided in § 6(a)(2). For any member who was an employee on or after June 29, 1989, the actuarial equivalent for the purpose of this subsection (a)(4) shall be based on a reduction of 0.17% for each full month (or fraction thereof) by which the commencement of his pension precedes his 60<sup>th</sup> birthday. However, for members who terminate employment with the City before June 29, 1990, the preceding sentence shall be read by substituting “0.21%” for “0.17%”.
(ii)
Provided, however, that upon retirement from service on or after June 29, 1993, a Class A or Class B member who has acquired 30 years or more of service, regardless of age, shall be entitled to receive the maximum service retirement allowance without reduction. The allowance shall be based on the member’s service and average final compensation at the time of retirement from service and shall consist of an annuity as provided for in § 6(a)(1), plus the pension provided for in § 6(a)(2).
(5)Optional retirement allowances.
Any Class A or Class B member who is entitled to receive the maximum service retirement allowance may elect to receive such maximum service retirement allowance, or he may elect to receive the actuarial equivalent of such maximum service retirement allowance, computed as of the effective date of his retirement, in a lesser amount payable throughout his life in accordance with the following provisions: <table> <tbody> <tr> <td>Option 1.</td> <td>If he dies before he has received in total retirement benefits the present value of his retirement allowance as it was at the time of his retirement, the balance shall be paid to his legal representatives or to such person as he shall nominate by written designation duly acknowledged and filed with the Board of Trustees; or</td> </tr> <tr> <td>Option 2.</td> <td>Upon his death, his retirement allowance as it was at the time of his retirement, shall be continued throughout the life of and paid to such person as he shall nominate by written designation duly acknowledged and filed with the Board of Trustees at the time of his retirement; or</td> </tr> <tr> <td>Option 3.</td> <td>Upon his death, ½ of his retirement allowance as it was at the time of his retirement shall be continued throughout the life of and paid to such person as he shall nominate by written designation duly acknowledged and filed with the Board of Trustees at the time of his retirement; or</td> </tr> <tr> <td>Option 4.</td> <td>Some other periodically paid benefit or benefits shall be paid either to the Class A or Class B member or to such a person or persons as he shall nominate, provided such other benefit or benefits shall be certified by the actuary to be of equivalent actuarial value to his retirement allowance, and subject to approval by the Board of Trustees.</td> </tr> </tbody> </table>
(6)
Any living retired Class A or Class B member shall have the right, within 30 days after the effective date of his retirement, and not thereafter, to change his election of the maximum service retirement allowance to any one of the options hereinbefore set forth, or to change his election of any one of said options to another one of said options, or to change his election from any one of said options to the maximum service retirement allowance. Any living retired Class A or Class B member shall have the right, within 30 days after the effective date of his retirement, to change his designation of a beneficiary; but thereafter no such change may be made in connection with any option hereinbefore set forth which provides for the payment of a retirement allowance to, and throughout the life of the beneficiary designated. The election of any option or any change in connection therewith shall be made on forms provided for that purpose by the Retirement Systems Office of the City of Baltimore, and filed with said office.
(7)
If any living retired Class A or Class B member changes the type or kind of retirement allowance elected by him, as provided hereinbefore, then any payments which may have been made to him prior to such change are to be taken into account in arriving at the amount to be paid to him in connection with the retirement allowance finally selected.
(8)
Any Class A or Class B member who retires and dies within 30 days after the effective date of his retirement, and who has been granted a retirement allowance of maximum benefits for service under this subsection, or who has elected to receive one of the several optional retirement allowances available, is considered to be a member dying in active service, and the non-line-of-duty death benefits provided for in § 6(h) shall be paid in lieu of the benefits provided for in this subsection.
(9)
Any service retirement allowance payments made to any retired Class A or Class B member, who dies within 30 days after the effective date of his retirement, shall be offset against any amounts payable under the provisions of § 6(h).
(10)
Notwithstanding any provision to the contrary contained in this subsection, any Class A or Class B member who retires prior to age 60 and who defers his retirement allowance to commence upon his attainment of age 60, shall be considered as a member dying in active service if he dies at any time between the effective date of his retirement and 30 days following his attainment of age 60, and the benefits provided in § 6(h) shall be paid as therein provided. Any retirement allowance payments made to said member after his attainment of age 60, shall be offset against any amounts payable under the provisions of § 6(h).
(11)
(i)
Notwithstanding anything to the contrary in this subtitle, should a Class A or Class B member be removed from a regular permanent position of the City without fault upon his part, or should a Class A or Class B member appointed or elected for a fixed term not be reappointed or reelected, after the acquisition of 20 years of service, such member may elect, in lieu of the withdrawal of his accumulated contributions, to receive a retirement allowance equal to the ordinary disability retirement allowance as provided in § 6(c), which would have been payable at such time has he been retired on an ordinary disability retirement. Effective December 2, 1991, in applying the preemployment military service credit provision of § 4(f) to a member described in the above paragraph, the requirement that the member shall have attained age 60 shall be disregarded. However, any benefit for which the member could be eligible shall be determined before the military service credit provided for herein is added to the service credit acquired by the member. This Ordinance 91-829 shall also apply to any member who retired under the provisions of the above paragraph. Any increased benefits due to such a retired member shall be paid prospectively from the effective date of this ordinance. Furthermore, variable benefits, if any, paid to such a retired member shall not be changed as a result of this ordinance.
(ii)
Notwithstanding anything to the contrary in this subtitle, should a Class A or Class B member be removed from a regular permanent position of the City without fault upon his part, or should a Class A or Class B member appointed or elected for a fixed term not be reappointed or reelected with less than 20 years of service, but after the acquisition of 5 years of service, such member may elect to have his accumulated contributions remain in the system with regular interest thereon, while no longer in service, and on the attainment of age 60 such member shall be entitled to receive a service retirement allowance as provided for under the provisions of <cite data-path="|22|§6|(a)">§ 6(a) of this subtitle</cite>, computed as if he were a member retiring from service at age 60. Should a member so electing die before attaining age 60, the amount of his accumulated contributions with interest to the date of his death shall be paid to his estate, or to such person as he shall have nominated by written designation duly acknowledged and filed with the Board of Trustees at the time of his retirement. Such deceased member’s beneficiary or his estate shall not be entitled to any benefits under this subtitle other than the return of the deceased member’s accumulated contributions. Should such a beneficiary be restored to active service, his retirement allowance shall cease, and he shall again become a member of the Retirement System.
(12)
Notwithstanding anything to the contrary in this subtitle, should a Class A or Class B member, who has acquired 15 or more years of service, leave a regular permanent position of the City, such member may elect to have his accumulated contributions remain in the system with regular interest thereon, while no longer in service, and upon attaining the age of 60, such member shall be entitled to receive the maximum service retirement allowance as provided for in § 6(a), computed as if he were a member retiring from service at age 60. Should a member so electing die before attaining age 60, the amount of his accumulated contributions with interest to the date of his death shall be paid to his estate, or to such person as he shall have nominated by written designation, duly acknowledged and filed with the Board of Trustees. The beneficiary or the estate of a deceased member, who dies before attaining the age of 60, shall not be entitled to any benefits under this subtitle other than the return of the deceased member’s accumulated contributions with interest to the date of death. This paragraph shall not apply to any Class A or Class B member who is convicted of a job-related offense, such offense being either a misdemeanor or felony punishable by incarceration for more than 6 months or punishable by a fine in excess of $500. To be job-related, the offense must be committed by the member in the performance of his duties as an employee or an official of the City of Baltimore and committed against the City of Baltimore.
(13)
Any Class A or Class B member who leaves City employment and is entitled to any benefits under this subsection, if he is subsequently reemployed by the City as an employee, shall upon his return to City employment be immediately continued as a Class A or Class B member. Thereupon he shall be credited with any past service, and any retirement allowance he may be receiving shall be discontinued.
(14)
In the event that a member who was an employee on or after June 29, 1989, retires and elects to receive maximum benefits without optional modification later dies and is survived by a spouse to whom the member had been married for a least 1 year immediately prior to retirement, an amount equal to 35% (or such different amount as set forth below) of the allowance said member was receiving shall be paid to such surviving spouse to continue as long as he or she remains unmarried. If there is no such spouse or if the spouse dies or remarries before the youngest unmarried child of said deceased member shall have either attained the age of 22 years, then an amount equal to 35% (or such different amount as set forth below) of the allowance said member was receiving shall be paid to such child or children, divided in such manner as the Board of Trustees in its discretion shall determine to continue for the benefit of such child or children until the last child marries, dies or attains the age of 22 years. For members who terminate employment with the City before June 29, 1990, the preceding two sentences shall be read by substituting “33⅓%” for “35%” wherever such amounts appear therein. However, effective June 28, 1992, any eligible surviving spouse, child or children of a member who retired and elected or who will retire and elect the maximum benefit under the above paragraph, shall receive 40% of the allowance the member was receiving.
(15)Member contributions.
(i)
Effective with the 1<sup>st</sup> full payroll period commencing closest to January 1, 1978, the contributions by a Class A or Class B member to the Retirement System shall equal 5% of the member’s earnable compensation, these contributions to continue throughout the member’s entire period of service, subject to the provisions in subparagraph (ii) of this paragraph (15). However, a male member in the system prior to July 1, 1973, who is contributing at a rate of contribution that is less than 5% shall continue to contribute at his present rate; and a female member in the system prior to July 1, 1973, shall contribute at a rate of contribution in effect prior to July 1, 1973, for a male member of corresponding age at the time of entrance into the system, unless that rate exceeds 5%, in which event her contribution shall equal 5% of her earnable compensation. “Earnable compensation” has the meaning defined in <cite data-path="|22|§1|(11)">§ 1(11) of this subtitle</cite>. Beginning July 1, 1992, the preceding paragraph shall read by substituting “4%” for “5%”.
(ii)
The Board of Trustees, through its Retirement Systems’ administrator, shall certify to the Department of Finance, and the Department of Finance shall cause to be deducted from the salary of each Class A or Class B member on each and every payroll period, the percentage of contribution provided for in subparagraph (i) of this paragraph (15), and these deductions shall be paid into the Retirement System Fund, and shall be credited, together with regular interest, to the individual account of the member from whose compensation the deductions were made. However, deductions shall not be made from the compensation of a Class A or Class B member who has attained age 60 and has completed 35 years of service. No deductions may be made from the earnable compensation of a member who is either entering or leaving service and has worked less than a full payroll period.
(iii)
The deductions provided for in this paragraph (15) shall be made notwithstanding that the minimum compensation provided for by law for any Class A or Class B member is reduced thereby. Every member is deemed to consent and agree to the deductions made and provided for, and the member’s receipt of the member’s full salary or compensation, and payment of that salary or compensation, less these deductions, are a full and complete discharge and acquittance of all claims and demands whatsoever for the services rendered by the person during the period covered by the payment, except as to the benefits provided under this subtitle.
(iv)
A member’s accumulated contributions that are withdrawn by the member, or paid to the member’s estate or designated beneficiary in event of death as provided in this subtitle, shall be paid from the Retirement System Fund.
(v)
Any member who, with the Board of Trustees’ approval<em>{,}</em> deposited, prior to December 1, 1975, voluntary excess contributions in the Retirement System Fund, by a single payment or by an increased rate of contribution to purchase an additional annuity, is entitled on retirement, to receive an additional annuity for those voluntary excess contributions. Any Class A or Class B member who, with the Board of Trustees’ approval, is depositing, on December 1, 1975, voluntary excess contributions in the Retirement System Fund, by an increased rate of contribution, may continue to contribute the same approved amount, without the right to increase or decrease that amount after December 1, 1975. After December 1, 1975, the Board of Trustees shall neither accept nor approve any requests from any member to deposit excess voluntary contributions in a lump-sum payment or periodic payments. At any time prior to retirement, any member who deposited voluntary excess contributions in the Retirement System Fund, upon written application, shall be refunded those excess voluntary contributions.
(vi)
However, if a Class A or Class B member exercises her or his option to become a Class C member under <cite data-path="|22|§9">§ 9 of this subtitle</cite>, the member shall elect in his or her notice of intent to either withdraw his or her excess voluntary contributions or permit them to remain in the Retirement System together with the member’s mandatory contributions, without any further right to withdraw those excess voluntary contributions prior to retirement, except on leaving City employment. On becoming a Class C member, the Class A or Class B member shall discontinue making any further voluntary excess contributions to the Retirement System.
(b)Service retirement benefits for Class A or Class B member who was an employee on or after July 1, 1987, but not after June 28, 1989.
Any Class A or Class B member in service may retire upon his written application to the Board of Trustees setting forth at what time, not less than 30 days nor more than 90 days subsequent to the execution and filing thereof, he desires to be retired, provided that the said member at the time so specified for his retirement shall have attained the age of 60 and acquired at least 5 years of service or shall have acquired 30 years of service, regardless of age, and notwithstanding that, during such period of notification, he may have separated from service. Upon retirement from service, a Class A or Class B member who has attained the age of 60, shall be entitled to receive the maximum service retirement allowance which shall consist of:
(1)
an annuity which shall be the actuarial equivalent of his accumulated contributions at the time of retirement; and
(2)
a pension, in addition to his annuity, which shall be equal to 0.85% of his average final compensation in the case of Class A members, and 0.785% of his average final compensation in the case of Class B members, multiplied by the number of years of his service since January 1, 1926; and
(3)
if he has been credited with prior service, a supplemental pension which shall be equal to 1/60 of his average final compensation in the case of Class A members and one 1/65 in the case of Class B members, multiplied by the number of years of such prior service; and
(4)
if at the time of retirement the annuity determined in accordance with § 6(b)(1), resulting from the member’s contributions for service, is less than the pension resulting from the member’s years of service determined in accordance with § 6(b)(2), a supplemental pension equal to the difference between the two shall be payable. The additional annuity provided as the result of voluntary excess contributions under §§ 8(a)(2) and 8(a)(4) shall be payable and shall not be used in determining this supplemental pension, if any, payable under this subsection. Beginning with April 19, 1974, the benefits provided in this subsection shall be applicable to former members who retired prior to said effective date, and their beneficiaries, as well as to those Class A or Class B members who subsequently retire on or after that date.
(5)
Provided, however, that upon retirement from service, a Class A or Class B member who has not attained the age of 60, but has acquired 30 years or more of service, shall be entitled to receive the maximum service retirement allowance which shall consist of an annuity as provided for in § 6(b)(1), plus the actuarial equivalent of the pension provided for in § 6(b)(2), plus the actuarial equivalent of the supplemental pension provided for in § 6(b)(3), plus if the annuity provided for in § 6(b)(1) is less than the actuarial equivalent of the pension provided for in § 6(b)(2), a supplemental pension equal to such difference; or such member may elect at the time of retirement to have his service retirement allowance deferred to commence upon the attainment of age 60, in which event the annuity shall be the actuarial equivalent of his accumulated contributions, with regular interest accumulated thereon, to age 60, and the pensions payable shall be in the amounts computed as provided in §§ 6(b)(2), 6(b)(3) and 6(b)(4). For the purpose of this subsection (b)(5), the actuarial equivalent shall be based on a reduction of ¼% for each full month (or fraction thereof) by which the commencement of his pension precedes his 60<sup>th</sup> birthday.
(6)Optional retirement allowances.
Any Class A or Class B member who is entitled to receive the maximum service retirement allowance may elect to receive such maximum service retirement allowance, or he may elect to receive the actuarial equivalent of such maximum service retirement allowance, computed as of the effective date of his retirement, in a lesser amount payable throughout his life in accordance with the following provisions: <table> <tbody> <tr> <td>Option 1.</td> <td>If he dies before he has received in total retirement benefits the present value of his retirement allowance as it was at the time of his retirement, the balance shall be paid to his legal representatives or to such person as he shall nominate by written designation duly acknowledged and filed with the Board of Trustees; or</td> </tr> <tr> <td>Option 2.</td> <td>Upon his death, his retirement allowance as it was at the time of his retirement, shall be continued throughout the life of and paid to such person as he shall nominate by written designation duly acknowledged and filed with the Board of Trustees at the time of his retirement; or</td> </tr> <tr> <td>Option 3.</td> <td>Upon his death, ½ of his retirement allowance as it was at the time of his retirement shall be continued throughout the life of and paid to such person as he shall nominate by written designation duly acknowledged and filed with the Board of Trustees at the time of his retirement; or</td> </tr> <tr> <td>Option 4.</td> <td>Some other periodically paid benefit or benefits shall be paid either to the Class A or Class B member or to such person or persons as he shall nominate, provided such other benefit or benefits shall be certified by the actuary to be of equivalent actuarial value to his retirement allowance, and subject to approval by the Board of Trustees.</td> </tr> </tbody> </table>
(7)
Any living retired Class A or Class B member shall have the right, within 30 days after the effective date of his retirement, and not thereafter, to change his election of the maximum service retirement allowance to any one of the options hereinbefore set forth, or to change his election of any one of said options to another one of said options, or to change his election from any one of said options to the maximum service retirement allowance. Any living retired Class A or Class B member shall have the right, within 30 days after the effective date of his retirement, to change his designation of a beneficiary; but thereafter no such change may be made in connection with any option hereinbefore set forth which provides for the payment of a retirement allowance to, and throughout the life of the beneficiary designated. The election of any option or any change in connection therewith shall be made on forms provided for that purpose by the Retirement Systems Office of the City of Baltimore, and filed with said office.
(8)
If any living retired Class A or Class B member changes the type or kind of retirement allowance elected by him, as provided hereinbefore, then any payments which may have been made to him prior to such change are to be taken into account in arriving at the amount to be paid to him in connection with the retirement allowance finally selected.
(9)
Any Class A or Class B member who retires and dies within 30 days after the effective date of his retirement, and who has been granted a retirement allowance of maximum benefits for service under this subsection, or who has elected to receive one of the several optional retirement allowances available in lieu thereof, shall be considered as a member’s dying in active service, and the ordinary death benefits provided for in § 6(h) shall be paid in lieu of the benefits provided for in this subsection.
(10)
Any service retirement allowance payments made to any retired Class A or Class B member, who dies within 30 days after the effective date of his retirement, shall be offset against any amounts payable under the provisions of § 6(h).
(11)
Notwithstanding any provision to the contrary contained in this subsection, any Class A or Class B member who retires prior to age 60 and who defers his retirement allowance to commence upon his attainment of age 60, shall be considered as a member’s dying in active service if he dies at any time between the effective date of his retirement and 30 days following his attainment of age 60, and the benefits provided in § 6(h) shall be paid as therein provided. Any retirement allowance payments made to said member after his attainment of age 60, shall be offset against any amounts payable under the provisions of § 6(h).
(12)
(i)
Notwithstanding anything to the contrary in this subtitle, should a Class A or Class B member be removed from a regular permanent position of the City without fault upon his part, or should a Class A or Class B member appointed or elected for a fixed term not be reappointed or reelected, after the acquisition of 20 years of service, such member may elect, in lieu of the withdrawal of his accumulated contributions, to receive a retirement allowance equal to the ordinary disability retirement allowance as provided in § 6(d), which would have been payable at such time had he been retired on an ordinary disability retirement. Effective December 2, 1991, in applying the preemployment military service credit provision of § 4(f) to a member described in the above paragraph, the requirement that the member shall have attained age 60 shall be disregarded. However, any benefit for which the member could be eligible shall be determined before the military service credit provided for herein is added to the service credit acquired by the member. This Ordinance 91-829 shall also apply to any member who retired under the provisions of the above paragraph. Any increased benefits due to such a retired member, shall be paid prospectively from the effective date of this ordinance. Furthermore, variable benefits, if any, paid to such a retired member shall not be changed as a result of this ordinance.
(ii)
Notwithstanding anything to the contrary in this subtitle, should a Class A or Class B member be removed from a regular permanent position of the City without fault upon the member’s part, or should a Class A or Class B member appointed or elected for a fixed term not be reappointed or reelected with less than 20 years of service, but after the acquisition of 5 years of service, such member may elect to have his accumulated contributions remain in the system with regular interest thereon, while no longer in service, and on the attainment of age 60 such member shall be entitled to receive a service retirement allowance as provided for under the provisions of <cite data-path="|22|§6|(b)">§ 6(b) of this subtitle</cite>, computed as if he were a member retiring from service at age 60. Should a member so electing die before attaining age 60, the amount of his accumulated contributions with interest to the date of his death shall be paid to his estate, or to such person as he shall have nominated by written designation duly acknowledged and filed with the Board of Trustees at the time of his retirement. Such deceased member’s beneficiary or his estate shall not be entitled to any benefits under this subtitle other than the return of the deceased member’s accumulated contributions. Should such a beneficiary be restored to active service, his retirement allowance shall cease, and he shall again become a member of the Retirement System.
(13)
Notwithstanding anything to the contrary in this subtitle, should a Class A or Class B member, who has acquired 15 or more years of service, leave a regular permanent position of the City, such member may elect to have his accumulated contributions remain in the system with regular interest thereon, while no longer in service, and upon attaining the age of 60, such member shall be entitled to receive the maximum service retirement allowance as provided for in § 6(b), computed as if he were a member retiring from service at age 60. Should a member so electing die before attaining age 60, the amount of his accumulated contributions with interest to the date of his death shall be paid to his estate, or to such person as he shall have nominated by written designation, duly acknowledged and filed with the Board of Trustees. The beneficiary or the estate of a deceased member, who dies before attaining the age of 60, shall not be entitled to any benefits under this subtitle other than the return of the deceased member’s accumulated contributions with interest to the date of death. This paragraph shall not apply to any Class A or Class B member who is convicted of a job-related offense, such offense being either a misdemeanor or felony punishable by incarceration for more than 6 months or punishable by a fine in excess of $500. To be job-related, the offense must be committed by the member in the performance of his duties as an employee or an official of the City of Baltimore and committed against the City of Baltimore.
(14)
Any Class A or Class B member who leaves city employment and is entitled to any benefits under this subsection if he is subsequently reemployed by the City as an employee, shall upon his return to City employment be immediately continued as a Class A or Class B member. Thereupon he shall be credited with any past service, and any retirement allowance he may be receiving shall be discontinued.
(15)
(i)
If a member who was an employee on or after July 1, 1987, but not after June 28, 1989, retires and elects to receive maximum benefits without optional modification later dies and is survived by a spouse to whom the member had been married for at least 1 year immediately prior to retirement, an amount equal to 5% of the allowance the member was receiving shall be paid to the surviving spouse to continue as long as he or she remains unmarried. If there is no surviving spouse or if the spouse dies or remarries before the youngest unmarried child of the deceased member attains age 22, then an amount equal to 5% of the allowance the member was receiving shall be paid to the child or children, divided in the manner that the Board of Trustees in its discretion determines, to continue for the benefit of the child or children until the last child marries, dies, or attains age 22.
(ii)
Effective April 1, 2001, any eligible surviving spouse, child, or children of a member who retired and elected the maximum benefit under subparagraph (i) of this paragraph (15), shall receive 40% of the allowance the member was receiving.
(b-1)Service retirement benefits for Class A or Class B member who terminated employment on or before June 30, 1987.
(1)Survivorship benefits for members who selected maximum benefits and die on or before March 31, 2001.
No benefit is payable to the beneficiary(ies), next of kin, or the estate of a member who selected maximum benefits and dies on or before March 31, 2001.
(2)Survivorship benefits for members who selected maximum benefits and die on or after April 1, 2001.
(i)
If a member who was an employee and retired before July 1, 1987, and elected to receive maximum benefits without optional modification dies on or after April 1, 2001, and is survived by a spouse to whom the member had been married for at least 1 year immediately before retirement, an amount equal to 40% of the allowance the member was receiving shall be paid to the surviving spouse to continue as long as he or she remains unmarried.
(ii)
If there is no surviving spouse or if the spouse dies or remarries before the youngest unmarried child of the deceased member attains age 22, then an amount equal to 40% of the allowance the member was receiving shall be paid to the child or children, divided in the manner that the Board of Trustees in its discretion determines, to continue for the benefit of the child or children until the last child marries, dies, or attains age 22.
(c)Non-line-of-duty disability retirement benefit for any Class A or Class B member who was an employee on or after June 29, 1989.
(1)Eligibility requirements.
A Class A or Class B member shall be retired on a non-line-of-duty disability retirement if:
(i)
the member has acquired at least 5 years of service, as determined by the Board of Trustees; and
(ii)
a hearing examiner determines that:
(A)
the member is mentally or physically incapacitated for the further performance of the duties of his or her job classification in the employ of Baltimore City; and
(B)
the incapacity is likely to be permanent.
(2)Application and filing deadline.
To retire under this subsection, the member must:
(i)
apply to the Board of Trustees, on a form approved by the Board; and
(ii)
submit the application to the Board no later than 1 year following the member’s last day of City employment.
(3)Effective date of non-line-of-duty disability retirement.
A non-line-of-duty disability retirement under this subsection takes effect as follows:
(i)
if the member applied for disability retirement before terminating City employment, the retirement is effective as of the 1<sup>st</sup> day of the month immediately following the member’s last day of City employment; and
(ii)
if the member applied for disability retirement after terminating City employment, the retirement is effective as of the 1<sup>st</sup> day of a month that falls at least 30 days after the date on which the Board received a completed application.
(4)Non-line-of-duty disability allowance for retirement on or before October 15, 1992.
Upon retirement for non-line-of-duty disability on or before October 15, 1992, a Class A or Class B member is entitled to receive the maximum service retirement allowance if he or she has attained the age of 60; otherwise, he or she is entitled to receive the maximum non-line-of-duty disability retirement allowance, which shall consist of:
(i)
an annuity which shall be the actuarial equivalent of his or her accumulated contributions at the time of retirement; and
(ii)
a pension, which together with his or her annuity, shall provide a total retirement allowance equal to 1.85% of his or her average final compensation in the case of Class A members, and 1.70% of his or her average final compensation in the case of Class B members, multiplied by the number of years of service. However, for members who terminate employment with the City before June 29, 1990, the preceding sentence shall be read by substituting “1.84%” for “1.85%”, and by substituting “1.69%” for “1.70%”.
(iii)
The additional annuity provided as the result of voluntary excess contributions under §§ 8(a)(2) and 8(a)(4) shall be payable and may not be used in determining the non-line-of-duty disability pension under this subsection.
(iv)
If the retirement allowance computed under this paragraph(4) is less than 25% of the member’s average final compensation, then substitute for the member’s actual years of service the number of years of service which would be credited to the member were his or her service to continue until the attainment of age 60. The resulting total retirement allowance may not exceed 25% of the member’s average final compensation.
(5)Non-line-of-duty disability allowance for retirement on or after October 16, 1992.
(i)
Upon retirement for non-line-of-duty disability on or after October 16, 1992, and on or before March 31, 2001, a Class A or Class B member is entitled to receive the maximum non-line-of-duty disability retirement allowance, which shall consist of:
(A)
an annuity which shall be the actuarial equivalent of his or her accumulated contributions at the time of retirement; and
(B)
a pension, which together with his or her annuity, shall provide a total retirement allowance equal to 1.85% of his or her average final compensation in the case of Class A members, and 1.70% of his or her average final compensation in the case of Class B members, multiplied by the number of years of service.
(C)
The additional annuity provided as the result of voluntary excess contributions under §§ 8(a)(2) and 8(a)(4) may not be used in determining the non-line-of-duty disability pension under this subsection.
(D)
Provided, however, notwithstanding anything to the contrary, no member eligible for retirement under the provisions of this paragraph (5)(i) shall receive a non-line-of-duty disability allowance of less than 25% of his average final compensation.
(ii)
Upon retirement for non-line-of-duty disability on or after April 1, 2001, a Class A or Class B member is entitled to receive a non-line-of-duty disability retirement allowance that is the greater of:
(A)
25% of the member’s average final compensation; or
(B)
a combination of:
1.
an annuity that is the actuarial equivalent of his or her accumulated contributions at the time of retirement; and
2.
a pension that, together with his or her annuity, provides a total retirement allowance equal to 1.90% of his or her average final compensation in the case of a Class A member, and 1.75% of his or her average final compensation in the case of a Class B member, multiplied by the number of years of his or her service.
(iii)
The additional annuity provided as the result of voluntary excess contributions under §§ 8(a)(2) and 8(a)(4) may not be used in determining the non-line-of-duty disability pension under this subsection.
(iv)
No member eligible for retirement under paragraph (5)(ii) of this subsection may receive a non-line-of-duty disability allowance of less than 25% of his or her average final compensation.
(6)Optional retirement allowances.
Any Class A or Class B member who is entitled to receive the maximum non-line-of-duty disability retirement allowance may elect to receive that maximum non-line-of-duty disability retirement allowance, or may elect to receive the actuarial equivalent of that maximum non-line-of-duty disability retirement allowance, computed as of the effective date of his or her retirement, in a lesser amount payable throughout his or her life in accordance with the following provisions: <table> <tbody> <tr> <td>Option 1.</td> <td>If he or she dies before having received in total retirement benefits the present value of his or her retirement allowance as it was at the time of retirement, the balance shall be paid to his or her legal representatives or to the person that he or she nominates by written designation duly acknowledged and filed with the Board of Trustees; or</td> </tr> <tr> <td>Option 2.</td> <td>Upon his or her death, his or her retirement allowance as it was at the time of retirement shall continue throughout the life of and be paid to the person that he or she nominates by written designation duly acknowledged and filed with the Board of Trustees at the time of his or her retirement; or</td> </tr> <tr> <td>Option 3.</td> <td>Upon his or her death, ½ of his or her retirement allowance as it was at the time of retirement shall be continued throughout the life of and paid to the person that he or her nominates by written designation duly acknowledged and filed with the Board of Trustees at the time of his or her retirement; or</td> </tr> <tr> <td>Option 4.</td> <td>Some other periodically paid benefit or benefits shall be paid either to the Class A or Class B member or to the person or persons that he or she nominates, provided such other benefit or benefits shall be certified by the actuary to be of equivalent actuarial value to his or her retirement allowance, and subject to approval by the Board of Trustees.</td> </tr> </tbody> </table>
(7)
(i)
Any living retired Class A or Class B member has the right, within 30 days after the effective date of his or her retirement, and not later, to change his or her election of the maximum non-line-of-duty disability retirement allowance to any one of the options specified in paragraph (6) of this subsection, or to change his or her election of any one of those options to another one of those options, or to change his or her election from any one of those options to the maximum non-line-of-duty disability retirement allowance.
(ii)
Any living retired Class A or Class B member has the right, within 30 days after the effective date of his or her retirement, to change his or her designation of a beneficiary; but thereafter no such change may be made in connection with any option that provides for the payment of a retirement allowance to, and throughout the life of, the beneficiary designated.
(iii)
The election of any option or any change in connection with any option shall be made on forms provided for that purpose by the Board of Trustees, and filed with the Board.
(8)
If any living retired Class A or Class B member changes the type or kind of retirement allowance elected by him or her, then any payments that may have been made to him or her before that change are to be taken into account in arriving at the amount to be paid to him or her in connection with the retirement allowance finally selected.
(9)
Any Class A or Class B member who retires and dies within 30 days after the effective date of his or her retirement, and who has been granted a retirement allowance of maximum benefits for non-line-of-duty disability under this subsection, or who has elected to receive one of the several optional retirement allowances available, is considered to be a member dying in active service, and the non-line-of-duty death benefits provided for in § 6(h) shall be paid in lieu of the benefits provided for in this subsection.
(10)
Any non-line-of-duty disability retirement allowance payments made to any retired Class A or Class B member, who dies within 30 days after the effective date of his or her retirement, shall be offset against any amounts payable under the provisions of § 6(h).
(11)Offset for Workers’s Compensation benefits.
(i)On or before March 31, 2001.
Any amounts paid or payable by the City of Baltimore on or before March 31, 2001, under any Workers’ Compensation or similar law to a Class A or Class B member or to the dependents of a member on account of any disability or death shall be offset against and payable in lieu of any benefits payable out of funds provided by the City under this subtitle on account of the same disability or death. If the present value of the total commuted benefits under the Workers’ Compensation or similar law is less than the pension reserve for the benefits otherwise payable from funds provided by the City under this subtitle, then the present value of the commuted payments shall be deducted from the pension reserve and the benefits as may be provided by the pension reserve so reduced shall be payable under this subtitle.
(ii)On or after April 1, 2001.
Workers’ Compensation benefits shall be offset against non-line-of-duty disability benefits paid on or after April 1, 2001, in accordance with subsection (k) of this section.
(12)
(i)
If a member who was an employee on or after June 29, 1989, retires and elects to receive maximum benefits without optional modification later dies and is survived by a spouse to whom the member had been married for a least 1 year immediately prior to retirement, an amount equal to 35% (or such different amount as set forth below) of the allowance that the member was receiving shall be paid to the surviving spouse to continue as long as he or she remains unmarried.
(ii)
If there is no eligible surviving spouse or if the spouse dies or remarries before the youngest unmarried child of the deceased member has attained the age of 22 years, then an amount equal to 35% (or such different amount as set forth below) of the allowance that the member was receiving shall be paid to the child or children, divided in the manner that the Board of Trustees in its discretion determines, to continue for the benefit of the child or children until the last child marries, dies, or attains age 22.
(iii)
For members who terminate employment with the City before June 29, 1990, subparagraphs (i) and (ii) shall be read by substituting “33⅓%” for “35%” wherever those amounts appear.
(iv)
Effective June 28, 1992, any eligible surviving spouse, child, or children of a member who retired and elected, or who will retire and elect, the maximum benefit under this paragraph (12), shall receive 40% of the allowance the member was receiving.
(d)Ordinary disability retirement benefit for Class A or Class B member who was an employee on or after July 1, 1987, but not after June 28, 1989.
Any Class A or Class B member who has acquired 5 or more years of service and who has been determined by a hearing examiner to be mentally or physically incapacitated for the further performance of the duties of his job classification in the employ of Baltimore City, and that such incapacity is likely to be permanent, shall be retired by the Board of Trustees on an ordinary disability retirement, not less than 30 and not more than 90 days next following the date of filing his application for ordinary disability retirement benefits. Upon retirement for ordinary disability a Class A or Class B member shall be entitled to receive the maximum service retirement allowance if he has attained the age of 60; otherwise he shall be entitled to receive the maximum ordinary disability retirement allowance which shall consist of:
(1)
an annuity which shall be the actuarial equivalent of his accumulated contributions at the time of retirement; and
(2)
a pension which, together with his annuity, shall provide a total retirement allowance equal to 1.70% of his average final compensation in the case of Class A members, and 1.57% of his average final compensation in the case of Class B members, multiplied by the number of years of his service if such retirement allowance exceeds ¼ of his average final compensation; otherwise a pension which, together with his annuity, shall provide a total retirement allowance equal to 1.70% of his average final compensation in the case of Class A members, and 1.57% of his average final compensation in the case of Class B members, multiplied by the number of years which would be credited to him were his service to continue until the attainment of age 60, so far as the resulting total retirement allowance shall not exceed ¼ of his average final compensation. The additional annuity provided as the result of voluntary excess contributions under §§ 8(a)(2) and 8(a)(4) shall be payable and shall not be used in determining the ordinary disability pension under this subsection.
(3)Optional retirement allowances.
Any Class A or Class B member who is entitled to receive the maximum ordinary disability retirement allowance may elect to receive such maximum ordinary disability retirement allowance, or he may elect to receive the actuarial equivalent of such maximum ordinary disability retirement allowance, computed as of the effective date of his retirement, in a lesser amount payable throughout his life in accordance with the following provisions: <table> <tbody> <tr> <td>Option 1.</td> <td>If he dies before he has received in total retirement benefits the present value of his retirement allowance as it was at the time of his retirement, the balance shall be paid to his legal representatives or to such person as he shall nominate by written designation duly acknowledged and filed with the Board of Trustees; or</td> </tr> <tr> <td>Option 2.</td> <td>Upon his death, his retirement allowance as it was at the time of his retirement shall continue throughout the life of and be paid to such person as he shall nominate by written designation duly acknowledged and filed with the Board of Trustees at the time of his retirement; or</td> </tr> <tr> <td>Option 3.</td> <td>Upon his death, ½ of his retirement allowance as it was at the time of his retirement shall be continued throughout the life of and paid to such person as he shall nominate by written designation duly acknowledged and filed with the Board of Trustees at the time of his retirement; or</td> </tr> <tr> <td>Option 4.</td> <td>Some other periodically paid benefit or benefits shall be paid either to the Class A or Class B member or to such person or persons as he shall nominate, provided such other benefit or benefits shall be certified by the actuary to be of equivalent actuarial value to his retirement allowance, and subject to approval by the Board of Trustees.</td> </tr> </tbody> </table>
(4)
Any living retired Class A or Class B member shall have the right, within 30 days after the effective date of his retirement, and not thereafter, to change his election of the maximum ordinary disability retirement allowance to any one of the options hereinbefore set forth, or to change his election of any one of said options to another one of said options, or to change his election from any one of said options to the maximum ordinary disability retirement allowance. Any living retired Class A or Class B member shall have the right, within 30 days after the effective date of his retirement, to change his designation of a beneficiary; but thereafter no such change may be made in connection with any portion hereinbefore set forth which provides for the payment of a retirement allowance to, and throughout the life of, the beneficiary designated. The election of any option or any change in connection therewith shall be made on forms provided for that purpose by the Retirement Systems Office of the City of Baltimore and filed with said office.
(5)
If any living retired Class A or Class B member changes the type or kind of retirement allowance elected by him, as provided hereinbefore, then any payments which may have been made to him prior to such change are to be taken into account in arriving at the amount to be paid to him in connection with the retirement allowance finally selected.
(6)
Any Class A or Class B member who retires and dies within 30 days after the effective date of his retirement, and who has been granted a retirement allowance of maximum benefits for ordinary disability under this subsection, or who has elected to receive one of the several optional retirement allowances available in lieu thereof, shall be considered as a member’s dying in active service, and the ordinary death benefits provided for in § 6(h) shall be paid in lieu of the benefits provided for in this subsection.
(7)
Any ordinary disability retirement allowance payments made to any retired Class A or Class B member, who dies within 30 days after the effective date of his retirement, shall be offset against any amounts payable under the provisions of § 6(h).
(8)Offset for Workers’s Compensation benefits.
(i)Benefits paid on or before March 31, 2001.
Any amounts paid or payable on or before March 31, 2001, by the City of Baltimore under any Workers’ Compensation or similar law to a Class A or Class B member or to the dependents of a member on account of any disability or death shall be offset against and payable in lieu of any benefits payable out of funds provided by the City under this subtitle on account of the same disability or death. If the present value of the total commuted benefits under the Workers’ Compensation or similar law is less than the pension reserve for the benefits otherwise payable from funds provided by the City under this subtitle, then the present value of the commuted payments shall be deducted from the pension reserve and the benefits as may be provided by the pension reserve so reduced shall be payable under this subtitle.
(ii)Benefits paid on or after April 1, 2001.
Workers’ Compensation benefits shall be offset against ordinary disability benefits paid on or after April 1, 2001, in accordance with subsection (k) of this section.
(9)
The panel of hearing examiners may, at its discretion but not more frequently than once in any 1 year, require any retired Class A or Class B member, who is receiving a disability retirement allowance and, who has not yet attained age 60, to undergo a medical examination to determine whether he has become fit to resume duties in the nature of those he was performing prior to his retirement. Such examination shall be made in the place of residence of said retiree, or other place mutually agreed upon by the retiree and a physician or physicians designated by the panel of hearing examiners. The examining physician shall report his findings to the panel of hearing examiners. If in the opinion of the examining physician, said retiree is able to resume said duties, the City of Baltimore Occupational Medical Service shall thereafter conduct a reexamination of said retiree; and if it concurs in the opinion of the examining physicians, it shall certify to the panel of hearing examiners that said retiree is fit for the further performance of duties in the nature of those he was performing prior to his retirement. If the examining physicians’ opinions do not concur, the panel of hearing examiners shall schedule a hearing to determine the fitness of a retiree to perform his former duties. The panel of hearing examiners shall thereafter submit its determination to the head of the department in which the retiree was employed prior to his retirement, and in the case of classified employees, to the Civil Service Commission. For purpose of reemployment, the retiree shall be treated by the head of his department and by the Civil Service Commission as if he were an employee on leave of absence without pay. Until he is actually reemployed he shall continue to receive his ordinary disability retirement allowance. A disability retiree who has been certified as fit for further performance of his duties and is restored to active service at a compensation not less than the annual rate of compensation being paid currently to persons in the same grade and step as the retiree was at the time of his retirement, plus the amount of any longevity payments currently being paid for the length of service the retiree had at the time of his retirement, shall cease to receive his retirement allowance. He shall again become a Class A or Class B member of the Retirement System and shall contribute thereafter at the current rate of contribution. Any previous service credit on the basis of which his service was computed at the time of his retirement shall be restored to full force and effect and in addition, upon his subsequent retirement, he shall be credited with all his service as a member. Should such disability retiree who has been certified as fit for the further performance of his duties refuse to accept an offer of reemployment by the City involving duties in the nature of those he was performing prior to his retirement and at a salary not less than the rate of annual compensation being paid currently to persons in the same grade and step as the retiree was at the time of his retirement, plus the amount of any longevity payments currently being paid for the length of service the retiree had at the time of his retirement, all rights in and to his pension shall be revoked by the Board of Trustees, upon recommendation made by the panel of hearing examiners. Should such disability retiree refuse to submit to the medical examinations herein provided for, his ordinary disability retirement allowance may be discontinued until the withdrawal of said refusal, and should his refusal continue for 1 year, all rights in and to his pension shall be revoked by the Board of Trustees upon recommendation made by the panel of hearing examiners.
(10)
A Class A or Class B disability retiree may, without reduction of his retirement allowance, earn annually an amount, hereinafter referred to as “earnings”, equal to the rate of the annual earnable compensation currently being paid to persons in the same grade and step as the retiree was at the time of his retirement, plus the amount of any longevity payments currently being paid for the length of service the retiree had at the time of his retirement, said rate of earnable compensation plus longevity payments, if any, hereinafter referred to as “base amount”. Should such a retiree earn an annual amount which is greater than his base amount, the pension otherwise payable to him shall be reduced in the following manner: For the first $5,000 of earnings in excess of the base amount, a reduction of $1 in pension benefits shall be made for each $2 earned. For any earnings in excess of $5,000 over the base amount, a reduction of $2 in pension benefits shall be made for each $5 earned. In the calendar year of retirement, the base amount shall be prorated on a monthly basis. Benefits which may be payable to a beneficiary of a deceased disability retiree under the provisions of this subtitle, shall not be reduced by reason of any excess earnings said retiree may have had; and the base for calculating said beneficiary’s benefits shall be the total unreduced retirement allowance of the disability retiree, notwithstanding the fact that said retiree was receiving a reduced retirement allowance in the year of his death. The term “earnings” as used in this subsection shall mean income derived from wages, salaries, tips, commissions, other employee compensation, and self-employment. In all cases of doubt the Board of Trustees shall decide what are and what are not “earnings” for the purposes of administering the provisions of this subsection. Such disability retiree who has not been certified as fit to perform duties in the nature of those he was performing prior to his retirement may, nevertheless, accept suitable employment with the City, subject to the “earnings” provisions contained herein; provided, however, that such an employee shall not again become a member of any retirement system supported in whole or in part by the Mayor and City Council of Baltimore.
(11)
On or before May 1 of each year following his disability retirement, a Class A or Class B disability retiree shall submit, on a form issued by the Board of Trustees or on its equivalent as approved by the Board of Trustees, a signed statement setting forth his total gross earnings, if any, in the preceding calendar year and the source of said earnings. The execution of said forms by a disability retiree shall have the same effect as a statement sworn to by him before a notary public. Should any disability retiree fail to submit said signed statement, his retirement allowance may thereafter be discontinued by the Board of Trustees until he has complied; and should he fail to submit said signed and completed statement by May 1, of the succeeding year, all rights in and to his pension may be revoked by the Board of Trustees.
(12)
(i)
If a member who was an employee on or after July 1, 1987, but not after June 28, 1989, retires and elects to receive maximum benefits without optional modification later dies and is survived by a spouse to whom the member had been married for at least 1 year immediately prior to retirement, an amount equal to 5% of the allowance the member was receiving shall be paid to the surviving spouse to continue as long as he or she remains unmarried. If there is no surviving spouse or if the spouse dies or remarries before the youngest unmarried child of the deceased member attains age 22, then an amount equal to 5% of the allowance the member was receiving shall be paid to the child or children, divided in the manner that the Board of Trustees in its discretion determines, to continue for the benefit of the child or children until the last child marries, dies, or attains age 22.
(ii)
Effective April 1, 2001, any eligible surviving spouse, child, or children of a member who retired and elected the maximum benefit under subparagraph (i) of this paragraph (12), shall receive 40% of the allowance the member was receiving.
(d-1)Ordinary disability retirement benefits for Class A or Class B member who terminated employment on or before June 30, 1987.
(1)Survivorship benefits for members who selected maximum benefits and die on or before March 31, 2001.
No benefit is payable to the beneficiary(ies), next of kin, or the estate of a member who selected maximum benefits and dies on or before March 31, 2001.
(2)Survivorship benefits for members who selected maximum benefits and die on or after April 1, 2001.
(i)
If a member who was an employee and retired before July 1, 1987, and elected to receive maximum benefits without optional modification dies on or after April 1, 2001, and is survived by a spouse to whom the member had been married for at least 1 year immediately before retirement, an amount equal to 40% of the allowance the member was receiving shall be paid to the surviving spouse to continue as long as he or she remains unmarried.
(ii)
If there is no surviving spouse or if the spouse dies or remarries before the youngest unmarried child of the deceased member attains age 22, then an amount equal to 40% of the allowance the member was receiving shall be paid to the child or children, divided in the manner that the Board of Trustees in its discretion determines, to continue for the benefit of the child or children until the last child marries, dies, or attains age 22.
(3)Offset for Workers’s Compensation benefits.
(i)Benefits paid on or before March 31, 2001.
Workers’ Compensation benefits shall be offset against ordinary disability benefits paid on or before March 31, 2001, in accordance with subsection (j) of this section.
(ii)Benefits paid on or after April 1, 2001.
Workers’ Compensation benefits shall be offset against ordinary disability benefits paid on or after April 1, 2001, in accordance with subsection (k) of this section.
(e)Line-of-duty disability benefit.
(1)Eligibility requirements.
A Class A or Class B member shall be retired on a line-of-duty disability retirement if a hearing examiner determines that the member is totally and permanently incapacitated for the further performance of the duties of his or her job classification in the employ of Baltimore City, as the natural and proximate result of an accident occurring while in the actual performance of duty at some definite time and place, without willful negligence on his or her part.
(2)Application and filing deadline.
To retire under this subsection, the member must:
(i)
apply to the Board of Trustees, on a form approved by the Board; and
(ii)
submit the application to the Board no later than 1 year following the member’s last day of City employment.
(3)Effective date of line-of-duty disability retirement.
A line-of-duty disability retirement under this subsection takes effect as follows:
(i)
if the member applied for disability retirement before terminating City employment, the retirement is effective as of the 1<sup>st</sup> day of the month immediately following the member’s last day of City employment; and
(ii)
if the member applied for disability retirement after terminating City employment, the retirement is effective as of the 1<sup>st</sup> day of a month that falls at least 30 days after the date on which the Board received a completed application.
(f)Allowance on line-of-duty disability retirement.
(1)
Upon retirement for line-of-duty disability, a Class A or Class B member is entitled to receive the maximum line-of-duty disability retirement allowance, which shall consist of:
(i)
an annuity which shall be the actuarial equivalent of his or her accumulated contributions at the time of retirement; and
(ii)
a pension, in addition to the annuity, of 66⅔% of his average final compensation.
(2)Optional retirement allowances.
Any Class A or Class B member who is entitled to receive the maximum line-of-duty disability retirement allowance may elect to receive that maximum line-of-duty disability retirement allowance, or may elect to receive the actuarial equivalent of that maximum line-of-duty disability retirement allowance, computed as of the effective date of his or her retirement, in a lesser amount payable throughout his or her life in accordance with the following provisions: <table> <tbody> <tr> <td>Option 1.</td> <td>If he or she dies before having received in total retirement benefits the present value of his or her retirement allowance as it was at the time of retirement, the balance shall be paid to his or her legal representatives or to the person that he or she nominates by written designation duly acknowledged and filed with the Board of Trustees; or</td> </tr> <tr> <td>Option 2.</td> <td>Upon his death, his retirement allowance as it was at the time of his retirement shall be continued throughout the life of and paid to the person that he or she nominates by written designation duly acknowledged and filed with the Board of Trustees at the time of his or her retirement; or</td> </tr> <tr> <td>Option 3.</td> <td>Upon his or her death, ½ of his or her retirement allowance as it was at the time of retirement shall be continued throughout the life of and paid to the person that he or she nominates by written designation duly acknowledged and filed with the Board of Trustees at the time of his retirement; or</td> </tr> <tr> <td>Option 4.</td> <td>Some other periodically paid benefit or benefits shall be paid either to the Class A or Class B member or to the person or persons that he or she nominates, provided such other benefit or benefits shall be certified by the actuary to be of equivalent actuarial value to his or her retirement allowance, and subject to approval by the Board of Trustees.</td> </tr> </tbody> </table>
(3)
(i)
Any living retired Class A or Class B member has the right, within 30 days after the effective date of his or her retirement, and not later, to change his or her election of the maximum line-of-duty disability retirement allowance to any one of the options specified in paragraph (2) of this subsection, or to change his or her election of any one of those options to another one of those options, or to change his or her election from any one of those options to the maximum line-of-duty disability retirement allowance.
(ii)
Any living retired member has the right, within 30 days after the effective date of his or her retirement, to change his or her designation of a beneficiary; but thereafter no such change may be made in connection with any option that provides for the payment of a retirement allowance to, and throughout the life of, the beneficiary designated.
(iii)
The election of any option or any change in connection with any option shall be made on forms provided for that purpose by the Board of Trustees, and filed with the Board.
(4)
If any living retired Class A or Class B member changes the type or kind of retirement allowance elected by him or her, then any payments that may have been made to him or her before that change are to be taken into account in arriving at the amount to be paid to him or her in connection with the retirement allowance finally selected.
(5)
(i)
Any Class A or Class B member who retires and dies within 30 days after the effective date of his or her retirement, and who has been granted a retirement allowance of maximum benefits for line-of-duty disability under this subsection, or who has elected to receive one of the several optional retirement allowances available, is considered to be a member’s dying in active service, and the non-line-of-duty death benefits provided for in § 6(h) shall be paid in lieu of the benefits provided for in this subsection.
(ii)
If a hearing examiner determines that the member’s death is the result of injuries sustained in the line of duty or was directly attributable to the inherent hazards of the duties performed by the employee and that the death was not caused by willful negligence on the part of the member, then there shall be paid in lieu of the non-line-of-duty death benefit provided for in § 6(h), the line-of-duty death benefit provided for in § 6(i), subject to the conditions of those sections.
(6)
Any line-of-duty disability retirement allowance payments made to any retired Class A or Class B member, who dies within 30 days after the effective date of his or her retirement, shall be offset against any amounts payable under the provisions of §§ 6(h) or 6(i).
(7)Offset for Workers’s Compensation benefits.
(i)Benefits paid on or before March 31, 2001.
Any amounts paid or payable by the City of Baltimore on or before March 31, 2001, under any Workers’ Compensation or similar law to a Class A or Class B member or to the dependents of a member on account of any disability or death shall be offset against and payable in lieu of any benefits payable out of funds provided by the City under this subtitle on account of the same disability or death. If the present value of the total commuted benefits under the Workers’ Compensation or similar law is less than the pension reserve for the benefits otherwise payable from funds provided by the City under this subtitle, then the present value of the commuted payments shall be deducted from the pension reserve and the benefits as may be provided by the pension reserve so reduced shall be payable under this subtitle.
(ii)Benefits paid on or after April 1, 2001.
Workers’ Compensation benefits shall be offset against line-of-duty disability benefits paid on or after April 1, 2001, in accordance with subsection (k) of this section.
(8)
(i)
If a member who was an employee on or after July 1, 1987, but not after June 28, 1989, retires and elects to receive maximum benefits without optional modification later dies and is survived by a spouse to whom the member had been married for at least 1 year immediately prior to retirement, an amount equal to 5% of the allowance the member was receiving shall be paid to the surviving spouse to continue as long as he or she remains unmarried.
(ii)
If there is no eligible surviving spouse or if the spouse dies or remarries before the youngest unmarried child of the deceased member attains age 22, then an amount equal to 5% of the allowance the member was receiving shall be paid to the child or children, divided in the manner that the Board of Trustees in its discretion determines, to continue for the benefit of the child or children until the last child marries, dies, or attains age 22.
(iii)
Effective April 1, 2001, any eligible surviving spouse, child, or children of a member who retired and elected the maximum benefit under this paragraph (8), shall receive 40% of the allowance the member was receiving.
(9)
(i)
If a member who was an employee on or after June 29, 1989, retires and elects to receive maximum benefits without optional modification later dies and is survived by a spouse to whom the member had been married for at least 1 year immediately prior to retirement, an amount equal to 35% (or such different amount as set forth below) of the allowance that the member was receiving shall be paid to the surviving spouse to continue as long as he or she remains unmarried.
(ii)
If there is no eligible surviving spouse or if the spouse dies or remarries before the youngest unmarried child of the deceased member has attained the age of 22 years, then an amount equal to 35% (or such different amount as set forth below) of the allowance that the member was receiving shall be paid to the child or children, divided in the manner that the Board of Trustees in its discretion determines, to continue for the benefit of the child or children until the last child marries, dies, or attains age 22.
(iii)
For members who terminate employment with the City before June 29, 1990, subparagraphs (i) and (ii) shall be read by substituting “33⅓%” for “35%” wherever those amounts appear.
(iv)
Effective June 28, 1992, any eligible surviving spouse, child, or children of a member who retired and elected, or who will retire and elect, the maximum benefit under this paragraph (9), shall receive 40% of the allowance the member was receiving.
(10)Survivorship benefits for beneficiaries of members who terminated employment on or before June 30, 1987 and selected maximum benefits.
(i)Members who died on or before March 31, 2001.
No benefit is payable to the beneficiary(ies), next of kin, or the estate of a member who selected maximum benefits and dies on or before March 31, 2001.
(ii)Members who die on or after April 1, 2001.
(A)
If a member who was an employee and retired before July 1, 1987, and elected to receive maximum benefits without optional modification dies on or after April 1, 2001, and is survived by a spouse to whom the member had been married for at least 1 year immediately before retirement, an amount equal to 40% of the allowance the member was receiving shall be paid to the surviving spouse to continue as long as he or she remains unmarried.
(B)
If there is no eligible surviving spouse or if the spouse dies or remarries before the youngest unmarried child of the deceased member attains age 22, then an amount equal to 40% of the allowance the member was receiving shall be paid to the child or children, divided in the manner that the Board of Trustees in its discretion determines, to continue for the benefit of the child or children until the last child marries, dies, or attains age 22.
(h)Non-line-of-duty death benefit.
(1)Scope of subsection.
This subsection (h) applies to a Class A or Class B member who dies while actively employed, but whose death does not qualify under subsection (i) as a line-of-duty death.
(2)Lump-sum death benefit.
(i)
On receipt of a written application and proper proof of the death of a Class A or Class B member in service, the Board of Trustees shall pay the lump-sum amount provided in this paragraph (2), but only if no benefits are paid under paragraph (3) of this subsection.
(ii)
The lump-sum payment shall consist of:
A.
the member’s accumulated contributions; plus
B.
if the Class A or Class B member has acquired 1 or more years of service, 50% of the greater of the member’s current annual compensation or the member’s average final compensation on the date of the member’s death.
(iii)
The lump-sum amount shall be paid:
A.
to the member’s designated beneficiary;
B.
if there is no designated beneficiary or if the designated beneficiary predeceases the member, to the member’s surviving spouse;
C.
if there is no designated beneficiary and no surviving spouse, to the member’s children, in equal shares;
D.
if there is no designated beneficiary, surviving spouse, or surviving child, to the member’s surviving parents, in equal shares; and
E.
otherwise, to the member’s estate.
(3)100% survivorship death benefit.
(i)
If the Class A or Class B member was eligible for a service retirement allowance on the date of the member’s death, or would have become eligible for a service retirement allowance within 90 days after the date of the member’s death, and a proper application is filed under subparagraph (v) of this paragraph, the Board of Trustees shall pay a benefit equal to that which would have been paid to a surviving beneficiary under the 100% survivorship benefit of subsection §§ 6(a)(5) and 6(b)(6) of this section had the member elected that survivorship benefit in favor of that beneficiary and retired as of the date of death.
(ii)
The benefit shall be paid:
A.
to the member’s designated beneficiary, to continue for life, as long as that designated beneficiary is limited to:
1.
the member’s surviving spouse to whom the member was married for at least 5 years immediately before the date of the member’s death; or
2.
one of the member’s surviving parents; or
B.
if the designated beneficiary is not the member’s spouse and the beneficiary predeceases the member, or if there is no designated beneficiary, then to the member’s surviving spouse, to continue for life, if the member was married to that spouse for at least 5 years immediately before the date of the member’s death.
(iii)
If a Class A or Class B member files with the Board of Trustees a written designation that names someone other than a spouse or parent as beneficiary, and if that beneficiary does not predecease the member, the benefits of this paragraph (3) are not available to the surviving spouse or parent of the member.
(iv)
The benefit provided by this paragraph (3) is in place of all benefits provided under paragraph (2) of this subsection.
(v)
To receive the benefit provided under this paragraph (3), the surviving spouse or parent must apply in writing, on forms provided by the Board of Trustees, within 60 days after the death of the member.
(4)40% survivorship death benefit.
(i)
Beginning April 1, 2001, if the member had at least 20 years of service as of the date of his or her death, without regard to whether the member was eligible for a service retirement benefit on the date of the member’s death, and if a proper application is filed under subparagraph (vii) of this paragraph (4), the Board of Trustees shall pay a retirement benefit equal to 40% of the member’s accrued maximum service retirement benefit based on the number of years of service credit as of the member’s date of death and as if the member had attained age 60 as of the date of his or her death.
(ii)
This benefit shall be paid:
A.
to the member’s designated beneficiary, as long as that designated beneficiary is limited to:
1.
the member’s surviving spouse, to continue for life or until remarriage; or
2.
the member’s unmarried minor children, to be paid to each child in equal shares, until that child marries or is no longer a minor, as defined in <cite data-path="|22|§1|(5)">§ 1(5) of this article</cite>; or
B.
if the designated beneficiary is not the member’s spouse or minor child and that beneficiary predeceases the member, or if there is no designated beneficiary, then to the member’s surviving spouse, to continue for life or until remarriage; or
C.
if there is no qualifying surviving spouse under subparagraph A or B, or if the surviving spouse dies or remarries, then to the member’s unmarried minor children, to be paid to each child in equal shares, until that child marries or is no longer a minor, as defined in <cite data-path="|22|§1|(5)">§ 1(5) of this article</cite>.
(iii)
For purposes of this paragraph (4), “surviving spouse” means a spouse to whom the member was married for at least 1 year immediately before the date of the member’s death.
(iv)
For purposes of this paragraph (4), when a member’s child marries or is no longer a minor and, consequently, ceases to receive benefits under this paragraph (4), each remaining unmarried minor child will begin to receive, in addition to his or her existing benefit, an equal share of the benefit formerly paid to the other child. This process continues until the member’s youngest child marries or is no longer a minor.
(v)
If a member files with the Board of Trustees a written designation that names someone other than a spouse or minor child as beneficiary and if that beneficiary does not predecease the member, the benefits of this paragraph (4) are not available to the surviving spouse or minor children of the member.
(vi)
The benefit provided by this paragraph (4) is in place of all benefits provided under paragraphs (2) and (3) of this subsection.
(vii)
To receive the benefit provided under this paragraph (4), the surviving spouse or minor children must apply in writing, on forms provided by the Board of Trustees, within 60 days after notice of this benefit is provided to the spouse or minor children after the death of the member.
(viii)
Any death benefits paid by this System and received by the beneficiary of a member under paragraphs (2) or (3) of this subsection shall be offset against any death benefits payable under this paragraph (4).
(ix)
For purposes of this paragraph, the deceased member’s pre-enrollment or pre-membership employment:
(A)
shall be included in figuring the minimum 20 years of service credit needed to be eligible to receive this death benefit; but
(B)
may not be counted as service credit for purpose of calculating the amount of the death benefit, unless purchased as service credit in accordance with <cite data-path="|22|§16">§ 16 of this article</cite>.
(5)Death without beneficiaries or estate.
The amounts that would have been paid under this subsection (h), excluding membership contribution accounts, with interest, forever remain assets of the System if:
(i)
a member dies without designating a beneficiary;
(ii)
that member has no heirs, as enumerated in paragraphs 2(iii), 3(ii), and 4(ii) of this subsection (h); and
(iii)
no estate for that member is opened within 2 years of the member’s death.
(6)Death of retired Class A or Class B member within 30 days of retirement.
(i)Scope of paragraph.
Except as specified in subparagraph (ii), this paragraph applies to a retired member who:
A.
has been granted a service or disability retirement allowance; and
B.
dies within 30 days of his or her retirement date.
(ii)Exception.
This paragraph does not apply to a former member who terminates employment before reaching age 60 without immediate entitlement to retirement benefits.
(iii)Death deemed to be during active service.
A retired Class A or Class B member described in subparagraph (i) of this paragraph (6) is deemed to have died while still employed by the City and, instead of any other service or disability benefits under this System, a non-line-of-duty death benefit will be paid as if he or she died during active service.
(iv)Benefit in place of others.
The benefit provided by subparagraph (iii) of this paragraph (6) is in place of all benefits provided under §§ 6(a), 6(b), 6(c), or 6(d).
(v)Offset of payments received.
Any pension benefits paid by this System and received by the retired member before he or she died shall be offset against the death benefits payable under this subsection (h) of this section.
(i)Line-of-duty death benefit.
(1)Scope of subsection.
This subsection applies only to an individual:
(i)
who dies while a Class A or Class B member of this System; and
(ii)
whose death has been determined by a hearing examiner to:
A.
have arisen from injuries sustained in the line of duty; or
B.
be directly attributable to the inherent hazards of the duties performed by the member; and
C.
have arisen without willful negligence on the part of the member.
(2)Line-of-duty death benefit.
(i)
On the receipt of a written application, proper proof of death, and an award by a hearing examiner of a line-of-duty death benefit, the Board of Trustees shall pay:
A.
the member’s accumulated contributions:
1.
to the member’s designated beneficiary;
2.
if there is no designated beneficiary, or if the designated beneficiary predeceases the member, to the member’s surviving spouse;
3.
if there is no designated beneficiary and no surviving spouse, to the member’s children, in equal shares;
4.
if there is no designated beneficiary, surviving spouse, or surviving child, to the member’s surviving parents, in equal shares; and
5.
otherwise, to the member’s estate; and
B.
a pension of 100% of the member’s current compensation:
1.
to the member’s surviving spouse, to continue for life or until remarriage;
2.
if there is no surviving spouse or if the surviving spouse dies or remarries, to the member’s minor children to be paid to each child, in equal shares, until that child is no longer minor, as defined in <cite data-path="|22|§1|(5)">§ 1(5) of this article</cite>; or
3.
if there is no surviving spouse or minor children and if the deceased member did not designate his or her surviving parents as beneficiaries, then to either or both of the member’s surviving dependent mother and or father in equal shares, to continue for life.
(ii)
For purposes of subparagraph (i)(B) of this paragraph (2), “dependent” means the level of dependency required by Internal Revenue Code §152.
(iii)
For purposes of this paragraph (2), when a member’s child is no longer a minor and consequently ceases to receive benefits under this paragraph (2), each remaining minor child shall begin to receive, in addition to his or her existing benefit, an equal share of the benefit formerly paid to the other child. This process continues until the member’s youngest child is no longer a minor.
(iv)
For purposes of this paragraph (2), where a member’s line-of-duty death benefit is paid to both of the member’s surviving parents and one parent dies, the remaining parent shall then begin receiving, in addition to his or her existing benefit, the benefit formerly paid to the deceased parent.
(3)Death without beneficiaries or estate.
The amounts that would have been paid under this subsection (i), excluding membership contribution accounts, with interest, forever remain assets of the System if:
(i)
a member dies without designating a beneficiary;
(ii)
that member has no heirs, as enumerated in paragraphs 2(i)(A) and 2(i)(B) of this subsection (i); and
(iii)
no estate for that member is opened within 2 years of the member’s death.
(4)Death on account of line-of-duty injury.
(i)
This paragraph (4) applies to any member:
A.
who retires under the provisions of §§ 6(e) and 6(f);
B.
who dies within 30 days after the effective date of the member’s retirement;
C.
whose death is the result of an accidental injury sustained in the line of duty or was directly attributable to the inherent hazards of the duties performed by such employee; and
D.
whose death a hearing examiner has determined was not caused by willful negligence on the part of the member.
(ii)
A member described in subparagraph (i) of this paragraph (4) is considered, for purposes of paragraph (1) of this subsection, to have died as a member in service. Thus, to the extent to which they are entitled under paragraphs (1) and (2) of this subsection (i), the beneficiaries of the member shall receive line-of-duty death benefits under this subsection (i).
(iii)
Any retirement allowance which is payable pursuant to <cite data-path="|22|§6|(f)">§ 6(f) of this article</cite>, and which is made to any retired Class A or Class B member who dies within 30 days after his effective date of retirement, shall be offset against any line-of-duty death benefits payable under the provisions of this subsection.
(5)Minimum line-of-duty death pension benefit at June 30, 1994.
(i)
This paragraph (5) applies to those beneficiaries who, as of June 30, 1994, are receiving a line-of-duty death benefit in accordance with this subsection (i) and whose total benefit on June 30, 1994, amounts to less than $10,000 annually.
(ii)
Line-of-duty death benefits for beneficiaries described in subparagraph (i) of this paragraph (5) shall be increased to no less than the lower of:
A.
an annual benefit of $10,000; or
B.
an annual benefit equivalent to the June 30, 1994, salary for an active Class A or Class B member in the same job classification (e.g., class, grade, level, and longevity) as the Class A or Class B member on the date of the member’s death.
(iii)
In no event may this paragraph result in a beneficiary’s receiving a pension less than the pension the member was receiving on June 30, 1994.
(iv)
For purposes of this paragraph (5), the pension benefit includes any post-retirement benefit increases paid as of June 30, 1994.
(v)
If any beneficiary receiving an increased minimum pension in 1994 as a result of this paragraph is eligible for a January 1995 post-retirement benefit increase under §17 of <cite data-path="|22">this article</cite>, the member’s 1995 post-retirement increase shall be calculated as though the beneficiary had received this increased minimum pension benefit on June 30, 1994.
(vi)
Any post-retirement benefit increases paid before June 30, 1994, may not be changed due to any increase in benefits payable as a result of this paragraph (5).
(j)Offset for Workers’ Compensation benefits — Benefits paid on or before March 31, 2001.
(1)
Any amounts paid or payable by the City of Baltimore on or before March 31, 2001, under any Workers’ Compensation or similar law to a Class A or Class B member or to the dependents of a Class A or Class B member on account of any disability or death shall be offset against and payable in lieu of any benefits payable out of funds provided by the City under this subtitle on account of the same disability or death.
(2)
If the present value of the total commuted benefits under the Workers’ Compensation or similar law is less than the pension reserve on the benefits otherwise payable from funds provided by the City under this subtitle, then the present value of the commuted payments shall be deducted from the pension reserve and the benefits as may be provided by the pension reserve so reduced shall be payable under this subtitle.
(k)Offset for Workers’ Compensation benefits — Benefits paid on or after April 1, 2001.
(1)Scope of subsection.
This subsection applies to a member or beneficiaries of a member:
(i)
the payment of whose retirement benefit commences on or after April 1, 2001, either:
(A)
on account of a non-line-of-duty disability under subsection (c), (d), or (d-1), or
(B)
on account of a line-of-duty disability under subsection (e) or (f); or
(ii)
who dies on or after April 1, 2001, and is awarded either:
(A)
a non-line-of-duty death benefit under subsection (h), or
(B)
a line-of-duty death benefit under subsection (i).
(2)Offset for Workers’ Compensation payments.
The Board of Trustees shall offset the amount of a member’s Workers’ Compensation benefits to be paid or payable by the City and awarded under the State’s Workers’ Compensation Law against any disability or death benefits paid or payable by the System to a member or a member’s beneficiaries, if:
(i)
the Workers’ Compensation award was for permanent partial or permanent total disability or for death; and
(ii)
the Workers’ Compensation benefit was awarded on account of the same disability or death that resulted in the system’s payment of disability or death benefits.
(3)Amounts not included in offset.
The amount of Workers’ Compensation benefits to be offset does not include amounts allocated for the payment of legal fees, medical expenses, or other payments authorized by the Workers’ Compensation Commission to be made directly to third parties and not to the member or the member’s beneficiary.
(4)Method of offset.
(i)Non-actuarial method for lump-sum payments.
A.
The Board of Trustees shall offset the amount of a member’s Workers’ Compensation award, reduced by the amounts described in paragraph (3), against any lump-sum death benefits paid or payable by the System to a member’s beneficiaries in the following manner.
B.
The offset shall be made on a non-actuarial, dollar-for-dollar basis against any lump-sum benefit until the total amount of the Workers’ Compensation benefits has been recovered.
C.
If the amount of the Workers’ Compensation benefits exceeds the lump-sum death benefit, then no benefit may be paid, except for the return of the member’s accumulated contributions.
(ii)Actuarial method for periodic payments.
A.
The Board of Trustees shall offset the amount of a member’s Workers’ Compensation award, reduced by the amounts described in paragraph (3), against any periodic disability or death benefits paid or payable by the System to a member or a member’s beneficiaries in the following manner.
B.
This offset shall be calculated on an actuarial basis by annuitizing the member’s Workers’ Compensation award, reduced by the amounts described in paragraph (3), and reducing the member’s periodic disability or death benefit by the annuitized amount until the total amount of the Workers’ Compensation benefits have been recovered.
C.
The actuarial amount shall be calculated using an actuarial method and appropriate annuity factors recommended by the System’s actuary and approved by the Board of Trustees.
D.
If the annuitized amount of the Workers’ Compensation benefits exceeds the System’s periodic disability or death benefit payment, then no death or disability benefit may be paid until the amount of the Workers’ Compensation benefit is recovered, except for the return of the member’s accumulated contributions.
(5)Restoration of offset amount against retirement benefits.
(i)
On recovering the full amount of the member’s Workers’ Compensation benefits, the reduced disability or death benefits payable to the member or the member’s beneficiaries shall be restored to the unreduced amount of the disability or death benefits payable to the member or beneficiaries prior to the offset for Workers’ Compensation.
(ii)
The amount by which a reduced disability or death benefit is restored under subparagraph (i) does not include any post-retirement increases that the member or the member’s beneficiaries would have been eligible to receive had the member’s disability or death benefits not been reduced.
(6)Transitional rule for those receiving reduced benefits prior to April 1, 2001.
(i)
The Board of Trustees shall implement the method of offset described in paragraph (4) of this subsection (k) for any member or beneficiary of a member:
A.
whose disability or death benefits were reduced by Workers’ Compensation benefits on or before March 31, 2001; and
B.
whose Workers’ Compensation benefits were not fully recovered as of April 1, 2001.
(ii)
For members or beneficiaries whose disability or death benefits have been offset on account of Workers’ Compensation benefits on or before March 31, 2001, and whose Workers’ Compensation benefits are found to have been recovered under the method described in paragraph (4), all Workers’ Compensation offsets shall be terminated.
(l) - (m)
(n)Minimum benefits for Class A and Class B retirees and beneficiaries of Class A and Class B members.
(1)
Subject to the conditions, deductions and limitations hereinafter set forth, any member who has been retired and who is entitled to receive periodically paid retirement benefits, including supplemental payments, on the day immediately preceding the effective date of this ordinance, regardless of what basis was used for calculating the benefits and even though the benefits may have been incorrectly determined, shall receive a minimum total retirement benefit of $4,000 per annum in lieu of any lesser retirement benefits, including supplemental payments, which such retiree was entitled to receive on the day immediately preceding the effective date of this ordinance.
(2)
Subject to the conditions, deductions and limitations hereinafter set forth, any surviving beneficiary of a member who was retired and subsequently died before the effective date of this ordinance, and who (beneficiary) is entitled to receive periodically paid retirement benefits, including supplemental payments, on the day immediately preceding the effective date of this ordinance, regardless of what basis was used for calculating the benefits and even though the benefits may have been incorrectly determined, shall receive a minimum total retirement benefit of $2,000 per annum in lieu of any lesser retirement benefits, including supplemental payments, which such beneficiary was entitled to receive on the day immediately preceding the effective date of this ordinance.
(3)
Subject to the conditions, deductions and limitations hereinafter set forth, any beneficiary who becomes eligible for periodically paid retirement benefits as a result of the death of a retired member which death occurs after the effective date of this ordinance, and which retired member was entitled to receive periodically paid retirement benefits, including supplemental payments, on the day immediately preceding the effective date of this ordinance, regardless of what basis was used for calculating the deceased retired member’s benefits, and even though the benefits may have been incorrectly determined, said beneficiary of the deceased retired member shall receive a minimum benefit of $2,000 per annum in lieu of any lesser retirement benefits, including supplemental payments.
(4)
The minimum benefit of $4,000 for a retired member provided in paragraph (1) and the minimum benefit of $2,000 for any surviving beneficiary of a deceased retired member provided for in paragraphs (2) and (3) shall be subject to the following conditions, deductions and limitations:
(a)
Said minimum benefit of $4,000 provided for any retired member shall in no event exceed the maximum salary, excluding longevity pay, life, medical and health insurance premiums paid by the City, and other like benefits paid by the City, payable on the effective date of this ordinance, to employees holding positions comparable to the position held by the retired member immediately before his retirement;
(b)
Said minimum benefit of $2,000 provided for any beneficiary of a deceased retired member shall in no event exceed ½ the maximum salary, excluding longevity pay, life, medical and health insurance premiums paid by the City, and other like benefits paid by the City, payable on the effective date of this ordinance, comparable to the position held by the deceased retired member immediately before his retirement;
(c)
In the event that a retired member or deceased retired member had less than 30 years of service, the aforesaid minimum total retirement benefits of $4,000 payable to a retired member and the minimum total retirement benefits of $2,000 payable to any beneficiary of any deceased retired member, shall be reduced, pro rata, by each year and the decimal proportion of a year of service less than 30 years;
(d)
In the event that any unmarried retired member or any married retired member and his spouse have earned income or are entitled to receive social security benefits, or both, the total minimum retirement benefits of $4,000 provided for a retired member shall be reduced by the sum of both the earned income and social security entitlement of any unmarried retired member or any married retired member and his spouse, on a dollar-for-dollar basis up to a maximum reduction of $1,000 per annum. In the event that a deceased retired member’s beneficiary has earned income or is entitled to receive social security benefits, or both, the minimum retirement benefits of $2,000 provided for a beneficiary shall be reduced by the total of both any earned income and social security entitlement on a dollar-for-dollar basis up to a maximum reduction of $1,000 per annum. Social security entitlement shall include not only social security benefits which are actually being collected by the retired member, spouse or beneficiary, but shall also include the amount that the retired member, spouse or beneficiary first qualified for by reason of age or other circumstances, plus any increases of any kind in social security benefits, even though no application has been actually made for the receipt of these benefits. Earned income shall mean wages, commission, or other compensation received by any retired member, spouse or beneficiary for services rendered in the capacity of an employee or self-employed, which was paid to them in consideration for any services rendered. It shall not include interest income, dividend income or any other unearned income which was paid to the recipient without services being rendered. Every retired member shall submit, before May 1 of each year, on a form approved by the Board of Trustees, a signed statement setting forth the total earned income and the total social security benefit entitlement of the retired member and his spouse, if any, for the immediately preceding calendar year. Every beneficiary of a deceased retired member shall submit before May 1 of each year on a form approved by the Board of Trustees, a signed statement setting forth the total earned income and the total social security benefit entitlement of the beneficiary for the immediately preceding calendar year. The said form and its contents completed by a retired member or a deceased retired member’s beneficiary shall be certified and sworn to before a notary public. Should any retired member or a deceased retired member’s beneficiary fail to submit said signed statement as required, they shall not be entitled to the aforesaid minimum income benefit provided in this subsection until they have complied. However, they shall be entitled to receive the same benefits as they were entitled to receive on the day immediately preceding the effective date of this ordinance.
(e)
In no event shall any retired member or a deceased retired member’s beneficiary, including beneficiaries under subsection (n)(3) of this section, receive less than a 5%-benefit increase, except those eligible for the aforesaid $4,000 to $2,000 minimum benefits, and those who have not filed the statements in accordance with the provisions of subsection (n)(4)(d), over and above the amount of total annual retirement benefits, including supplemental payments that they were receiving under the provisions of this subtitle, on April 18, 1974, used to calculate periodic payments due a retired member or a deceased retired member’s beneficiary on the last payroll period immediately preceding April 19, 1974, regardless of the basis used for calculating the benefits, and even though the benefits may have been incorrectly determined.
(f)
The basis to be used in determining the eligibility for and computation of the new minimum total retirement benefits provided by this § 6(n) shall be, the total annual retirement benefits, including supplemental payments, on the day immediately preceding the effective date of this ordinance, used to calculate periodic payments due a retired member or a deceased members’ beneficiary on the last payroll period immediately preceding the effective date of this ordinance, regardless of the basis used for calculating the benefits and even though the benefits may have been incorrectly determined. However, if the total annual benefits, including supplemental payments, used in calculating the periodic payments are less than those which would have been paid to the retired member or the deceased retired member’s beneficiary if the new definition of “service” under this ordinance were implemented, then the lesser retirement benefits are to be recalculated in conformity with the new definition of “services” as provided for under this ordinance, before determining the eligibility for and computation of the $4,000 minimum for a retired member and the $2,000 minimum for a deceased retired member’s beneficiary and the 5%-minimum guarantee for a retired member or a deceased retired member’s beneficiary.
(g)
This subsection shall not be applicable to a beneficiary who received a lump sum benefit instead of a periodically paid retirement allowance.
(h)
The total minimum benefits provided by this subsection shall cease at the time that the retired member or deceased retired member’s beneficiary is no longer entitled to receive a periodically paid pension, annuity, or both, under any other subsection of this subtitle. It is further provided that the total minimum retirement benefits guarantee so discontinued, with the exception of 4(d) of this subsection, shall not be reinstated upon any subsequent reemployment and eligibility for retirement as a result of such reemployment.
(i)
This subsection shall not be applicable to any survivors of a retired member who elected to receive maximum benefits without optional modification to provide a periodically paid survivors benefit.
(o)Post retirement benefits for Class A and Class B retirees and beneficiaries of Class A and Class B members.
(1)
Notwithstanding anything to the contrary contained in § 6(n), effective with the 1<sup>st</sup> day of the 1<sup>st</sup> full pay period after July 1, 1975, any retiree who has 30 years or more of service and who is eligible for the benefits provided for in § 6(n), and who is eligible to receive, as of June 30, 1975, total annual retirement benefits in an amount under $4,400, subject to the limitations herein, shall be entitled to receive an increase of $400 over and above the amount that the retiree was eligible for as of June 30, 1975. However, if the $400 increment would result in the retiree’s receiving total retirement benefits in excess of $4,400, then such retiree shall only be entitled to receive such lesser increase as would result in his or her receiving a total annual benefit of $4,400.
(2)
Notwithstanding anything to the contrary contained in § 6(n), effective with the 1<sup>st</sup> day of the 1<sup>st</sup> full pay period after July 1, 1975, any beneficiary of a member who had 30 years or more of service and who is eligible for the benefits provided for in § 6(n), and who is eligible to receive, as of June 30, 1975, total annual retirement benefits in an amount under $2,200, subject to the limitations herein, shall be entitled to receive an increase of $200 over and above the amount that the beneficiary was eligible for as of June 30, 1975. However, if the $200 increment would result in the beneficiary’s receiving retirement benefits in excess of $2,200, then such beneficiary shall only be entitled to receive such lesser increase as would result in his or her receiving a total annual benefit of $2,200.
(3)
In the event that a retired member or deceased retired member had less than 30 years of service, the aforesaid $400 increase payable to a retired member and the $200 increase payable to any beneficiary of any deceased retired member, shall be reduced, pro rata, by each year and the decimal proportion of a year of service less than 30 years. However, if the reduced pro rata increment would result in the retiree’s receiving total retirement benefits in excess of $4,400, then such retiree shall only be entitled to receive such lesser increase as would result in his or her receiving a total annual benefit of $4,400, or if the reduced pro rata increment would result in the beneficiary’s receiving retirement benefits in excess of $2,200, then such beneficiary shall only be entitled to receive such lesser increase as would result in his or her receiving a total annual benefit of $2,200.
(4)
Notwithstanding anything to the contrary contained in § 6(n), any social security entitlement and earned income offsets provided for in § 6(n)(4)(d) shall, after July 1, 1975, not exceed the retiree’s or the beneficiaries’ offset which was used to calculate § 6(n) benefits on June 30, 1975. Should any such offset in any subsequent year be less than the June 30, 1975, offset, then the retiree or beneficiary shall, upon proper application, be entitled to receive the appropriate increase in § 6(n) benefits, in addition to the increased benefits provided for in this subsection.
(p)Post retirement; additional benefits.
In addition to the benefits provided for in this subtitle, any member who was retired on or before June 30, 1977, and who was receiving a periodically paid retirement benefit under this system shall be entitled to receive an increase in his total retirement benefits including §§ 6(n) and 6(o) adjusted benefits, effective with the 1<sup>st</sup> full pay period on or after July 1, 1979, in an amount equal to 5% of the total retirement benefits including §§ 6(n) and 6(o) adjusted increases, which said retiree was receiving on June 30, 1977, subject to a maximum increase of $260 a year. However, such maximum increase of $260 shall be reduced, pro rata, by each year and the decimal proportion of a year of the retiree’s service which was less than 30 years at the time of the member’s retirement. In addition to the benefits provided for in this subtitle, any beneficiary of a deceased retiree who became a beneficiary on or before June 30, 1977, as a result of the death of a retired member, which death occurred on or before June 30, 1977, and which beneficiary is receiving a periodically paid retirement benefit under this system, shall be entitled to receive an increase in his or her total retirement benefits including §§ 6(n) and 6(o) adjusted benefits, starting with the 1<sup>st</sup> full pay period on or after July 1, 1979, in an amount equal to 5% of the total retirement benefits including §§ 6(n) and 6(o) adjusted increases, which said beneficiary was receiving on June 30, 1977, subject to a maximum increase of $130 a year. However, such maximum annual increase of $130 shall be reduced, pro rata, by each year and the decimal proportion of a year that the original member retiree’s service was less than 30 years at the time the member retired. In addition to the benefits provided for in this subtitle, any beneficiary who becomes eligible for periodically paid retirement benefits as a result of the death of a retired member, which death occurs on or after July 1, 1977, and which member was retired and receiving benefits on or before June 30, 1977, shall be entitled to receive an increase in the total retirement benefits including §§ 6(n) and 6(o) adjusted increases, starting with the 1<sup>st</sup> full pay period on or after July 1, 1979 (or if the retired member dies after July 1, 1979, then the 1<sup>st</sup> pay period after the retired member’s death), in an amount equal to 5% of the total retirement benefits including §§ 6(n) and 6(o) adjusted increases, which said beneficiary was receiving on June 30, 1979 (or at the time of the retired member’s death, if later), subject to a maximum increase of $130 a year. However, such maximum increase of $130 shall be reduced, pro rata, by each year and the decimal proportion of a year that the original member retiree’s service was less than 30 years, at the time of the original member’s retirement. The increases provided for under this section shall not be applicable to any retired member or any beneficiary of a deceased retired member who received a lump-sum benefit instead of a periodically paid retirement allowance. In addition, the benefits provided for in this section shall cease at the time that the retired member dies, or the deceased retired member’s beneficiary shall no longer be entitled to receive a periodically paid pension, annuity, or both, under any other section of this subtitle. It is further provided that the increases under this section when so discontinued, shall not be reinstated upon any subsequent reemployment and subsequent eligibility for retirement as a result of such reemployment.
History: Ord. 26-553
History: Ord. 39-942
History: Ord. 45-209
History: Ord. 47-858
History: Ord. 49-703
History: Ord. 50-1410
History: Ord. 51-1634
History: Ord. 53-899
History: Ord. 53-989
History: Ord. 55-096
History: Ord. 57-1100
History: Ord. 58-1397
History: Ord. 58-1565
History: Ord. 58-1649
History: Ord. 59-1864
History: Ord. 59-1774
History: Ord. 61-1039
History: Ord. 63-1583
History: Ord. 67-1022
History: Ord. 72-237
History: Ord. 73-419
History: Ord. 74-552
History: Ord. 75-975
History: Ord. 75-1058
History: Ord. 70-1055
History: Ord. 79-1126
History: Ord. 86-767
History: Ord. 87-988
History: Ord. 89-275
History: Ord. 91-777
History: Ord. 91-829
History: Ord. 92-086
History: Ord. 93-250
History: Ord. 93-263
History: Ord. 95-525
History: Ord. 99-587
History: Ord. 01-189
History: Ord. 04-822
History: Ord. 05-173
History: Ord. 07-422
History: Ord. 11-520
History: Ord. 20-459
Balt., Md., Code art. 22, § 7 (2026)

§ 7 Management of funds.Copy Citation

(a)Trustee of funds.
The Board of Trustees shall be the trustees of the several funds of the Employees’ Retirement System of Baltimore created by <cite data-path="|22">Article 22</cite> under this subtitle as provided in § 8. The Board of Trustees shall have the power to invest and reinvest such funds in the following types or classes of assets subject to the limitations, if any, as set forth with regard to each type or class of investment. The Board of Trustees has the duty and responsibility of periodically determining investment policies consistent with the capital market environment, and the actuarial characteristics of the Employees’ Retirement System and to publish these investment policy guidelines by filing a copy of them with the Department of Legislative Reference. All contributions from time to time paid into the several funds, and the income thereof, without distinction between principal and income, shall be held and administered by the Board of Trustees or its agents in the funds, and the Board shall not be required to segregate or invest separately any portion of the funds. Provided, however, that nothing in this section shall be deemed to render illegal or to invalidate the making and holding of any investment heretofore made and now remaining in said funds where such investment when made was authorized by law prior to the enactment of this section; and provided further, that nothing herein shall be deemed to prevent the Board of Trustees from accepting, in lieu or substitution of securities representing investments heretofore validly made, other securities not of the kind enumerated but authorized by ordinance as investments for the said Board prior to the enactment of this section, where the Board shall deem such substitution of securities desirable to preserve the investment of said funds. Subject to the terms, provisions and conditions contained herein, said Trustees shall have full power to hold, purchase, sell, assign, transfer, and dispose of any of the securities and investments in which any of the funds created herein shall have been invested, as well as the proceeds of said investments and any moneys belonging to said funds.
(1)Sudan investments.
(i)Definitions.
1.
In this paragraph (1), the following words have the meanings indicated.
2.
“Company” means any corporation, utility, partnership, joint venture, franchisor, franchisee, trust, entity, investment vehicle, financial institution, or its wholly-owned subsidiary.
3.
“Divestment action” means selling, redeeming, transferring, exchanging, or otherwise disposing or refraining from further investment in certain investments.
4.
“Doing business in Sudan” means maintaining equipment, facilities, personnel, or other apparatus of business or commerce in Sudan, including ownership of real or personal property in Sudan, or engaging in any business activity with the Government of Sudan.
5.Sudan.
A.
“Sudan” means the government in Khartoum, Sudan, that is led by the National Congress Party (formerly known as the National Islamic Front) or any successor government formed on or after October 13, 2006, including the coalition National Unity Government agreed on in the Comprehensive Peace Agreement for Sudan.
B.
“Sudan” does not include the regional government of southern Sudan.
6.Actively managed separate account.
A.
“Actively managed separate account” means the accounts of the System that are actively managed at the direction of the Board of Trustees and held in separate accounts.
B.
“Actively managed separate account” does not include:
1.
indexed funds,
2.
private equity funds,
3.
hedge funds,
4.
real estate funds, and
5.
other commingled or passively managed funds.
(ii)
Each Investment Manager engaged by the Board will provide to the Board quarterly written reports presenting a list of:
1.
securities of companies under management doing business in Sudan, and
2.
securities or instruments issued by Sudan held by the Investment Manager, in which System funds are invested.
(iii)
In preparing reports required in subparagraph (ii) of this paragraph (1), an investment manager shall reference the U.S. Department of the Treasury’s Office of Foreign Assets Control, Institutional Shareholder Services, or other list approved by the Board of Trustees.
(iv)
Consistent with the fiduciary duties of the Board of Trustees under <cite data-path="|22">this </cite><cite data-path="|22">Article 22</cite>, and the provisions of subparagraph (v) of this paragraph (1), the Board of Trustees may take divestment action in actively-managed separate accounts with regard to investments in:
1.
any bank or financial institution that makes loans to the Republic of Sudan,
2.
a national corporation of Sudan, and
3.
the stocks, securities, or other obligations of any company doing business in or with Sudan.
(v)
In determining whether to take divestment action under subparagraph (iv) of this paragraph (1) with regard to the investment of funds in actively-managed separate accounts in a company doing business in Sudan, the Board of Trustees may consider the following:
1.
revenues paid by a company directly to the government of Sudan,
2.
whether a company supplies infrastructure or resources used by the government of Sudan to implement its policies of genocide in Darfur or other regions of Sudan,
3.
whether a company knowingly obstructs lawful inquiries into its operations and investments in Sudan,
4.
whether a company attempts to circumvent any applicable sanctions of the United States,
5.
the extent of any humanitarian activities undertaken by a company in Sudan,
6.
whether a company is engaged solely in the provision of goods and services intended to relieve human suffering, or to promote welfare, health, education, or religious or spiritual activities,
7.
whether a company is authorized by the federal government of the United States to do business in Sudan,
8.
evidence that a company has engaged the government of Sudan to cease its abuses in Darfur or other regions in Sudan,
9.
whether a company is engaged solely in journalistic activities,
10.
the economic impact of the divestment from the portfolio, and
11.
any other factor that the Board of Trustees deems prudent.
(vi)
If the Board of Trustees takes divestment action under subparagraph (iv) of this paragraph (1) with respect to investments in a company, the Board of Trustees shall direct the investment manager to provide the company with written notice of its decision and reasons for the decision.
(vii)
On or before October 1 of each year, the Board of Trustees shall submit a report to the City Council that provides:
1.
all divestment actions taken by the Board in accordance with this paragraph (1),
2.
a list of those companies doing business in Sudan and of those securities or instruments issued by Sudan, as reported to the Board by its investment managers under subparagraph (ii) of this paragraph (1), from which the Board has not divested; and
3.
other developments relevant to investment in companies doing business in Sudan.
(2)Fossil fuel investments.
(i)Definitions.
1.
In this paragraph (2), the following terms have the meanings indicated.
2.Actively managed separate account.
A.
“Actively managed separate account” means assets of the System that are actively managed at the direction of the Board of Trustees and held in a separate account.
B.
“Actively managed separate account” does not include:
1.
an indexed fund;
2.
a private equity fund;
3.
a hedge fund;
4.
a real estate fund; or
5.
any other commingled or passively managed fund.
3.
“Company” means any sole proprietorship, organization, association, corporation, limited liability company, utility, partnership, joint venture, or any other entity or business association, including any wholly-owned subsidiary, majority-owned subsidiary, or parent entity of any company.
4.
“Divest” or “divestment action” means selling, redeeming, transferring, exchanging, or otherwise disposing or refraining from further investment in certain investments.
5.
“Fossil fuel company” means a company listed in the 200 publicly traded coal, oil, and gas companies that hold reported fossil fuel reserves with the largest potential carbon emissions, as ranked and updated annually in the Carbon Underground 200 or any successor index.
(ii)New investments prohibited.
Except as otherwise provided in this paragraph (2), the Board of Trustees may not make any new investments in any fossil fuel company within an actively managed separate account.
(iii)Periodic review.
At least every 6 months, the Board of Trustees shall review the investment holdings in each actively managed separate account and identify each investment in any fossil fuel company.
(iv)Divestment.
Except as otherwise provided in this paragraph (2), the Board of Trustees shall:
1.
by July 1, 2022, divest at least 20% of its investments in fossil fuel companies held in any actively managed separate account as of January 1, 2022;
2.
by July 1, 2023, divest at least 40% of its investments in fossil fuel companies held in any actively managed separate account as of January 1, 2022;
3.
by July 1, 2024, divest at least 60% of its investments in fossil fuel companies held in any actively managed separate account as of January 1, 2022;
4.
by July 1, 2025, divest at least 80% of its investments in fossil fuel companies held in any actively managed separate account as of January 1, 2022; and
5.
by July 1, 2026, divest at least 100% of its investments in fossil fuel companies held in any actively managed separate account as of January 1, 2022.
(v)Fiduciary duty.
1.
Nothing in this paragraph (2) shall require the Board to take action as described in this paragraph (2) unless the Board determines, in good faith, that the action is consistent with the fiduciary duties and responsibilities of the Board as required by law.
2.
If the Board of Trustees finds that a delay in divesting from a fossil fuel company is necessary due to its fiduciary duty, the Board shall, within 30 days of that finding, report the delay to the Mayor, the Board of Estimates, and the City Council and report an estimated timeline for the resumption of divestment.
(vi)Notice.
1.
Before divesting from a fossil fuel company under this paragraph (2), the Board shall provide written notice and an opportunity to respond in writing to each company subject to the divestment action.
2.
No divestment action may occur until 90 days from the date of the notice described in sub-subparagraph 1. of this subparagraph (vi).
3.
No divestment action may occur if the company demonstrates to the Board of Trustees that it is exempt from divestment under subparagraph (vii) of this paragraph (2).
(vii)Exemption.
The divestment requirements and investment prohibitions of this paragraph (2) do not apply to any company that can demonstrate to the Board of Trustees that the company:
1.
has stopped exploring for new hydrocarbons;
2.
contractually agrees not to develop or sell 80% of its current proven fossil fuel reserves; and
3.
has ceased lobbying or attempting to influence City, state, or federal government officials to preserve fossil fuel subsidies, tax breaks, or the company’s competitive advantage with respect to clean, renewable energy.
(viii)Annual report.
On or before June 30 of each year, the Board of Trustees shall submit a report to the Mayor and City Council detailing the operation and compliance with this paragraph (2). The report shall include:
1.
identification of each investment in a fossil fuel company held in an actively managed separate account;
2.
a list of each divestment action taken under this paragraph (2) in the prior fiscal year;
3.
a description of each decision to delay divestment; and
4.
a calculation of the administrative cost of compliance with this paragraph (2).
(b)Interest.
(1)
(i)
As of July 1, 1978, the Trustees will determine the “carrying value” of the Fund in accordance with the asset valuation method theretofore employed and the “adjusted market value” of the Fund representing an average fair market value of that date.
(ii)
During the 1979 fiscal year, the Trustees will establish a “Reserve for Book Value” as of July 1, 1978, equal to the difference as of that date between the carrying value and the adjusted market value of the Fund. On that date and on each annual valuation date thereafter, the value of the Fund assets for actuarial valuation purposes will be carried at (1) the then current adjusted market value, plus (2) the Reserve for Book Value.
(iii)
The Board of Trustees annually shall credit regular interest less the investment management, custodian and investment adviser costs on the mean amount for the preceding year in each of the funds. After payment of pension fund management, custodian, and investment adviser services as provided in §§ 7(g) and 43(a), any excess of the earnings of the funds of this Retirement System as determined in accordance with an appropriate asset investment adviser services as provided in §§ 7(g) and 43(a), any excess of the earnings of the funds of this Retirement System as determined in accordance with an appropriate asset valuation method giving effect to actual earnings of the funds, over the earnings based on the regular interest rate used for valuation purposes, shall first be applied by the Board of Trustees to meet the conditions of any asset averaging method then in use under the system.
(iv)
An additional amount equal to 1½% of the mean amount for the preceding year in each of the funds will be deducted from the remaining excess earnings, if any, and applied by the Board of Trustees to reduce the remaining balance, if any, in the “Reserve for Book Value”; to the extent that excess earnings are less than 1½% per annum, the City of Baltimore shall contribute the difference to the “Reserve for Book Value”, averaged over a 5-year period in accordance with the asset valuation method theretofore employed. The remaining excess earnings, if any, shall next be applied by the Board in such amount or amounts as they determine (1) to decrease the amount contributed by the City of Baltimore, and/or (2) to decrease the period over which the unfunded accrued liability will be amortized as provided in § 8(c)(3), and/or (3) to reduce the remaining balance, if any, in the “Reserve for Book Value”. Any deficiency of the earnings of the funds of this Retirement System, as determined in accordance with an appropriate asset valuation method giving recognition to actual earnings of the funds, below the required earnings based on the regular interest rate used for valuation purposes shall first be applied to meet the conditions of any asset averaging method then in use under the system; the remaining deficiency in earnings, if any, shall be applied by the Board of Trustees in such amount or amounts as they determine either (1) to increase the amount contributed by the City of Baltimore, and/or (2) to increase the period over which the unfunded accrued liability will be amortized as provided in § 8(c)(3).
(v)
The increase or decrease of contribution and/or the increase or decrease in length of amortization period shall be determined by the Board after receiving the advice of the actuary engaged by the City, on the basis of regular interest rate used for valuation purposes, and of such mortality and other tables as shall be adopted by the Board of Trustees.
(2)
The Board of Trustees shall use such portion of the net unallocated interest surplus (if any), which has not been used to reduce the City’s contribution or the unfunded actuarial liability, as is deemed necessary by the actuary to cover the cost to the City of Baltimore which may result from the implementation of Ordinance 87-988, effective July 1, 1987, as it affects benefits for current members as of the date of enactment of the ordinance. All other costs of Ordinance 87-988 shall be provided for in the same manner as otherwise described in this section.
(3)
The Board of Trustees shall apply the $19,633,535 restricted portion of the interest surplus, as noted in City Council Resolution 88-009, towards the cost to the City of Baltimore which results from the implementation of Ordinance 89-275.
(4)
Any unallocated interest surplus as of June 30, 1990, shall be applied to reduce the current cost of the system. $1,000,000 of such surplus shall be applied for the City’s fiscal year ending June 30, 1992. The remainder of such surplus shall be applied in each following fiscal year until exhausted. The amount to be applied in each such year shall be no more than $3,000,000 and no less than the lesser of $1,000,000 or the remaining amount of surplus not yet applied.
(5)
The Board of Trustees shall use such portion of the net unallocated interest surplus, if any, as of June 30, 1995, as is deemed necessary by the actuary to cover the cost to the City of §§ 4(b)(2) and 9(c)(6) of this subtitle. Any additional costs of said sections shall be funded in the same manner as otherwise described in this section.
(6)
The Board of Trustees shall use that portion of the net unallocated excess earnings, if any, as of June 30, 2000, that the actuary considers necessary to cover the cost to the City of §§ 6(a)(2)(iii), 6(b)(15)(i), 6(b-1), 6(c)(2)(ii), 6(c)(12)(ii), 6(d-1), 6(f)(12)(ii), 6(f)(14), 6(h)(4), 6(k), 9(e)(6), 9(j)(ii), 9(m)(8)(c) and (d), 9(o-1)(4), and 9(o-4) of this subtitle. Any additional costs of those sections shall be funded in the same manner as otherwise described in this section.
(c)Cash on deposit.
For the purpose of meeting disbursements for pensions, annuities, and other payments, there may be kept available cash on deposit in one or more banks or trust companies located in the City of Baltimore, organized under the laws of the State of Maryland or of the United States, in such amount as the Trustees may by resolution from time to time adopt, not exceeding a sum equal to the estimated disbursements projected for a period of 15 days. The sums on deposit in bank shall be secured by collateral posted by the depositories of such type and amount as the Board of Finance may prescribe, but in no event shall the market value of such collateral be less than 100% of the amount on deposit according to the depositories’ records. In exercising this authority for bank deposits, the Trustees shall endeavor to minimize the amount of such deposits, and shall consider appropriate money management techniques, including wire transfers of funds and the zero-balance-fee-for-service method of maintaining bank accounts. In no event shall the bank accounts be used as the basis for, or form part of the basis for fees for the investment administrators or be used to provide supplementary compensation for such investment administrators.
(d)Securities handling.
The Director of Finance, as the Custodian designated in <cite data-doc="City of Baltimore, Md., Charter">the City Charter</cite>, may cause any investment in securities held by the Trustees to be registered in or transferred into the name of the Trustees or into the name of such nominee as the Director of Finance may direct, including a nominee partnership created by the Board of Trustees, or the Director of Finance may retain them unregistered and in form permitting transferability, and further may authorize its contractual agents to deposit securities with “clearing corporations” as defined in § 8-102 of the State Commercial Law Article for the express purpose of having such clearing corporations act as centralized depositories for such securities, but the books and records of the Director of Finance and its contractual agents shall at all times show that all such investments are part of the several funds of the Employees’ Retirement System. The authority to make use of a clearing corporation shall include the authority to utilize the “book entry” system of the United States Government, and agencies thereof, for which the Federal Reserve Bank is the authorized fiscal agent.
(e)Conflicts of interest.
Except as otherwise herein provided, no trustee and no employees of the Board of Trustees shall have any direct interest in the gains or profits of any investment made by the Board of Trustees or their designees, nor as such receive any pay or emolument for his services, except as authorized from time to time by the Board of Estimates. No trustee or employee of the Board shall, directly or indirectly, for himself or as an agent in any manner use said gains or profits, except to make such current and necessary payments as are authorized by the Board of Trustees; nor shall any Trustee or employee of the Board of Trustees become an endorser or surety or in any manner an obligor for moneys loaned by or borrowed from the Board of Trustees.
(f)Trustee Fiduciary liability.
Neither the Board of Trustees nor any agent, person or other entity acting on behalf of the Board of Trustees shall be liable for the making, retention or sale of any investment or reinvestment made as herein provided, nor for any loss or diminution of the funds, except that due to his or its own gross negligence, willful misconduct or lack of good faith.
(g)Custodian and supervision of funds.
The Director of Finance shall be the custodian of the several funds of the Employees’ Retirement System. Supervision of the several funds of the Employees’ Retirement System shall be vested in the Board of Trustees. Subject to the approval of the Board of Estimates, the Board of Trustees may hire and appoint such persons, agents or entities (including corporate fiduciaries) as in its discretion may be required or advisable to enable it to perform such pension fund investment management duties hereunder; provided further, that subject to the approval of the Board of Estimates the Board of Trustees may enter into agency and pension fund investment management agreements with one or more qualified pension fund managers for the purpose of obtaining pension fund investment management for the Employees’ Retirement System and the several funds thereof. Payment for such investment management services shall be made from the resources of the pension fund or funds.
(h)Prudent investment of funds.
The Board of Trustees shall discharge its duties, with respect to the investment of the funds of the Employees’ Retirement System, solely in the interest of the members and beneficiaries and:
(1)
for the exclusive purpose of:
(i)
providing benefits to members and beneficiaries; and
(ii)
defraying reasonable expenses of administering the Retirement System;
(2)
with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims;
(3)
by diversifying the investments of the Retirement Systems’ funds so as to minimize the risk of large losses, unless under the circumstances it is clearly prudent not to do so; and
(4)
in accordance with the provisions of <cite data-path="|22|§7">§ 7 of this subtitle</cite>.
History: Ord. 26-553
History: Ord. 33-390
History: Ord. 58-1264
History: Ord. 59-244
History: Ord. 64-424
History: Ord. 68-119
History: Ord. 70-758
History: Ord. 73-313
History: Ord. 73-419
History: Ord. 75-1058
History: Ord. 78-851
History: Ord. 81-238
History: Ord. 83-880
History: Ord. 85-492
History: Ord. 86-765
History: Ord. 86-779
History: Ord. 87-988
History: Ord. 88-058
History: Ord. 89-275
History: Ord. 90-466
History: Ord. 91-777
History: Ord. 93-210
History: Ord. 93-265
History: Ord. 96-006
History: Ord. 01-189
History: Ord. 07-570
History: Ord. 11-520
History: Ord. 12-044
History: Ord. 21-043
Balt., Md., Code art. 22, § 8 (2026)

§ 8 Method of financing.Copy Citation

(a)Assets to meet obligations.
All of the assets of the Retirement System shall be credited toward meeting the aggregate obligations of the Retirement System.
(b)Retirement System Fund.
(1)
The Retirement System shall maintain a fund in which shall be accumulated all reserves for the payment of all pensions and other benefits payable from contributions made by the City of Baltimore and from which shall be paid all pensions and other benefits on account of members with prior service credit and lump sum death benefits for all members payable from the those contributions.
(2)
Contributions by the City Baltimore to the Retirement System Fund shall be made as follows:
(i)
On the basis of regular interest and of such mortality and other tables as are adopted by the Board of Trustees, the actuary engaged by the Board shall make a valuation to determine the required contribution by the City of Baltimore for the Retirement System Fund.
(ii)
The actuary shall determine for each member a normal cost that is equal to the amount of annual contribution as a constant percentage of compensation that is necessary to provide the member’s benefit, if the contributions had been made annually from the member’s date of entry into the system, together with any other service credit acquired under any provisions of this subtitle and under Division II of the State Personnel and Pension Article, to the member’s date of retirement. The total amounts so determined shall be known as “normal cost contribution.”
(iii)
An accrued liability shall be calculated for each member equal to the accumulation of the annual normal cost contribution, as described in subparagraph (ii) of this paragraph (2), from the date of entry into the system, together with any other service credit acquired under any provisions of this subtitle and under Division II of the State Personnel and Pension Article, to the valuation date on the basis of the actuarial assumptions adopted by the Board of Trustees.
(iv)
The accrued liability computed under subparagraph (iii) of this paragraph (2) shall be added to the reserve for retirement benefits payable to retired members from the Retirement System Fund to obtain the total accrued liability.
(v)
The assets of the Retirement System Fund shall be applied against the total accrued liability, computed for all members, retirees, and beneficiaries, to determine the amount of unfunded accrued liability. An accrued liability contribution shall be determined as the amount sufficient to meet regular interest on the unfunded accrued liability, and to amortize the principal of the unfunded accrued liability over the period of time determined by the Board of Trustees.
(vi)
The required contribution by the City of Baltimore shall be the sum of the normal cost and accrued liability contribution determined in accordance with this paragraph. The aggregate payment by the City of Baltimore shall be, when combined with the amount in the Retirement System Fund, sufficient to provide the pensions and other benefits payable out of the Fund during the year then current.
(vii)
The accrued liability contribution shall be discontinued as soon as the accumulated reserve in the Retirement System Fund equals the present value, as actuarially computed and approved by the Board of Trustees, of the total liability of the Fund, less the present value, computed on the basis of the normal contribution rate then in force, of the prospective normal contributions to be received on account of persons who are at that time members.
(c)Certification of appropriation.
(1)
On or before January 1 of each year, the Board of Trustees shall certify to the Board of Estimates the amount of the appropriation necessary to pay to the Retirement System the amounts payable by the City of Baltimore, as enumerated in <cite data-path="|22">this article</cite>, for the fiscal year beginning on the ensuing July 1.
(2)
The amount so certified is due to the System on July 1 of the fiscal year, and appropriations for that amount shall be included in the Ordinance of Estimates for that fiscal year.
(d)Member contributions.
(1)Class C members.
(i)
Subject to subparagraph (ii) of this paragraph (1), and notwithstanding any other provision of this subtitle, effective with the 1st full payroll period that begins after the applicable effective date shown below, each Class C member shall contribute the percentage of his or her earnable compensation (as defined in <cite data-path="|22|§1|(11)">§ 1(11) of this subtitle</cite>) that corresponds to the effective date, these contributions to continue throughout the member’s remaining period of service: <table> <thead> <tr> <th>Effective date</th> <th>Percentage of earnable compensation</th> </tr> </thead> <tbody> <tr> <td>July 1, 2013</td> <td>1%</td> </tr> <tr> <td>July 1, 2014</td> <td>2%</td> </tr> <tr> <td>July 1, 2015</td> <td>3%</td> </tr> <tr> <td>July 1, 2016</td> <td>4%</td> </tr> <tr> <td>July 1, 2017</td> <td>5%</td> </tr> </tbody> </table>
(ii)
(A)
The scheduled increases in a member’s contribution, as provided for in subparagraph (i) of this paragraph (1), apply only for a fiscal year in which a minimum 2% raise (or in which a series of prior non-minimum annual raises, first effective after the immediately preceding contribution increase, reaches an aggregate of 2% (the “aggregate minimum”)):
1.
has been subject to negotiation or meet-and-confer, as the case may be, with the certified employee organization or professional association representing that employee; and
2.
has become effective for that employee and for all other employees represented by that organization or association.
(B)
For any fiscal year in which a member does not receive this minimum raise (or minimum aggregate), the scheduled increase in that member’s contribution is suspended and the schedule of increased contributions will resume only for the next fiscal year in which there is a minimum raise (or aggregate minimum).
(C)
Notwithstanding City Code <cite data-path="|12|§5-8">Article 12, § 5-8 {“Labor Negotiations: Time table”}</cite>, if a minimum raise (or minimum aggregate) only becomes effective after a fiscal year has begun, the contribution increase for that fiscal year is suspended until the date on which the minimum raise (or minimum aggregate) is effective and is then applied pro rata for the period from the effective date of the raise through the remainder of the fiscal year.
(D)
For any fiscal year in which a raise (or aggregate of raises) exceeds 2%, the excess over 2% shall be calculated with all other subsequent raises for purposes of determining the next minimum aggregate requiring the next contribution increase.
(E)
At all times, notwithstanding any suspension of a scheduled increase, a member’s then required contribution, as established in prior fiscal years, remains intact.
(2)Class D members.
Effective with the 1<sup>st</sup> full payroll period that begins after an employee begins her or his Class D membership, the employee shall contribute 5% of his or her earnable compensation (as defined in <cite data-path="|22|§1|(11)">§ 1(11) of this subtitle</cite>), these contributions to continue throughout the member’s remaining period of service.
(3)“Picked-Up” status.
(i)
The contributions described in paragraphs (1) and (2) of this subsection shall be treated as being “picked up” by the City of Baltimore within the meaning of Internal Revenue Code (“IRC”) § 414(h)(2).
(ii)
These picked-up contributions may not be excluded from “average final compensation” in computing the amount of any retirement allowance under this System or any other benefit paid or payable in connection with the member’s employment. Each member is at all times fully vested in these contributions.
(iii)
As soon as administratively practicable, the City shall request a private letter ruling from the Internal Revenue Service to the effect that the contributions so picked up by the City on behalf of members of this System will be treated as employer contributions described in IRC § 414(h)(2) and will not be includible in the member’s gross income for federal income tax purposes for the year in which they are contributed. If the Internal Revenue Service rules that the City’s picked-up contributions do not satisfy the requirements of IRC § 414(h)(2), or if § 414(h)(2) is repealed, the contribution rates set forth in paragraphs (1) and (2) of this subsection will remain in effect, but the contributions may no longer be treated as picked up by the City and shall be paid instead directly by the member.
(iv)
For each payroll period, the Department of Finance shall cause to be deducted from the earnable compensation of each Class C and Class D member the percentage of contributions described in paragraphs (1) and (2) of this subsection. These deductions shall be paid into the Retirement System Fund and credited, with regular interest (as defined in <cite data-path="|22|§1|(9)|(i)|(B)">§ 1(9)(i)(B) of this subtitle</cite>), on behalf of the member from whose earnable compensation the deductions were made.
(v)
A member’s accumulated contributions that are withdrawn by the member, or paid to the member’s estate or designated beneficiary in event of death as provided in this subtitle, shall be paid from the Retirement System Fund.
History: Ord. 26-553
History: Ord. 50-1410
History: Ord. 53-899
History: Ord. 64-425
History: Ord. 65-700
History: Ord. 68-235
History: Ord. 70-759
History: Ord. 73-419
History: Ord. 74-552
History: Ord. 75-1058
History: Ord. 77-610
History: Ord. 79-1055
History: Ord 91-777
History: Ord. 92-086
History: Ord. 07-422
History: Ord. 13-144
History: Ord. 13-191
History: Ord. 14-216
Balt., Md., Code art. 22, § 9 (2026)

§ 9 Class C membership.Copy Citation

(a)General provisions.
(1)“(An)other City retirement plan” defined.
In this section, “(an)other City retirement plan” means:
(i)
the Fire and Police Employees’ Retirement System of the City of Baltimore; or
(ii)
the Elected Officials’ Retirement System of the City of Baltimore.
(2)Commencement of membership.
(i)In general.
Except as provided in §§ 9.1 and 9.2 of this subtitle, an employee whose employment with the City begins on or after July 1, 1979, with the exception of an employee who is required to join another City retirement plan, will become a Class C member of this System on the 1st annual anniversary of the date on which his or her employment began.
(ii)Transfers.
An employee who, on or after July 1, 2014, transfers, without a break in employment, from a position with the City covered under another City retirement plan to a position with the City covered under this System:
(A)
will become a Class C member on the 1<sup>st</sup> annual anniversary of the transfer; and
(B)
will be credited with his or prior service under the other City retirement plan in accordance with subsection (c)(4) of this section.
(3)Non-participation in other City retirement plans – General.
Except as provided in paragraph (4) of this subsection, a Class C member may not make contributions to, receive any pension or retirement income from, or accrue any service credit in another City retirement plan while at the same time accruing service credit in this System.
(4)Non-participation in other City plans – Exception.
Notwithstanding paragraph (3) of this subsection, and pursuant to <cite data-path="|22|§48">§ 48 of this article</cite>, the following may become Class C members of this System and accrue service credit in this System while an employee covered by this System:
(i)
members of another City retirement plan who were eligible to begin receiving retirement benefits from that other plan but who, on transferring to a position covered by this System, postponed receipt of those benefits; or
(ii)
retirees who were receiving retirement benefits from another City retirement plan but who, on reemployment in a position covered by this System, suspended receipt of those benefits.
(b)Forms.
A Class C member shall execute the form or forms and provide the supporting evidence that may be required from time to time, and must answer truthfully all questions pertinent to administration of this System.
(c)Class C service credit.
(1)Termination on or before April 30, 1996.
(i)In general.
For any Class C member who terminates employment on or before April 30, 1996, all service in a fiscal year after the date of becoming a Class C member shall be credited as provided in this paragraph.
(ii)Job requiring more than 1,000 hours per year.
(A)
Any Class C member employed by the City in a job classification that requires 1,000 or more hours of work in a fiscal year shall receive credit for 1 year of service, if that member was in pay status for each and every payroll period in the fiscal year.
(B)
If the member was not in pay status for each and every payroll period in the fiscal year, service for that fiscal year shall be credited pro rata, calculated as follows:
1.
1 year’s service credit, multiplied by
2.
a fraction, the numerator of which is the number of payroll periods in the fiscal year that the member was in pay status, and the denominator of which is the total number of payroll periods in the fiscal year for that member’s job classification.
(iii)Job requiring 500-1,000 hours per year.
(A)
Any Class C member employed by the City in a job classification that requires not less than 500 nor more than 1,000 hours of work in a fiscal year shall receive credit for ½ of a year of service, if that member was in pay status for each and every payroll period in the fiscal year.
(B)
If the member was not in pay status for each and every payroll period in the fiscal year, service for that fiscal year shall be credited pro rata, calculated as follows:
1.
½ year’s service credit, multiplied by
2.
a fraction, the numerator of which is the number of payroll periods in the fiscal year that the member was in pay status, and the denominator of which is the total number of payroll periods in the fiscal year for that member’s job classification.
(iv)Job requiring less than 500 hours per year.
Any Class C member employed by the City in a job classification that requires less than 500 hours of work in a fiscal year is not eligible to receive any service credit for that employment. However, the member is considered an active Class C member.
(2)Termination on or after May 1, 1996.
(i)In general.
For a Class C member who terminates employment on or after May 1, 1996, all service in a fiscal year after the date of becoming a Class C member shall be credited as provided in this paragraph.
(ii)Job requiring more than 1,000 hours per year.
(A)
A Class C member who is employed by the City in a job classification that requires more than 1,000 hours of work in a fiscal year shall receive credit for 1 year of service.
(B)
If, however, during the 1<sup>st</sup> or final fiscal year of the member’s service, the member was not in pay status for every payroll period in the fiscal year, or for any other fiscal year in which the member was out of pay status for 7 or more bi-weekly payroll periods (or an equivalent number of weekly or monthly payroll periods), service for that fiscal year shall be credited pro rata, calculated as follows:
1.
1 year’s service credit, multiplied by
2.
a fraction, the numerator of which is the number of payroll periods in the fiscal year that the member was in pay status, and the denominator of which is the total number of payroll periods in the fiscal year for the member’s job classification.
(iii)Job requiring 500-1,000 hours per year.
(A)
A Class C member who is employed by the City in a job classification that requires not less than 500 nor more than 1,000 hours of work in a fiscal year shall receive credit for ½ of a year of service.
(B)
If, however, during the 1<sup>st</sup> or final fiscal year of a member’s service, the member was not in pay status for every payroll period in the fiscal year, or for any other fiscal year in which the member was out of pay status for 7 or more bi-weekly payroll periods (or an equivalent number of weekly or monthly payroll periods), service for that fiscal year shall be credited pro rata, calculated as follows:
1.
½ year’s service credit, multiplied by
2.
a fraction, the numerator of which is the number of payroll periods in the fiscal year that the member was in pay status, and the denominator of which is the total number of payroll periods in the fiscal year for the member’s job classification.
(iv)Job requiring less than 500 hours per year.
A Class C member who is employed by the City in a job classification that requires less than 500 hours of work in a fiscal year is not eligible to receive any service credit for that employment. However, the member will be considered an active Class C member.
(v)Pay based on less than 12-month basis.
The service of a Class C member who is paid on other than a uniform, 12-month basis (e.g., a 10-month employee of the Baltimore City Public School System) may not be pro rated under this paragraph because of the member’s being out of pay status during the period that the member ordinarily would not be paid.
(3)Additional opportunity to purchase credit for service with City.
(i)Prior City service.
A Class C member is entitled to purchase service credit for any City employment regardless of retirement plan membership, as long as:
(A)
the employment did not result in the member’s being entitled to any current or future benefits for that employment in any other City retirement plan; and
(B)
the Class C member pays to this System, by a single payment, an amount equal to:
1.
the current salary of the employee in the year of purchase, multiplied by
2.
the sum of the employer rate for the normal cost and the employee contribution rate under <cite data-path="|22|§8|(d)|(1)">§ 8(d)(1) of this subtitle</cite> for the year of purchase, multiplied by
3.
the number of years or part of a year being purchased.
(ii)1st year of service.
In addition, a Class C member is entitled to purchase service credit for the member’s 1<sup>st</sup> year of service with the City, under the same conditions as provided in subparagraph (i)(B) of this paragraph.
(iii)Lump-sum option.
If a member purchases service credit under this paragraph and later dies or leaves City employment for any reason, with or without any vested benefit due to the member or the member’s beneficiary under this subtitle, the member or the beneficiary is entitled to receive, in lieu of any other benefit under this System, a lump-sum cash payment equal to the total amount paid by the member for the purchase, plus interest at the rate of 5½% per year through June 30, 2013, and, effective July 1, 2013, at a rate equal to regular interest (as defined in <cite data-path="|22|§1|(9)|(i)|(B)">§ 1(9)(i)(B) of this subtitle</cite>).
(4)Transfer of service.
(i)Eligibility.
A Class C member who satisfies the applicable requirements of the State Personnel and Pensions Article may transfer service from a State or local retirement or pension system within Maryland.
(ii)Service credit.
The service so transferred will be credited as service under this System.
(d)Military personnel – Credit for military service during City employment.
(1)Definitions.
(i)In general.
In this subsection, the following terms have the meanings indicated.
(ii)Military service.
(A)In general.
“Military service” means any:
1.
“service in the uniformed services”, as defined by and interpreted under 38 U.S.C. § 4303(13); or
2.
“military service”, as defined by and interpreted under <cite data-doc="Md. Code" data-path="gsp|38-101">State Personnel and Pensions Article § 38-101(d)</cite>.
(B)Inclusions.
“Military service” includes active duty, active duty for training, initial active duty for training, and inactive duty training (such as drills), under competent authority, on a voluntary or involuntary basis, in the Army, Navy, Marine Corps, Air Force, Coast Guard, Public Health Service Commissioned Corps, the Army National Guard, the Air National Guard, the Maryland National Guard, as well as the reserve components of each of these services, and any other category of persons designated by the President or the Governor of the State of Maryland in time of war or national or state emergency.
(iii)USERRA.
“USERRA” means the Uniformed Services Employment and Reemployment Rights Act of 1994, 38 U.S.C. §§ 4301-4344, as amended.
(2)Scope of subsection.
This subsection applies only to a member of this System who:
(i)
on account of military service, is on leave of absence from City employment;
(ii)
is eligible for reemployment with the City under USERRA;
(iii)
is reemployed by the City as an employee; and
(iv)
applies for service credit with this System.
(3)Service credit.
(i)Period covered.
A member of this System shall receive service credit for the period of absence while in military service as though he or she remained continuously employed as an employee.
(ii)USERRA-required inclusion.
To the extent required by USERRA, this service credit shall include the period, if any, between the date the member completes military service and the date of reemployment.
(4)Transfer of service credit.
A member of this System who receives service credit for military service under this subsection may transfer the credit to another State or local retirement or pension system within Maryland.
(5)Benefits unavailable during absence.
A member of this System, the member’s beneficiary, or the member’s estate is not entitled to line-of-duty disability benefits or line-of-duty death benefits arising from the member’s death or disability during a period that the member is absent from employment for military service.
(6)City funding of member contributions.
(i)In general.
Except as otherwise provided in subparagraph (ii) of this paragraph, a member of this System who is reemployed under paragraph (2) of this subsection shall be credited with, at the City’s sole expense, the contributions that the member otherwise would have made under <cite data-path="|22|§8|(d)|(1)">§ 8(d)(1) of this subtitle</cite> had the member not been absent, plus regular interest (as defined in <cite data-path="|22|§1|(9)|(i)|(B)">§ 1(9)(i)(B) of this subtitle</cite>) on those contributions.
(ii)Exception for termination before benefit eligibility.
(A)
If a member terminates City employment, other than by reason of death, before becoming eligible for a retirement benefit or for a deferred vested pension benefit under this section, the member is not entitled to receive any part of the contributions made on his or her behalf under subparagraph (i) of this paragraph.
(B)
However, the contributions made on behalf of a member will be used to fund a retirement benefit or a deferred vested pension benefit payable to the member under this section.
(C)
In addition, the contributions made on behalf of a member:
1.
will be used to fund a periodic death benefit payable to the member’s beneficiary under this section; or
2.
if the member’s beneficiary is entitled to receive a lump-sum death benefit under this section, will be paid to the beneficiary.
(iii)Refunds.
The Board of Trustees shall refund to a member any contributions made to this System during a period of absence from employment for military service while the member is otherwise exempted under this paragraph from paying contributions into this System.
(d-1)Military personnel – Credit for military service before employment.
(1)Eligibility requirements.
Subject to paragraph (2) of this subsection, but notwithstanding any other provision of this subtitle, on proper application to this System, up to 3 years of credit shall be granted for military service, as defined in subsection (d) of this section, to any Class C member who has served in the military prior to employment with the City and who satisfies one of the following:
(i)
for a member who terminates employment on or before June 28, 1993, the member:
(A)
has acquired at least 10 years of service (disregarding the military service credit) and has attained at least age 65; or
(B)
has acquired 35 years of service (disregarding the military service credit) and has attained at least age 62;
(ii)
for a member who terminates employment on or after June 29, 1993, and on or before December 31, 1995, the member:
(A)
has acquired at least 10 years of service (disregarding the military service credit) and has attained at least age 62; or
(B)
has acquired 30 or more years of service (disregarding the military service credit), regardless of age; or
(iii)
for a member who terminates employment on or after January 1, 1996, the member:
(A)
has acquired at least 10 years of service (disregarding the military service credit) and has attained at least age 62; or
(B)
has acquired 20 or more years of service (disregarding the military service credit), regardless of age.
(2)Exclusion for period credited under another system.
(i)
Except as provided in subparagraph (ii) of this paragraph, the member may not receive credit for a period of military service if, under any other retirement system (whether a City retirement plan or otherwise), the member has received credit for the same period of military service for which retirement benefits have been or will be received by him or her.
(ii)
The exclusion in subparagraph (i) of this paragraph does not apply to:
(A)
any credit for military service provided by the federal Social Security System; or
(B)
any benefit provided under Title 10, Chapter 1223, § 12731 through § 12741 of the U.S. Code.
(d-2)Service retirement benefits.
(1)Types.
The following types of service retirement benefits are available to a Class C member under this System:
(i)
normal retirement benefits, as described in subsection (e) of this section;
(ii)
early retirement benefits, as described in subsection (f) of this section; and
(iii)
deferred vested pension benefits, as described in subsection (l) of this section.
(2)Application and filing period.
A Class C member in service may retire under subsection (e), (f), or (l) of this section if:
(i)
the member files the appropriate application with the Board of Trustees, in the form and containing the information that the Board requires;
(ii)
the member specifies on the form the date on which the member desires his or her benefits to commence;
(iii)
the date so specified is not less than 60 days nor more than 90 days after the date of filing the application; and
(iv)
as of the date so specified, the member will have complied with the applicable conditions of the retirement benefit applied for.
(e)Normal retirement.
(1)Normal retirement for any Class C member employed on or after June 29, 1989, and who terminates employment on or before June 28, 1993.
This § 9(e)(1) shall not apply to Class C members who became employees after June 27, 1991. Any Class C member, who has acquired at least 5 years of service at the normal retirement date of age 65, shall have a nonforfeitable right to receive a maximum pension commencing at the normal retirement date, age 65, or an optional pension which shall be the actuarial equivalent of the maximum pension as provided in § 9(m). In addition, any Class C member who has not attained the normal retirement date of age 65, but who has acquired 30 years of service and has attained the age of at least 62, shall be entitled to receive a maximum pension calculated as if the member had attained his normal retirement date, age 65. The maximum pension shall be equal to 1.85% of the member’s average final compensation multiplied by his years of service (and fractions thereof) reduced by 1.33% of the member’s Primary Social Security Benefit multiplied by his years of service (and fractions thereof) not to exceed 30. However, for members who terminate employment with the City before June 29, 1990, the preceding sentence shall be read by substituting “1.84%” for “1.85%”, and by substituting “1.37%” for “1.33%”. Effective June 28, 1992, the maximum pension for any Class C member who was an employee on or after June 28, 1991, and who is eligible to retire under the above paragraph shall be the greater of the retirement benefit provided in § 9(e)(1) or § 9(e)(4).
(2)Normal retirement for any Class C member employed on or after July 1, 1987, and who terminated employment on or before June 28, 1989.
Any Class C member, who has acquired at least 5 years of service at the normal retirement date of age 65, shall have a nonforfeitable right to receive a maximum pension commencing at the normal retirement date, age 65, or an optional pension which shall be the actuarial equivalent of the maximum pension as provided in § 9(m). In addition, any Class C member who has not attained the normal retirement date of age 65, but who has acquired 30 years of service and has attained the age of at least 62, shall be entitled to receive a maximum pension calculated as if the member had attained his normal retirement date, age 65. The maximum pension shall be equal to 1.70% of the member’s average final compensation multiplied by his years of service (and fractions thereof), reduced by 1.5% of the member’s Primary Social Security Benefit multiplied by his years of service (and fractions thereof) not to exceed 30.
(4)Normal retirement for any Class C member employed on or after June 28, 1991, and who terminates employment on or before June 28, 1993.
Members who became employees on or after June 28, 1991, and who terminate employment on or before June 28, 1993, shall have their retirement benefit determined under this § 9(e)(4) without regard to § 9(e)(1). Any Class C member, who has acquired at least 5 years of service at the normal retirement date of age 65, shall have a nonforfeitable right to receive a maximum pension commencing at the normal retirement date, age 65, or an optional pension which shall be the actuarial equivalent of the maximum pension as provided in § 9(m). In addition, any Class C member who has not attained the normal retirement date of age 65, but acquired 30 years of service and has attained the age of at least 62, shall be entitled to receive a maximum pension calculated as if the member had attained his normal retirement date, age 65. The maximum pension shall be equal to: (a) 1.425% of the member’s average final compensation plus 0.425% of the member’s average final compensation in excess of his covered compensation, multiplied by his years of service (and fractions thereof) not in excess of 30, plus (b) 1.85% of the member’s average final compensation multiplied by his years of service (and fractions thereof) in excess of 30. For members who retire on or after June 28, 1991, and before June 28, 1992, the preceding sentence shall read by substituting “1.40%” for “1.425%” and by substituting “0.45%” for “0.425%”. The maximum pension benefit provided by this § 9(e)(4) shall be taken into account when determining the benefit to which a member is entitled under § 9(f) (early retirement), § 9(h) (postponed retirement), § 9(i) (ordinary disability retirement) and § 9(l) (termination of employment). This § 9(e)(4) is subject to the offset set forth in § 9(e)(3) above. Effective June 28, 1992, the maximum pension for any Class C member who was an employee on or after June 28, 1991, and who is eligible to retire under § 9(e)(1) shall be the greater of the retirement benefit provided in § 9(e)(1) or § 9(e)(4).
(5)Normal retirement for Class C member who was an employee on or after June 29, 1993, and who terminates employment on or before March 31, 2001.
Notwithstanding anything to the contrary, any Class C member, who has acquired at least 5 years of service at the normal retirement date of age 65, shall have a nonforfeitable right to receive a maximum pension commencing at the normal retirement date, age 65, or an optional pension as provided in § 9(m), which shall be the actuarial equivalent of the maximum pension. In addition, any Class C member who has not attained the normal retirement age 65, but who has acquired 30 years or more of service, regardless of age, shall be entitled to receive a maximum or optional pension calculated as if the member had attained his normal retirement date, age 65. The maximum pension shall be equal to: (a) 1.50% of the member’s average final compensation, plus 0.35% of the member’s average final compensation in excess of his covered compensation, multiplied by his years of service (and fractions thereof) not in excess of 30, plus (b) 1.85% of the member’s average final compensation multiplied by his years of service (and fractions thereof) in excess of 30. The benefit provided by this § 9(e)(5) is subject to the offset set forth in § 9(e)(3) above.
(6)Normal retirement for Class C member who was an employee on or after April 1, 2001.
(i)Eligibility requirements.
Notwithstanding any other provision of this subtitle, a Class C member is entitled to receive a normal retirement benefit, calculated as provided in subparagraph (ii) of this paragraph, if the member retires:
(A)
at or after age 65, with at least 5 years of service; or
(B)
regardless of age, with at least 30 years of service.
(ii)Benefit calculation.
The normal retirement benefit is equal to:
(A)
1.60% of the member’s average final compensation, plus 0.25% of the member’s average final compensation in excess of his or her covered compensation, multiplied by his or her years of service (and fractions of those years of service), not in excess of 30, plus
(B)
1.85% of the member’s average final compensation multiplied by his or her years of service (and fractions of those years of service) in excess of 30.
(iii)Payment.
Payment of the benefit commences on the 1<sup>st</sup> day of the month immediately following the member’s retirement.
(f)Early retirement.
(1)In general.
(i)Eligibility requirements.
A Class C member is entitled to receive an early retirement benefit, calculated as provided in subparagraph (ii) of this paragraph, if the member terminates employment with the City:
(A)
on or before June 28, 1993, with at least 30 years of service; or
(B)
at any time, at or after age 55, with at least 5 years of service.
(ii)Benefit calculation.
The early retirement benefit shall be determined as provided in subsection (e)(6)(ii) of this section based on the member’s average final compensation and years of service (and fractions of those years of service) as of the date the member terminates employment.
(iii)Payment.
Except as provided in paragraph (2) of this subsection, payment of the benefit commences on the 1<sup>st</sup> day of the month immediately following the member’s 65<sup>th</sup> birthday.
(2)Reduction for early commencement.
If a member described in paragraph (1) of this subsection elects to have his or her early retirement benefit commence before the 1<sup>st</sup> day of the month immediately following his or her 65<sup>th</sup> birthday, the amount of the benefit shall be reduced as follows:
(i)30 or more years of service and employed on or after July 1, 1987.
(a)
If a member who was an employee on or after July 1, 1987, but not after June 28, 1989, has at least 30 years of service as of the date he ceased being an employee, the amount of his pension shall be reduced by 0.25% for each full month (or fraction thereof) by which the commencement of his pension precedes his normal retirement date, age 65.
(b)
If a member who was an employee on or after June 29, 1989, but not after June 27, 1991, has at least 30 years of service as of the date he ceased being an employee, the amount of his pension shall be reduced by 0.17% for each full month (or fraction thereof) by which the commencement of his pension precedes his normal retirement date, age 65. However, for members who terminate employment with the City before June 29, 1990, the preceding sentence shall be read by substituting “0.21%” for “0.17%”.
(c)
If a member who was an employee on or after June 28, 1991, and who terminates employment on or before June 28, 1993, has at least 30 years of service as of the date he ceased being an employee, the amount of his pension shall be reduced by 0.17% for each full month (or fraction thereof) by which the commencement of his pension precedes his 62<sup>nd</sup> birthday. The provisions of this § 9(f)(2)(i)(c) become effective June 28, 1992.
(ii)Less than 30 years of service and employed on or after July 1, 1987.
If a member who was an employee on or after July 1, 1987, has less than 30 years of service as of his or her termination of employment date and elects to have his or her pension commence before the 1<sup>st</sup> day of the month immediately following his or her 65<sup>th</sup> birthday, the amount of his or her benefit shall be reduced by:
(A)
1/180 for each of the first 60 months (or fraction of a month) by which commencement of the member’s pension precedes the 1<sup>st</sup> day of the month immediately following his or her 65<sup>th</sup> birthday; and
(B)
1/360 for each additional month (or fraction of a month) by which commencement of the member’s pension precedes the 1<sup>st</sup> day of the month immediately following his or her 65<sup>th</sup> birthday.
(iii)Employed prior to July 1, 1987.
A member who ceased being an employee prior to July 1, 1987, shall have his maximum or optional pension calculated according to Ordinance 79-1055. If said member elects to have his maximum or optional pension commence prior to normal retirement date, age 65, his maximum or optional pension shall be actuarially reduced based upon the unisex table approved by the Board of Trustees and known as “The Actuarial Reduction for Early Payment Class C Members Only Table, effective August 1, 1983.”
(3)Retirement on account of job removal.
(i)Scope of paragraph.
(A)
This paragraph will be applied exclusively upon receipt by the system of a written determination from the agency head of a member of this system, which is countersigned by an appropriate designee of: (1) the Office of the Mayor, (2) the Director of Human Resources, or (3) the Department of Law, confirming consultation by the agency head with each of the three designees and certifying one of the following criteria for a job removal retirement benefit:
1.
the member is being laid off without fault on his or her part due to a reduction in force or diminished need for the services performed by the holder of such position and is not being removed for poor performance in the job,
2.
in the case of an exempt member working in an “at will” position not covered by civil service, the member is being removed from his or her position without fault on his or her part, at the initiation of the agency and pursuant to its absolute discretion, and is not being removed for poor performance in the job,
3.
the member is being removed from his or her position without fault on his or her part due to physical or mental incapacity,
4.
the member is being removed from his or her position without fault on his or her part and the mutual best interests of the agency and the member would be served through the removal insofar as the removal will resolve a personnel or disciplinary dispute between the agency and the member, or
5.
the member is being removed from his or her position without fault on his or her part and the mutual best interests of the agency and the member would be served through the removal, the agency head so certifies in good faith, and the member represents in writing to the agency and to the system that, as of the date of the certification, he or she has not been offered, has not accepted, and has not been given assurances of other employment.
(B)
An agency head’s determination and a member’s representations under this paragraph shall be maintained as public records, open to public inspection, and are not confidential personnel or retirement records.
(ii)Job removal retirement benefit.
A Class C member who satisfies the requirements of subparagraph (i) of this paragraph before age 65 and with at least 20 years of service is entitled to receive a retirement benefit based on his or her actual years of service credit and equal to the benefit the member would receive if he or she had attained age 65. Accordingly, the reduction described in paragraph (2) of this subsection does not apply.
(g) - (h)
(i)Non-line-of-duty disability retirement benefit.
(1)Eligibility requirements.
A Class C member is entitled to retire on a non-line-of-duty disability retirement if:
(i)
the member has acquired at least 5 years of service, as determined by the Board of Trustees; and
(ii)
a hearing examiner determines that:
(A)
the member is mentally or physically incapacitated from the further performance of the duties of her or his job classification; and
(B)
the incapacity is likely to be permanent.
(2)Application and filing deadline.
To retire under this subsection, the member must:
(i)
complete the appropriate application, in the form and containing the information required by subsection (p)(4) of this section; and
(ii)
submit the application to the Board no later than 1 year following the member’s last day of City employment.
(3)Effective date of retirement.
A non-line-of-duty disability retirement takes effect as follows:
(i)
if the member applied for disability retirement before terminating City employment, the retirement is effective as of the 1<sup>st</sup> day of the month immediately following the member’s last day of City employment; and
(ii)
if the member applied for disability retirement after terminating City employment, the retirement is effective as of the 1<sup>st</sup> day of the month immediately following the 30<sup>th</sup> day after the date on which the Board received a completed application.
(4)Benefit – Retirement on or before October 15, 1992.
(i)
Upon retirement for non-line-of-duty disability on or before October 15, 1992, a member who has not attained the age of 60 is entitled to receive a maximum pension equal to the pension determined in accordance with § 9(e) as if he or she remained employed by the City until the normal retirement date, age 65, multiplied by the greater of:
(A)
a fraction, the numerator of which is the number of years (and fractions thereof) of the member’s service prior to the time he or she ceased to be employed by the City, and the denominator of which is the number of years (and fractions thereof) of service that the member would have had if he or she had continued to be employed by the City until normal retirement date, age 65; or
(ii)
However, the non-line-of-duty disability benefit provided for by this subsection may not be greater than the early retirement benefit a member would be entitled to receive at age 60, as if he or she remained employed until that time, and based upon the assumption that there would be no change in his or her average final compensation.
(5)Benefit – Retirement on or after October 16, 1992.
On retirement on or after October 16, 1992, the Class C member is entitled to receive a pension equal to the greater of:
(i)
the member’s accrued service retirement benefit, calculated as provided in subsection (e)(6)(ii) of this section; or
(ii)
15% of the member’s average final compensation.
(6)Offsets for Worker’s Compensation benefits.
(i)On or before March 31, 2001.
Effective with the date beginning 5 years prior to the date of the member’s retirement on non-line-of-duty disability, the full amount of any past or future benefit or payment that may be paid or payable by the City of Baltimore under any Workers’ Compensation or similar law for any permanent disability, whether partial or total, or for death shall be offset from any non-line-of-duty disability retirement benefit payable by the City on or before March 31, 2001. The benefits under the Workers’ Compensation or similar law shall be offset dollar-for-dollar, pro tanto, from the benefits otherwise payable from funds provided by the City under this subtitle, and the benefits so reduced shall be payable under this subtitle.
(ii)On or after April 1, 2001.
Workers’ Compensation benefits shall be offset against non-line-of-duty disability benefits paid on or after April 1, 2001, in accordance with subsection (o-4) of this section.
(j)Line-of-duty disability retirement benefit.
(1)Eligibility requirements.
A Class C member is entitled to retire on a line-of-duty disability retirement if a hearing examiner determines that:
(i)
the member is permanently incapacitated from the further performance of the duties of his or her City job classification due to 1 or more of the impairments described in paragraph (5) of this subsection; and
(ii)
the member’s impairment:
(A)
is, independent of all other causes and independent of any preexisting physical or medical conditions, whether job-related or otherwise, the direct result of bodily injury arising through an accident; and
(B)
the accident occurred:
1.
while the member was in the actual performance of his or her City duties at some definite time and place; and
2.
without willful negligence on the member’s part.
(2)Application and filing deadline.
To retire under this subsection, the member must:
(i)
complete the appropriate application, in the form and containing the information required by subsection (p)(4) of this section; and
(ii)
submit the application to the Board:
(A)
no later than 1 year following the member’s last day of City employment; and
(B)
within 5 years of the date of the accident resulting in the member’s impairment.
(3)Effective date of retirement.
A line-of-duty disability retirement takes effect as follows:
(i)
if the member applied for disability retirement before terminating City employment, the retirement is effective as of the 1<sup>st</sup> day of the month immediately following the member’s last day of City employment; and
(ii)
if the member applied for disability retirement after terminating City employment, the retirement is effective as of the 1<sup>st</sup> day of the month immediately following the 30<sup>th</sup> day after the date on which the Board received a completed application.
(4)Benefit on retirement.
(i)
On retirement, the Class C member is entitled to receive a pension equal to 66⅔% of the member’s average final compensation.
(ii)
If a Class C member is not eligible for line-of-duty disability benefits solely because the degree of impairment does not meet the conditions of paragraph (5) of this subsection, a non-line-of-duty benefit will be paid under subsection (i) of this section, regardless of the member’s years of service, as long as the member otherwise qualifies for non-line-of-duty disability retirement under that subsection.
(5)Disability loss requirements.
(i)Awards on or before March 31, 2001.
The award of a line-of-duty disability retirement benefit on or before March 31, 2001, requires:
(A)
a 75% or more anatomical loss of the use of any 1 of the impaired items listed in subparagraph (iii) of this paragraph; or
(B)
a 50% or more anatomical loss of the use of each of 2 or more of the impaired items listed in subparagraph (iii) of this paragraph.
(ii)Awards on or after April 1, 2001.
The award of a line-of-duty disability retirement benefit on or after April 1, 2001, requires:
(A)
a 50% or more anatomical loss of the use of any 1 of the impaired items listed in subparagraph (iii) of this paragraph; or
(B)
a 25% or more anatomical loss of the use of each of 2 or more of the impaired items listed in subparagraph (iii) of this paragraph.
(iii)Schedule of impaired items.
The schedule of impaired items is as follows:
(1)
speech
(2)
sight
(5)
vital bodily organ
(6)
a part of the central nervous system
(9)
shoulder
(10)
hearing
(11)
mental incapacitation for which a member has been granted a disability benefit under the federal Social Security System.
(6)Offsets for Workers’ Compensation benefits.
(i)On or before March 31, 2001.
Effective with the date beginning 5 years prior to the date of the accident that qualified the member for line-of-duty disability retirement benefits under this section, the full amount of any past or future benefit or payment that may be paid or payable by the City of Baltimore under any Workers’ Compensation or similar law for any permanent disability, whether partial or total, or for death shall be offset from any line-of-duty disability retirement benefit payable by the City on or before March 31, 2001. The benefits under the Workers’ Compensation or similar law shall be offset dollar-for-dollar, pro tanto, from the benefits otherwise payable from funds provided by the City under this subtitle, and the benefits so reduced shall be payable under this subtitle.
(ii)On or after April 1, 2001.
Workers’ Compensation benefits shall be offset against line-of-duty disability benefits paid on or after April 1, 2001, in accordance with subsection (o-4) of this section.
(k)Dismemberment disability retirement benefits.
(1)Eligibility requirements.
A Class C member is entitled to retire on a dismemberment disability retirement if a hearing examiner determines that:
(i)
the member sustained any 1 of the losses listed in paragraph (5) of this subsection;
(ii)
the member sustained the loss, independent of all other causes, as the direct result of bodily injury arising through an accident; and
(iii)
the accident occurred:
(A)
while the member was in the actual performance of his or her City duties at some definite time and place;
(B)
without willful negligence on the member’s part; and
(C)
not more than 180 days before the loss was sustained.
(2)Application and filing deadline.
To retire under this subsection, the member must:
(i)
complete the appropriate application, in the form and containing the information required by subsection (p)(4) of this section; and
(ii)
submit the application to the Board:
(A)
no later than 1 year following the member’s last day of City employment; and
(B)
within 5 years of the date of the accident resulting in the member’s loss.
(3)Effective date of retirement.
A dismemberment disability retirement takes effect as follows:
(i)
if the member applied for disability retirement before terminating City employment, the retirement is effective as of the 1<sup>st</sup> day of the month immediately following the member’s last day of City employment; and
(ii)
if the member applied for disability retirement after terminating City employment, the retirement is effective as of the 1<sup>st</sup> day of the month immediately following the 30<sup>th</sup> day after the date on which the Board received a completed application.
(4)Benefit on retirement.
On retirement, the Class C member is entitled to receive a pension equal to 100% of the member’s average final compensation. In no event, however, will more than 100% of average final compensation be paid for all losses sustained by a member as the result of any one accident.
(5)Schedule of losses.
(i)
Both hands or both feet
(ii)
1 hand and 1 foot
(iii)
1 hand and sight of 1 eye
(iv)
1 foot and sight of 1 eye
(v)
Sight of both eyes
(6)Definitions.
(i)
With respect to hands or feet, “loss” means dismemberment by severance at or above the wrist or ankle joint.
(ii)
With respect to “sight of 1 eye”, loss means central visual acuity of 20/200 or less in 1 eye with the use of correcting lenses, or visual acuity of greater than 20/200 if accompanied by a limitation in the field of vision such that the widest diameter of the visual field subtends an angle no greater than 20 degrees.
(iii)
With respect to“sight of both eyes”, loss means central acuity of 20/200 or less in the better eye with the use of correcting lenses, or visual acuity greater than 20/200 if accompanied by a limitation in the field of vision such that the widest diameter of the visual field subtends an angle no greater than 20 degrees.
(7)Offsets for Workers’ Compensation benefits.
(i)On or before March 31, 2001.
Effective with the date beginning 5 years prior to the date of the accident that qualified the member for dismemberment disability retirement benefits under this section, the full amount of any past or future benefit or payment that may be paid or payable by the City of Baltimore under any Workers’ Compensation or similar law for any permanent disability, whether partial or total, or death shall be offset from any dismemberment disability retirement benefit payable by the City on or before March 31, 2001. The benefits under the Workers’ Compensation or similar law shall be offset dollar-for-dollar, pro tanto, from the benefits otherwise payable from funds provided by the City under this subtitle, and the benefits so reduced shall be payable under this subtitle.
(ii)On or after April 1, 2001.
Workers’ Compensation benefits shall be offset against dismemberment disability benefits paid on or after April 1, 2001, in accordance with subsection (o-4) of this section.
(l)Deferred vested pension.
(1)Eligibility requirements; Benefit calculations.
(i)
This paragraph (1) applies to any Class C member who terminates City employment:
(A)
before attaining age 55 and after acquiring 10 years of service; or
(B)
after attaining age 55 and acquiring 5 years of service, but without having elected an immediate early retirement benefit under subsection (f) of this section.
(ii)
A member described in subparagraph (i) of this paragraph is entitled to receive, commencing on the 1<sup>st</sup> day of the month immediately following his or her 65<sup>th</sup> birthday, a deferred vested pension benefit calculated in accordance with the following rules:
(A)
The pension shall be calculated as provided in subsection (e)(6)(ii) of this section based on the member’s average final compensation and years of service (and fractions of years of service) as of the date the member terminated employment.
(B)
The member may elect to have payment of this benefit commence at any time after the member has attained age 55 and before the 1<sup>st</sup> day of the month immediately following the member’s 65<sup>th</sup> birthday. If the member does so:
1.
the benefit shall be actuarially reduced in accordance with the same rules applicable to early retirement benefits under subsection (f)(2) of this section; and
2.
if the member dies before the deferred vested benefit commences, then no benefits are payable except for the return of the member’s accumulated contributions, if any.
(2)Exception for job removal.
(i)
This paragraph (2) applies to any Class C member who, before attaining age 55 and after acquiring 5 years of service, satisfies the conditions set forth in subsection (f)(3)(i)(A) of this section.
(ii)
A member described in subparagraph (i) of this paragraph (2) is entitled to receive, commencing on the 1<sup>st</sup> day of the month immediately following his or her 65<sup>th</sup> birthday, a deferred vested pension benefit calculated in accordance with sub-subparagraphs (A) and (B) of paragraph (1)(ii) of this subsection.
(m)Method of payment.
(1)Maximum retirement allowance.
(i)In general.
A Class C member who is eligible to receive a retirement benefit under this subtitle is entitled to receive, without actuarial modification, the full benefit for which she or he is qualified, payable in periodic payments during the retired member’s lifetime (the “maximum retirement allowance”).
(ii)Retired member’s death – In general.
As of the 1<sup>st</sup> day of the month immediately after the death of a retired member who is receiving this maximum retirement allowance, the following beneficiaries are entitled to receive periodic payments in an amount equal to 40% of the periodic payment that the retired member was receiving at the time of her or his death:
(A)
if the retired member is survived by a spouse to whom the retired member was married for at least 1 year immediately before the member’s retirement date, the benefit shall be paid to the surviving spouse, to continue for the spouse’s lifetime or until the spouse remarries before age 70; or
(B)
if there is no qualifying surviving spouse or if the surviving spouse remarries before age 70 or dies, then the benefit shall be paid to the surviving spouse’s minor children, in equal shares, to continue until the children are no longer minors, as defined in <cite data-path="|22|§1|(5)">§ 1(5) of this article</cite>.
(iii)Retired member’s death – Share of minor child who attains majority.
For purposes of subparagraph (ii)(B) of this paragraph, when a retired member’s child is no longer a minor and consequently ceases to receive benefits, each remaining minor child shall begin to receive, in addition to his or her existing benefit, an equal share of the benefit formerly paid to the other child. This process continues until the youngest child is no longer a minor.
(iv)Retired member’s death – Before contributions recovered.
If a retired member who is receiving the maximum retirement allowance dies before the member has received benefit payments in a sum equal to the amount of his or her accumulated contributions at the time of retirement, and if there is no surviving spouse or minor child entitled to receive benefits on the member’s death, the difference between the amount of the deceased member’s accumulated contributions and the sum of the benefit payments shall be paid in the form of a lump-sum cash payment as follows:
(A)
to the deceased member’s designated beneficiary; or
(B)
if no beneficiary has been designated or if the designated beneficiary predeceases the retired member, to the deceased member’s estate.
(2)Benefit options.
(i)In general.
(A)
Instead of the maximum retirement allowance provided for in paragraph (1) of this subsection, a Class C member who is entitled to receive a retirement benefit from this System may elect to receive the benefit in the form of 1 of the options set forth in subparagraphs (ii) through (v) of this paragraph.
(B)
A member who elects to receive 1 of these options will receive his or her benefit in the form of periodic payments during her or his lifetime.
(C)
The member’s benefit shall be in an amount that, when combined with the corresponding survivorship benefit under the option elected, will equal the actuarial equivalent of the retired member’s maximum retirement allowance, computed as of his or her retirement date.
(ii)Reserve guarantee option.
(A)
As soon as administratively practicable after the death of a retired member who elected this reserve guarantee option, the balance of the present value of the retired member’s benefit at retirement, after deducting the total amount of periodic payments received by the retired member during his or her lifetime, shall be paid in the form of a lump-sum cash payment as follows:
1.
to the retired member’s designated beneficiary; or
2.
if no beneficiary has been designated or if the designated beneficiary predeceases the retired member, to the retired member’s estate.
(B)
A member who elects this option may change his or her designated beneficiary at any time throughout the member’s retirement.
(iii)Joint-and-survivor option.
(A)
As of the 1<sup>st</sup> day of the month immediately after the death of a retired member who elected this joint-and-survivor option, the member’s designated beneficiary is entitled to receive periodic payments during the beneficiary’s lifetime in either of the following amounts, as elected by the member:
1.
100% of the periodic payment that the retired member was receiving at the time of his or her death; or
2.
50% of the periodic payment that the retired member was receiving at the time of his or her death.
(B)
A member who elects this option may change her or his designated beneficiary within 30 days after the member’s retirement date.
(C)
If the designated beneficiary predeceases the retired member within 30 days after the retirement date, the retired member may designate a new beneficiary within 30 days of the designated beneficiary’s death.
(D)
If the designated beneficiary predeceases the retired member within 30 days after the retirement date and the retired member does not designate a new beneficiary within 30 days after the designated beneficiary’s death or if the designated beneficiary dies on or after the 31<sup>st</sup> day following the retirement date:
1.
the retired member continues during his or her lifetime to receive periodic payments in the same amount that the member has been receiving;
2.
no other beneficiary may be designated; and
3.
on the retired member’s death, no survivorship benefit is payable.
(iv)“Pop-up” joint-and-survivor option.
(A)
As of the 1<sup>st</sup> day of the month immediately after the death of a retired member who elected this “pop-up” joint-and-survivor option, the member’s designated beneficiary is entitled to receive periodic payments during the beneficiary’s lifetime in either of the following amounts, as elected by the member:
1.
100% of the periodic payment that the retired member was receiving at the time of his or her death; or
2.
50% of the periodic payment that the retired member was receiving at the time of his or her death.
(B)
A member who elects this option may change her or his designated beneficiary within 30 days after the member’s retirement date.
(C)
If the designated beneficiary predeceases the retired member within 30 days after the retirement date, the retired member may designate a new beneficiary within 30 days after the designated beneficiary’s death.
(D)
If the designated beneficiary predeceases the retired member within 30 days after the retirement date and the retired member does not designate a new beneficiary within 30 days after the designated beneficiary’s death or if the designated beneficiary dies on or after the 31<sup>st</sup> day following the retirement date:
1.
the retired member commences, as of the 1<sup>st</sup> day of the month immediately following the designated beneficiary’s death, to receive the maximum retirement allowance, payable in periodic payments during the retired member’s lifetime;
2.
no other beneficiary may be designated; and
3.
on the retired member’s death, no survivorship benefit is payable, whether under this option or the maximum retirement allowance.
(v)Specific benefit option.
(A)
Subject to the approval required by sub-subparagraph (B) of this subparagraph, on the death of a retired member who elected this specific benefit option, the member’s designated beneficiary is entitled to receive the following, as elected by the member before the member’s retirement date:
1.
a specific lump-sum cash payment, payable as soon as administratively practicable after the retired member’s death; or
2.
a specific periodic benefit, payable to the designated beneficiary during his or her lifetime, effective as of the 1<sup>st</sup> day of the month immediately after the retired member’s death.
(B)
This benefit option must be approved, at the time of the member’s retirement, by the Board of Trustees pursuant to the recommendation of this System’s actuary.
(C)
A member who elects this option may change her or his designated beneficiary within 30 days after the member’s retirement date.
(D)
If the designated beneficiary predeceases the retired member within 30 days after the retirement date, the retired member may designate a new beneficiary within 30 days after the designated beneficiary’s death.
(E)
If the designated beneficiary predeceases the retired member within 30 days after the retirement date and the retired member does not designate a new beneficiary within 30 days after the designated beneficiary’s death or if the designated beneficiary dies on or after the 31<sup>st</sup> day after the retirement date:
1.
the retired member continues during his or her lifetime to receive periodic payments in the same amount that the member has been receiving;
2.
no other beneficiary may be designated; and
3.
on the retired member’s death, no survivorship benefit is payable.
(3)Change of election within 30 days.
(i)
A retired member may elect to make the changes authorized in this paragraph on or before the later of:
(A)
the 30<sup>th</sup> day after the retired member’s retirement date; or
(B)
if the retired member’s designated beneficiary predeceases the retired member within 30 days after the retirement date, the 30<sup>th</sup> day after the designated beneficiary’s death.
(ii)
Within the periods specified, the retired member may elect to change:
(A)
the retired member’s maximum retirement allowance under paragraph (1) of this subsection to any one of the benefit options under paragraph (2) of this subsection;
(B)
the retired member’s election of a benefit option under paragraph (2) of this subsection to the maximum retirement allowance under paragraph (1) of this subsection; or
(C)
the retired member’s election of a benefit option under paragraph (2) of this subsection to any other benefit option under paragraph (2) of this subsection.
(iii)
Any payments made to a retired member under the original election shall be taken into account in computing the benefit to be paid under the subsequent election.
(5)Election to receive lump-sum payment.
(i)
A Class C member who terminates City employment may elect to receive the present value of the member’s total pension benefit, in a lump-sum cash payment, if:
(A)
the member is entitled to a service retirement benefit under subsection (d-2)(1) of this section; and
(B)
the present value of the total pension benefit is no more than the greater of:
1.
$12,500; or
2.
an amount that is calculated by this System’s actuary to reflect any increases in the average salary of active members and that is approved by the Board of Trustees.
(ii)
A member who receives a lump-sum cash payment under this paragraph ceases to be entitled to any other benefits from this System.
(iii)
If a Class C member is entitled to receive both a service retirement benefit under subsection (d-2)(1) of this section and a disability retirement benefit under subsections (i), (j), or (k) of this section, the member may waive his or her rights to the disability benefit and elect to receive a lump-sum cash payment under this paragraph.
(iv)
The present value of the benefit payable under this paragraph shall be calculated as of the date the member terminates City employment, using actuarial assumptions as of that date approved by the Board of Trustees pursuant to the recommendation of this System’s actuary.
(7)Return of accumulated contributions.
(i)Termination of employment - General.
(A)
If a Class C member terminates employment with the City for more than 30 consecutive days, other than by reason of death, before becoming eligible for a retirement benefit or a deferred vested pension benefit under this section, the member may elect to receive the value of his or her accumulated contributions (with regular interest credited through the date of termination), payable in the form of a lump-sum cash payment.
(B)
Notwithstanding sub-subparagraph (A) of this subparagraph, if the value of a terminating member’s accumulated contributions (with regular interest credited through the date of termination) is $1,000 or less and the member does not elect to have the accumulated contributions paid in a direct rollover, the accumulated contributions will be paid directly to the member in a lump-sum cash payment as soon as administratively practicable following the expiration of the time period for making a direct rollover election.
(ii)Termination of employment – Death.
If a Class C member dies while actively employed, his or her accumulated contributions will be used to fund a periodic death benefit payable to the member’s beneficiary under subsections (o-1) or (o-2) of this section or will be paid to the member’s beneficiary if the beneficiary is entitled to receive a lump-sum death benefit under subsections (o-1) or (o-2) of this section.
(n)Reemployment.
(1)After becoming eligible for certain benefits.
(i)Reemployment on or before June 30, 2014.
If a Class C member terminates City employment on or after July 1, 1979, after becoming eligible for a retirement benefit or a deferred vested pension benefit under this section, and is subsequently reemployed as an employee on or before June 30, 2014, the employee:
(A)
must, as of his or her reemployment with the City, cease or postpone receiving any retirement benefits from this System; and
(B)
immediately on reemployment:
1.
will again become a Class C member; and
2.
will be credited with his or her prior Class C service.
(ii)Reemployment on or after July 1, 2014.
The status of a Class C member who terminates City employment on or after July 1, 1979, after becoming eligible for a retirement benefit or a deferred vested pension benefit under this section, and who is subsequently reemployed as an employee on or after July 1, 2014, is determined in accordance with § 9.2(l)(2)(i) and (ii) of <cite data-path="|22">this article</cite>.
(2)Before becoming eligible for certain benefits – Class C members.
(i)Reemployment on or before June 30, 2014.
A Class C member who terminates City employment for more than 30 consecutive days on or after July 1, 1979, before becoming eligible for a retirement benefit or a deferred vested pension benefit under this section, and who is subsequently reemployed as an employee on or before June 30, 2014, and before the expiration of a time period equal to the parity time period defined in <cite data-path="|22|§1|(28)">§ 1(28) of this article</cite>:
(A)
will again, on the 1<sup>st</sup> annual anniversary of his or her reemployment, become a Class C member; and
(B)
immediately on reemployment, will be credited with his or her prior Class C service.
(ii)Reemployment on or after July 1, 2014.
The status of a Class C member who terminates City employment on or after July 1, 1979, before becoming eligible for a retirement benefit or a deferred vested pension benefit under this section, and who is subsequently reemployed as an employee on or after July 1, 2014, is determined in accordance with § 9.2(l)(2)(iii)-(vi) of <cite data-path="|22">this article</cite>.
(3)Before becoming eligible for certain benefits – Class A and B members.
A Class A or Class B member who terminates City employment for more than 30 consecutive days and who is subsequently reemployed as an employee on or after July 1, 1979, and before the expiration of a time period equal to the parity time period defined in <cite data-path="|22|§1|(28)">§ 1(28) of this article</cite>:
(i)
will, on the 1<sup>st</sup> annual anniversary of his or her reemployment, become a Class C member; and
(ii)
immediately on reemployment, will be credited with his or her prior Class A or Class B service credit and the service credit he or she would have been eligible to receive on reemployment, whether by purchase or repurchase or by transfer of applicable funds, had he or she continued his or her previous City employment and Class A or Class B membership.
(o-1)Non-line-of-duty death benefits.
(1)Scope of subsection.
This subsection (o-1) applies to a member who dies while actively employed, but whose death does not qualify under subsection (o-2) as a line-of-duty death benefit.
(2)Lump-sum death benefit.
(i)“Beneficiary” defined.
In this paragraph, “beneficiary” means the member’s designated beneficiary or surviving spouse, children, or parents, as qualified and prioritized under subparagraph (v)(A)-(D) of this paragraph.
(ii)Eligibility requirements.
The beneficiary is entitled to a lump-sum benefit under this paragraph only if:
(A)
the member had acquired 1 or more years of service; and
(B)
no benefits are paid under paragraphs (3) or (4) of this subsection.
(iii)Application and filing deadline.
To receive this benefit, the beneficiary must:
(A)
complete the appropriate application in the form and containing the information, including proof of death, that the Board requires; and
(B)
submit the application to the Board on or before the 60<sup>th</sup> day after the Board has provided a post-death notice of this benefit to the beneficiary.
(iv)Amount of benefit.
The lump-sum amount shall equal:
(A)
any accumulated contributions of the deceased member; and
(B)
50% of the greater of the member’s current annual compensation or the member’s average final compensation on the date of the member’s death.
(v)Qualifications and priorities of potential beneficiaries.
The lump-sum amount shall be paid as follows:
(A)
to the member’s designated beneficiary;
(B)
if there is no designated beneficiary or if the designated beneficiary predeceases the member, to the member’s surviving spouse;
(C)
if there is no designated beneficiary and no surviving spouse, to the member’s children, in equal shares;
(D)
if there is no designated beneficiary, surviving spouse, or surviving child, to the member’s surviving parents, in equal shares; and
(E)
otherwise, to the member’s estate.
(3)100% survivorship death benefit.
(i)Definitions.
(A)In general.
In this paragraph, the following terms have the meanings indicated.
(B)Beneficiary.
“Beneficiary” means the member’s surviving spouse or parents, as qualified and prioritized under subparagraph (v) of this paragraph.
(C)Surviving spouse.
“Surviving spouse” means a surviving spouse to whom the member was married for at least 5 years immediately before the date of the member’s death.
(ii)Eligibility requirements.
The beneficiary is entitled to a 100% survivorship death benefit only if the member would have been eligible for a normal service or early service retirement benefit before his or her death or within 90 days after the date of his or her death.
(iii)Application and filing deadline.
To receive this benefit, the beneficiary must:
(A)
complete the appropriate application in the form and containing the information, including proof of death, that the Board requires; and
(B)
submit the application to the Board on or before the 60<sup>th</sup> day after the Board has provided a post-death notice of this benefit to the beneficiary.
(iv)Amount of benefit.
The benefit shall be equal to that which would have been paid to a surviving beneficiary under the joint-and-survivor 100% benefit option provided for in subsection (m)(2)(iii)(A)1. of this section had the member elected that option, designated that beneficiary, and retired as of the date of death.
(v)Qualifications and priorities of potential beneficiaries.
(A)
The benefit shall be paid as follows:
1.
to the member’s designated beneficiary, to continue during his or her lifetime, if that designated beneficiary is:
A.
the member’s surviving spouse; or
B.
one of the member’s surviving parents; or
2.
if the designated beneficiary is not one of the persons listed in item 1. of this sub-subparagraph and that beneficiary predeceases the member, or if there is no designated beneficiary, then to the member’s surviving spouse, to continue for his or her lifetime.
(B)
If a member designates a beneficiary other than one of the persons listed in sub-subparagraph (A)1. of this subparagraph, and if that beneficiary does not predecease the member, the benefit provided by this paragraph is not payable.
(vi)Benefit instead of all others under subsection.
The benefit provided by this paragraph is in place of all benefits provided under paragraphs (2) and (4) of this subsection.
(4)40% survivorship death benefit.
(i)Definitions.
(A)In general.
In this paragraph, the following terms have the meanings indicated.
(B)Beneficiary.
“Beneficiary” means the member’s surviving spouse or minor children, as qualified and prioritized under subparagraph (v) of this paragraph.
(C)Surviving spouse.
“Surviving spouse” means a surviving spouse to whom the member was married for at least 1 year immediately before the date of the member’s death.
(ii)Eligibility requirements.
Effective April 1, 2001, the beneficiary is entitled to a 40% survivorship death benefit only if the member had at least 20 years of service as of the date of his or her death.
(iii)Application and filing deadline.
To receive this benefit, the beneficiary must:
(A)
complete the appropriate application in the form and containing the information, including proof of death, that the Board requires; and
(B)
submit the application to the Board on or before the 60<sup>th</sup> day after the Board has provided a post-death notice of this benefit to the beneficiary.
(iv)Amount of benefit.
(A)
The benefit shall be equal to 40% of the member’s accrued service retirement benefit, calculated as provided in subsection (e)(6)(ii) of this section based on the member’s average final compensation and years of service (and fractions of those years) as of the date of the member’s death.
(B)
The calculation required by sub-subparagraph (A) of this subparagraph shall be made with the assumption that the member had attained age 65 as of the date of his or her death. Accordingly, the reduction described in subsection (f)(2) of this section does not apply.
(v)Qualifications and priorities of potential beneficiaries.
(A)
The benefit shall be paid as follows:
1.
to the member’s designated beneficiary, if that designated beneficiary is:
A.
the member’s surviving spouse, to continue for the spouse’s lifetime or until the spouse remarries before age 70; or
B.
the member’s minor children, to be paid to each child, in equal shares, until that child is no longer a minor, as defined in <cite data-path="|22|§1|(5)">§ 1(5) of this article</cite>;
2.
if the designated beneficiary is not one of the persons listed in item 1. of this sub-subparagraph and that beneficiary predeceases the member, or if there is no designated beneficiary, then to the member’s surviving spouse, to continue for the spouse’s lifetime or until the spouse remarries before age 70; or
3.
if there is no qualifying surviving spouse under item 1. or 2. of this sub-subparagraph, or if the surviving spouse remarries before age 70 or dies, then to the member’s minor children, to be paid to each child in equal shares until that child is no longer a minor, as defined in <cite data-path="|22|§1|(5)">§ 1(5) of this article</cite>.
(B)
If a member designates a beneficiary other than one of the persons listed in sub-subparagraph (A)1. of this subparagraph, and if that beneficiary does not predecease the member, the benefit provided by this paragraph is not payable.
(vi)Allocations among children.
For purposes of this paragraph, when a member’s child is no longer a minor and, consequently, ceases to receive benefits under this paragraph, each remaining minor child shall then begin to receive, in addition to his or her existing benefit, an equal share of the benefit formerly paid to the other child. This process continues until the member’s youngest child is no longer a minor.
(vii)Benefit in place of all others under subsection.
The benefit provided by this paragraph is in place of all benefits provided under paragraphs (2) and (3) of this subsection.
(viii)Rules dealing with 1st year of employment.
For purposes of this paragraph, the deceased member’s 1<sup>st</sup> year of employment:
(A)
is included in computing the minimum 20 years of service credit needed to be eligible to receive this death benefit; but
(B)
may not be counted as service credit for purpose of calculating the amount of the death benefit, unless purchased as service credit in accordance with subsection (c)(3) of this section.
(5)Death without beneficiaries or estate.
The amounts that would have been paid under this subsection, excluding accumulated contributions, forever remain assets of this System if:
(i)
a member dies without designating a beneficiary;
(ii)
that member has no beneficiaries, as enumerated in paragraphs 2(v), 3(v), and 4(v) of this subsection; and
(iii)
no estate for that member is opened within 2 years of the member’s death.
(6)Death of retired member within 30 days of retirement.
(i)Scope of paragraph.
Except as specified in subparagraph (B), this paragraph applies to:
A.
a retired member who:
1.
has been granted a service or disability retirement allowance; and
2.
dies within 30 days of his or her retirement date; or
B.
a retired member who:
1.
retires before reaching age 65;
2.
when applying for retirement, elects to postpone receipt of his or her retirement allowance until age 65; and
3.
dies within 30 days after reaching age 65.
(ii)Exception.
This paragraph does not apply to a former member who terminates employment before reaching age 65 without immediate entitlement to retirement benefits.
(iii)Death deemed to be during active service.
A retired member or vested former member described in subparagraph (i) of this paragraph (6) is deemed to have died while still employed by the City and, instead of any other service or disability benefits under this System , a non-line-of-duty death benefit will be paid as if he or she died during active service.
(iv)Offset of payments received.
Any pension benefits paid by this System and received by the retired member or former member before he or she died shall be offset against the death benefits payable under this paragraph.
(o-2)Line-of-duty death benefit.
(1)“Beneficiary” defined.
In this subsection, “beneficiary” means the member’s designated beneficiary or surviving spouse, children, or parents, as qualified and prioritized under paragraph (4)(i)(A)-(D) or paragraph (4)(ii) of this subsection, as the case may be.
(2)Eligibility requirements.
This subsection applies only:
(i)
to an individual who dies while a member of this System; and
(ii)
if a hearing examiner determines that:
(A)
the member’s death was, independent of all other causes and independent of any preexisting physical or medical conditions, whether job-related or otherwise, the direct result of bodily injury arising through an accident; and
(B)
the accident occurred:
1.
while the member was in the actual performance of his or her City duties at some definite time and place; and
2.
without willful negligence on the member’s part.
(3)Application and filing deadline.
To receive this benefit, the beneficiary must:
(i)
complete the appropriate application in the form and containing the information required by subsection (p)(6) of this section; and
(ii)
submit the application to the Board on or before the 60<sup>th</sup> day after the Board has provided a post-death notice of this benefit to the beneficiary.
(4)Amount of benefit; Qualifications and priorities of potential beneficiaries.
On an award by the hearing examiner, the Board of Trustees shall pay:
(i)
any accumulated contributions of the deceased member to:
(A)
the member’s designated beneficiary;
(B)
if there is no designated beneficiary, or if the designated beneficiary predeceases the member, to the member’s surviving spouse;
(C)
if there is no designated beneficiary and no surviving spouse, to the member’s children, in equal shares;
(D)
if there is no designated beneficiary, surviving spouse, or surviving child, to the member’s surviving parents, in equal shares; and
(E)
otherwise, to the member’s estate; and
(ii)
a pension of 100% of the member’s current compensation to:
(A)
the member’s surviving spouse, to continue for the spouse’s lifetime or until the spouse remarries before age 70, unless the member has designated his or her children as beneficiaries;
(B)
the member’s minor children, to be paid to each child, in equal shares, until that child is no longer a minor, as defined in <cite data-path="|22|§1|(5)">§ 1(5) of this article</cite>, if:
1.
the member designated his or her children as beneficiaries;
2.
there is no surviving spouse on the date of the member’s death; or
3.
the surviving spouse, after having received benefits payments under sub-item (A) of this item (ii), has remarried before age 70 or has died; or
(C)
the member’s surviving parents in equal shares, to continue during their lifetimes, if:
1.
the member has not designated his or her children as beneficiaries;
2.
there is no surviving spouse on the date of the member’s death; and
3.
the member has no minor children at the date of his or her death.
(5)Allocations among children or between parents.
(i)
For purposes of paragraph (4) of this subsection, when a member’s child is no longer a minor and, consequently, ceases to receive a benefit under that paragraph, each remaining minor child shall then begin to receive, in addition to his or her existing benefit, an equal share of the benefit formerly paid to the other child. This process continues until the member’s youngest child is no longer a minor.
(ii)
For purposes of paragraph (4) of this subsection, if a member’s line-of-duty death benefit is paid to both of the member’s surviving parents and one parent dies, the remaining parent shall then begin to receive, in addition to his or her existing benefit, the benefit formerly paid to the deceased parent.
(6)If no beneficiary eligible.
If no beneficiary is eligible for a line-of-duty death benefit under this subsection, a non-line-of-duty death benefit will be paid under either subsections (o-1)(2), (o-1)(3), or (o-1)(4) of this section as long as the member’s beneficiary qualifies for a non-line-of-duty death benefit under 1 of those subsections.
(7)Death without beneficiaries or estate.
The amounts that would have been paid under this subsection, excluding accumulated contributions, forever remain assets of this System if:
(i)
a member dies without designating a beneficiary;
(ii)
that member has no beneficiaries, as enumerated in paragraph (4) of this subsection; and
(iii)
no estate for that member is opened within 2 years of the member’s death.
(o-3)Workers’ Compensation benefits offset against benefits paid on or before March 31, 2001.
Effective with the date beginning 5 years prior to the date of death of the member, the full amount of any past or future benefit or payment that may be paid or payable by the City of Baltimore under any Workers’ Compensation or similar law for any permanent disability, whether partial or total, or for death shall be offset against and payable in lieu of any disability, dismemberment, or death benefits payable on or before March 31, 2001, out of funds provided by the City under this subtitle. The benefits under the Workers’ Compensation or similar law shall be offset dollar-for-dollar, pro tanto, from the benefits otherwise payable from funds provided by the City under this subtitle, and the benefits so reduced shall be payable under this subtitle.
(o-4)Workers’ Compensation benefits offset against disability and death benefits paid on or after April 1, 2001.
(1)Scope of subsection.
This subsection applies to a member or beneficiaries of a member:
(i)
the payment of whose retirement benefit commences on or after April 1, 2001, either:
A.
on account of a non-line-of-duty disability under subsection (i),
B.
On account of a line-of-duty disability under subsection (j), or
C.
on account of a dismemberment disability under subsection (k); or
(ii)
who dies on or after April 1, 2001, and is awarded either:
A.
a non-line-of-duty death benefit under subsection (o-1), or
B.
a line-of-duty death benefit under subsection (o-2).
(2)Offset for Workers’ Compensation payments.
The Board of Trustees shall offset the amount of a member’s Workers’ Compensation award paid or payable by the City against any disability or death benefits paid or payable by the System to a member or a member’s beneficiaries, if:
(i)
the member or any beneficiary of a member was awarded Workers’ Compensation benefits under the State’s Workers’ Compensation Law to be paid or payable by the City;
(ii)
the Workers’ Compensation award was for permanent partial or permanent total disability or for death;
(iii)
the Workers’ Compensation award was awarded on account of the same disability or death that resulted in the System’s payment of disability or death benefits; and
(iv)
the Workers’ Compensation award was awarded by the Workers’ Compensation Commission no more than 5 years before:
A.
the effective date of the member’s retirement on account of non-line-of-duty disability,
B.
the date of the accident qualifying the member for line-of-duty disability or dismemberment benefits, or
C.
the date of the member’s death qualifying the member’s beneficiaries to receive a System death benefit.
(3)Amounts not included in offset.
The amount of Workers’ Compensation benefits to be offset does not include amounts allocated for the payment of legal fees, medical expenses, or other payments authorized by the Workers’ Compensation Commission to be made directly to third parties and not to the member or the member’s beneficiary.
(4)Method of offset.
(i)Non-actuarial method for lump-sum payments.
A.
The Board of Trustees shall offset the amount of a member’s Workers’ Compensation award, reduced by the amounts described in paragraph (3), against any lump-sum disability, dismemberment, or death benefits paid or payable by the System to a member or a member’s beneficiaries in the following manner.
B.
The offset shall be made on a non-actuarial, dollar-for-dollar basis against any lump-sum benefit until the total amount of the Workers’ Compensation benefits has been recovered.
C.
If the amount of the Workers’ Compensation benefits exceeds the lump-sum disability, dismemberment, or death benefit, then no disability, dismemberment, or death benefit may be paid, except for the return of the member’s accumulated contributions, if any.
(ii)Actuarial method for periodic payments.
A.
The Board of Trustees shall offset the amount of a member’s Workers’ Compensation award, reduced by the amounts described in paragraph (3), against any periodic disability, dismemberment, or death benefits paid or payable by the System to a member or a member’s beneficiaries in the following manner.
B.
This offset shall be calculated on an actuarial basis by annuitizing the member’s Workers’ Compensation award, reduced by the amounts described in paragraph (3), and reducing the member’s periodic disability, dismemberment, or death benefit by the annuitized amount until the total amount of the Workers’ Compensation benefits have been recovered.
C.
The actuarial amount shall be calculated using an actuarial method and appropriate annuity factors recommended by the System’s actuary and approved by the Board of Trustees.
D.
If the annuitized amount of the Workers’ Compensation benefits exceeds the System’s periodic disability, dismemberment, or death benefit payment, then no disability, dismemberment, or death benefit may be paid, except for the return of the member’s accumulated contributions, if any.
(5)Restoration of offset amount against retirement benefits.
(i)
On recovering the full amount of the member’s Workers’ Compensation benefits, the reduced disability, dismemberment, or death benefits payable to the member or the member’s beneficiaries shall be restored to the unreduced amount of the disability, dismemberment, or death benefits payable to the member or beneficiaries prior to the offset for Workers’ Compensation.
(ii)
The amount by which a reduced disability, dismemberment, or death benefit is restored under subparagraph (i) does not include any post-retirement increases that the member or the member’s beneficiaries would have been eligible to receive had the member’s disability, dismemberment, or death benefits not been reduced.
(6)Transitional rule for those receiving reduced benefits prior to April 1, 2001.
(i)
The Board of Trustees shall implement the method of offset described in paragraph (4) of this subsection (o-4) for any member or beneficiary of a member:
A.
whose disability, dismemberment, or death benefits were reduced by Workers’ Compensation benefits on or before March 31, 2001; and
B.
whose Workers’ Compensation benefits were not fully recovered as of April 1, 2001.
(ii)
For members or beneficiaries whose disability, dismemberment, or death benefits have been offset on account of Workers’ Compensation benefits on or before March 31, 2001, and whose Workers’ Compensation benefits are found to have been recovered under the method described in paragraph (4), all Workers’ Compensation offsets shall be terminated.
(p)Panel of hearing examiners.
(1)Panel established.
There is a panel of hearing examiners, to be composed of persons with a demonstrated knowledge and competence in disability claims evaluation.
(2)Appointment of panel members.
(i)
The hearing examiners shall be appointed on a contract basis by the Board of Estimates.
(ii)
The Board of Estimates may determine, in its sole discretion:
(A)
the number and composition of the panel; and
(B)
the fees and other conditions of the hearing examiners’ contracts.
(iii)
Whenever a vacancy occurs on the panel, the Board of Trustees has the right to submit to the Board of Estimates a list of recommended candidates to fill the vacancy.
(iv)
In all events, however, the Board of Estimates may make its selection of hearing examiners without regard to the Board of Trustees’ recommendations.
(3)Compensation of panel members; expenses.
The compensation of the panel members, the compensation of all persons engaged by the panel, and all other expenses of the panel shall be paid at the rates and in the amounts that the Board of Estimates approves.
(4)Claims for disability benefit – Applications.
(i)Application to Board.
A person who seeks a non-line-of-duty disability benefit, a line-of-duty disability benefit, or a dismemberment disability benefit must first apply to the Board of Trustees.
(ii)Required contents .
The application must include, in the form that the Board prescribes:
(A)
a medical certification of disability;
(B)
all supporting medical documentation;
(C)
a consent form that authorizes the Board to obtain all medical records pertaining to any accidents or illnesses that the member might have suffered at any time in the past; and
(D)
a statement in which the member:
1.
states that he or she has suffered a disability;
2.
states that the disability prevents him or her from further performance of the duties of his or her job classification;
3.
states that the incapacity is likely to be permanent; and
4.
states, in the manner and detail that the Board requires, the relevant facts and circumstances under which the member claims to be eligible for the applicable benefit.
(5)Claims for disability benefits – Medical examination.
(i)Board to refer.
On receipt of a completed application and required supporting documentation, the Board of Trustees shall have the member medically examined by a physician selected by the Board.
(ii)Scope of examination.
The examination shall include whatever tests and additional examinations the physician finds necessary or appropriate.
(iii)Report to Board.
Upon completion of the examination, the physician shall submit a written report to the Board of Trustees.
(6)Claims for line-of-duty death benefits.
(i)Application to Board.
A person who seeks a line-of-duty death benefit, must first apply to the Board of Trustees.
(ii)Required contents .
The application must include, in the form that the Board prescribes:
(A)
a consent form that authorizes the Board to obtain all medical records pertaining to the member’s death and to any accidents or illnesses that the member might have suffered at any time in the past; and
(B)
a statement in which the claimant:
1.
states that the member suffered a line-of-duty death; and
2.
describes, in the manner and detail that the Board requires, the relevant facts and circumstances under which the member’s death occurred.
(7)Hearings – In general.
A hearing examiner shall conduct hearings on all matters involving non-line-of-duty disability claims, dismemberment disability claims, line-of-duty disability claims, line-of-duty death benefit claims, and any related matters arising out of these claims.
(8)Hearings - Nature and conduct.
(i)
Each hearing is in the nature of an adversary proceeding.
(ii)
1 hearing examiner from the panel shall hear a particular claim for benefits.
(iii)
The hearing examiner shall conduct the hearing:
(A)
in an informal manner;
(B)
with sufficient latitude to provide a fair and impartial hearing to all of the parties; and
(C)
without requiring strict compliance with the rules of evidence.
(iv)
Testimony at the hearing shall be under oath and recorded.
(v)
The hearing examiner has the power to subpoena and require the attendance of witnesses and the production of papers and documents to secure information pertinent to the hearing, and to examine them.
(9)Hearings - Counsel.
At the hearing:
(i)
the Board of Trustees shall be represented by an attorney from the City Solicitor’s Office or from the System’s Office of Legal Affairs; and
(ii)
the member has the right to counsel of his or her own choosing.
(10)Hearings – Burden of proof.
(i)Disability benefit.
At the hearing on a claim for a disability benefit, the member has the burden of proving, by a preponderance of the evidence:
(A)
the nature and extent of her or his disability;
(B)
that the disability prevents her or him from the further performance of the duties of her or his job classification; and
(C)
that, under the relevant facts and circumstances, she or he otherwise meets all of the eligibility requirements to qualify for the applicable benefit.
(ii)Line-of-duty death benefit.
At the hearing on a claim for a line-of-duty death benefit, the applicant has the burden of proving, by a preponderance of the evidence:
(A)
that the member’s death occurred under facts and circumstances required to qualify for the benefit under the applicable provisions of this section; and
(B)
that the applicant otherwise meets all other requirements to qualify for the benefit.
(11)Hearings – Examiner’s determination.
(i)In general.
The hearing examiner shall:
(A)
make the determinations specified in this paragraph; and
(B)
issue written findings of fact that set forth the reasons for his or her determination.
(ii)Non-line-of-duty disability benefit.
(A)
If the claim is for non-line-of-duty disability benefits under this System, the hearing examiner shall determine whether the member’s disability qualifies under subsection (i) of this section.
(B)
If the claim is for non-line-of-duty disability benefits under the Elected Officials’ Retirement System, the hearing examiner shall determine whether the member’s disability qualifies under <cite data-path="|22|§22|(b)">§ 22(b) of this article</cite>.
(iii)Dismemberment disability benefit.
If the claim is for dismemberment disability benefits, the hearing examiner shall determine whether the member’s disability qualifies under subsection (k) of this section.
(iv)Line-of-duty disability benefit.
(A)
If the claim is for line-of-duty disability benefits under this System, the hearing examiner shall determine whether the member’s disability qualifies under subsection (j) of this section.
(B)
If the claim is for line-of-duty disability benefits under the Elected Officials’ Retirement System, the hearing examiner shall determine whether the member’s disability qualifies under <cite data-path="|22|§22|(c)">§ 22(c) of this article</cite>.
(v)Line-of-duty death benefit.
(A)
If the claim is for line-of-duty death benefits under this System, the hearing examiner shall determine whether the member’s death qualifies under subsection (o-2) of this section.
(B)
If the claim is for line-of-duty death benefits under the Elected Officials’ Retirement System, the hearing examiner shall determine whether the member’s death qualifies under <cite data-path="|22|§22|(g)">§ 22(g) of this article</cite>.
(12)Judicial and appellate review.
(i)
If either party to the hearing is aggrieved by the hearing examiner’s determination, that party may seek judicial review of that determination by petition to the Circuit Court for Baltimore City.
(ii)
The review shall be sought and heard as provided in the Maryland Rules of Procedure, except that the review shall be heard on the record only, on a right-of-way basis.
(iii)
The determination of the hearing examiner is presumptively correct and may not be disturbed on review unless it is arbitrary, illegal, capricious, or discriminatory.
(iv)
A party to the judicial review may appeal the court’s final judgment to the Court of Special Appeals in accordance with the Maryland Rules of Procedure.
(v)
Judicial review under this paragraph (12) does not stay or hold in abeyance any payment awarded by the hearing examiner. If a court reverses an award of benefits, the court’s decision operates to stop payment of any benefits being made to the claimant, pending any further appeal.
(13)Finality of decision.
If neither party seeks judicial review within 30 days after mailing of the hearing examiner’s written finding of fact, the hearing examiner’s determination is final and binding.
(q)Compliance with Internal Revenue Code § 415.
Notwithstanding any other provision of this subtitle, no benefits are provided under this subtitle to the extent that they exceed the limitations applicable to governmental plans in Internal Revenue Code § 415 and the regulations adopted under it.
(r)Compliance with Internal Revenue Code § 401(a)(9).
(1)
Distributions under this subtitle shall be made in accordance with a reasonable good faith interpretation of Internal Revenue Code § 401(a)(9), as applicable to this System. This subsection is intended to comply with a reasonable good faith interpretation of Internal Revenue Code § 401(a)(9) to the extent applicable to this System, and may not be interpreted to impose any requirements on this System or on any member or beneficiary of this System beyond those required to comply with a reasonable good faith interpretation of § 401(a)(9). This subsection only specifies the latest permissible time by which distributions must begin and the longest permissible period over which distributions may be made, and in no way precludes any earlier commencement or more rapid distribution provided for in this subtitle.
(2)
Distribution of a member’s retirement benefit shall begin no later than the April 1 following the calendar year during which the member both has reached age 70½ and has terminated employment with the City. Distribution shall be made over a period not extending beyond the life of the member or the joint lives of the member and his or her beneficiary.
(3)
If a member dies before distribution of his or her retirement benefit begins, the member’s entire benefit shall be distributed within 5 years after death. This requirement is deemed satisfied by any distribution of the member’s benefit payable to his or her designated beneficiary over a period not extending beyond the life or life expectancy of the beneficiary, as long as those distributions begin no later than December 31 of the calendar year following the calendar year of the member’s death. However, if the designated beneficiary is the member’s surviving spouse, the date on which the distributions are required to begin is December 31 of the calendar year in which the member would have attained age 70½. This paragraph (3) does not apply if distribution of the member’s benefit began before his or her death and the remaining portion of the member’s benefit is distributed at least as rapidly as under the method of distribution being used at the date of the member’s death. Any amount paid to a child is treated as if it had been paid to a surviving spouse if that amount is paid to the surviving spouse when that child reaches the age of majority.
(s)Compensation limit.
(1)General rule.
The annual compensation of each member taken into account under this subtitle shall not exceed the federal Omnibus Budget Reconciliation Act of 1993 (“OBRA ’93") annual compensation limit. The OBRA ’93 annual compensation limit is $150,000, adjusted for cost of living increases under Internal Revenue Code § 401(a)(17)(B) and subject to the fresh start provisions set forth in paragraph (2) of this subsection. The cost of living adjustment in effect for a calendar year applies to any period not exceeding 12 months over which compensation is determined (the “determination period”) beginning in that calendar year. If a determination period consists of fewer than 12 months, the annual compensation limit will be multiplied by a fraction, the numerator of which is the number of months in the short determination period and the denominator of which is 12. If compensation for any prior determination period is taken into account in determining a member’s retirement benefit in the current year, the compensation for that prior determination period is subject to the OBRA ’93 annual compensation limit for that prior determination period. For this purpose, for determination periods beginning before July 1, 1994, the OBRA ’93 annual compensation limit is $150,000.
(2)Special rule.
(A)
In this paragraph, “§ 401(a)(17) member” means any member on or after July 1, 1994, whose annual compensation for any year before 1994 exceeded $150,000.
(B)
This paragraph (2) applies to determine the retirement benefit of a § 401(a)(17) member.
(C)
The retirement benefit of a § 401(a)(17) member shall be the greater of (i) or (ii) below:
(i)
the member’s retirement benefit on June 30, 1994, determined as though the member terminated service with the City on that date, without regard to any amendments to this subtitle enacted after that date and taking into account annual compensation up to the applicable § 401(a)(17) limitation for each year before July 1, 1994; or
(ii)
the member’s retirement benefit, determined without regard to this paragraph (2).
(t)Eligible rollover distribution.
(1)Definitions.
(A)
In this subsection, the following terms have the meanings indicated:
(B)
(i)
“Eligible rollover distribution” means any distribution of all or any portion of the balance to the credit of the distributee.
(ii)
“Eligible rollover distribution” does not include:
1.
any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee’s designated beneficiary, or for a specified period of 10 years or more;
2.
any distribution to the extent that it is required under Internal Revenue Code § 401(a)(9); and
3.
the portion of any distribution that is not includible in gross income, determined without regard to the exclusion for net unrealized appreciation with respect to employer securities.
(iii)Eligible rollover distribution; After-tax employee contributions.
1.
A portion of a distribution does not fail to be an “eligible rollover distribution” merely because the portion consists of after-tax employee contributions that are not includible in gross income.
2.
However, the portion may be transferred only to:
i.
an individual retirement account or annuity described in Internal Revenue Code § 408(a) or (b);
ii.
for taxable years beginning after December 31, 2001, and before January 1, 2007, to a qualified trust that is part of a defined contribution plan that agrees to separately account for amounts so transferred, including separately accounting for the portion of the distribution that is includible in gross income and the portion of the distribution that is not so includible; or
iii.
for taxable years beginning after December 31, 2006, to a qualified trust or to an annuity contract described in Internal Revenue Code § 403(B), if the trust or contract provides for separate accounting for amounts so transferred (including interest on those amounts), including separately accounting for the portion of the distribution that is includible in gross income and the portion of the distribution that is not so includible.
(C)
“Eligible retirement plan” means any of the following that accepts the distributee’s eligible rollover distribution:
(i)
an individual retirement account described in Internal Revenue Code § 408(a);
(ii)
an individual retirement annuity described in Internal Revenue Code § 408(b);
(iii)
an annuity plan described in Internal Revenue Code § 403(a);
(iv)
a qualified trust described in Internal Revenue Code § 401(a);
(v)
an annuity contract described in Internal Revenue Code § 403(b);
(vi)
an eligible plan described in Internal Revenue Code § 457(b), if it is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and it agrees to separately account for amounts transferred into that plan from this System; or
(vii)
for distributions made on or after January 1, 2008, a Roth IRA described in Internal Revenue Code § 408A, subject to the restrictions that apply to rollovers to a Roth IRA.
(D)
(i)
“Distributee” means an employee or former employee.
(ii)
In addition, the employee’s or former employee’s surviving spouse and the employee’s or former employee’s spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in Internal Revenue Code § 414(p), are “distributees” with regard to the interest of the spouse or former spouse.
(iii)
Effective July 1, 2010, a “distributee” also includes the employee’s or former employee’s nonspouse designated beneficiary. In the case of a nonspouse beneficiary, the direct rollover may be made only to an individual retirement account or annuity described in Internal Revenue Code § 408(a) or (B) (“IRA”) that is established on behalf of the designated beneficiary and that will be treated as an inherited IRA under § 402(c)(11).
(E)
“Direct rollover” means a payment under this subtitle to the eligible retirement plan specified by the distributee.
(2)Direct rollovers.
Notwithstanding any provision of this subtitle that would otherwise limit a distributee’s election under this section, a distributee may elect, at the time and in the manner prescribed by the Board of Trustees, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover.
(u)Vesting on System termination.
Notwithstanding any other provision of this subtitle, on the effective date of a termination or partial termination of this System, as determined under applicable Internal Revenue Service regulations and rulings, all affected members who are not already vested in their accrued benefits become immediately vested in those benefits, to the extent the benefits are funded.
History: Ord. 79-1055
History: Ord. 81-552
History: Ord. 84-114
History: Ord. 85-494
History: Ord. 85-504
History: Ord. 86-663
History: Ord. 786-067
History: Ord. 87-988
History: Ord. 87-1152
History: Ord. 87-1156
History: Ord. 88-005
History: Ord. 89-275
History: Ord. 90-557
History: Ord. 91-725
History: Ord. 91-777
History: Ord. 91-829
History: Ord. 92-086
History: Ord. 93-163
History: Ord. 93-250
History: Ord. 93-263
History: Ord. 95-525
History: Ord. 95-632
History: Ord. 96-006
History: Ord. 96-051
History: Ord. 97-168
History: Ord. 98-290A
History: Ord. 99-587
History: Ord. 01-189
History: Ord. 04-672
History: Ord. 04-822
History: Ord. 05-173
History: Ord. 07-422
History: Ord. 07-584
History: Ord. 11-520
History: Ord. 12-043
History: Ord. 13-144
History: Ord. 13-191
History: Ord. 1620-459-488
History: Ord. 16-503
History: Ord. 16-576
History: Ord. 20-459
History:
Balt., Md., Code art. 22, § 9.1 (2026)

§ 9.1 Election between plans.Copy Citation

(a)Definitions.
(1)In general.
In this section, the following terms have the meanings indicated.
(2)Class D member.
“Class D member” means a Class D member of this System, as described in § 9.2 {“Class D membership”} of this subtitle.
(3)Hybrid member.
“Hybrid member” has the meaning stated in City Code <cite data-path="|22">Article 22</cite>A {“Retirement Savings Plan”}, § 1-1 {“Definitions”}.
(4)Non-hybrid member.
“Non-hybrid member” has the meaning stated in City Code <cite data-path="|22">Article 22</cite>A {“Retirement Savings Plan”}, § 1-1 {“Definitions”}.
(5)Retirement Savings Plan.
“Retirement Savings Plan” means the Retirement Savings Plan of the City of Baltimore, as established by City Code <cite data-path="|22">Article 22</cite>A {“Retirement Savings Plan”}.
(b)Employee to elect Plan.
(1)Election.
(i)In general.
An employee who, on or after July 1, 2014, is initially employed or is reemployed under § 9.2(l)(2)(iv) or (vi) of <cite data-path="|22">this article</cite> must, within 150 days after the date on which his or her employment or reemployment began, file a plan-election form with the Board of Trustees of the Retirement Savings Plan.
(ii)Transfers.
The status of an employee who, on or after July 1, 2014, transfers, without a break in employment, from a position with the City covered under another City retirement plan (as defined in <cite data-path="|22|§9|(a)|(1)">§ 9(a)(1) of this article</cite>) is determined in accordance with <cite data-path="|22|§9|(a)|(2)|(ii)">§ 9(a)(2)(ii) of this article</cite>.
(2)Plan-election form.
The form shall indicate whether the member elects to become:
(i)
both a Class D member of this System and a hybrid member of the Retirement Savings Plan; or
(ii)
a non-hybrid member of the Retirement Savings Plan.
(3)Modification or revocation of form.
During this 150-day period, the member may file a new form to modify or revoke any previous election. However, the final election becomes effective and irrevocable on the 150<sup>th</sup> day after the date of employment or reemployment.
(4)Default.
If a member does not make a written election within 150 days, the member will automatically become both a Class D member of this System and a hybrid member of the Retirement Savings Plan.
History: Ord. 14-216
History: Ord. 16-488
Balt., Md., Code art. 22, § 9.2 (2026)

§ 9.2 Class D membership.Copy Citation

(a)Definitions; General provisions.
(1)Definitions.
(i)In general.
In this section, the following terms have the meanings indicated.
(ii)Hybrid member; non-hybrid member; Retirement Savings Plan .
“Hybrid member”, “non-hybrid member”, and “Retirement Savings Plan” have the meanings stated in City Code <cite data-path="|22">Article 22</cite>A {“Retirement Savings Plan”}, § 1-1 {“Definitions”}.
(iii)Other City retirement plan.
“Other City retirement plan” means:
(A)
the Fire and Police Employees’ Retirement System of the City of Baltimore;
(B)
the Elected Officials’ Retirement System of the City of Baltimore; or
(C)
the Retirement Savings Plan of the City of Baltimore.
(2)Commencement of membership.
An employee who, under § 9.1 of this subtitle, elects to become a Class D member of this System, will become a Class D member on the 1<sup>st</sup> annual anniversary of the date on which her or his employment or reemployment, as the case may be, began.
(3)Non-participation in other City plans – General.
(i)
Except as otherwise provided in subparagraph (ii) of this paragraph or in paragraph (4) of this subsection, a Class D member may not make contributions to, receive any pension or retirement income from, or accrue any service credit in any other City retirement plan while at the same time accruing service credit in this System.
(ii)
Subparagraph (i) of this paragraph does not apply to contributions made to or benefits received from the Retirement Savings Plan by a hybrid member of that Plan.
(4)Non-participation in other City plans – Exception.
Notwithstanding paragraph (3) of this subsection, and pursuant to <cite data-path="|22|§48">§ 48 of this article</cite>, the following may become Class D members of this System and accrue service credit in this System while an employee covered by this System:
(i)
members of another City retirement plan who were eligible to begin receiving retirement benefits from that other plan but postponed receipt of those benefits after transferring to a position covered by this System; or
(ii)
retirees who were receiving retirement benefits from another City retirement plan but suspended receipt of those benefits after reemployment in a position covered by this System.
(b)Forms.
A Class D member shall execute the form or forms and provide the supporting evidence that may be required from time to time, and must answer truthfully all questions pertinent to administration of this System.
(c)Class D service credit.
(1)In general.
All service in a fiscal year after the date of becoming a Class D member shall be credited as provided in this subsection.
(2)Job requiring more than 1,000 hours per year.
(i)
A Class D member who is employed by the City in a job classification that requires more than 1,000 hours of work in a fiscal year shall receive credit for 1 year of service.
(ii)
If, however, during the 1<sup>st</sup> or final fiscal year of the member’s service, the member was not in pay status for every payroll period in the fiscal year, or for any other fiscal year in which the member was out of pay status for 7 or more bi-weekly payroll periods (or an equivalent number of weekly or monthly payroll periods), service for that fiscal year shall be credited pro rata, calculated as follows:
(A)
1 year’s service credit, multiplied by
(B)
a fraction, the numerator of which is the number of payroll periods in the fiscal year that the member was in pay status, and the denominator of which is the total number of payroll periods in the fiscal year for the member’s job classification.
(3)Job requiring 500-1,000 hours per year.
(i)
A Class D member who is employed by the City in a job classification that requires not less than 500 nor more than 1,000 hours of work in a fiscal year shall receive credit for ½ year of service.
(ii)
If, however, during the 1<sup>st</sup> or final fiscal year of a member’s service, the member was not in pay status for every payroll period in the fiscal year, or for any other fiscal year in which the member was out of pay status for 7 or more bi-weekly payroll periods (or an equivalent number of weekly or monthly payroll periods), service for that fiscal year shall be credited pro rata, calculated as follows:
(A)
½ year’s service credit, multiplied by
(B)
a fraction, the numerator of which is the number of payroll periods in the fiscal year that the member was in pay status, and the denominator of which is the total number of payroll periods in the fiscal year for the member’s job classification.
(4)Job requiring less than 500 hours per year.
A Class D member who is employed by the City in a job classification that requires less than 500 hours of work in a fiscal year is not eligible to receive any service credit for that employment. However, the member will be considered an active Class D member.
(5)Pay based on less than 12-month basis.
The service of a Class D member who is paid on other than a uniform, 12-month basis (e.g., a 10-month employee of the Baltimore City Public School System) may not be pro rated under this subsection because of the member’s being out of pay status during the period that the member ordinarily would not be paid.
(6)Additional opportunity to purchase credit for service with City.
(i)Prior City service.
A Class D member is entitled to purchase service credit for any City employment, regardless of retirement plan membership, as long as:
(A)
the employment did not result in the member’s being entitled to any current or future benefits for that employment in any other City retirement plan; and
(B)
the Class D member pays to the Employees’ Retirement System, by a single payment, an amount equal to:
1.
the current salary of the employee in the year of purchase, multiplied by
2.
the sum of the employer rate for the normal cost and the employee contribution rate, computed under <cite data-path="|22|§8|(d)|(1)">§ 8(d)(1) of this subtitle</cite> for the year of purchase, multiplied by
3.
the number of years or part of a year being purchased.
(ii)1st year of service.
In addition, a class D member is entitled to purchase service credit for the member’s 1<sup>st</sup> year of service with the City under the same conditions as provided in subparagraph (i)(B) of this paragraph.
(iii)Lump-sum option.
If a member purchases service credit under this paragraph and later dies or leaves City employment for any reason, with or without any vested benefit due to the member or the member’s beneficiary under this subtitle, the member or the beneficiary is entitled to receive, in lieu of any other benefit under this System, a lump-sum cash payment equal to the total amount paid by the member for the purchase, plus interest at the rate equal to regular interest (as defined in <cite data-path="|22|§1|(9)|(i)|(B)">§ 1(9)(i)(B) of this subtitle</cite>).
(7)Transfer of service.
(i)Eligibility.
A Class D member who satisfies the applicable requirements of the State Personnel and Pensions Article may transfer service from a State or local retirement or pension system within Maryland.
(ii)Service credit.
The service so transferred will be credited as service under this System.
(d)Military personnel – Credit for military service during City employment.
(1)Definitions.
(i)In general.
In this subsection, the following terms have the meanings indicated.
(ii)Military service.
(A)In general.
“Military service” means any:
1.
“service in the uniformed services”, as defined by and interpreted under 38 U.S.C. § 4303(13); or
2.
“military service”, as defined by and interpreted under State Personnel and Pension Article § 38-101(d).
(B)Inclusions.
“Military service” includes active duty, active duty for training, initial active duty for training, and inactive duty training (such as drills), under competent authority, on a voluntary or involuntary basis, in the Army, Navy, Marine Corps, Air Force, Coast Guard, Public Health Service Commissioned Corps, the Army National Guard, the Air National Guard, the Maryland National Guard, as well as the reserve components of each of these services, and any other category of persons designated by the President or the Governor of the State of Maryland in time of war or national or state emergency.
(iii)USERRA.
“USERRA” means the Uniformed Services Employment and Reemployment Rights Act of 1994, 38 U.S.C. §§ 4301-4344, as amended.
(2)Scope of subsection.
This subsection applies only to a member of this System who:
(i)
on account of military service, is on leave of absence from City employment;
(ii)
is eligible for reemployment with the City under USERRA;
(iii)
is reemployed by the City as an employee; and
(iv)
applies for service credit with this System.
(3)Service credit.
(i)
A member of this System shall receive service credit for the period of absence while in military service as though he or she remained continuously employed as an employee.
(ii)
To the extent required under USERRA, this service credit shall include the period, if any, between the date the member completes military service and the date of reemployment.
(4)Transfer of service credit.
A member of this System who receives service credit for military service under this subsection may transfer the credit to another State or local retirement or pension system within Maryland.
(5)Benefits unavailable during absence.
A member of this System, the member’s beneficiary, or the member’s estate is not entitled to line-of-duty disability benefits or line-of-duty death benefits arising from the member’s death or disability during a period that the member is absent from employment for military service.
(6)City funding of member contributions.
(i)In general.
Except as otherwise provided in subparagraph (ii) of this paragraph, a member of this System who is reemployed under paragraph (2) of this subsection shall be credited with, at the City’s sole expense, the contributions that the member otherwise would have made under § 8(d)(2) had the member not been absent, plus regular interest (as defined in <cite data-path="|22|§1|(9)|(i)|(B)">§ 1(9)(i)(B) of this subtitle</cite>) on those contributions.
(ii)Exception for termination before benefit eligibility.
(A)
If a member terminates City employment, other than by reason of death, before becoming eligible for a retirement benefit or for a deferred vested pension benefit under this section, the member is not entitled to receive any part of the contributions made on his or her behalf under subparagraph (i) of this paragraph.
(B)
However, the contributions made on behalf of a member will be used to fund a retirement benefit or a deferred vested pension benefit payable to the member under this section.
(C)
In addition, the contributions made on behalf of a member:
1.
will be used to fund a periodic death benefit payable to the member’s beneficiary under this section; or
2.
if the member’s beneficiary is entitled to receive a lump-sum death benefit under this section, will be paid to the beneficiary.
(iii)Refunds.
The Board of Trustees shall refund to a member any contributions made to this System during a period of absence from employment for military service while the member is otherwise exempted under this paragraph from paying contributions into this System.
(e)Military personnel – Credit for military service before City employment.
(1)Eligibility requirements.
Subject to paragraph (2) of this subsection, but notwithstanding any other provision of this subtitle, on proper application to this System, up to 3 years of credit shall be granted for military service, as defined in subsection (d) of this section, to any Class D member who:
(i)
has served in the military prior to employment with the City; and
(ii)
has either:
(A)
acquired at least 10 years of service (disregarding this military service credit) and attained age 62; or
(B)
acquired at least 20 years of service (disregarding this military service credit), regardless of age.
(2)Exclusion for period credited under another system.
(i)
Except as provided in subparagraph (ii) of the paragraph, the member may not receive credit for a period of military service if, under any other retirement system (whether a City retirement plan or otherwise), the member has received credit for the same period of military service for which retirement benefits have been or will be received by him or her.
(ii)
Subparagraph (i) of this paragraph does not apply to:
(A)
any credit for military service provided by the federal Social Security System; or
(B)
any benefit provided under Title 10, Chapter 1223, § 12731 through § 12741 of the U.S. Code.
(f)Service retirement benefits – Application and filing period.
A Class D member in service may retire under subsection (g) of this section if:
(1)
the member files the appropriate application with the Board of Trustees, in the form and containing the information that the Board requires;
(2)
the member specifies on the form the date on which the member desires his or her benefits to commence;
(3)
the date so specified is not less than 60 days nor more than 90 days after the date of filing the application; and
(4)
as of the date so specified, the member will have complied with the applicable conditions of the retirement benefit applied for.
(g)Service retirement – Types and conditions.
(1)Normal retirement.
(i)Eligibility requirements.
A Class D member is entitled to receive a normal retirement benefit, calculated as provided in subparagraph (ii) of this paragraph, if the member retires:
(A)
at or after age 65, with at least 5 years of service; or
(B)
regardless of age, with at least 30 years of service.
(ii)Benefit calculation.
Except for a Class D member for whom an enhanced benefit is provided under paragraph (4) of this subsection, the normal retirement benefit is equal to 1.0% of the member’s average final compensation, multiplied by his or her years of service (and fractions of those years of service).
(iii)Periodic reassessment of percentage multiplier.
Every 5 years, the Board of Trustees shall:
(A)
reassess the percentage multiplier used to compute the normal retirement benefit; and
(B)
report to the Mayor and the City Council its findings and recommendations.
(iv)Payment.
Payment of the benefit commences on the 1<sup>st</sup> day of the month immediately following the member’s retirement.
(2)Early retirement.
(i)In general.
(A)Eligibility requirements.
A Class D member is entitled to receive an early retirement benefit, calculated as provided in sub-subparagraph (B) of this subparagraph, if the member terminates employment with the City at or after age 55, with at least 5 years of service.
(B)Benefit calculation.
The early retirement benefit shall be determined as provided in paragraph (1)(ii) of this subsection based on the member’s average final compensation and years of service (and fractions of those years of service) as of the date the member terminates employment.
(C)Payment.
Except as provided in subparagraph (ii) of this paragraph, payment of the benefit commences on the 1<sup>st</sup> day of the month immediately following the member’s 65<sup>th</sup> birthday.
(ii)Reduction for early commencement.
(A)
If a member described in subparagraph (i) of this paragraph elects to have her or his early retirement benefit commence before the 1<sup>st</sup> day of the month immediately following her or his 65<sup>th</sup> birthday, the amount of the benefit shall be reduced, unless the member terminated employment with at least 30 years of service.
(B)
The amount of the reduction shall be:
1.
1/180 for each of the first 60 months (or fraction of a month) by which commencement of the member’s pension precedes the 1<sup>st</sup> day of the month immediately following her or his 65<sup>th</sup> birthday; and
2.
1/360 for each additional month (or fraction of a month) by which commencement of the member’s pension precedes the 1<sup>st</sup> day of the month immediately following her or his 65<sup>th</sup> birthday.
(3)Deferred vested pension.
(i)Eligibility requirements.
This paragraph applies to any Class D member who terminates City employment:
(A)
before attaining age 55 and after acquiring 10 years of service; or
(B)
after attaining age 55 and acquiring 5 years of service, but without having elected an immediate early retirement benefit under paragraph (2)(ii) of this subsection.
(ii)Benefit calculations.
A member described in subparagraph (i) of this paragraph is entitled to receive, commencing on the 1<sup>st</sup> day of the month immediately following his or her 65<sup>th</sup> birthday, a deferred vested pension benefit, calculated in accordance with the following rules:
(A)
The pension shall be calculated as provided in paragraph (1)(ii) of this subsection based on the member’s average final compensation and years of service (and fractions of years of service) as of the date the member terminated employment.
(B)
The member may elect to have payment of this benefit commence at anytime after the member has attained age 55 and before the 1<sup>st</sup> day of the month immediately following the member’s 65<sup>th</sup> birthday. If the member does so:
1.
the benefit shall be actuarially reduced in accordance with the same rules applicable to early retirement benefits under paragraph (2)(ii) of this subsection; and
2.
if the member dies before the deferred vested benefit commences, then no benefits are payable except for the return of the member’s accumulated contributions, if any.
(4)Enhanced benefit.
(i)
This paragraph applies to any Class D member who, at or after age 62 with at least 20 years of service:
(A)
retires and is entitled to 1 of the following benefits, as otherwise applicable to that member:
1.
a normal retirement benefit under paragraph (1) of this subsection;
2.
an early retirement benefit under paragraph (2) of this subsection;
3.
a deferred vested pension benefit under paragraph (3) of this subsection; or
4.
a non-line-of-duty disability retirement benefit under subsection (h) of this section; or
(B)
dies while actively employed and whose beneficiary is entitled to:
1.
a 100% survivorship death benefit under subsection (m)(3) of this section; or
2.
a 40% survivorship death benefit under subsection (m)(4) of this section.
(ii)
For purposes of calculating the benefit to which the member or beneficiary described in subparagraph (i) of this paragraph is entitled, the percentage multiplier described in paragraph (1)(ii) of this subsection shall be 1.1% (instead of the 1.0% specified in that paragraph).
(h)Non-line-of-duty disability retirement.
(1)Eligibility requirements.
A Class D member is entitled to retire on a non-line-of-duty disability retirement if:
(i)
the member has acquired at least 5 years of service, as determined by the Board of Trustees; and
(ii)
a hearing examiner determines that:
(A)
the member is mentally or physically incapacitated from the further performance of the duties of her or his City job classification; and
(B)
the incapacity is likely to be permanent.
(2)Application and filing deadline.
To retire under this subsection, the member must:
(i)
complete the appropriate application, in the form and containing the information required by subsection (p)(4) of this section; and
(ii)
submit the application to the Board no later than 1 year following the member’s last day of City employment.
(3)Effective date of retirement.
A non-line-of-duty disability retirement takes effect as follows:
(i)
if the member applied for disability retirement before terminating City employment, the retirement is effective as of the 1<sup>st</sup> day of the month immediately following the member’s last day of City employment; and
(ii)
if the member applied for disability retirement after terminating City employment, the retirement is effective as of the 1<sup>st</sup> day of the month immediately following the 30<sup>th</sup> day after the date on which the Board received a completed application.
(4)Benefit on retirement.
On retirement, the Class D member is entitled to receive a pension equal to the greater of:
(i)
the member’s accrued service retirement benefit, as calculated under subsection (g)(1)(ii) or (4) of this section; or
(ii)
15% of the member’s average final compensation.
(5)Offsets for Workers’ Compensation benefits.
Workers’ Compensation benefits shall be offset against non-line-of-duty disability benefits, in accordance with subsection (o) of this section.
(i)Line-of-duty disability retirement.
(1)Eligibility requirements.
A Class D member is entitled to retire on a line-of-duty disability retirement if a hearing examiner determines that:
(i)
the member is permanently incapacitated from the further performance of the duties of his or her City job classification due to 1 or more of the impairments described in paragraph (5) of this subsection; and
(ii)
the member’s impairment:
(A)
is, independent of all other causes and independent of any preexisting physical or medical conditions, whether job-related or otherwise, the direct result of bodily injury arising through an accident; and
(B)
the accident occurred:
1.
while the member was in the actual performance of his or her City duties at some definite time and place; and
2.
without willful negligence on the member’s part.
(2)Application and filing deadline.
To retire under this subsection, the member must:
(i)
complete the appropriate application, in the form and containing the information required by subsection (p)(4) of this section; and
(ii)
submit the application to the Board:
(A)
no later than 1 year following the member’s last day of City employment; and
(B)
within 5 years of the date of the accident resulting in the member’s impairment.
(3)Effective date of retirement.
A line-of-duty disability retirement takes effect as follows:
(i)
if the member applied for disability retirement before terminating City employment, the retirement is effective as of the 1<sup>st</sup> day of the month immediately following the member’s last day of city employment; and
(ii)
if the member applied for disability retirement after terminating City employment, the retirement is effective as of the 1<sup>st</sup> day of the month immediately following the 30<sup>th</sup> day after the date on which the Board received a completed application.
(4)Benefit on retirement.
(i)
On retirement, the Class D member is entitled to receive a pension equal to 66⅔% of the member’s average final compensation.
(ii)
If a Class D member is not eligible for line-of-duty disability benefits solely because the degree of impairment does not meet the conditions of paragraph (5) of this subsection, a non-line-of-duty disability benefit will be paid under subsection (h) of this section, regardless of the member’s years of service, as long as the member otherwise qualifies for non-line-of-duty disability retirement under that subsection.
(5)Disability loss requirements.
(i)In general.
The award of a line-of-duty disability retirement benefit requires:
(A)
a 50% or more anatomical loss of the use of any 1 of the impaired items listed in subparagraph (ii) of this paragraph; or
(B)
a 25% or more anatomical loss of the use of each of 2 or more of the impaired items listed in subparagraph (ii) of this paragraph.
(ii)Schedule of impaired items.
The schedule of impaired items is as follows:
1.
speech
5.
vital bodily organ
6.
a part of the central nervous system
9.
shoulder
10.
hearing
11.
mental incapacitation for which a member has been granted a disability benefit under the federal Social Security System.
(6)Offsets for Workers’ Compensation benefits.
Workers’ Compensation benefits shall be offset against line-of-duty disability benefits, in accordance with subsection (o) of this section.
(j)Dismemberment disability retirement.
(1)Eligibility requirements.
A Class D member is entitled to retire on a dismemberment disability retirement if a hearing examiner determines that:
(i)
the member sustained any 1 of the losses listed in paragraph (5) of this subsection;
(ii)
the member sustained the loss, independent of all other causes, as the direct result of bodily injury arising through an accident; and
(iii)
the accident occurred:
(A)
while the member was in the actual performance of his or her City duties at some definite time and place;
(B)
without willful negligence on the member’s part; and
(C)
not more than 180 days before the date on which the loss was sustained.
(2)Application and filing deadline.
To retire under this subsection, the member must:
(i)
complete the appropriate application, in the form and containing the information required by subsection (p)(4) of this section; and
(ii)
submit the application to the Board:
(A)
no later than 1 year following the member’s last day of City employment; and
(B)
within 5 years of the date of the accident resulting in the member’s loss.
(3)Effective date of retirement.
A dismemberment disability retirement takes effect as follows:
(i)
if the member applied for disability retirement before terminating City employment, the retirement is effective as of the 1<sup>st</sup> day of the month immediately following the member’s last day of city employment; and
(ii)
if the member applied for disability retirement after terminating City employment, the retirement is effective as of the 1<sup>st</sup> day of the month immediately following the 30<sup>th</sup> day after the date on which the Board received a completed application.
(4)Benefit on retirement.
On retirement, the Class D member is entitled to receive a pension equal to 100% of the member’s average final compensation. In no event, however, will more than 100% of average final compensation be paid for all losses sustained by a member as the result of any one accident.
(5)Schedule of losses.
(i)Losses specified.
The schedule of losses is as follows:
1.
both hands or both feet
2.
1 hand and 1 foot
3.
1 hand and sight of 1 eye
4.
1 foot and sight of 1 eye
5.
sight of both eyes
(ii)Definitions.
(A)
With respect to hands or feet, “loss” means dismemberment by severance at or above the wrist or ankle joint.
(B)
With respect to “sight of 1 eye”, “loss” means central visual acuity of 20/200 or less in 1 eye with the use of correcting lenses, or visual acuity of greater than 20/200 if accompanied by a limitation in the field of vision such that the widest diameter of the visual field subtends an angle no greater than 20 degrees.
(C)
With respect to “sight of both eyes”, “loss” means central visual acuity of 20/200 or less in the better eye with the use of correcting lenses, or visual acuity greater than 20/200 if accompanied by a limitation in the field of vision such that the widest diameter of the visual field subtends an angle no greater than 20 degrees.
(6)Offsets for Workers’ Compensation benefits.
Workers’ Compensation benefits shall be offset against dismemberment disability benefits, in accordance with subsection (o) of this section.
(k)Method of payment.
(1)Maximum retirement allowance.
(i)In general.
A Class D member who is eligible to receive a retirement benefit under this subtitle is entitled to receive, without actuarial modification, the full benefit for which he or she is qualified, payable in periodic payments during the retired member’s lifetime (the “maximum retirement allowance”).
(ii)Retired member’s death – In general.
As of the 1<sup>st</sup> day of the month immediately after the death of a retired member who is receiving this maximum retirement allowance, the following beneficiaries are entitled to receive periodic payments in an amount equal to 40% of the periodic payment that the retired member was receiving at the time of his or her death:
(A)
if the retired member is survived by a spouse to whom the retired member was married for at least 1 year immediately before the member’s retirement date, the benefit shall be paid to the surviving spouse, to continue for the spouse’s lifetime or until the spouse remarries before age 70; or
(B)
if there is no qualifying surviving spouse or if the surviving spouse remarries before age 70 or dies, then the benefit shall be paid to the retired member’s minor children, in equal shares, to continue until the children are no longer minors, as defined in <cite data-path="|22|§1|(5)">§ 1(5) of this article</cite>.
(iii)Retired member’s death – Share of minor child who attains majority.
For purposes of this paragraph, when a retired member’s child is no longer a minor and consequently ceases to receive benefits under this paragraph, each remaining minor child shall begin to receive, in addition to his or her existing benefit, an equal share of the benefit formerly paid to the other child. This process continues until the youngest child is no longer a minor.
(iv)Retired member’s death – Before contributions reccovered.
If a retired member who is receiving the maximum retirement allowance dies before the member has received benefit payments in a sum equal to the amount of his or her accumulated contributions at the time of retirement, and if there is no surviving spouse or minor child entitled to receive benefits on the member’s death, the difference between the amount of the deceased member’s accumulated contributions and the sum of the benefit payments shall be paid in the form of a lump-sum cash payment as follows:
(A)
to the deceased member’s designated beneficiary; or
(B)
if no beneficiary has been designated or if the designated beneficiary predeceases the retired member, to the deceased member’s estate.
(2)Benefit options.
(i)In general.
(A)
Instead of the maximum retirement allowance provided for in paragraph (1) of this subsection, a Class D member who is entitled to receive a retirement benefit from this System may elect to receive the benefit in the form of 1 of the options set forth in subparagraphs (ii) through (v) of this paragraph.
(B)
A member who elects to receive 1 of these options will receive his or her benefit in the form of periodic payments during her or his lifetime.
(C)
The member’s benefit shall be in an amount that, when combined with the corresponding survivorship benefit under the option elected, will equal the actuarial equivalent of the retired member’s maximum retirement allowance, computed as of his or her retirement date.
(ii)Reserve guarantee option.
(A)
As soon as administratively practicable after the death of a retired member who elected this reserve guarantee option, the balance of the present value of the retired member’s benefit at retirement, after deducting the total amount of periodic payments received by the retired member during his or her lifetime, shall be paid in the form of a lump-sum cash payment as follows:
1.
to the retired member’s designated beneficiary; or
2.
if no designated beneficiary has been designated or if the designated beneficiary predeceases the retired member, to the retired member’s estate.
(B)
A member who elects this option may change his or her designated beneficiary at any time throughout the member’s retirement.
(iii)Joint-and-survivor option.
(A)
As of the 1<sup>st</sup> day of the month immediately after the death of a retired member who elected this joint-and-survivor option, the member’s designated beneficiary is entitled to receive periodic payments during the beneficiary’s lifetime in either of the following amounts, as elected by the member:
1.
100% of the periodic payment that the retired member was receiving at the time of her or his death; or
2.
50% of the periodic payment that the retired member was receiving at the time of her or his death.
(B)
A member who elects this option may change her or his designated beneficiary within 30 days after the member’s retirement date.
(C)
If the designated beneficiary predeceases the retired member within 30 days after the retirement date, the retired member may designate a new beneficiary within 30 days after the designated beneficiary’s death.
(D)
If the designated beneficiary predeceases the retired member within 30 days after the retirement date and the retired member does not designate a new beneficiary within 30 days after the designated beneficiary’s death or if the designated beneficiary dies on or after the 31<sup>st</sup> day following the retirement date:
1.
the retired member continues during her or his lifetime to receive periodic payments in the same amount that the member has been receiving;
2.
no new beneficiary may be designated; and
3.
on the retired member’s death, no survivorship benefit is payable.
(iv)“Pop-up” joint-and-survivor option.
(A)
As of the 1<sup>st</sup> day of the month immediately after the death of a retired member who elected this “pop-up” joint-and-survivor option, the member’s designated beneficiary is entitled to receive periodic payments during the beneficiary’s lifetime in either of the following amounts, as elected by the member:
1.
100% of the periodic payment that the retired member was receiving at the time of his or her death; or
2.
50% of the periodic payment that the retired member was receiving at the time of his or her death.
(B)
A member who elects this option may change his or her designated beneficiary within 30 days after the member’s retirement date.
(C)
If the designated beneficiary predeceases the retired member within 30 days after the retirement date, the retired member may designate a new beneficiary within 30 days after the designated beneficiary’s death.
(D)
If the designated beneficiary predeceases the retired member within 30 days after the retirement date and the retired member does not designate a new beneficiary within 30 days after the designated beneficiary’s death or if the designated beneficiary dies on or after the 31<sup>st</sup> day following the retirement date:
1.
the retired member commences, as of the 1<sup>st</sup> day of the month immediately after the designated beneficiary’s death, to receive the maximum retirement allowance, payable in periodic payments during the retired member’s lifetime;
2.
no other beneficiary may be designated; and
3.
on the retired member’s death, no survivorship benefit is payable, whether under this option or the maximum retirement allowance.
(v)Specific benefit option.
(A)
Subject to the approval required by sub-subparagraph (B) of this subparagraph, on the death of a retired member who elected this specific benefit option, the member’s designated beneficiary is entitled to receive the following, as elected by the member before the member’s retirement date:
1.
a specific lump-sum cash payment, payable as soon as administratively practicable after the retired member’s death; or
2.
a specific periodic benefit, payable to the designated beneficiary during her or his lifetime, effective as of the 1<sup>st</sup> day of the month immediately after the retired member’s death.
(B)
This benefit option must be approved, at the time of the member’s retirement, by the Board of Trustees pursuant to the recommendation of this System’s actuary.
(C)
A member who elects this option may change his or her designated beneficiary within 30 days after the member’s retirement date.
(D)
If the designated beneficiary predeceases the retired member within 30 days after the retirement date, the retired member may designate a new beneficiary within 30 days after the designated beneficiary’s death.
(E)
If the designated beneficiary predeceases the retired member within 30 days after the retirement date and the retired member does not designate a new beneficiary within 30 days after the designated beneficiary’s death or if the designated beneficiary dies on or after the 31<sup>st</sup> day after the retirement date:
1.
the retired member continues during his or her lifetime to receive periodic payments in the same amount that the member has been receiving;
2.
no other beneficiary may be designated; and
3.
on the retired member’s death, no survivorship benefit is payable.
(3)Change of election within 30 days.
(i)
A retired member may elect to make the changes authorized in this paragraph on or before the later of:
(A)
the 30<sup>th</sup> day after the retired member’s retirement date; or
(B)
if the retired member’s designated beneficiary predeceases the retired member within 30 days after the retirement date, the 30<sup>th</sup> day after the designated beneficiary’s death.
(ii)
Within the periods specified, the retired member may elect to change:
(A)
the retired member’s maximum retirement allowance under paragraph (1) of this subsection to any one of the benefit options provided under paragraph (2) of this subsection;
(B)
the retired member’s election of a benefit option under paragraph (2) of this subsection to the maximum retirement allowance provided under paragraph (1) of this subsection; or
(C)
the retired member’s election of a benefit option under paragraph (2) of this subsection to any other benefit option provided under paragraph (2) of this subsection.
(iii)
Any payments made to a retired member under the original election shall be taken into account in computing the benefit to be paid under the subsequent election.
(5)Election to receive lump-sum payment.
(i)
A Class D member who terminates City employment may elect to receive the present value of the member’s total pension benefit in a lump-sum cash payment, if:
(A)
the member is entitled to service retirement benefit under subsection (g) of this section; and
(B)
the present value of the total pension benefit is no more than the greater of:
1.
$12,500; or
2.
an amount that is calculated by this System’s actuary to reflect any increases in the average salary of active members and that is approved by the Board of Trustees.
(ii)
A member who receives a lump-sum cash payment under this paragraph ceases to be entitled to any other benefits from this System.
(iii)
If a Class D member is entitled to receive both a service retirement benefit under subsection (g) of this section and a disability retirement benefit under subsection (h), (i), or (j) of this section, the member may waive his or her rights to the disability benefit and elect to receive a lump-sum cash payment under this paragraph.
(iv)
The present value of the benefit payable under this paragraph shall be calculated as of the date the member terminates City employment, using actuarial assumptions as of that date approved by the Board of Trustees pursuant to the recommendation of this System’s actuary.
(6)Return of accumulated contributions.
(i)Termination of employment – General.
(A)
If a Class D member terminates City employment for more than 30 consecutive days, other than by reason of death, before becoming eligible for a retirement benefit or a deferred vested pension benefit under this section, the member may elect to receive the value of his or her accumulated contributions (with regular interest credited through the date of termination), payable in the form of a lump-sum cash payment.
(B)
Notwithstanding sub-subparagraph (A) of this subparagraph, if the value of a terminating member’s accumulated contributions (with regular interest credited through the date of termination) is $1,000 or less and the member does not elect to have the accumulated contributions paid in a direct rollover, the accumulated contributions will be paid directly to the member in a lump-sum cash payment as soon as administratively practicable following the expiration of the time period for making a direct rollover election.
(ii)Termination of employment – Death.
If a Class D member dies while actively employed, his or her accumulated contributions will be used to fund a periodic death benefit payable to the member’s beneficiary under subsection (m) or (n) of this section or will be paid to the member’s beneficiary if the beneficiary is entitled to receive a lump-sum death benefit under subsection (m) or (n) of this section.
(l)Reemployment.
(1)Following termination of Class D member.
(i)After becoming eligible for certain benefits.
If a Class D member terminates City employment after becoming eligible for a retirement benefit or a deferred vested pension benefit under this section and is subsequently reemployed as an employee, the employee:
(A)
must, as of his or her reemployment with the City, cease or postpone receiving any retirement benefits from this System; and
(B)
immediately on reemployment:
1.
will again become a Class D member; and
2.
will be credited with his or her prior Class D service.
(ii)Before becoming eligible for certain benefits.
(A)Termination not longer than 180 days.
If a Class D member terminates City employment before becoming eligible for a retirement benefit or a deferred vested pension benefit under this section and is subsequently reemployed as an employee not more than 180 consecutive days after termination, the employee:
1.
immediately on reemployment, will again become a Class D member; and
2.
will be credited with his or her prior Class D service as follows:
a.
immediately on reemployment, unless before reemployment the member received the value of his or her accumulated contributions under subsection (k)(6)(i) of this section; or
b.
if before reemployment the member received the value of his or her accumulated contributions under subsection (k)(6)(i) of this section, then only if the member purchases the service credit under subsection (c)(6)(i) of this section.
(B)Termination longer than 180 days.
If a Class D member terminates City employment before becoming eligible for a retirement benefit or a deferred vested pension benefit under this section and is subsequently reemployed as an employee more than 180 consecutive days after termination, the employee:
1.
on the 1<sup>st</sup> annual anniversary of his or her reemployment, will again become a Class D member; and
2.
will be credited with his or her prior Class D service as follows:
a.
immediately on reemployment, unless before reemployment the member received the value of his or her accumulated contributions under subsection (k)(6)(i) of this section; or
b.
if before reemployment the member received the value of his or her accumulated contributions under subsection (k)(6)(i) of this section, then only if the member purchases the service credit under subsection (c)(6)(i) of this section.
(2)Following pre-July 1, 2014, City employment.
(i)Termination after earning vested benefit – Reemployment not more than 180 days later.
(A)
This subparagraph applies to any employee who:
1.
was employed by the City on or before June 30, 2014;
2.
terminated that employment after earning a vested benefit under this System or another City retirement plan; and
3.
is reemployed by the City on or after July 1, 2014, and not more than 180 consecutive days after termination.
(B)
Notwithstanding any other provision of this subtitle, an employee described in sub-subparagraph (A) of this subparagraph:
1.
must, as of his or her reemployment with the City, cease or postpone receiving any retirement benefits from this System; and
2.
immediately on reemployment:
a.
will again become a Class C member; and
b.
will be credited with his or her prior Class C service.
(ii)Termination after earning vested benefit – Reemployment more than 180 days later.
(A)
This subparagraph applies to any employee who:
1.
was employed by the City on or before June 30, 2014;
2.
terminated that employment after earning a vested benefit under this System or another City retirement plan; and
3.
is reemployed by the City on or after July 1, 2014, and more than 180 consecutive days after termination.
(B)
Notwithstanding any other provision of this subtitle, an employee described in sub-subparagraph (A) of this subparagraph:
1.
must, as of his or her reemployment with the City, cease or postpone receiving any City retirement benefits in accordance with <cite data-path="|22|§48">§ 48 {“Contemporaneous benefits from 2 or more City systems”} of this article</cite>;
2.
may not, as of his or her reemployment with the City, again become a member of this System or any other City retirement plan, except as provided in item 3 of this sub-subparagraph (B); and
3.
automatically becomes, on the 30<sup>th</sup> day after the date on which his or her reemployment began, a non-hybrid member of the Retirement Savings Plan.
(C)
Prior service earned under this System or any other City retirement plan is not credited under the Retirement Savings Plan, and the employee is not entitled to any contributions under the Retirement Savings Plan with respect to that prior service.
(iii)Termination on or before June 30, 2014, and before earning vested benefit – Reemployment before expiration of parity time period.
(A)
This subparagraph applies to any employee who:
1.
terminated employment with the City on or before June 30, 2014, and before earning a vested benefit under this System or another City retirement plan; and
2.
is reemployed by the City on or after July 1, 2014, and before the expiration of a time period equal to the parity time period defined in <cite data-path="|22|§1|(28)">§ 1(28) of this subtitle</cite>.
(B)
Notwithstanding any other provision of this subtitle, an employee described in sub-subparagraph (A) of this subparagraph:
1.
on the 1<sup>st</sup> annual anniversary of his or her reemployment, will again become a Class C member;
2.
immediately on reemployment, will automatically be credited with his or her prior Class C service for periods before July 1, 2013; and
3.
will be credited with his or her prior service for periods on or after July 1, 2013, as follows:
a.
immediately on reemployment, unless before reemployment the member received the value of his or her accumulated contributions under subsection (k)(6)(i) of this section; or
b.
if before reemployment the member received the value of his or her accumulated contributions under subsection (k)(6)(i) of this section, then only if the member purchases the service credit under subsection (c)(6)(i) of this section.
(iv)Termination on or before June 30, 2014, and before earning vested benefit – Reemployment after expiration of parity time period.
(A)
This subparagraph applies to any employee who:
1.
was employed by the City on or before June 30, 2014;
2.
terminated that employment on or before June 30, 2014, and before earning a vested benefit under this System or another City retirement plan; and
3.
is reemployed by the City on or after July 1, 2014, and after the expiration of a time period equal to the parity time period defined in <cite data-path="|22|§1|(28)">§ 1(28) of this subtitle</cite>.
(B)
Notwithstanding any other provision of this subtitle, an employee described in sub-subparagraph (A) of this subparagraph:
1.
shall make an election in accordance with § 9.1 of this subtitle; and
2.
based on that election, will become either:
a.
a Class D member of this System, commencing on the 1<sup>st</sup> annual anniversary of his or her reemployment, and a hybrid member of the Retirement Savings Plan, commencing on the 180<sup>th</sup> day after the date on which his or her reemployment began; or
b.
a non-hybrid member of the Retirement Savings Plan, commencing on the 180<sup>th</sup> day after the date on which his or her reemployment began.
(C)
On commencement of participation as a Class D member of this System, the employee will be credited with the prior service that she or he earned under this System or another City retirement system only if the employee purchases the service credit under subsection (c)(6)(i) of this section.
(v)Termination on or after July 1, 2014, and before earning vested benefit – Reemployment not more than 180 days later.
(A)
This subparagraph applies to any employee who:
1.
was employed by the City on or before June 30, 2014;
2.
terminated that employment on or after July 1, 2014, and before earning a vested benefit under this System or another City retirement plan; and
3.
is reemployed by the City not more than 180 consecutive days after termination.
(B)
Notwithstanding any other provision of this subtitle, an employee described in sub-subparagraph (A) of this subparagraph:
1.
immediately on reemployment, will again become a Class C member;
2.
immediately on reemployment, will automatically be credited with his or her prior Class C service for periods before July 1, 2013; and
3.
will be credited with his or her prior service for periods on or after July 1, 2013, as follows:
a.
immediately on reemployment, unless before reemployment the member received the value of his or her accumulated contributions under subsection (k)(6)(i) of this section; or
b.
if before reemployment the member received the value of his or her accumulated contributions under subsection (k)(6)(i) of this section, then only if the member purchases the service credit under subsection (c)(6)(i) of this section.
(vi)Termination on or after July 1, 2014, and before earning vested benefit – Reemployment more than 180 days later.
(A)
This subparagraph applies to any employee who:
1.
was employed by the City on or before June 30, 2014;
2.
terminated that employment on or after July 1, 2014, and before earning a vested benefit under this System or another City retirement plan; and
3.
is reemployed by the City more than 180 consecutive days after termination.
(B)
Notwithstanding any other provision of this subtitle, an employee described in sub-subparagraph (A) of this subparagraph shall be treated in accordance with subparagraph (iv)(B) and (C) of this paragraph.
(m)Non-line-of-duty death benefit.
(1)Scope of subsection.
This subsection applies to a member who dies while actively employed, but whose death does not qualify under subsection (n) of this section as a line-of-duty death benefit.
(2)Lump-sum death benefit.
(i)“Beneficiary” defined.
In this paragraph, “beneficiary” means the member’s designated beneficiary or surviving spouse, children, or parents, as qualified and prioritized under subparagraph (v)(A)-(D) of this paragraph.
(ii)Eligibility requirements.
The beneficiary is entitled to a lump-sum benefit under this paragraph only if:
(A)
the member had acquired 1 or more years of service; and
(B)
no benefits are paid under paragraph (3) or (4) of this subsection.
(iii)Application and filing deadline.
To receive this benefit, the beneficiary must:
(A)
complete the appropriate application, in the form and containing the information, including proof of death, that the Board requires; and
(B)
submit the application to the Board on or before the 60<sup>th</sup> day after the Board has provided a post-death notice of this benefit to the beneficiary.
(iv)Amount of benefit.
The lump-sum benefit shall equal:
(A)
any accumulated contributions of the deceased member; and
(B)
50% of the greater of the member’s current annual compensation or the member’s average final compensation on the date of the member’s death.
(v)Qualifications and priorities of potential beneficiaries.
The lump-sum benefit shall be paid as follows:
(A)
to the member’s designated beneficiary;
(B)
if there is no designated beneficiary or if the designated beneficiary predeceases the member, to the member’s surviving spouse;
(C)
if there is no designated beneficiary and no surviving spouse, to the member’s children, in equal shares;
(D)
if there is no designated beneficiary, surviving spouse, or surviving child, to the member’s surviving parents, in equal shares; and
(E)
otherwise, to the member’s estate.
(3)100% survivorship death benefit.
(i)Definitions.
(A)In general.
In this paragraph, the following terms have the meanings indicated.
(B)Beneficiary.
“Beneficiary” means the member’s surviving spouse or parents, as qualified and prioritized under subparagraph (v) of this paragraph.
(C)Surviving spouse.
“Surviving spouse” means a surviving spouse to whom the member was married for at least 5 years immediately before the date of the member’s death.
(ii)Eligibility requirements.
The beneficiary is entitled to a 100% survivorship death benefit only if the member would have been eligible for a normal service or early service retirement before his or her death or within 90 days after the date of his or her death,
(iii)Application and filing deadline.
To receive this benefit, the beneficiary must:
(A)
complete the appropriate application, in the form and containing the information, including proof of death, that the Board requires; and
(B)
submit the application to the Board on or before the 60<sup>th</sup> day after the Board has provided a post-death notice of this benefit to the beneficiary.
(iv)Amount of benefit.
The benefit shall be equal to that which would have been paid to a surviving beneficiary under the joint and survivor 100% benefit option provided for in subsection (k)(2)(iii)(A)1. of this section had the member elected that option, designated that beneficiary, and retired as of the date of death.
(v)Qualifications and priorities of potential beneficiaries.
(A)
The benefit shall be paid as follows:
1.
to the member’s designated beneficiary, to continue during his or her lifetime, if that designated beneficiary is:
a.
the member’s surviving spouse; or
b.
one of the member’s surviving parents; or
2.
if the designated beneficiary is not one of the persons listed in item 1. of this sub-subparagraph and that beneficiary predeceases the member, or if there is no designated beneficiary, then to the member’s surviving spouse, to continue for her or his lifetime.
(B)
If a member designates a beneficiary other than one of the persons listed in sub-subparagraph (A)1. of this subparagraph, and if that beneficiary does not predecease the member, the benefit provided by this paragraph is not payable.
(vi)Benefit instead of all others under subsection.
The benefit provided by this paragraph is in place of all benefits provided under paragraphs (2) and (4) of this subsection.
(4)40% survivorship death benefit.
(i)Definitions.
(A)In general.
In this paragraph, the following terms have the meanings indicated.
(B)Beneficiary.
“Beneficiary” means the member’s surviving spouse or minor children, as qualified and prioritized under subparagraph (v) of this paragraph.
(C)Surviving spouse.
“Surviving spouse” means a surviving spouse to whom the member was married for at least 1 year immediately before the date of the member’s death.
(ii)Eligibility requirements.
The beneficiary is entitled to a 40% survivorship death benefit only if the member had at least 20 years of service as of the date of his or her death.
(iii)Application and filing deadline.
To receive this benefit, the beneficiary must:
(A)
complete the appropriate application, in the form and containing the information, including proof of death, that the Board requires; and
(B)
submit the application to the Board on or before the 60<sup>th</sup> day after the Board has provided a post-death notice of this benefit to the beneficiary.
(iv)Amount of benefit.
(A)
The benefit shall be equal to 40% of the member’s accrued service retirement benefit, calculated as provided in subsection (g)(1)(ii) or (4) of this section based on the member’s average final compensation and years of service (and fractions of those years) as of the date of the member’s death.
(B)
The calculation required by sub-subparagraph (A) of this subparagraph shall be made with the assumption that the member had attained age 65 as of the date of his or her death. Accordingly, the reduction described in subsection (g)(2)(ii) of this section does not apply.
(v)Qualifications and priorities of potential beneficiaries.
(A)
The benefit shall be paid as follows:
1.
to the member’s designated beneficiary, if that designated beneficiary is:
a.
the member’s surviving spouse, to continue for the spouse’s lifetime or until the spouse remarries before age 70; or
b.
the member’s minor children, to be paid to each child, in equal shares, until that child is no longer a minor, as defined in <cite data-path="|22|§1|(5)">§ 1(5) of this article</cite>;
2.
if the designated beneficiary is not one of the persons listed in item 1. of this sub-subparagraph and that beneficiary predeceases the member, or if there is no designated beneficiary, then to the member’s surviving spouse, to continue for the spouse’s lifetime or until the spouse remarries before age 70; or
3.
if there is no qualifying surviving spouse under item 1. or 2. of this sub-subparagraph, or if the surviving spouse remarries before age 70 or dies, then to the member’s minor children, to be paid to each child in equal shares until that child is no longer a minor, as defined in <cite data-path="|22|§1|(5)">§ 1(5) of this article</cite>.
(B)
If a member designates a beneficiary other than one of the persons listed in sub-subparagraph (A) of this subparagraph, and if that beneficiary does not predecease the member, the benefit provided by this paragraph is not payable.
(vi)Allocations among children.
For purposes of this paragraph, when a member’s child is no longer a minor and, consequently, ceases to receive benefits under this paragraph, each remaining minor child shall then begin to receive, in addition to his or her existing benefit, an equal share of the benefit formerly paid to the other child. This process continues until the member’s youngest child is no longer a minor.
(vii)Rules dealing with 1st year of employment.
For purposes of this paragraph, the deceased member’s 1<sup>st</sup> year of employment:
(A)
is included in computing the minimum 20 years of service credit needed to be eligible to receive this death benefit; but
(B)
may not be counted as service credit for purpose of calculating the amount of the death benefit, unless purchased as service credit in accordance with subsection (c)(6) of this section.
(viii)Benefit in place of all others under subsection.
The benefit provided by this paragraph is in place of all benefits provided under paragraphs (2) and (3) of this subsection.
(5)Death without beneficiaries or estate.
The amounts that would have been paid under this subsection, excluding accumulated contributions, forever remain assets of this System if:
(i)
a member dies without designating a beneficiary;
(ii)
that member has no beneficiaries, as enumerated in paragraphs (2)(v), (3)(v), and (4)(v) of this subsection ; and
(iii)
no estate for that member is opened within 2 years of the member’s death.
(6)Death of retired member within 30 days of retirement.
(i)Scope of paragraph.
Except as specified in subparagraph (ii) of this paragraph, this paragraph applies to:
(A)
a retired member who:
1.
has been granted a service or disability retirement benefit under this section; and
2.
dies within 30 days of his or her retirement date; or
(B)
a retired member who:
1.
retires before reaching age 65;
2.
elects to postpone receipt of his or her retirement benefit until age 65; and
3.
dies within 30 days after reaching age 65.
(ii)Exception.
This paragraph does not apply to a former member who terminates employment before reaching age 65 without immediate entitlement to retirement benefits.
(iii)Death deemed to be during active service.
A retired member or vested former member described in subparagraph (i) of this paragraph is deemed to have died while still employed by the City and, instead of any other service or disability benefits under this System, a non-line-of-duty death benefit will be paid as if he or she died during active service.
(iv)Offset of payments received.
Any pension benefits paid by this System and received by the retired member or former member before he or she died shall be offset against the death benefits payable under this paragraph.
(n)Line-of-duty death benefit.
(1)“Beneficiary” defined.
In this subsection, “beneficiary” means the member’s designated beneficiary or surviving spouse, children, or parents, as qualified and prioritized under paragraph (4)(i)(A)-(D) or paragraph (4)(ii) of this subsection, as the case may be.
(2)Eligibility requirements.
This subsection applies only:
(i)
to an individual who dies while a member of this System; and
(ii)
if a hearing examiner determines that:
(A)
the member’s death was, independent of all other causes and independent of any preexisting physical or medical conditions, whether job-related or otherwise, the direct result of bodily injury arising through an accident; and
(B)
the accident occurred:
1.
while the member was in the actual performance of his or her City duties at some definite time and place; and
2.
without willful negligence on the member’s part.
(3)Application and filing deadline.
To receive this benefit, the beneficiary must:
(i)
complete the appropriate application, in the form and containing the information required by subsection (p)(6); and
(ii)
submit the application to the Board on or before the 60<sup>th</sup> day after the Board has provided a post-death notice of this benefit to the beneficiary.
(4)Amount of benefit; Qualifications and priorities of potential beneficiaries .
On an award by the hearing examiner, the Board of Trustees shall pay:
(i)
any accumulated contributions of the deceased member to:
(A)
the member’s designated beneficiary;
(B)
if there is no designated beneficiary, or if the designated beneficiary predeceases the member, to the member’s surviving spouse;
(C)
if there is no designated beneficiary and no surviving spouse, to the member’s children, in equal shares;
(D)
if there is no designated beneficiary, surviving spouse, or surviving child, to the member’s surviving parents, in equal shares; and
(E)
otherwise, to the member’s estate; and
(ii)
a pension of 100% of the member’s current compensation to:
(A)
the member’s surviving spouse, to continue for the spouse’s lifetime or until the spouse remarries before age 70, unless the member has designated his or her children as beneficiaries;
(B)
the member’s minor children, to be paid to each child in equal shares until that child is no longer a minor, as defined in <cite data-path="|22|§1|(5)">§ 1(5) of this article</cite>, if:
1.
the member designated his or her children as beneficiaries;
2.
there is no surviving spouse on the date of the member’s death; or
3.
the surviving spouse, after having received benefits payments under sub-item (A) of this item (ii), has remarried before age 70 or has died; or
(C)
the member’s surviving parents in equal shares, to continue during their lifetimes, if:
1.
the member has not designated his or her children as beneficiaries;
2.
there is no surviving spouse on the date of the member’s death; and
3.
the member has no minor children at the date of his or her death.
(5)Allocations among children or between parents.
(i)
For purposes of paragraph (4) of this subsection, when a member’s child is no longer a minor and, consequently, ceases to receive a benefit under that paragraph, each remaining minor child shall then begin to receive, in addition to his or her existing benefit, an equal share of the benefit formerly paid to the other child. This process continues until the member’s youngest child is no longer a minor.
(ii)
For purposes of paragraph (4) of this subsection, if a member’s line-of-duty death benefit is paid to both of the member’s surviving parents and one parent dies, the remaining parent shall then begin to receive, in addition to his or her existing benefit, the benefit formerly paid to the deceased parent.
(6)If no beneficiary eligible.
If no beneficiary is eligible for a line-of-duty death benefit under this subsection, a non-line-of-duty death benefit will be paid under either subsection (m)(2), (m)(3), or (m)(4) of this section as long as the member’s beneficiary qualifies for a non-line-of-duty death benefit under 1 of those subsections.
(7)Death without beneficiaries or estate.
The amounts that would have been paid under this subsection, excluding accumulated contributions, forever remain assets of this System if:
(i)
a member dies without designating a beneficiary;
(ii)
that member has no beneficiaries, as enumerated in paragraph (4) of this subsection; and
(iii)
no estate for that member is opened within 2 years of the member’s death.
(o)Workers’ Compensation benefits offset against disability and death benefits.
(1)Scope of subsection.
This subsection applies to a member or beneficiaries of a member:
(i)
the payment of whose retirement benefit is on account a disability retirement benefit under subsection (h), (i), or (j) of this section; or
(ii)
who dies and is awarded a death benefit under subsection (m) or (n) of this section.
(2)Offset for Workers’ Compensation payments.
The Board of Trustees shall offset the amount of a member’s Workers’ Compensation award paid or payable by the City against any disability or death benefits paid or payable by this System to a member or a member’s beneficiaries, if:
(i)
the member or beneficiary was awarded Workers’ Compensation benefits under the State’s Workers’ Compensation Law to be paid or payable by the City;
(ii)
the Workers’ Compensation award was for permanent partial or permanent total disability or for death;
(iii)
the Workers’ Compensation award was awarded on account of the same disability or death that resulted in this System’s payment of disability or death benefits; and
(iv)
the Workers’ Compensation award was awarded by the Workers’ Compensation Commission no more than 5 years before:
(A)
the effective date of the member’s retirement on account of non-line-of- duty disability;
(B)
the date of the accident qualifying the member for line-of-duty disability benefits or for dismemberment disability benefits, or
(C)
the date of the member’s death qualifying the member’s beneficiaries to receive a death benefit under this section.
(3)Amounts not included in offset.
The amount of Workers’ Compensation benefits to be offset does not include amounts allocated for the payment of legal fees, medical expenses, or other payments authorized by the Workers’ Compensation Commission to be made directly to third parties and not to the member or the member’s beneficiary.
(4)Method of offset.
(i)Non-actuarial method for lump-sum payments.
(A)
The Board of Trustees shall offset the amount of a member’s Workers’ Compensation award, reduced by the amounts described in paragraph (3), against any lump-sum disability or death benefit paid or payable by this System to a member or a member’s beneficiary in the following manner.
(B)
The offset shall be made on a non-actuarial, dollar-for-dollar basis against any lump-sum benefit until the total amount of the Workers’ Compensation benefits has been recovered.
(C)
If the amount of the Workers’ Compensation benefits exceeds the lump-sum disability or death benefit, then no disability or death benefit may be paid, except for the return of the member’s accumulated contributions, if any.
(ii)Actuarial method for periodic payments.
(A)
The Board of Trustees shall offset the amount of a member’s Workers’ Compensation award, reduced by the amounts described in paragraph (3), against any periodic disability or death benefits paid or payable by this System to a member or a member’s beneficiaries in the following manner.
(B)
This offset shall be calculated on an actuarial basis by annuitizing the member’s Workers’ Compensation award, reduced by the amounts described in paragraph (3), and reducing the member’s periodic disability or death benefit by the annuitized amount until the total amount of the Workers’ Compensation benefits have been recovered.
(C)
The actuarial amount shall be calculated by using an actuarial method and appropriate annuity factors recommended by this System’s actuary and approved by the Board of Trustees.
(D)
If the annuitized amount of the Workers’ Compensation benefits exceeds this System’s periodic disability or death benefit payment, then no disability or death benefit may be paid, except for the return of the member’s accumulated contributions, if any.
(5)Restoration of offset amount against retirement benefits.
(i)
On recovering the full amount of the member’s Workers’ Compensation benefits, the reduced disability or death benefits payable to the member or the member’s beneficiaries shall be restored to the unreduced amount of the disability or death benefits payable to the member or beneficiaries prior to the offset for Workers’ Compensation.
(ii)
The amount by which a reduced disability or death benefit is restored under subparagraph (i) of this paragraph does not include any post-retirement increases that the member or the member’s beneficiaries would have been eligible to receive had the member’s disability or death benefits not been reduced.
(p)Panel of hearing examiners.
(1)Panel established.
There is a panel of hearing examiners, to be composed of persons with a demonstrated knowledge and competence in disability claims evaluation.
(2)Appointment of panel members.
(i)
The hearing examiners shall be appointed on a contract basis by the Board of Estimates.
(ii)
The Board of Estimates may determine, in its sole discretion:
(A)
the number and composition of the panel; and
(B)
the fees and other conditions of the hearing examiners’ contracts.
(iii)
Whenever a vacancy occurs on the panel, the Board of Trustees has the right to submit to the Board of Estimates a list of recommended candidates to fill the vacancy.
(iv)
In all events, however, the Board of Estimates may make its selection of hearing examiners without regard to the Board of Trustees’ recommendations.
(3)Compensation of panel members; expenses.
The compensation of the panel members, the compensation of all persons engaged by the panel, and all other expenses of the panel shall be paid at the rates and in the amounts that the Board of Estimates approves.
(4)Claims for disability benefit – Applications.
(i)Application to Board.
A person who seeks a non-line-of-duty disability benefit, a line-of-duty disability benefit, or a dismemberment disability benefit must first apply to the Board of Trustees.
(ii)Required contents.
The application must include, in the form that the Board requires:
(A)
a medical certification of disability;
(B)
all supporting medical documentation;
(C)
a consent form that authorizes the Board to obtain all medical records pertaining to any accidents or illnesses that the member might have suffered at any time in the past; and
(D)
a statement in which the member:
1.
states that he or she has suffered a disability;
2.
states that the disability prevents him or her from further performance of the duties of his or her job classification;
3.
states that the incapacity is likely to be permanent; and
4.
states, in the manner and detail that the Board requires, the relevant facts and circumstances under which the member claims to be eligible for the applicable benefit.
(5)Claims for disability benefits – Medical examination.
(i)Board to refer.
On receipt of a completed application and required supporting documentation, the Board of Trustees shall have the member medically examined by a physician selected by the Board.
(ii)Scope of examination.
The examination shall include whatever tests and additional examinations the physician finds necessary or appropriate.
(iii)Report to Board.
On completion of the examination, the physician shall submit a written report to the Board of Trustees.
(6)Claims for line-of-duty death benefits.
(i)Application to Board.
A person who seeks a line-of-duty death benefit must first apply to the Board of Trustees.
(ii)Required contents.
The application must include, in the form that the Board prescribes:
(A)
a consent form that authorizes the Board to obtain all medical records pertaining to the member’s death and to any accidents or illnesses that the member might have suffered at any time in the past; and
(B)
a statement in which the claimant:
1.
states that the member suffered a line-of-duty death; and
2.
describes, in the manner and detail that the Board requires, the relevant facts and circumstances under which the member’s death occurred.
(7)Hearings – In general.
A hearing examiner shall conduct hearings on all matters involving non-line-of-duty disability claims, dismemberment disability claims, line-of-duty disability claims, line-of-duty death benefit claims, and any related matters arising out of these claims.
(8)Hearings - Nature and conduct.
(i)
Each hearing is in the nature of an adversary proceeding.
(ii)
1 hearing examiner from the panel shall hear a particular claim for benefits.
(iii)
The hearing examiner shall conduct the hearing:
(A)
in an informal manner;
(B)
with sufficient latitude to provide a fair and impartial hearing to all of the parties; and
(C)
without requiring strict compliance with the rules of evidence.
(iv)
Testimony at the hearing shall be under oath and recorded.
(v)
To secure information pertinent to the hearing, the hearing examiner has the power to subpoena and require the attendance of witnesses and the production of papers and documents and to examine them.
(9)Hearings - Counsel.
At the hearing:
(i)
the Board of Trustees shall be represented by an attorney from the City Solicitor’s Office or from this System’s Office of Legal Affairs; and
(ii)
the member has the right to counsel of his or her own choosing.
(10)Hearings - Burden of proof.
(i)Disability benefit.
At the hearing on a claim for a disability benefit, the member has the burden of proving, by a preponderance of the evidence:
(A)
the nature and extent of her or his disability;
(B)
that the disability prevents her or him from the further performance of the duties of her or his job classification; and
(C)
that, under the relevant facts and circumstances, she or he otherwise meets all of the eligibility requirements to qualify for the applicable benefit.
(ii)Line-of-duty death benefit.
At the hearing on a claim for a line-of-duty death benefit, the applicant has the burden of proving, by a preponderance of the evidence:
(A)
that the member’s death occurred under facts and circumstances required to qualify for the benefit under the applicable provisions of this section; and
(B)
that the applicant otherwise meets all other requirements to qualify for the benefit.
(11)Hearings - Examiner’s determination.
(i)In general.
The hearing examiner shall:
(A)
make the determinations specified in this paragraph (11); and
(B)
issue written findings of fact that set forth the reasons for his or her determination.
(ii)Non-line-of-duty disability benefit.
(A)
If the claim is for non-line-of-duty disability benefits under this System, the hearing examiner shall determine whether the member’s disability qualifies under subsection (h) of this section.
(B)
If the claim is for non-line-of-duty disability benefits under the Elected Officials’ Retirement System, the hearing examiner shall determine whether the member’s disability qualifies under <cite data-path="|22|§22|(b)">§ 22(b) of this article</cite>.
(iii)Line-of-duty disability benefit.
(A)
If the claim is for line-of-duty disability benefits under this System, the hearing examiner shall determine whether the member’s disability qualifies under subsection (i) of this section.
(B)
If the claim is for line-of-duty disability benefits under the Elected Officials’ Retirement System, the hearing examiner shall determine whether the member’s disability qualifies under <cite data-path="|22|§22|(c)">§ 22(c) of this article</cite>.
(iv)Dismemberment disability benefit.
If the claim is for dismemberment disability benefits, the hearing examiner shall determine whether the member’s disability qualifies under subsection (j) of this section.
(v)Line-of-duty death benefit.
(A)
If the claim is for line-of-duty death benefits under this System, the hearing examiner shall determine whether the member’s death qualifies under subsection (n) of this section.
(B)
If the claim is for line-of-duty death benefits under the Elected Officials’ Retirement System, the hearing examiner shall determine whether the member’s death qualifies under <cite data-path="|22|§22|(g)">§ 22(g) of this article</cite>.
(12)Hearings – Judicial and appellate review.
(i)
If either party to the hearing is aggrieved by the hearing examiner’s determination, that party may seek judicial review of that determination by petition to the Circuit Court for Baltimore City.
(ii)
The review shall be sought and heard as provided in the Maryland Rules of Procedure, except that the review shall be heard on a right-of-way basis.
(iii)
The determination of the hearing examiner is presumptively correct and may not be disturbed on review unless it is arbitrary, illegal, capricious, or discriminatory.
(iv)
A party to the judicial review may appeal the court’s final judgment to the Court of Special Appeals in accordance with the Maryland Rules of Procedure.
(v)
Judicial review under this paragraph does not stay or hold in abeyance any payment awarded by the hearing examiner. If a court reverses an award of benefits, the court’s decision operates to stop payment of any benefits being made to the claimant, pending any further appeal.
(13)Hearings – Finality of decision.
If neither party seeks judicial review within 30 days after mailing of the hearing examiner’s written finding of fact, the hearing examiner’s determination is final and binding.
History: Ord. 14-216
History: Ord. 15-329
History: Ord. 16-488
History: Ord. 16-503
History: Ord. 16-576
History: Ord. 20-459
History:
Balt., Md., Code art. 22, § 10 (2026)

§ 10 Guaranty.Copy Citation

The creation and maintenance of reserves in the Pension Accumulation Fund, the maintenance of annuity reserves and pension reserves as provided for, and regular interest creditable to the various funds as provided in <cite data-path="|22|§7|(b)">§ 7(b) of this article</cite> and the payment of all pensions, annuities, retirement allowances, refunds and other benefits granted under the provisions of this subtitle and all expenses in connection with the administration and operation of this retirement system are hereby made obligations of the City of Baltimore. All income interest and dividends derived from deposits and investments authorized by this subtitle shall be used for the payment of the said obligations of the said City. Any amounts derived therefrom which, when combined with the regular amounts, otherwise contributable by the City of Baltimore as provided under the provisions of this subtitle, exceed the amount required to provide such obligations, shall be used to reduce the regular appropriations otherwise required or to reduce the period of amortization of the unfunded accrued liability, or both, as determined by the Board of Trustees.
History: Ord. 26-553
History: Ord. 73-419
Balt., Md., Code art. 22, § 11 (2026)

§ 11 Exemption from assignment and execution.Copy Citation

(a)In general.
(1)
In this section, “system” means either the Employees’ Retirement System or the Elected Official’s Retirement System, as applicable to the circumstances.
(2)
A person may not attach, execute, garnish, or otherwise seize any current or future benefit provided by a system or any money in a fund or an account created by a system.
(3)
All current and future benefits provided by a system and all money in a fund or an account created by a system are unassignable, except as specified in this section.
(b)Exceptions – Payroll deductions.
A retiree or beneficiary of a system may elect to have the Board of Trustees deduct from his or her allowance, lump-sum benefit payment, or return of contributions, any payroll deduction or payment authorization authorized by the City for its employees, if the retiree or beneficiary has consented to the deduction in writing on a form approved by the Director of Finance.
(c)Exceptions – Court orders.
A court of competent jurisdiction may expressly order that a benefit or payment by a system be assigned pursuant to:
(1)
a decree or order of alimony or child support;
(2)
a domestic relations order as defined in subsection (d) of this section; or
(3)
a court order appointing the assignee as guardian over the property of the member.
(d)Exceptions – Domestic relations orders.
A member’s court-approved property settlement agreement incident to a divorce decree or a division of marital property pursuant to a court order authorizing the payment of pension benefits to an alternate payee (as defined in the Internal Revenue Code, 26 U.S.C. §414(p)(8), as amended) shall be accepted by the Board as a domestic relations order if that decree or order:
(1)
does not require a system to provide any type or form of benefit or any options not already provided by the system;
(2)
requires a system to provide no more than the total amount of benefits that the member would otherwise receive (determined on the basis of actuarial values);
(3)
specifies the amount or percentage of the member’s benefits to be paid by the system to an alternate payee or the manner in which the amount or percentage is to be determined;
(4)
specifies (or, to protect the parties’ privacy, requires submission by separate writing of) the name, social security number, birth date, and last known mailing address of the member and of the alternate payee covered by the order and states that it is the responsibility of the alternate payee to keep a current mailing address on file with the system;
(5)
does not grant an alternate payee any of the rights, options, or privileges of a retiree or beneficiary other than an assigned percentage or amount of the member’s pension benefit or survivorship benefit;
(6)
does not require a system to commence payment of any type or form of benefit to an alternate payee prior to a member’s actual date of retirement or death; and
(7)
does not require a system to treat the alternate payee as a surviving spouse.
(e)Exceptions – Federal tax liens.
In satisfaction of a U.S. Internal Revenue Service Notice of Levy for unpaid taxes of a member or beneficiary that has terminated employment, a system may pay all or part of:
(1)
a member’s or beneficiary’s benefits from the system; or
(2)
a member’s refund of accumulated contributions, in which case the non-tax-deferred portion of those contributions shall be deemed to have been paid in satisfaction of the levy before any tax-deferred contributions.
(f)Exceptions – Power of attorney.
A system may pay the benefits otherwise due a member or beneficiary to that member’s or beneficiary’s attorney-in-fact, as agent of the member or beneficiary, if the member or beneficiary properly designated the attorney-in-fact to act as agent under a duly executed durable power of attorney.
(g)Exceptions – Custodian under Uniform Transfers to Minors’ Act.
A system may pay the benefits otherwise due a minor beneficiary to a custodian validly appointed for the minor under the Maryland Uniform Transfers to Minors Act, Title 13, Subtitle 3, of the Maryland Estates and Trusts Article or a similar out-of-state provision.
(h)Exceptions – Trustee.
A system may pay the benefits otherwise due a member or beneficiary to the member’s or beneficiary’s trustee, as trustee of the member or beneficiary, if the trustee was designated trustee of the member or beneficiary under an enforceable <em>inter vivos</em> or testamentary trust agreement.
(i)Exceptions – Representative Payee.
A system may pay the benefits otherwise due a member or beneficiary to the member’s or beneficiary’s social security “representative payee” pursuant to The Social Security Act, 42 U.S.C. §405(j), as amended.
(j)Exceptions – Payments of funeral expenses.
A system may pay all or part of a death benefit payable on account of the death of a member to a funeral establishment providing funeral services to the deceased member, if the beneficiary of the member has consented to that payment in writing on a form approved by the Board.
(k)Notice to Board of Trustees.
An assignment under this section applies only to benefits paid after the Board of Trustees receives:
(1)
written notice of the court decree or order, power of attorney, custodial instrument of designation, trust document, payee representative certification, assignment to funeral establishment, or notice of tax levy; and
(2)
any additional information that the Board of Trustees requires.
(l)Notice of fraud or misuse.
If the Board of Trustees, the Social Security Administration, or a court of competent jurisdiction determines that funds paid to any person under this section have been misused, payment of benefits will be promptly revoked.
(m)Limitation on Board’s liability.
The Board of Trustees is not liable for an improper payment to a person that results from the Board’s nonreceipt of:
(1)
written notice of the court decree or order, power of attorney, custodial instrument of designation, trust document, payee representative certification, assignment to funeral establishment, or notice of tax levy; or
(2)
any additional information that the Board required in order to execute the payment.
History: Ord. 26-553
History: Ord. 72-237
History: Ord. 75-1058
History: Ord. 04-882
Balt., Md., Code art. 22, § 12 (2026)

§ 12 Recovery of overpayments.Copy Citation

If the Board of Trustees determines that a member or beneficiary has received from this System benefit payments that exceed the amount to which the member or beneficiary was entitled, the Board must take all necessary steps to recover the overpayment.
History: Ord. 26-553
History: Ord. 74-552
History: Ord. 75-1058
History: Ord. 16-488
Balt., Md., Code art. 22, § 13 (2026)

§ 13 Limitation of other statutes.Copy Citation

(a)Laws and ordinances.
No other provision of any local law or ordinance which provides wholly or partly at the expense of the City of Baltimore for pensions or retirement benefits for employees of the said City, their widows or other dependents, shall apply to members or beneficiaries of the retirement system established by this subtitle, their widows or other dependents, except as to membership in and benefits from the Social Security System, established by the Act of Congress known generally as “The Social Security Act of 1935”, as amended from time to time. Members of the Police Department in the service at the time this subtitle takes effect who elect not to join the Retirement System created herein shall be entitled to pensions for themselves, their widows or dependents, under existing laws, as if this subtitle had not been passed.
(c)Inconsistent laws.
All provisions of law inconsistent with the provisions of this subtitle are hereby repealed to the extent of such inconsistency.
History: Ord. 26-553
History: Ord. 58-1387
History: Ord. 22-125
Balt., Md., Code art. 22, § 14 (2026)

§ 14 Social Security Act.Copy Citation

The enrollment in and membership of any members of the Retirement System in the Social Security System, for benefits under the Act of Congress known generally as “The Social Security Act of 1935”, as amended from time to time, shall at all times be separate and apart from and in addition to their membership in and benefits from the Retirement System; and such enrollment and membership in the Social Security System shall in no way impair, decrease or adversely affect any of the existing rights, benefits or expectancies of the members of the Retirement System.
Any plan submitted for the Mayor and City Council of Baltimore by or on behalf of the Retirement System to the State agency provided for in Title 36 {“Social Security Benefits”} of the State Personnel and Pensions Article for such enrollment and membership for the members of the Retirement System, shall include a stipulation that such action is being taken and will be continued with full regard for and observance of the provisions of this section.
History: Ord. 58-1387
Balt., Md., Code art. 22, § 15 (2026)

§ 15 Administrative appeal; Judicial review.Copy Citation

(a)Administrative appeal.
(1)Right of appeal.
Any person aggrieved by a determination made or action taken with respect to a person’s eligibility for membership in or benefits under this System may appeal that determination or action to the Board of Trustees.
(2)When and how taken.
A notice of appeal must be filed with the Board within 1 year of the determination or action in question.
(3)Hearing.
(i)
On receipt of a notice of appeal, the Board must hold a hearing on the appeal as soon as administratively practicable.
(ii)
Except as otherwise provided in this subsection or, subject to Title 4 {“Administrative Procedure Act – Regulations”} of the <cite data-path="|general">City General Provisions Article</cite>, by rule or regulation of the Board:
(A)
the hearing must be conducted in an orderly but informal manner; and
(B)
formal rules of evidence and trial procedures do not apply.
(4)Counsel.
(i)
The person filing the appeal may be represented by counsel at the hearing.
(ii)
This System will be represented by the City Solicitor or the Solicitor’s designee.
(5)Witnesses.
All witnesses testifying at the hearing must do so under oath or by affirmation, subject to the penalties of perjury.
(6)Decision.
(i)
As soon as administratively practicable after the hearing, the Board must render its decision and notify the person filing the appeal of that decision.
(ii)
In its decision, the Board may affirm, modify, or reverse the determination or action from which the appeal was taken.
(b)Judicial review and appellate review.
(1)Judicial review.
A party aggrieved by a final decision of the Board of Trustees under subsection (a) of this section may seek judicial review of that decision by petition to the Circuit Court for Baltimore City in accordance with the Maryland Rules of Procedure.
(2)Appellate review.
A party to the judicial review may appeal the court’s final judgment to the Court of Special Appeals in accordance with the Maryland Rules of Procedure.
History: Ord. 16-488
History: Text Conformed 02/22/21
Balt., Md., Code art. 22, § 16 (2026)

§ 16 Additional opportunity for Class A and Class B members to obtain credit for service and prior service.Copy Citation

(a)Credit for pre-enrollment or pre-membership employment.
Any person who is a member of the Employees’ Retirement System and who did not receive service credit in the Employees’ Retirement System or the Maryland State Retirement System for any previous employment either as a temporary, provisional, contract, emergency or similar employee, or as an official of the City of Baltimore or of the State of Maryland, which employment ripened into regular and permanent employment with essentially the same duties which the employee was performing prior to obtaining such permanent status, shall be entitled to receive service credit for such pre-enrollment or pre-membership employment. Any person who is a member of the Employees’ Retirement System and who did not receive service credit in the Employees’ Retirement System or the Maryland State Retirement System for any previous regular and permanent employment, as an employee of the City of Baltimore or the State of Maryland, shall be entitled to receive service credit for such pre-enrollment or pre-membership employment. To obtain such credit the member shall file claim therefor with the Board of Trustees within 6 months after December 1, 1975, and shall pay to the Retirement System by a single payment or by an increased rate of contribution, as may be approved by the Board of Trustees, the contributions, with regular interest, which he would have paid had he been a member of the Employees’ Retirement System of the City of Baltimore or the Maryland State Retirement System while such pre-enrollment or pre-membership employment was rendered, and that this payment shall be completed at least 90 days before the effective date of the member’s retirement. After December 1, 1975, those existing employees who are not members of the Retirement System and who join after December 1, 1975, shall be entitled to make application to purchase any pre-enrollment or pre-membership employment credit during the period expiring 6 months after becoming a member. All persons who become new employees of the City of Baltimore after the effective date of this ordinance shall not be entitled to any credit for pre-enrollment or pre-membership employment if they have failed to join the Retirement System within 6 months of entering such employment. Any pre-membership or pre-enrollment payments which have in the past been recorded for a member as service credit under the Retirement System shall continue to be recognized as service credit entitling the member to all of the benefits under this subtitle.
(b)Service credit for previous membership in this system.
Any person who is now a member of the Employees’ Retirement System, and who at any time in the past was a member of the Employees’ Retirement System, having previously left City employment and withdrawn the contributions which he had previously made to this system, shall be entitled to receive service credit for such previous membership; provided that at any time after the completion of 6 months of continuous service since last becoming a member of the Employees’ Retirement System, he shall file a claim with the Board of Trustees and shall pay to the Employees’ Retirement System by a single payment or by an increased rate of contribution, as may be approved by the Board of Trustees, the contributions which he had previously withdrawn from this system, together with interest from the date of withdrawal to the date that the redeposit is completed, and that this payment shall be completed at least 90 days before the effective date of the employees’ retirement. Service shall be credited pro rata at the time each payment for such service is made.
(c)Purchases or transfers of service credit from other retirement systems in Maryland to this system.
All purchases of service credit for membership in other retirement systems in Maryland and all transfers of service for membership credits between retirement systems in Maryland shall be subject to the pertinent provisions contained in the State Personnel and Pensions Article and other applicable provisions of the Maryland Code and shall include any future amendments thereto of the State law pertaining to pensions.
(d)
Notwithstanding anything to the contrary contained in this subtitle, any non-City employee of the Baltimore Museum of Art who became a member of the Employees’ Retirement System of Baltimore City during the month of February, 1977, and who did not receive service credit in the Employees’ Retirement System or the Maryland State Retirement System for any previous employment either as a temporary, provisional, contract, emergency or similar employee, or as an official of the City of Baltimore or of the State of Maryland, which employment ripened into regular and permanent employment with essentially the same duties which the employee was performing prior to obtaining such permanent status, shall be entitled to receive service credit for such pre-enrollment or pre-membership employment. Any person who is a member of the Employees’ Retirement System and who did not receive service credit in the Employees’ Retirement System or the Maryland State Retirement System for any previous regular and permanent employment as a non-City paid employee of the Baltimore Museum of Art or as an employee of the City of Baltimore, or the State of Maryland, shall be entitled to receive service credit for such pre-enrollment or pre-membership employment. To obtain such credit the member shall file claim therefor with the Board of Trustees of the Employees’ Retirement System within 90 days after the effective date of this ordinance, and shall pay to the Employees’ Retirement System, by a single payment or by an increased rate of contribution, as may be approved by the Board of Trustees of the Employees’ Retirement System, the contributions, with regular interest, which the member would have paid had the member been a member of the Employees’ Retirement System of the City of Baltimore or the Maryland State Retirement System while such pre-enrollment or pre-membership employment was rendered, and this payment shall be completed at least 90 days before the effective date of the member’s retirement.
(e)Additional opportunity to purchase credit for service for Baltimore City employment.
Any Class A or Class B member shall be entitled to purchase service credit for any employment or membership service earned by regular and permanent employment with the City of Baltimore regardless of retirement or pension system membership, provided:
(1)
the employment or service did not result in the member’s being entitled to any current or future benefits for such employment or service in such other retirement or pension system; and
(2)
the Class A or Class B member pays to the Employees’ Retirement System by a single payment the employee’s contribution equal to the current salary of the employee in the year of purchase multiplied by the employees’ contribution rate of 5%, if the purchase is made prior to July 1, 1992, or by the employees’ contribution rate of 4%, if the purchase is made after June 30, 1992, multiplied by the number of years or part of a year being purchased; plus, the employer’s contribution equal to the current salary of the employee in the year of purchase multiplied by the employer rate for the normal cost multiplied by the number of years or part of a year being purchased.
(3)
In addition, any Class A or Class B member shall be entitled to purchase service credit for the member’s pre-enrollment or pre-membership employment with the City of Baltimore under the same conditions as § 16(e)(2) above. If a member purchases service credit as described above, and thereafter dies or leaves City employment for any reason with or without any vested benefit due to the member or member’s beneficiary under the provisions of this subtitle, then the member or the beneficiary shall be entitled to receive in lieu of any other benefit under the provisions of the Employees’ Retirement System of Baltimore City, a lump sum equal to the total amount paid by the member for such purpose, plus interest at the rate of 5½% per year.
(f)Repurchase of previous service credited with retirement system of State or its subdivisions.
(1)
Notwithstanding anything to the contrary contained herein, any previous service credited with a retirement system of the State of Maryland and/or its subdivisions which was repurchased prior to March 25, 1988, by any member or retiree, who was a member of the Employees’ Retirement System before July 1, 1979, shall be deemed to be a valid credit of service in this system for such member or retiree.
(2)
Notwithstanding anything to the contrary contained herein, beginning March 25, 1988, any previous service credited with a retirement system of the State of Maryland and/or its subdivisions may be repurchased by any member, who was a member of the Employees’ Retirement System, before July 1, 1979, by paying to the Employees’ Retirement System by a single payment or by an increased rate of contribution, the contributions which he had previously withdrawn from the retirement systems of the State of Maryland and/or its subdivisions, together with interest from the date of withdrawal to the date that the repurchase is completed. Service shall be credited pro rata at the time each payment for such service is made.
(3)
Notwithstanding anything to the contrary contained herein, beginning March 25, 1988, any previous service credited with a retirement system of the State of Maryland and/or its subdivisions may be repurchased by any member, who was a member of the Employees’ Retirement System before July 1, 1979, and who retired on or after March 25, 1988, and before March 31, 1989, from this system by paying to the Employees’ Retirement System by a single payment which shall be completed prior to June 30, 1989, the contributions which he had previously withdrawn from the retirement systems of the State of Maryland and/or its subdivisions, together with interest from the date of withdrawal to the date that the repurchase is completed. Upon completion of the repurchase, the retiree will receive credit for such additional service and will be entitled to receive retroactive to his original date of retirement any additional retirement benefits which become due or payable.
History: Ord. 43-912
History: Ord. 53-819
History: Ord. 54-1039
History: Ord. 56-215
History: Ord. 57-1102
History: Ord. 58-1746
History: Ord. 59-126
History: Ord. 74-552
History: Ord. 75-1058
History: Ord. 78-900
History: Ord. 79-1055
History: Ord. 87-1152
History: Ord. 89-233, Ord. 92-086
Balt., Md., Code art. 22, § 17 (2026)

§ 17 Post-retirement benefit increases to certain retirees and beneficiaries.Copy Citation

This section applies only to post-retirement benefit increases determined before July 1, 2007. Each retired member or beneficiary (Classes A, B, and C) who is receiving periodic benefits from the Retirement System may be eligible for an increase in the amount of those periodic benefits subject to the following provisions.
(a)Eligibility.
(1)
For increases determined as of or before June 30, 1995, each member who has retired from active service, whether before or after the effective date of this ordinance, and each beneficiary of a deceased member who is or will be receiving periodic retirement benefits, whether before or after the effective date of this ordinance, and who receives periodic benefit payments for 2 or more years may be eligible for an increase in such periodic benefit determined according to this § 17. Such 2-year period shall be calculated commencing with the effective date of the 1<sup>st</sup> retirement benefit payment paid to either the retired member or the beneficiary of a deceased member and shall be determined on June 30 of each year commencing with June 30, 1983. Years retired as a beneficiary of a former retired member shall include the years that the member was retired. Eligible members and beneficiaries are also referred to herein as “persons”.
(2)
For increases determined as of June 30, 1996, and as of any subsequent June 30 determination date, each member who has retired from active service, whether before or after the effective date of this ordinance, and each beneficiary of a deceased member who is or will be receiving periodic retirement benefits, whether before or after the effective date of this ordinance, and who is receiving periodic benefit payments as of the June 30 determination date may be eligible for an increase in the periodic benefit determined according to this § 17. Eligibility for this increase shall be calculated commencing with the effective date of the 1<sup>st</sup> retirement benefit payment paid to either the retired member or the beneficiary of a deceased member and shall be determined on the June 30 determination date of each year, commencing with June 30, 1996. A beneficiary of a former retired member is eligible to receive any percentage increase under this section that the retired member was eligible to receive. Eligible members and beneficiaries are also referred to herein as “persons”.
(3)
(i)
This paragraph (3) applies to members who are no longer employed in a permanent full-time or permanent part-time position with the City and were either:
1.
members of this system who were eligible to retire but chose to postpone receipt of retirement benefits to begin employment in a position covered by another City system; or
2.
retirees who were receiving retirement benefits from this system but chose to suspend receipt of those benefits to begin employment in a position covered by another City system.
(ii)
Pursuant to <cite data-path="|22|§48">§ 48 of this article</cite> and notwithstanding the waiting period required by this section, members described in subparagraph (i) of this paragraph (3), on ceasing all permanent full-time and permanent part-time employment with the City, shall receive benefits calculated to include all post-retirement increases, in accordance with the rates of increase set by this system, that the member or retiree would have been eligible to receive as a retiree had retirement benefits not been postponed or suspended.
(4)
Notwithstanding paragraph (3) of this subsection, former members of this system who ceased all permanent full-time and permanent part-time employment covered by this system, with entitlement to deferred vested pension benefits, and who then chose to begin employment in a position covered by another City system, on vesting and ceasing all permanent full-time and permanent part-time employment with the City, shall receive benefits calculated to include only those post-retirement increases that the member otherwise would have been eligible to receive under paragraph (2) of this subsection from the commencement of the former member’s actual receipt of vested benefits pursuant to §§ <cite data-path="|22|§6|(a)|(12)">6(a)(12)</cite> and <cite data-path="|22|§9|(l)">9(l)</cite> of <cite data-path="|22">this article</cite>.
(b)Amount of benefit increase.
As of the end of each fiscal year, a determination shall be made of the amount of increase (if any) of retirement benefit payments which may be payable to eligible persons. The amount of retirement benefit increase shall be calculated with reference to excess investment earnings of the Annuity Reserve Fund and the Pension Reserve Fund only, and according to the method described in subsection (c) below. After determination of the amount of excess investment earnings available for retirement benefit increases, such excess investment earnings shall be allocated to eligible retired members and beneficiaries according to the following method. The percentage which the benefits shall be increased shall be determined by the actuary as the amount that the investment earnings determined in subsection (c) below would be sufficient to fund on a single premium paid up annuity basis using the actuarial valuation assumptions on the June 30 preceding the effective date of the increase.
(i)
Effective as of January 1, 1984, an increase may be payable to each retiree or beneficiary eligible pursuant to subsection (a) of this section as of June 30, 1983.
(ii)
Until the benefit increase objectives set forth in paragraph (iii) below have been met, the allocation to eligible persons shall be made with reference to the number of full continuous years that each person has been receiving retirement benefits from this plan and the amount of each person’s benefit being paid as of June 30, 1983. A percentage factor will be determined by the actuary to increase benefits to those eligible. The percent increase in an eligible member’s or beneficiary’s benefit will equal the percentage factor times full years which the member or beneficiary has been receiving benefits. No fractional years will be used.
(iii)
The allocation method set forth in paragraph (ii) above shall apply only until the following benefit increase objectives have been met: <table> <thead> <tr> <th>Date benefit payments began</th> <th>Percent increase</th> </tr> </thead> <tbody> <tr> <td>7/1/80 - 6/30/81</td> <td>1%</td> </tr> <tr> <td>7/1/79 - 6/30/80</td> <td>2%</td> </tr> <tr> <td>7/1/78 - 6/30/79</td> <td>3%</td> </tr> <tr> <td>7/1/77 - 6/30/78</td> <td>4%</td> </tr> <tr> <td>7/1/76 - 6/30/77</td> <td>5%</td> </tr> <tr> <td>7/1/75 - 6/30/76</td> <td>6%</td> </tr> <tr> <td>7/1/74 - 6/30/75</td> <td>7%</td> </tr> <tr> <td>7/1/73 - 6/30/74</td> <td>8%</td> </tr> <tr> <td>7/1/72 - 6/30/73</td> <td>9%</td> </tr> <tr> <td>7/1/71 - 6/30/72</td> <td>10%</td> </tr> <tr> <td>7/1/70 - 6/30/71</td> <td>11%</td> </tr> <tr> <td>7/1/69 - 6/30/70</td> <td>12%</td> </tr> <tr> <td>7/1/68 - 6/30/69</td> <td>13%</td> </tr> <tr> <td>7/1/67 - 6/30/68</td> <td>14%</td> </tr> <tr> <td>7/1/66 - 6/30/67</td> <td>15%</td> </tr> <tr> <td>7/1/65 - 6/30/66</td> <td>16%</td> </tr> <tr> <td>7/1/64 - 6/30/65</td> <td>17%</td> </tr> <tr> <td>7/1/63 - 6/30/64</td> <td>18%</td> </tr> <tr> <td>7/1/62 - 6/30/63</td> <td>19%</td> </tr> <tr> <td>before 7/1/62</td> <td>20%</td> </tr> </tbody> </table> After the above objectives have been met, the allocation of new excess investment earnings shall be made without reference to the number of years any member or beneficiary has been receiving benefits. The allocation to eligible persons shall then be made by the actuary on an equal percentage basis.
(iv)
For each June 30 after June 30, 1983, the determination of the amount of excess investment earnings and allocation of such earnings to eligible persons shall be calculated using the appropriate method outlined in paragraph (ii) or (iii) above with the amount of distribution and the allocation of such amount being calculated as of the end of the fiscal year, with any increase to commence effective as of the following January 1. The benefit increase payable pursuant to this section shall be payable in the same form as the basic benefit being received by the eligible person.
(c)Amount of investment income to be used to increase benefits.
(1)
Notwithstanding § 7 as it applies to excess earnings, the amount of excess investment earnings available as of each June 30 (prior to June 30, 1993) for an increase in benefits will be equal to the product of items (i), (ii), and (iii) below. Each item below except for item (ii) under this subsection (c) is determined as of each June 30 beginning with June 30, 1983, and any benefit increase shall become effective as of the following January 1. Item (ii) below is determined as of the June 30 that is 18 months prior to the effective date of the benefit increase, beginning with June 30, 1982.
(i)
The dollar amount of net excess investment earnings determined on the following basis: Before the Reserve for Book Value is paid off, net excess investment earnings shall be that portion of total fund earnings between 8% and 10½% of average market value, plus ½ of the fund earnings in excess of 10½%. After the Reserve for Book Value is paid off, net excess investment earnings shall be that portion of total fund earnings between 7½% and 10% of average market value, plus ½ of fund earnings in excess of 10%. For purposes of the above calculations, earnings shall be net of expenses and include realized and unrealized gains and losses and all other sources of investment gains and losses as shown in the actuary’s report submitted pursuant to § 5(p). The investment return used in this section shall be based on the annual return as of each June 30, commencing with the year ending June 30, 1983. The average market value for the year shall equal ½ of the market value of the 4 funds as of the beginning of the year plus ½ of the market value of the funds as of the end of the year minus ½ of the earnings during the year. The earnings and market values of the funds for the purpose of this section are assumed to be equal to the values contained in the actuary’s report.
(ii)
The ratio of the sum of the Annuity Reserve Fund plus the Pension Reserve Fund to the sum of all 4 funds: Annuity Savings Fund, Annuity Reserve Fund, Pension Accumulation Fund, and the Pension Reserve Fund.
(iii)
¾ on June 30, 1983 for the initial increase (if any) and ¾ for each subsequent year until a Contingency Reserve Fund has been accumulated according to the following method. The remaining ¼ of excess investment earnings as of June 30, 1983, and each June 30 thereafter shall be set aside as a Contingency Reserve Fund until the value of such fund is at least equal to 2½% of the Annuity Reserve Fund and the Pension Reserve Fund as of the end of the most recent June 30. The Contingency Reserve Fund shall serve as a reserve to insure payment of previously accrued benefit increases for any year in which the Paid-Up Benefit Fund does not meet its interest assumption. While the Board of Trustees may fund increases through the establishment of a Paid-Up Benefit Fund, it shall also have the option of funding any increases through the purchase of annuity contracts from one or more insurance companies. For each year when the Contingency Reserve Fund is not less than 2½% of the Annuity Reserve Fund and the Pension Reserve Fund, the ¾ fraction shall not apply and the amount available to increase benefits shall be the product of items (i) and (ii).
(2)
Notwithstanding § 7 as it applies to excess earnings, the amount of excess investment earnings available as of each June 30 (on or after June 30, 1993) for an increase in benefits will be equal to the product of items (i), (ii), and (iii), plus items (iv) and (v) below. For increases determined as of or before June 30, 1995, the increase provided by the excess earnings calculated herein shall be a minimum of 1% and a maximum of 5% in any 1 year. For increases determined as of or after June 30, 1996, the minimum increase shall be increased from 1% to 2% whenever the Contingency Reserve Fund shall equal the maximum 2.5% (as described in item (iii) below) as of the June 30 1 year prior to the end of the year in which the current excess investment earnings are derived. Each item below except for item (ii) under this subsection (c)(2) is determined as of each June 30 beginning with June 30, 1993, and any benefit increase shall become effective as of the following January 1. Item (ii) below is determined as of the June 30 that is 18 months prior to the effective date of the benefit increase.
(i)
the dollar amount of net excess investment earnings determined on the following basis: Net excess investment earnings shall be that portion of total fund earnings between 7½% and 10% of average market value, plus ½ of fund earnings in excess of 10%. For purposes of the above calculations, earnings shall be net of expenses and include realized and unrealized gains and losses and all other sources of investment gains and losses as shown in the actuary’s report. The investment return used in this section shall be based on the annual return of each June 30. The average market value for each year shall equal ½ of the market value of the Annuity Savings Fund, the Annuity Reserve Fund, the Pension Accumulation Fund, and the Pension Reserve Fund as of the beginning of the year plus ½ of the market value of these funds as of the end of the year minus ½ of the earnings during the year. The earnings and market values of these funds for the purpose of this section are assumed to be equal to the values contained in the actuary’s report.
(ii)
the ratio of the sum of the Annuity Reserve Fund plus the Pension Reserve Fund to the sum of the following 4 funds: Annuity Savings Fund, Annuity Reserve Fund, Pension Accumulation Fund, and the Pension Reserve Fund.
(iii)
¾ on June 30, 1993, and ¾ for each subsequent year until a Contingency Reserve Fund has been accumulated according to the following method. The remaining ¼ of excess investment earnings as of June 30, 1993, and each June 30 thereafter shall be set aside as a Contingency Reserve Fund until the value of such fund is at least equal to 2½% of the Annuity Reserve Fund and the Pension Reserve Fund as of the end of the most recent June 30. The Contingency Reserve Fund shall serve as a reserve to insure payment of previously accrued benefit increases for any year in which the Paid-Up Benefit Fund does not meet its interest assumption. While the Board of Trustees may fund increases through the establishment of a Paid-Up Benefit Fund, it shall also have the option of funding any increases through the purchase of annuity contracts from one or more insurance companies. For each year when the Contingency Reserve Fund is not less than 2½% of the Annuity Reserve Fund and the Pension Reserve Fund, the ¾ fraction shall not apply.
(iv)
any additional amount of funds needed (above those provided by items (i) times (ii) times (iii)) to provide the minimum benefit increase. This amount will be transferred from the Contingency Reserve Fund to the Paid-Up Benefit Fund in the month of the benefit increase, notwithstanding that such transfer creates a deficit or increases an existing deficit in the Contingency Reserve Fund.
(v)
any net funds provided under items (i) to (iv) above that would result in a variable benefit increase greater than 5%. Such excess funds shall be used to provide an increase in the following years which shall be in addition to the normal variable benefit increase provided the combined increase does not exceed the 5% limit on increases. Carried over excess funds shall not be used to provide the minimum benefit or to offset any prior deficit in item (iv).
(d)Paid-Up Benefit Fund and Contingency Reserve Fund.
(i)
The existence of a Paid-Up Benefit Fund and a Contingency Reserve Fund is hereby specifically authorized, § 8 to the contrary notwithstanding.
(ii)
The Paid-Up Benefit Fund shall be the primary fund from which shall be paid all benefit increases provided under this section. The Paid-Up Benefit Fund shall be funded with excess investment earnings consistent with subsection (c) above. For any year in which the investment return of the Paid-Up Benefit Fund exceeds the interest assumption on which the purchase of paid up benefits is based, such excess shall remain in the fund and thereby help insure payment of previously accrued benefit increases.
(iii)
Prior to June 30, 1993, the Contingency Reserve Fund shall be a reserve to insure payment of previously accrued benefit increases for any year in which the Paid-Up Benefit Fund does not meet its interest assumption. Should there be a deficit in the Paid-Up Benefit Fund, the Board of Trustees shall transfer assets from the Contingency Reserve Fund to the Paid-Up Benefit Fund in order to offset such deficit. The Contingency Reserve Fund shall be funded with excess investment earnings consistent with subsection (c) above. For any year in which the value of the Contingency Reserve Fund is equal to or exceeds 2½% of the Annuity Reserve Fund and the Pension Reserve Fund, earnings on the Contingency Reserve Fund shall be applied by the Board of Trustees in such amount or amounts as they determine (1) to decrease the amount contributed by the City of Baltimore and/or (2) to decrease the period over which the unfunded accrued liability will be amortized.
(iv)
On and after June 30, 1993, the Contingency Reserve Fund shall be a reserve to insure payment of previously accrued benefit increases for any year in which the Paid-Up Benefit Fund does not meet its interest assumption. In addition, the Contingency Reserve Fund shall be used to provide the minimum benefit consistent with § 17(c) above. Should there be a deficit in the Paid-Up Benefit Fund, the Board of Trustees shall transfer assets from the Contingency Reserve Fund to the Paid-Up Benefit Fund in order to offset such deficit, notwithstanding that such transfer creates a deficit or increases an existing deficit in the Contingency Reserve Fund. The Contingency Reserve Fund shall be funded with excess investment earnings consistent with subsection (c) above.
(v)
The Board shall have the duty and responsibility of periodically determining investment policies for the Paid-Up Benefit Fund and the Contingency Reserve Fund, and such policies shall be consistent with the limitations set forth in this section.
(vi)
The Board shall segregate or invest separately the Paid-Up Benefit Fund and the Contingency Reserve Fund. Furthermore, while the Board is empowered to invest and reinvest such funds in any class of investment set forth at § 7, the Board is specifically empowered to invest and reinvest the Paid-Up Benefit Fund and/or the Contingency Reserve Fund in the medium of paid up annuity contracts or guaranteed investment contracts purchased from one or more insurance companies, provided that any such insurance company shall have no less than the highest rating from A.M. Best Company or a comparable company.
(e)Benefit increases to be paid only from Paid-Up Benefit Fund and Contingency Reserve Fund.
(i)
Any benefit increase provided under this section shall be funded on a single premium paid-up annuity basis. The words “single premium paid-up annuity basis” shall have the common actuarial meaning of spreading the amount available to provide a benefit over the lifetime of an individual in the form of an annuity. It is intended that any such benefit increase shall continue for the lifetime of the eligible member and any beneficiary, consistent with any option elected under § 6 or § 9. The foregoing Contingency Reserve Fund has been established to insure payment of previously accrued benefit increases for any year in which the Paid-Up Benefit Fund does not meet its interest assumption.
(ii)
Prior to June 30, 1993, the granting of any benefit increase under this section is contingent on the performance of the Retirement System’s investment funds. On and after June 30, 1993, the granting of any benefit increase under the provisions of this section shall be subject to the minimum benefit provided for in § 17(c). The continuation of any benefit increase previously accrued under this section is specifically made contingent on the ability of the Paid-Up Benefit Fund and the Contingency Reserve Fund to provide such benefits in the future. § 10 and § 42 to the contrary notwithstanding, any benefit increase provided under this section shall not become an obligation of the City of Baltimore. In the event of any conflict between § 10 and/or § 42 and this section, the terms of this section shall prevail.
(iii)
If the performance of the Retirement System’s investment funds causes a decline in the value of the Paid-Up Benefit Fund and the Contingency Reserve Fund, with the result that full benefit increases previously accrued under this section cannot be continued, then the Trustees can reduce or eliminate previously accrued increases on an equal percentage basis, effective as of January 1 following the June 30 on which a deficit exists. An equal percentage reduction shall be made to all benefits granted under this section regardless of when such increases were granted. If the Paid-Up Benefit Fund and the Contingency Reserve Fund should become exhausted or decline in value to the point of having no value, previously accrued increases shall be eliminated in full. Any excess investment earnings available under subsection (c) above in a subsequent year shall be used to provide an increase in benefits without regard to any prior reduction or elimination of benefit increases previously accrued.
(f)
Any retired member or beneficiary who began receiving periodic retirement benefits prior to June 28, 1991, shall receive a 3% increase in periodic benefits effective July 1, 1992.
History: Ord. 83-953
History: Ord. 91-777
History: Ord. 92-086
History: Ord. 93-263
History: Ord. 96-006
History: Ord. 97-168
History: Ord. 07-422
Balt., Md., Code art. 22, § 17.1 (2026)

§ 17.1 Post-retirement benefit increases on or after July 1, 2007, and before June 30, 2013.Copy Citation

(a)Scope.
This section applies to retirement benefit increases determined on or after July 1, 2007, and before June 30, 2013.
(b)“Single-premium paid-up annuity” defined.
In this section, “single-premium paid-up annuity” means the actuarially determined value of a payment stream for the life of a retiree.
(c)Eligibility.
(1)
As of June 30, 2007, and each succeeding June 30, a member or beneficiary that has been on the Retirement System payroll for the purpose of receiving periodic benefit payments for a period of not less than 12 consecutive months shall receive a post-retirement benefit increase beginning in January of the following year.
(2)
For purposes of this section, a beneficiary of a deceased member is deemed to have been on the Retirement System payroll from the date the deceased member originally joined the payroll.
(3)
A beneficiary of a former retired member is eligible to receive any percentage increase under this section that the retired member was eligible to receive.
(d)Amount of benefit increase.
(1)“CPI limit” defined.
“CPI limit” means the percentage change in the Consumer Price Index for All Urban Consumers (CPI-U) for the U.S. City Average for All Items, 1982-84=100, for a fiscal year ending June 30.
(2)Calculation.
As of January 1, 2008, and each subsequent January 1, an eligible retiree or beneficiary shall receive an increase in periodic benefits, which shall be calculated as the sum of:
(i)
a guaranteed increase of 1.5%; and
(ii)
an earnings increase determined under paragraph (3) of this subsection.
(3)Earnings Increase Account.
(i)
The Board of Trustees shall establish a bookkeeping account entitled the Earnings Increase Account for the sole purpose of determining whether an earnings increase is payable.
(ii)
The establishment of the Earnings Increase Account neither requires nor allows for the segregation of any Retirement System assets.
(iii)
(A)
If the actuary engaged by the Board determines that there is a balance in the Earnings Increase Account as of the preceding June 30, that balance shall be allocated to provide an earnings increase to eligible retired members and beneficiaries, effective as of the following January 1.
(B)
The earnings increase shall be calculated as a percentage increase that can be provided by the balance in the Earnings Increase Account sufficient to fund a single-premium paid-up annuity, using regular interest after commencement of benefits for valuation purposes on the June 30 preceding the effective date of the increase.
(C)
The percentage increase calculated under subparagraph (iii)(B) of this paragraph (3) may not exceed an amount that, when added to the guaranteed increase provided under paragraph (2)(i) of this subsection, exceeds the CPI limit.
(iv)
As of January 1, 2008, and each subsequent January 1, any balance in the Earnings Increase Account resulting from the CPI limit as of the preceding June 30 shall be carried forward in the Account to the next June 30 by crediting the balance with the average annual market value asset rate of return, as determined under subsection (e)(1)(i) of this section.
(e)Earnings Increase Account transfers.
(1)
As of July 1, 2007 and each subsequent July 1, a transfer to the Earnings Increase Account will be made in the amount of the positive difference between:
(i)
100% of the dollar-weighted average investment return on the market value of assets calculated for a fiscal year ending June 30, up to the regular interest before benefits commence, based on the portion of assets attributable to meet the obligation for participants in pay status; and
(ii)
the regular interest after benefit payments commence, on the portion of assets attributable to meet the obligation for participants in pay status.
(2)
(i)
In this paragraph (2), “normal cost” means the amount determined annually by the actuary for the funding of benefits earned during a plan year in accordance with the funding method in effect. If an aggregate cost method is in effect, the calculation will use the entry-age normal cost funding method.
(ii)
Market value of assets attributable to meet the obligation for participants in pay status shall be determined as of June 30 to be equal to the product of:
(A)
the ratio of present value of benefits for participants in pay status over the present value of benefits for all participant benefits; and
(B)
the sum of:
1.
the market value of assets attributable to participants not in pay; and
2.
the present value of future normal cost.
(f)Administration of benefit increases.
(1)
The guaranteed benefit increase provided by subsection (d)(2)(i) of this section may not be less than any corresponding guaranteed post-retirement benefit increase provided by the Fire and Police Employees Retirement System to its members.
(2)
Any benefit increase provided under this section shall be funded as a single-premium paid-up annuity.
(3)
It is intended that any benefit increase continue for the lifetime of the eligible member and any beneficiary, consistent with any option elected under § 6 or <cite data-path="|22|§9">§ 9 of this article</cite>.
(4)
The guaranteed benefit increase provided by subsection (d)(2)(i) of this section is effective as of each January 1, regardless of the investment performance of the Retirement System’s investment funds.
(5)
The post-retirement benefit increase provided by this section shall be payable in the same form as post-retirement benefit payments being received by the eligible person.
(6)
Each eligible person shall receive an equal percentage additional increase.
History: Ord. 07-422
History: Ord. 13-144
Balt., Md., Code art. 22, § 17.2 (2026)

§ 17.2 Post-retirement benefit increases on or after June 30, 2013.Copy Citation

(a)Scope.
This section applies to retirement benefit increases determined on or after June 30, 2013.
(b)In general.
An eligible retiree or beneficiary is entitled to receive a guaranteed increase in periodic benefits equal to the greater of:
(1)
1.5%; or
(2)
the amount of any corresponding guaranteed post-retirement benefit increase provided by the fire and police employees’ retirement system to its members.
(c)Eligibility.
A retiree or beneficiary is eligible for the benefit increase provided by this section if, as of June 30, 2013, and each succeeding June 30, the retiree and the beneficiary, whether individually or in combination with the other, have been receiving periodic benefit payments for at least 12 consecutive months.
(d)When increase begins.
An eligible retiree or beneficiary will receive the benefit increase beginning in January of the year following the June 30 on which he or she became eligible.
(e)Administration of benefit increases.
(1)
The benefit increase provided by this section shall be funded by this System as a single-premium paid-up annuity, representing the actuarially determined value of a payment stream for the life of a retiree.
(2)
It is intended that any benefit increase continue for the lifetime of the retiree and any beneficiary, consistent with the option elected under § 6 or <cite data-path="|22|§9">§ 9 of this subtitle</cite>.
(3)
The guaranteed benefit increase provided by this section is effective as of each January 1, regardless of the investment performance of the Retirement System’s investment funds.
(4)
The benefit increase provided by this section is payable in the same form as the post-retirement benefit payments being received by the eligible retiree or beneficiary.
(5)
Except as required by subsection (b)(2) of this section, each eligible retiree and beneficiary shall receive an equal percentage benefit increase.
History: Ord. 13-144
Balt., Md., Code art. 22, § 17.3 (2026)

§ 17.3 Post-retirement benefit increases for Class D members.Copy Citation

(a)Scope of subsection.
This section applies to retirement benefit increases for Class D members.
(b)In general.
Except as otherwise provided in this section, an eligible retiree or beneficiary is entitled to receive a guaranteed increase in periodic benefits equal to the greater of:
(1)
1.5%; or
(2)
the amount of any corresponding guaranteed post-retirement benefit increase provided by the Fire and Police Employees’ Retirement System to its members.
(c)Eligibility.
A retiree or beneficiary is eligible for the benefit increase specified in subsection (b) of this section if:
(1)
as of a particular June 30, the retiree and the beneficiary, whether individually or in combination with the other, have been receiving periodic benefit payments for at least 12 consecutive months; and
(2)
as of the preceding June 30, the Class D funded status, as defined in City Code <cite data-path="|22">Article 22</cite>A, § 5-3(c)(4)(ii), is 85% or more.
(d)Modification of rate.
(1)
If the Class D funded status as of the preceding June 30 is less than 85%, but is 70% or more, the guaranteed increase in periodic benefits under subsection (b) of this section will be reduced to 1% for all eligible retirees and beneficiaries until the June 30 following the first ensuing June 30 as of which the Class D funded status is 85% or more.
(2)
If the Class D funded status as of the preceding June 30 is less than 70%, the guaranteed increase in periodic benefits under subsection (b) of this section will be reduced to 0% for all eligible retirees and beneficiaries until the June 30 following the first ensuing June 30 as of which the Class D funded status is 70% or more.
(e)Date benefit increase begins.
An eligible retiree or beneficiary will receive the benefit increase beginning in January of the year following the June 30 on which he or she became eligible.
(f)Administration of benefit increases.
(1)
The benefit increase provided by this section shall be funded by this System as a single-premium paid-up annuity, representing the actuarially determined value of a payment stream for the life of the retiree.
(2)
It is intended that any benefit increase continue for the lifetime of the retiree and any beneficiary, consistent with the option in effect under § 9.2(k) {“Method of payment”} of this subtitle.
(3)
The guaranteed benefit increase provided by this section is effective as of each January 1, regardless of the investment performance of this System’s investment funds.
(4)
The benefit increase provided by this section is payable in the same form as the post-retirement benefit payments being received by the eligible retiree or beneficiary.
(5)
Except as required by subsection (b)(2) of this section, each eligible retiree and beneficiary shall receive an equal percentage benefit increase.
History: Ord. 14-216