Chapter 33. Personnel and Human Resources.
Article I. In General.
Montgomery County, Md., Code § 33-1 (2026)
Sec. 33-1. Merit system protection board to have all powers and duties of police civil service commissioner and police trial board.LinkCopy Citation
The office of the police civil service commissioner and the police trial board are hereby abolished, and all references in the Code of Public Local Laws of Montgomery County (1947 Edition) to the office of the police civil service commissioner or the police trial board shall henceforth be construed so as to refer to the merit system protection board, and the board shall henceforth have all the powers and duties of the police civil service commissioner and the police trial board, insofar as such powers and duties are prescribed in such Code of Public Local Laws and are consistent with the Montgomery County charter and public general laws.
Montgomery County, Md., Code § 33-2 (2026)
Sec. 33-2. Reserved.LinkCopy Citation
Montgomery County, Md., Code § 33-3 (2026)
Sec. 33-3. Continuation and administration of merit system.LinkCopy Citation
(a)
The merit system for officers and employees of the county government established pursuant to the charter for Montgomery County, Maryland, 1948, is hereby continued. All officers and employees of the county government, except for those exempted positions specified in section 401 of the charter for Montgomery County, Maryland, 1968, as amended, shall be classified as merit system employees.
(b)
The merit system shall be administered by the chief administrative officer, under the direction of the county executive, and shall be governed by and subject to the provisions of the charter for Montgomery County, Maryland, 1982, as amended, provisions of this chapter, and the personnel regulations adopted by the county executive under method (1) of section 2A-15 of this Code.
Montgomery County, Md., Code § 33-4 (2026)
Sec. 33-4. Salaries of chairman and members of merit system protection board.LinkCopy Citation
(a)
In this Section, Consumer Price Index means the Consumer Price Index for All Urban Consumers (CPI-U) for the Washington-Arlington-Alexandria Core Based Statistical Area (CBSA), as published by the United States Department of Labor, Bureau of Labor Statistics, or a successor index.
(b)
For members of the Merit System Protection Board appointed after December 31, 2000, the annual salary of the chair is $8,000, adjusted as provided for other members under this Section. The annual salary of the other 2 members is $6,500 adjusted each year on the first Monday in December by a percentage which is 50% of the percentage that the Consumer Price Index for the previous September has changed from September of the previous year.
Montgomery County, Md., Code § 33-4A (2026)
Sec. 33-4A. Merit system protection board staff.LinkCopy Citation
(a)
The merit system protection board appoints and removes its executive secretary.
(b)
The executive secretary appoints and removes other staff to the board.
(c)
Appointment and removal under this section must comply with the merit system law.
Montgomery County, Md., Code § 33-4B (2026)
Sec. 33-4B. Days of commemoration.LinkCopy Citation
(a)
Legislative findings.
(1)
The religious, ethnic, and cultural heritage of County residents is very diverse.
(2)
The County benefits economically, intellectually, culturally, and socially from the richness and strength of its diversity and seeks to promote an inclusive community for all residents.
(3)
The County’s respect for the diversity of its own workforce is reflected in the County’s rules governing leave and alternate work schedules for religious observance.
(4)
The ability of County employees to meet the needs of County residents and provide high quality customer service is enhanced when County employees know that certain days have special religious, ethnic, or cultural meaning that will affect the daily activities of a significant number of County residents.
(b)
Days of commemoration.
(1)
Each of the following calendar days is designated a day of commemoration:
(A)
Eid Ul-Adha;
(B)
Asian Lunar New Year;
(C)
Martin Luther King Day;
(D)
Ash Wednesday;
(E)
Purim;
(F)
Passover;
(G)
Holy Thursday;
(H)
Good Friday;
(I)
Easter;
(J)
Orthodox Holy Thursday;
(K)
Orthodox Good Friday;
(L)
Orthodox Easter;
(M)
Ascension Thursday (Western);
(N)
Shavuot;
(O)
Feast of the Assumption;
(P)
Juneteenth;
(Q)
Rosh Hashanah;
(R)
Yom Kippur;
(S)
Succoth;
(T)
Shemini Atzeret;
(U)
Simchas Torah;
(V)
Eid Ul-Fitr;
(W)
Diwali;
(X)
Feast of All Saints;
(Y)
Feast of the Immaculate Conception;
(Z)
Christmas;
(AA)
Kwanza;
(BB)
Korean American Day;
(CC)
Three Kings Day;
(DD)
Orthodox Christmas Day;
(EE)
Parinirvana - Nirvana Day;
(FF)
President’s Day;
(GG)
Magha Puja;
(HH)
Norouz;
(II)
Theravada New Year;
(JJ)
Festival of Ridvan;
(KK)
Wesak or Buddha Day;
(LL)
Ascention Thursday (Orthodox);
(MM)
Memorial Day;
(NN)
Dharma Day;
(OO)
Independence Day;
(PP)
Ramadan: The Islamic Month of Fasting;
(QQ)
Labor Day;
(RR)
Veterans’ Day;
(SS)
Thanksgiving Day;
(TT)
American Indian Heritage Day;
(UU)
Hanukkah (Chanukah); and
(VV)
Bodhi Day.
(2)
In addition to the days listed in paragraph (1), the Chief Administrative Officer may designate as a day of commemoration any day that the Chief Administrative Officer determines has special religious, ethnic, or cultural meaning that may affect the daily activities of a significant portion of the County’s total population.
(c)
First notice to County employees. Once every 3 months, the Chief Administrative Officer must notify all County employees electronically of the dates of all days of commemoration that will occur in the next 3 months and provide:
(1)
a brief explanation, based on a generally accepted reference source, of the religious, ethnic, or cultural meaning of each day of commemoration and the date on which the day is usually observed;
(2)
any relevant information regarding the manner in which the daily activities of County residents on the day may affect programs and services provided by the County; and
(3)
for days with religious meaning, an explanation of the County’s rules governing leave and alternate work schedules for religious observance.
(d)
Second notice to County employees. In the 7-day period preceding a day of commemoration or, for a multi-day celebration, the first day of commemoration, the Chief Administrative Officer must:
(1)
notify all County employees electronically of the date of the day of commemoration or, for a multi-day celebration, the dates of the days of commemoration; and
(2)
provide the information required by subsection (c)(1) through (3) regarding the applicable day or days of commemoration.
(e)
The Chief Administrative Officer must maintain a list of all days of commemoration and make the list accessible to the public by posting it on the County’s website.
(f)
The County Executive may, by regulation adopted under method (2), remove a day designated as a day of commemoration under subsection (b)(1) from the County’s list of days of commemoration.
Article II. Merit System.
Montgomery County, Md., Code § 33-5 (2026)
Sec. 33-5. Statement of legislative intent; merit system principles; statement of purpose; merit system review commission; applicability of article.LinkCopy Citation
(a)
Statement of legislative intent. It is the legislative intent of the county council that this article foster excellence in the public service; high individual competence among employees; recognition that respect for the employee as an individual is first required for achieving such excellence and competence; and harmonious and efficient operation within the various components of county government.
(b)
Merit system principles. The merit system established by this chapter encompasses the following principles:
(1)
All county government authority, including internal supervisory authority, is for service to the people, is derived from law and the people and must not be abused;
(2)
The recruitment, selection and advancement of merit system employees shall be on the basis of their relative abilities, knowledge and skills, including the full and open consideration of qualified applicants for initial appointment;
(3)
Merit system employees shall be provided compensation consistent with standard of comparability with other public agencies and the private sector;
(4)
Merit system employees shall be provided training as needed to assure high quality performance and such training where possible should also provide increased opportunity to facilitate their career advancement;
(5)
Merit system employees are encouraged to excel in their work performance; they shall be retained if they meet standards of satisfactory overall performance and shall be separated from merit system service if they do not; both supervisors and subordinates have an equal responsibility to facilitate work performance correction and improvement;
(6)
All applicants to and employees of the county merit system shall be assured fair treatment without regard to political affiliation or other nonmerit factors in all aspects of personnel administration.
(7)
Merit system employees shall be protected against any coercion to engage in illegal or improper actions or partisan political activities and shall be prohibited from using their official authority for the purpose of interfering with or affecting the result of an election or nomination for office;
(8)
The merit system established under this chapter shall be interpreted in accordance with these principles.
(c)
Statement of purpose. The basic purpose of this article is to delineate the respective responsibilities of the county executive, the chief administrative officer and the merit system protection board for personnel management in county government. It is the further purpose of this article to implement by law the county charter responsibilities of the county council with respect to a merit system generally, including provisions for salaries and wages of all classified employees of the merit system under a uniform salary plan, the merit system protection board's authority to exercise its appellate functions, and promotion of the overall objective that the integrity of the county merit system be preserved and that it be administered fairly and efficiently in the best interests of the county and its employees.
(d)
Merit system review commission.
(i)
In addition to the County Council's legislative responsibilities under Sections 101 and 401 of the County Charter, the Council, as necessary, may appoint a Merit System Review Commission by resolution.
(ii)
The Commission’s duties are to:
(A)
strengthen the system of checks and balances among those officials and agencies of county government having merit system responsibilities; and
(B)
examine and recommend legislative or administrative revision to the merit system in keeping with the intent of the Charter and this Article and with new developments in the field of public administration and personnel management.
(iii)
The Commission has 11 members who are appropriately qualified County residents. The Executive must appoint 5 members and the Council must appoint the remaining members.
(iv)
Each Commission terminates after it submits its final report to the Council.
(e)
Applicability of article. This article shall apply to all merit system employees defined herein. Not included under this article unless specifically stated to the contrary are those positions excluded by section 401 of the county charter as amended and any other positions so excluded from the merit system under other provisions of county law.
Montgomery County, Md., Code § 33-6 (2026)
Sec. 33-6. Definitions.LinkCopy Citation
In this article, the following words and phrases have the following meanings:
Board: The merit system protection board as described in section 403 of the county charter.
County employees: All persons employed by the county regardless of merit system status.
Domestic partner. A person who was registered as the domestic partner of a County employee with the Office of Human Resources on or before June 27, 2016 in a domestic partnership that did not end before the County employee’s death. This definition applies throughout this Chapter unless otherwise indicated.
Illegal or improper actions: Any actions which violate any law or regulation, or which constitute a gross waste of funds, an abuse of authority or a substantial and specific danger to public health or safety.
Merit system employees: All persons who are employed by the county in full-time or part-time year-round permanent career positions in any department/office/agency of the executive and legislative branches of the county government or in any other position specifically so designated by law.
Removal: The separation of a merit system employee through dismissal, involuntary resignation or abolishment of his or her position for reasons or circumstances determined by the board as being other than a bona fide reduction of funds or work.
Supervisor: The chief administrative officer and all subordinate personnel exercising supervisory functions in the capacity of a public employer.
Montgomery County, Md., Code § 33-7 (2026)
Sec. 33-7. County executive and merit system protection board responsibilities.LinkCopy Citation
(a)
Generally. In performing its functions, the Board is expected to protect the merit system and to protect employee and applicant rights guaranteed under the merit system, including protection against arbitrary and capricious recruitment and supervisory actions, support for recruitment and supervisory actions demonstrated by the facts to be proper, and to approach these matters without any bias or predilection to either supervisors or subordinates. The remedial and enforcement powers of the Board granted herein must be exercised by the Board as needed to rectify personnel actions found to be improper. The Board must comment on any proposed changes in the merit system law or regulations, at or before the public hearing thereon. The Board, subject to the appropriation process, must establish its staffing requirements and define the duties of its staff.
(b)
Personnel regulations. The County Executive must adopt personnel regulations under method (1).
The personnel regulations must provide the framework for:
(1)
The classification of all merit system positions in the executive and legislative branches;
(2)
Minimum qualifications for merit system positions, methods of determining qualifications and methods of selection for any positions;
(3)
Probationary periods, promotions, transfers;
(4)
Causes for removal from any merit system position and methods of removal, including demotions, furloughs, and reduction of staff. However, any regulations governing a reduction in staff and employee rights attendant thereto shall be restricted to the respective branch of government in which the employee is employed; in the case of the legislative and judicial branches, this sentence shall apply to employees hired by the legislative and judicial branch, respectively, after August 1, 1983.
(5)
Annual, sick and other leave;
(6)
Prohibitions against political activity;
(7)
Maintenance of personnel records; and
(8)
Similar personnel matters as may be provided by law.
(c)
Classification standards. With respect to classification matters, the County Executive must provide by personnel regulation, adopted under Method (1), standards for establishing and maintaining a classification plan. These standards may include but are not limited to the following:
(1)
The necessary components of class specifications;
(2)
Criteria for the establishment of new classes, modification or elimination of existing classes;
(3)
Criteria for the assignment of positions to classes;
(4)
Kinds of data required to substantiate allocation of positions;
(5)
Guidelines for comparing levels of job difficulty and complexity; and
(6)
Criteria for the establishment or abolishment of positions.
The Board must conduct or authorize periodic audits of classification assignments made by the Chief Administrative Officer and of the general structure and internal consistency of the classification plan, and must submit audit findings and recommendations to the County Executive and County Council.
(d)
Hiring persons with disabilities.
(1)
Findings.
(A)
Persons with disabilities are a largely untapped resource for outstanding candidates for County employment.
(B)
There are many County residents with severe disabilities, including Wounded Warriors treated in the County at the Walter Reed National Military Medical Center.
(C)
Persons with disabilities suffer from a high unemployment and underemployment rate in the County due in part to unfounded myths, fears and stereotypes associated with many disabilities.
(D)
Hiring rules for persons with disabilities are necessary to remedy past discrimination resulting from these unfounded myths, fears, and stereotypes and to enable the County to be a model employer of qualified persons with severe disabilities.
(E)
Special hiring rules for qualified persons with severe disabilities would permit the County to hire highly productive interns with severe disabilities into merit system positions.
(F)
The Charter permits the County to operate a program within the merit system to recruit and select qualified individuals with severe physical and mental disabilities on a noncompetitive basis.
(2)
The Executive must adopt by personnel regulation, under Method (1), standards for establishing and maintaining special rules for the initial appointment of a qualified person with a disability into a merit system position. These standards must:
(A)
define a person with a disability eligible for a competitive appointment with a preference as:
(i)
a person with medical proof of a developmental disability, a severe physical disability, or a psychiatric disability; or
(ii)
a veteran rated by the Department of Veterans Affairs with a compensable service-connected disability of 30 percent or more;
(B)
define a person with a severe disability eligible for noncompetitive appointment as a person with medical proof of a severe developmental, physical, or psychiatric disability; and
(C)
require medical certification of a qualifying disability.
(3)
Competitive appointment.
(A)
Except as provided in Subsection (e), the regulation must establish and maintain a preference under the following order of preference:
(i)
an employee who is unable to perform the employee’s job because of a disability or injury under the ADA;
(ii)
an employee subject to reduction-in-force;
(iii)
an employee who was granted a temporary disability retirement under the Employees Retirement System or an initial or temporary disability benefit of any type under the Retirement Savings Plan or the Guaranteed Retirement Income Plan but is no longer eligible for such a temporary disability retirement or benefit;
(iv)
a veteran with a disability;
(v)
an equal preference for a veteran without a disability and a non-veteran with a disability; and
(vi)
a displaced federal worker under Subsection (k).
(B)
This regulation must only apply the preference in Subparagraphs (A)(iv) and (A)(v) for the initial appointment of a qualified person to a merit system position who is among the highest rating category in a normal competitive process.
(4)
Noncompetitive appointment. The regulation must establish and maintain standards for the noncompetitive appointment of a qualified person with a severe disability to a position in the merit system. The standards must:
(A)
permit the noncompetitive appointment of a qualified person with a severe disability without advertising the position;
(B)
require certification of a severe disability based upon medical evidence;
(C)
apply only to the initial appointment of a qualified person with a severe disability to a merit system position; and
(D)
require the person to successfully complete the appropriate probationary period for the position.
(e)
Hiring Veterans for Uniformed Public Safety Positions.
(1)
Findings.
(A)
Veterans, particularly those returning from combat in Iraq and Afghanistan, suffer from a high unemployment rate.
(B)
The skills and experience gained by veterans while in the military are helpful assets for serving in uniformed public safety positions.
(2)
Regulation. The Executive must establish by personnel regulation, under Method (1), standards for a hiring preference point system for the initial appointment of a qualified veteran who applies for a merit uniformed public safety position in a normal competitive process. These standards must:
(A)
define a veteran as a person who was honorably discharged or released from a branch of the United States armed services after at least 180 days of active military duty other than for training;
(B)
define a veteran with a disability as a veteran rated by the Department of Veterans Affairs with a compensable service-connected disability of 30 percent or more;
(C)
define a uniformed public safety position as a:
(i)
police officer;
(ii)
fire fighter/rescuer; or
(iii)
correctional officer; and
(D)
give preference points for a veteran and additional preference points for a veteran with a disability.
(f)
Personnel regulation review. The Merit System Protection Board must meet and confer with the Chief Administrative Officer and employees and their organizations from time to time to review the need to amend these regulations.
(g)
Adjudication. The Board must hear and decide disciplinary appeals or grievances upon the request of a merit system employee who has been removed, demoted or suspended and in such other cases as required herein.
(h)
Retirement. The Board may from time to time prepare and recommend to the Council modifications to the County’s system of retirement pay.
(i)
Personnel management oversight. The Board must review and study the administration of the county classification and retirement plans and other aspects of the merit system and transmit to the Chief Administrative Officer, County Executive and County Council its findings and recommendations. The Board must conduct such special studies and audits on any matter relating to personnel as may be periodically requested by the County Council. All County agencies, departments and offices and County employees and organizations must cooperate with the Board and have adequate notice and an opportunity to participate in any such review initiated under this section.
(j)
Publication. Consistent with the requirements of State law, confidentiality and other provisions of law, the Board must publish, at least annually, abstracts of its decisions, rulings, opinions and interpretations, and maintain a permanent record of its decisions.
(k)
Hiring displaced federal workers.
(1)
Findings.
(A)
Federal workers are experiencing job uncertainty and high unemployment due to federal downsizing and other federal personnel actions unrelated to individual qualifications and merit.
(B)
The skills and experiences of individuals who have served as federal employees are valuable assets for serving in County government.
(2)
For purposes of this Section, the term displaced federal worker means a former federal employee who:
(A)
resides in the County; and
(B)
on or after January 1, 2025, received:
(i)
notification of personnel action from the federal government that separated the individual from federal employment; and
(ii)
notification from the federal government that the reason for separation is that the individual’s position is no longer needed, or that the individual was subject to a federal reduction in force.
(3)
The term displaced federal worker does not include:
(A)
an individual subject to downgrade or reassignment;
(B)
an individual eligible to receive a higher preference under Subsections (d)(3)(A) or (e); or
(C)
an individual separated from federal employment for a reason other than those stated in subsection (k)(2)(B)(ii).
(4)
The Executive must establish by personnel regulation, under Method (1), standards for the:
(A)
application and documentation requirements to qualify as a displaced federal worker;
(B)
rating and eligibility for inclusion of a displaced federal worker among the highest rating category for a merit system position in a normal competitive process; and
(C)
implementation of this subsection (k).
Montgomery County, Md., Code § 33-8 (2026)
Sec. 33-8. Administrative responsibilities of the chief administrative officer.LinkCopy Citation
(a)
The chief administrative officer shall be responsible for the administration and enforcement of the merit system, including any retirement laws, labor relations laws and the personnel regulations. The chief administrative officer may designate a representative to implement any or all of the provisions of law or the personnel regulations. The chief administrative officer and all department heads are responsible for implementing all final decisions of the merit system protection board made after grievance appeals, although the chief administrative officer shall have the right to appeal any such decision in accordance with procedures recited elsewhere in this article. The chief administrative officer shall ensure that all supervisors receive continual orientation and training about the intent purpose and principles of the merit system and shall ensure that all supervisors implement the objectives of this article.
(b)
The chief administrative officer shall formulate administrative procedures to implement requirements of the merit system law and personnel regulations after providing reasonable public notice and opportunity for comment. These administrative procedures shall be distributed in a manner to make them accessible to all employees.
Montgomery County, Md., Code § 33-9 (2026)
Sec. 33-9. Equal employment opportunity and affirmative action.LinkCopy Citation
(a)
Policy. Except as provided in Section 33-7(d), the County must take all personnel actions on the basis of merit and fitness without regard to political affiliation or non-merit factors, and without regard to other factors as may be provided for in chapter 27, “Human Relations and Civil Liberties,” such as sex, marital status, race, religion, national origin, age or disability. The Chief Administrative Officer must initiate, develop, and maintain an equal employment opportunity and affirmative action program necessary to ensure that all persons have an equal opportunity to enter and progress in the County's service on the basis of open competition and demonstrated ability. The County Executive may adopt regulations, under method (1), to implement this policy. Such regulations must provide that an employee whose personal religious beliefs require the abstention from work during certain periods of time may elect to engage in an alternate work schedule in order to meet those religious requirements. The regulations must require an employee who elects to work an alternate schedule to work an equal period of time to that taken off for such religious reasons.
(b)
Conciliation. The chief administrative officer is authorized to engage in consultation and conciliation efforts with agencies responsible for enforcement of equal employment opportunity laws with the objective of resolving complaints and to execute binding agreements with these agencies; provided, however, that these conciliation efforts shall not be deemed to abate the procedures or requirements as recited in chapter 27. Should the complaint be determined to be a matter not properly within the jurisdiction of an equal employment opportunity enforcement agency, the complaint, as filed, shall be treated as a grievance and processed under the appropriate procedures established for grievances.
(c)
Appeals by applicants. Any applicant for employment or promotion to a merit system position may appeal decisions of the chief administrative officer with respect to their application for appointment or promotion. Appeals alleging discrimination prohibited by chapter 27, "Human Relations and Civil Liberties," of this Code, may be filed in the manner prescribed therein. Appeals alleging that the decisions of the chief administrative officer were arbitrary and capricious, illegal, based on political affiliation, failure to follow announced examination and scoring procedures, or nonmerit factors, may be filed directly with the merit system protection board. Appeals filed with the merit system protection board shall be considered pursuant to procedures adopted by the board. The board may order such relief as is provided by law or regulation.
Montgomery County, Md., Code § 33-10 (2026)
Sec. 33-10. Disclosure of illegal or improper actions in County government; protection for merit system employees against retaliation or coercion; appeals.LinkCopy Citation
(a)
Disclosure of illegal or improper actions.
(1)
Employees should report illegal or improper actions in County government.
(2)
Employees should first report illegal or improper actions to the individual responsible for corrective action. That person may be anyone from the employee's immediate supervisor to the County Executive, or for legislative branch employees, the County Council.
(b)
Protection for employees.
(1)
A personnel action is an act or omission by a supervisor which has a significant adverse impact on the employee, or a change in the employee’s duties or responsibilities which is inconsistent with the employee’s grade and salary. A personnel action does not include an act or omission by a supervisor that is not subject to review by the Merit Systems Protection Board under Section 33-12.
(2)
A merit system employee must not be subjected to a personnel action in retaliation for:
(A)
refusing to obey an instruction involving an illegal or improper action; or
(B)
disclosing, to a Federal, State or County official or employee, information concerning illegal or improper action in County government with a reasonable good-faith belief that the information disclosed is accurate.
(3)
This subsection does not protect a merit system employee if the:
(A)
employee's actions were frivolous, unreasonable, and without foundation, even though not brought in bad faith;
(B)
employee, without good cause, did not comply with applicable regulations concerning the making of such disclosures; or
(C)
employee was the subject of an otherwise proper personnel action that would have been taken regardless of the employee’s disclosure of information concerning illegal or improper action in County government.
(c)
Appeal. A merit system employee who alleges that he or she was subject to a retaliatory personnel action in violation of subsection (b) may appeal to the Merit System Protection Board under Section 33-12.
(d)
Decision. The Board must issue a written decision, including necessary findings of fact and conclusions of law, and may order any remedy authorized by Section 33-14.
Montgomery County, Md., Code § 33-11 (2026)
Sec. 33-11. Classification; salary and wage plans.LinkCopy Citation
(a)
Classification.
(1)
The Chief Administrative Officer must apply the classification standards in this Chapter and the Personnel Regulations to:
(A)
establish and abolish occupational classes as necessary for effective and economical operation of the County government;
(B)
assign all positions in the merit system to proper classes;
(C)
assign pay grades to classes; and
(D)
establish a procedure for the administrative review of an employee’s objection to an assignment action that downgrades the employee's position.
The Board must have a reasonable opportunity to review and comment on any proposed new classes except new classes proposed for the Management Leadership Service under paragraph (2).
(2)
The CAO may establish by amendment to the Personnel Regulations under method (1) a Management Leadership Service (MLS) to ensure that the senior management of the County government is responsive to the needs, policies, and goals of the County and is the highest quality possible. The MLS must:
(A)
be established within the Merit System;
(B)
provide a compensation system designed to attract and retain highly competent senior managers and compensate employees on the basis of individual and organizational performance (including success in improving efficiency, productivity, quality of work or service, cost efficiency, and timeliness and complying with anti-discrimination and equal employment opportunity requirements);
(C)
ensure that senior managers are accountable and responsible for the effectiveness and productivity of the employees they supervise;
(D)
ensure accountability for honest, economical, and efficient government;
(E)
recognize exceptional accomplishment;
(F)
enable the CAO reasonably to reassign senior managers to promote the mission and goals of the County government;
(G)
protect senior managers from arbitrary and capricious actions and maintain a Merit System free of prohibited personnel practices;
(H)
ensure compliance with applicable personnel laws, including those related to equal employment opportunity, political activity, and conflicts of interest;
(I)
enhance the management and leadership skills of highly competent senior managers through professional development; and
(J)
appoint career managers to fill MLS positions to the extent practical, consistent with the effective and efficient implementation of agency policies and responsibilities.
(3)
The CAO may establish by amendment to the Personnel Regulations under method (1) a Police Leadership Service (PLS) to ensure that the senior management of the Department of Police is responsive to the needs, policies, and goals of the County and is the highest quality possible. The PLS must:
(A)
be established within the Merit System;
(B)
include only lieutenants and captains in the Department of Police;
(C)
provide a compensation system designed to attract and retain highly competent senior police managers and compensate lieutenants and captains on the basis of individual and organizational performance (including success in improving efficiency, productivity, quality of work or service, cost efficiency, and timeliness and complying with anti-discrimination and equal employment opportunity requirements);
(D)
ensure that senior police managers are accountable and responsible for the effectiveness and productivity of the employees they supervise;
(E)
ensure accountability for honest, economical, and efficient police service;
(F)
recognize exceptional accomplishment;
(G)
enable the Police Chief reasonably to reassign senior police managers to promote the mission and goals of the Department of Police;
(H)
protect senior police managers from arbitrary and capricious actions and maintain a Merit System free of prohibited personnel practices;
(I)
ensure compliance with applicable personnel laws, including those related to equal employment opportunity, political activity, and conflicts of interest;
(J)
enhance the management and leadership skills of highly competent senior police managers through professional development; and
(K)
appoint career police managers to fill PLS positions to the extent practical, consistent with the effective and efficient implementation of Department of Police policies and responsibilities.
(4)
The CAO must determine by written finding that a reclassification is necessary for the efficient and effective operation of County government before approving an upward reclassification of a position between July 1 and December 31 of any year in which the County Executive is elected.
(b)
Uniform salary plan.
(1)
The uniform salary plan consists of:
(A)
salary schedules for employees represented by certified employee organizations;
(B)
a minimum wage/seasonal salary schedule;
(C)
a salary schedule for sworn police managers and positions included in the Police Leadership Service;
(D)
a salary schedule for uniformed fire/rescue managers;
(E)
a salary schedule for sworn deputy sheriff managers;
(F)
a salary schedule for uniformed correctional managers;
(G)
a salary schedule for medical doctors;
(H)
a salary schedule for employees in positions included in the Management Leadership Service; and
(I)
a general salary schedule for all other employees.
(2)
The Chief Administrative Officer may recommend to the County Council amendments to the uniform salary plan.
(3)
The Council must approve the uniform salary plan and any amendments by resolution.
(4)
In approving the salary plan or amendments, the Council may consider such factors as:
(A)
experience;
(B)
prevailing salary rates for comparable services in both the public and private sectors;
(C)
County collective bargaining agreements;
(D)
living costs; and
(E)
other employee benefits.
(5)
A salary schedule must include grades and a salary rate or salary range for each grade.
(6)
The Chief Administrative Officer must assign each occupational class to an appropriate grade under an approved salary schedule.
(7)
The minimum wage/seasonal salary schedule must identify each occupational class assigned to the salary schedule. The Chief Administrative Officer may assign an occupational class to the minimum wage/seasonal salary schedule only if all employees in the class:
(A)
are paid the federal minimum wage; or
(B)
work for the County fewer than:
(i)
20 regularly scheduled hours per week on a continuing year- round or school-year basis; or
(ii)
1040 hours in a 12-month period; or
(C)
are participants in the County's Conservation/Service Corps job training program.
(8)
The Chief Administrative Officer must base any recommendation to amend the police management salary schedule on:
(A)
police management salary rates in neighboring jurisdictions;
(B)
County collective bargaining agreements that establish the pay and benefits of police officers;
(C)
other pay and benefits available to police management;
(D)
availability of funds; and
(E)
any other relevant factors.
(9)
The Chief Administrative Officer must base any recommendation to amend the fire/rescue management salary schedule on:
(A)
fire/rescue management salary rates in neighboring jurisdictions;
(B)
County collective bargaining agreements that establish the pay and benefits of uniformed fire/rescue employees;
(C)
other pay and benefits available to fire/rescue management;
(D)
availability of funds; and
(E)
any other relevant factors.
(10)
The Chief Administrative Officer must base any recommendation to amend the sworn deputy sheriff management salary schedule on:
(A)
salary rates of sworn deputy sheriff managers in neighboring jurisdictions;
(B)
County collective bargaining agreements that establish the pay and benefits of deputy sheriffs;
(C)
other pay and benefits available to sworn deputy sheriff managers;
(D)
availability of funds; and
(E)
any other relevant factors.
(11)
The Chief Administrative Officer must base any recommendation to amend the uniformed correctional management salary schedule on:
(A)
salary rates of uniformed correctional managers in neighboring jurisdictions;
(B)
County collective bargaining agreements that establish the pay and benefits of correctional officers;
(C)
other pay and benefits available to uniformed correctional managers;
(D)
availability of funds; and
(E)
any other relevant factors.
(12)
The Chief Administrative Officer must base any recommendation to amend the medical doctors’ salary schedule on:
(A)
salaries of medical doctors employed in the public and private sectors in Montgomery County;
(B)
salaries of medical doctors employed in the public and private sectors in neighboring jurisdictions;
(C)
other pay and benefits available to medical doctors;
(D)
availability of funds; and
(E)
any other relevant factors.
(13)
The Chief Administrative Officer must ensure that all occupational classes that require comparable experience and have comparable duties, responsibilities, and authority are paid comparable salaries that reflect the relative value of the services performed, except occupational classes on the salary schedules for:
(A)
sworn police managers included in the Police Leadership Service;
(B)
uniformed fire/rescue managers;
(C)
sworn deputy sheriff managers;
(D)
uniformed correctional managers;
(E)
deputy sheriffs in the Office, Professional, and Technical bargaining unit;
(F)
the police bargaining unit;
(G)
the fire/rescue bargaining unit;
(H)
medical doctors;
(I)
Management Leadership Service; and
(J)
minimum wage/seasonal employees.
(14)
The Chief Administrative Officer may recommend compensation policies for overtime, pay differentials, and other salary and wage benefits to the County Council. The County Council must approve any such policy or benefit.
(15)
Any plan, policy, or schedule approved by the County Council under this subsection is subject to the provisions of this Chapter regarding employees who are represented by a certified employee organization.
(c)
Salary policies. Employees must be paid on a biweekly basis. Except as expressly provided by federal, state, or County law, the Chief Administrative Officer must determine any applicable payroll deductions and charges for deductions, including state income tax withholding for any state where an employee resides. The Chief Administrative Officer may deduct from an employee’s salary, without written authorization, any amount specified under any automatic enrollment provision of the Deferred Compensation Plan established under Section 33-142 and of a deferred compensation plan established under Section 33-146B to the extent permitted by a collective bargaining agreement if the employee is a member of an applicable bargaining unit. When an employee leaves County employment, any debts the employee owes to the County may be deducted from any unpaid salary, accrued annual or compensatory leave, or retirement contributions due to the employee.
(d)
Other compensation policies. The chief administrative officer may establish other compensation policies to recognize employees who perform in an extraordinary manner either on a sustained performance basis or in recognition of a specific act or service. These compensation policies may include monetary awards to employees making suggestions which result in better public service, cost savings or more efficient operations. Compensation policies may be in the form of cash awards or be part of the uniform salary plan.
Res. No. 9-1649, introduced on December 8, 1981, and adopted on January 19, 1982, deals with pay retention for employees demoted as a result of reduction in force.
Montgomery County, Md., Code § 33-12 (2026)
Sec. 33-12. Appeals of disciplinary actions; grievance procedures.LinkCopy Citation
(a)
Appeals of certain disciplinary actions. Any merit system employee, excluding those in probationary status, who has been notified of impending removal, demotion or suspension shall be entitled to file an appeal to the board, which shall cause a hearing to be scheduled without undue delay unless the appeal has been settled during administrative review of the appeal by the chief administrative officer or a designee. Any merit system employee who is the subject of other disciplinary action not specified above may file an appeal with the board, but such appeal may or may not require a hearing as the board may determine.
(b)
Grievances. A grievance is a formal complaint arising out of a misunderstanding or disagreement between a merit system employee and supervisor with reference to a term or condition of employment. The determination of the board as to what constitutes a term or condition of employment shall be final. Grievances do not include the following: Classification allocations, except due process violations; failure to reemploy a probationary employee; or other employment matters for which another forum is available to provide relief or the board determines are not suitable matters for the grievance resolution process. A grievance shall include termination by resignation which is found by the board to have been submitted under circumstances which cause the resignation to be involuntary; in the event of such a finding, the board shall require the appointing authority to substantiate the termination as in the case of a removal. The county executive shall prescribe, in the personnel regulations adopted under method (1) of section 2A-15 of this Code, procedures which seek to secure at the lowest possible level a fair, prompt and mutually satisfactory resolution to a grievance. In providing these procedures, the county executive shall ensure that any grievance based upon an alleged improper application of a merit system law or regulation concerning a disputed issue of fact is entitled to resolution after a fact-finding inquiry authorized by the board. Grievances based upon an alleged improper interpretation of merit system laws or regulations do not require a hearing during the grievance resolution process.
(c)
Hearing examiners. The board may utilize hearing examiners to conduct grievance investigations and other hearings, authorized under this section, who shall make findings and recommendations subject to objection by the parties and final board approval under such procedures as established by the board. A party to any proceeding which has been assigned to a hearing examiner shall be afforded the opportunity to present an oral argument on the record before the board prior to a final decision.
Montgomery County, Md., Code § 33-13 (2026)
Sec. 33-13. Appeal procedures.LinkCopy Citation
The county executive shall prescribe by personnel regulations, adopted under method (1) of section 2A-15 of this Code, procedures covering appeals, including grievances which shall include the time limit for filing such appeal, the granting of administrative leave pending appeal, filing and cost of the administrative record, conduct of hearings, requirements for written notice, special evidentiary proceedings in cases where the remedy of employee reinstatement was a contested and unresolved issue in an ordinary appeal hearing and provisions for summary actions by the board.
Montgomery County, Md., Code § 33-13A (2026)
Sec. 33-13A. Audits, investigations and inquiries.LinkCopy Citation
The merit system protection board is authorized to conduct audits, investigations or inquiries, to assure that the merit system is administered in accordance with the provisions of this chapter and regulations promulgated pursuant thereto, and may administer oaths, require the attendance of witnesses and the production of records or other material in connection with an investigation, audit or inquiry. The results of each audit, investigation or inquiry shall be transmitted to the county council, county executive, and chief administrative officer, with appropriate recommendations.
There is hereby created the position of special personnel investigator. The special personnel investigator shall exercise the following powers and perform the following duties and functions:
(a)
Investigate any matter referred to him by the merit system protection board.
(b)
File a complaint with the merit system protection board where, as result of his investigation of matters referred to him by the board, he has probable cause to believe that the merit system has not been administered in accordance with the provisions of this chapter or regulations promulgated pursuant thereto.
(c)
Recommend corrective action on matters which have been referred to him by the merit system protection board.
(d)
Designate, with the approval of the council, an alternate special personnel investigator for matters in which he has a conflict of interest or is otherwise unable to pursue.
The special personnel investigator is appointed by the county council for a term of 5 years, or until a successor is appointed and qualified. The council may remove the special personnel investigator on the vote of 6 members of the council. The special personnel investigator must:
(1)
have experience in law or personnel matters;
(2)
be paid a per diem fee set by contract with the county; and
(3)
be reimbursed for necessary expenses.
When an audit, investigation or inquiry gives the board cause to believe that the merit system has not been administered in accordance with the provisions of this chapter or regulations promulgated pursuant thereto, the board may refer the matter to an appropriate investigative entity, including the special personnel investigator, at the board's option. Where a complaint is filed by the special personnel investigator, or on its own motion, the board may hold a hearing and issue a decision ordering such corrective action as it determines to be necessary, including those remedies provided in section 33-14(c). Where the board holds a hearing on its own motion, the board's staff or the special personnel investigator shall be the charging party. In any hearing, the responding party shall include all individuals who may be adversely affected. All investigatory proceedings under this section shall include due process protections consistent with the purposes of this chapter and procedures shall be included in the personnel regulations adopted under method (1) of section 2A-15 of this Code, which specify these protections in further detail. Nothing herein shall be construed to prohibit the board from initiating and acting upon audits, investigations or inquiries until such regulations are adopted.
Montgomery County, Md., Code § 33-14 (2026)
Sec. 33-14. Hearing authority of board.LinkCopy Citation
(a)
Hearing requirements. Hearings before the board are quasi-judicial in nature and shall be conducted in formal session in accordance with the provisions and authority contained in the county administrative procedures act. Board members shall be provided orientation and training as required to properly implement the requirements of the county administrative procedures act and conduct administrative evidentiary proceedings. With respect to hearings which go beyond one (1) session, the board shall endeavor to schedule such hearings so that a minimum amount of time elapses between sessions. When required for continuity and minimum loss of time in concluding a case, the board shall also endeavor to schedule hearings during daytime, weekday hours. Hearing shall be open to the public with reasonable notice, if requested by the employee.
(b)
Board counsel. The board may request special counsel when the board and the county attorney determine that a representational conflict exists within the county attorney's office. The special counsel shall be an individual acceptable to the board. The county attorney may assign an attorney to the board as its general counsel who shall represent the board exclusively on matters concerning the merit system.
(c)
Decisions. Final decisions by the board shall be in writing, setting forth necessary findings of fact and conclusions of law. A copy of such decision shall be furnished to all parties. The board shall have authority to order appropriate relief to accomplish the remedial objectives of this article, including but not limited to the following:
(1)
Order retroactive promotion or reclassification with or without back pay;
(2)
Order change in position status, grade, work schedule, work conditions and work benefits;
(3)
Order priority consideration be given to an employee found qualified before consideration is given to other candidates;
(4)
Order reinstatement with or without back pay, although the chief administrative officer may reinstate either to a position previously held or to a comparable position of equal pay, status and responsibility;
(5)
Order cancellation of personnel actions found in violation of law or personnel regulation provided that such action may not without due process, adversely affect the employment rights of another employee;
(6)
Grant employee participation in an employee benefit previously denied (training, educational program or assistance, preferential or limited work assignments and schedules, overtime pay or compensatory leave);
(7)
Order removal from administrative or personnel records any reference or document pertaining to an unwarranted disciplinary or adverse personnel action;
(8)
Order corrective measures as to any management procedure adversely affecting employee pay, status, work conditions, leave or morale;
(9)
Order the county to reimburse or pay all or part of the employee's reasonable attorney's fees. The reasonableness of the attorney fees shall be determined by the following factors;
a. Time and labor required;
b. The novelty and complexity of the case;
c. The skill requisite to perform the legal service properly;
d. The preclusion of other employment by the attorney due to acceptance of the case;
e. The customary fee;
f. Whether the fee is fixed or contingent;
g. Time limitations imposed by the client or the circumstances;
h. The experience, reputation and ability of the attorneys; and
i. Awards in similar cases;
(10)
Order such other and further relief as may be deemed appropriate consistent with the charter and laws of Montgomery County.
Montgomery County, Md., Code § 33-15 (2026)
Sec. 33-15. Judicial review and enforcement.LinkCopy Citation
(a)
Any aggrieved merit system employee, or applicant, or the chief administrative officer may obtain judicial review of a merit system protection board order or decision from the circuit court for the county in the manner prescribed under Chapter 200 of Title 7 of the Maryland Rules of Procedure. In addition, with respect to orders or opinions relating to personnel of Montgomery County fire and rescue corporations, the independent fire and rescue corporation affected by the merit system protection board order, as well as any aggrieved fire and rescue corporation employee, may obtain judicial review of the board's order or decision as provided in this section.
(b)
The court, in hearing the case, shall apply the judicial review standards as set forth in the Maryland Administrative Procedures Act, Subtitle 2 of Title 10 of the State Government Article of the Maryland Code. The court review shall be on the basis of the record before the board. Judicial review of board decisions issued hereunder also includes appellate review by the Court of Special Appeals.
(c)
When the chief administrative officer is the party seeking judicial review of a board order or decision in favor of a merit system employee, the county shall be responsible for the employee's legal expenses, including attorneys' fees which result from the judicial review and are determined by the county to be reasonable under the criteria set forth in subsection (c)(9) of section 33-14.
(d)
Upon the failure of a party to invoke the judicial review provision of section (a) above or the exhaustion thereof and upon noncompliance with any final decision or order of the board, the board may certify the matter to the county attorney for enforcement. The county attorney shall promptly institute appropriate civil proceedings in the circuit court for Montgomery County to seek enforcement of the decision or order and for any other appropriate relief.
Montgomery County, Md., Code § 33-16 (2026)
Sec. 33-16. Conflicting provisions.LinkCopy Citation
In the event of any conflict between the provisions of this article and any provisions of the personnel regulations or administrative rules or regulations, the provisions of this article shall control.
Montgomery County, Md., Code § 33-17 (2026)
Sec. 33-17. Prohibited personnel practices; criminal penalty.LinkCopy Citation
(a)
No county employee or other person acting in concert with a county employee shall threaten, promise to take, or take any official action with respect to any individual employee for the purpose of inducing or coercing political activity of any county employee or applicant for county employment (including the providing of any political contribution or service), or take any official action against any county employee or applicant for county employment as a reprisal for the refusal of the person to engage in any political activity.
(b)
No person shall willfully make any false statement, certificate, mark, rating or report with regard to any test, certification or appointment made under any provisions of this law or in any manner commit or attempt to commit any fraud preventing the impartial execution of this law and any regulations issued thereunder.
(c)
No county employee or other person acting in concert with a county employee shall, directly or indirectly, give, render, pay, offer, solicit or accept any money, service or other valuable consideration for the purpose of providing any appointment, proposed appointment, promotion or proposed promotion to, or any advantage in, county employment.
(d)
No county employee or other person acting in concert with a county employee shall willfully defeat, deceive or obstruct any person in his right to examination, eligibility, certification or appointment under this law, or furnish to any person special or confidential information for the purpose of affecting the rights of any person with respect to employment under the county merit system.
(e)
No county employee or other person acting in concert with a county employee shall willfully grant any preference or advantage contrary to law, rule or regulation to any merit system employee or applicant for merit system employment (including preselection or defining the scope or manner of competition or the requirements for any position primarily for the purpose of improving or ensuring the prospects of a particular person for a merit system position rather than for the purpose of advancing or improving service to the public, contrary to merit system principles).
(f)
No county employee or other person acting in concert with a county employee shall willfully take or cause to be taken a personnel action with respect to a merit system position or merit system employee on the basis of political affiliation or family relationship.
(g)
A person must not threaten, promise, or take any action against a County employee to:
(1)
induce or coerce an employee to take an illegal or improper action; or
(2)
retaliate against an employee for disclosing information to a Federal, State, or County official or employee concerning an illegal or improper action in County government that the employee has a good faith belief is accurate.
Any person who shall violate any of the above provisions shall be guilty of a misdemeanor and shall, on conviction thereof, be punished by a fine not to exceed one thousand dollars ($1,000.00), or by imprisonment for a term not to exceed six (6) months or by both.
Montgomery County, Md., Code § 33-18 (2026)
Sec. 33-18. Deduction for child support.LinkCopy Citation
(a)
Legislative findings. Prompt payment of child support payments are essential to the health and welfare of the children for whom the payments are intended. Many payors fail to satisfy the obligation they have to make child support payments in a timely manner. It is the purpose of this section to establish a procedure whereby persons who are entitled to receive child support payments from county employees may, without embarrassment to the parties or the necessity to prove any arrearage or other fault, cause the county to deduct the amount of child support directly from the salary of the employee.
(b)
Definitions.
Chief administrative officer means the county's chief administrative officer, or his designee.
Child support means a sum of money required to be paid for the support of one (1) or more children pursuant to a court order or a written agreement.
Clerk means the office of the clerk of the circuit court for Montgomery County.
Director means the director of the Montgomery County department of finance, or his designee.
Payee means any person entitled to receive child support.
Payor means any employee of the county who is obligated to pay child support.
(c)
Application for deduction. Any payee may apply for a direct deduction of child support from the salary of a payor. The application shall be submitted to the clerk on a form prepared by the clerk, and a copy of the court order or separation agreement requiring the payment of child support shall be attached to the application form. If the clerk declines or is judicially determined unable to administer this program in accordance with the procedures established by this section, the functions prescribed herein to be performed by the clerk shall be performed by the county's office of hearing examiner.
(d)
Notice and determination. The clerk shall notify the payor of any application for direct deduction of child support. The payor may object to the deductions by filing a written answer with the clerk within fifteen (15) days from the date of receipt of the notice. Where an objection is filed, the clerk shall provide the payee with a copy of the objection. Upon request of either party, the clerk shall schedule a conference to discuss the merits of the matter. Thereafter, the clerk shall make administrative determinations as to the support obligation of the payor, based on the court order, separation agreement or any modifications thereof, and the amount to be deducted from the payor's weekly or biweekly salary, and provide the director with a copy of the determination. The determination is solely intended to facilitate a child support collection procedure without consideration of collateral child support or custody issues.
(e)
Administrative appeal and hearing. Either party may appeal the clerk's determination to the board of appeals under the procedures established by the board for this purpose. The board, if requested by either party, shall hold a hearing on the matter. The board's decision shall be subject to the same judicial review provisions found in section 2-114 of this Code. An appeal shall operate to stay the effect of the clerk's determination.
(f)
Modifications. A payor or payee may, at any time, apply for a modification of the clerk's determination. Application for a modification shall be on a form specified by the clerk. The clerk, upon receipt of an application for modification, shall follow the same procedures applicable to initial applications for direct child support deductions.
(g)
Director's duties. The director, upon receipt of the clerk's determination shall, unless contrary to law, court rule, or the provisions of a collectively bargained agreement, deduct the specified amount from the paycheck of the payor and transfer same to the clerk. The clerk shall then forward the amount of the payment directly to the payee. The director may also deduct from the amount of the support payment, a fee, established by executive regulation of the county executive adopted under method (3) of section 2A-15 of this Code, not to exceed the reasonable costs of implementing the determination of the clerk.
(h)
Authority to enter into agreement. The chief administrative officer is authorized to enter into an agreement with the clerk for the administration of this program.
(i)
Report. In any attachment (garnishment) action affecting the wages paid by the county to the payor, the county shall report to the court any deductions being made pursuant to this section.
(j)
Executive regulations. The county executive is authorized to adopt regulations, under method (1) of section 2A-15 of this Code, for the implementation of the provisions of this section.
Montgomery County, Md., Code § 33-19 (2026)
Sec. 33-19. Day care as alternative fringe benefit.LinkCopy Citation
The executive shall establish a salary reduction dependent care assistance plan that meets the requirements of section 125 and/or section 129 of the Internal Revenue Service Code as amended. Under this plan, county employees, with the exception of those police department employees subject to a collective bargaining agreement, may elect to reduce or to forego increases in their salary to pay for dependent care assistance benefits up to a maximum dollar amount as may be permitted by the Internal Revenue Code. Police department employees subject to a collective bargaining agreement may elect to participate in the plan, if authorized by the collective bargaining agreement. Dependent care assistance payments shall be paid in a manner permitted by the Internal Revenue Code. The executive may charge a reasonable administrative fee to reduce the cost to the county of administering the plan.
Montgomery County, Md., Code § 33-20 (2026)
Sec. 33-20. Short-term county employees.LinkCopy Citation
(a)
A department head may hire a short-term employee when necessary to promote the efficient operation of the department. When it is impractical to hire from an eligible list, a department head may hire a short-term employee who is not on an eligible list if the employee meets the minimum qualifications of the position.
(b)
A department head must not employ a short-term employee:
(1)
For more than 900 hours in a 12-month period;
(2)
For more than 2 12-month periods; and
(3)
At an hourly rate greater than the maximum pay rate for grade 5 on the General Salary Schedule, as adjusted from time to time under section 33-11(b), or the comparable pay grade if the General Salary Schedule is revised.
(c)
The County Executive must adopt regulations under method (1) to administer this section.
Montgomery County, Md., Code § 33-21 (2026)
Sec. 33-21. Military leave.LinkCopy Citation
(a)
A part-time or full-time County employee, except an elected official, who is involuntarily ordered to active duty in the armed forces of the United States or National Guard during a national emergency or under Presidential authority, except for active duty for training:
(1)
may use any accumulated annual and compensatory leave while on active duty; and
(2)
must be granted military leave, when all annual, compensatory, and donated leave has been used, for:
(A)
the period the employee is ordered to remain on active duty; and
(B)
10 working days after release from active duty.
(b)
The County must pay an employee on military leave the employee's County salary, reduced by all pay and allowances the employee receives for military service except separation allowances.
(c)
An employee who takes leave under this Section continues to receive all employee insurance benefits for the entire leave period.
(d)
The County must not grant military leave to a non-merit County employee for any period after the employee's appointing authority leaves office.
(e)
An employee who is on military leave under this Section must receive retirement credit under the Employees’ Retirement System in Article III or the Retirement Savings Plan in Article VIII, as applicable.
Montgomery County, Md., Code § 33-22 (2026)
Sec. 33-22. County Employee Settlement Agreements; right to appeal - established.LinkCopy Citation
(a)
Definitions. For purposes of this Section, the following terms have the meanings indicated:
Employment dispute means any grievance or appeal filed by the employee against the County where a dismissal action under COMCOR 33.07.01.33 or 33.07.01.35, is challenged.
No-rehire clause: a provision prohibiting, preventing, or otherwise restricting an employee from obtaining future employment.
(b)
An agreement to settle an employment dispute must not contain a no-rehire clause from County employment.
(c)
Except as provided in subsection (b), a settlement agreement may include a no-rehire clause if:
(1)
the provision is mutually agreed upon to end the current employment relationship;
(2)
the employee voluntarily resigns after a formal disciplinary action has been initiated by an agency head; or
(3)
the Chief Administrative Officer or agency head has made a finding that there are sufficient grounds to dismiss the employee for cause.
(d)
Appeal of No-Rehire Clause. An aggrieved employee may file an appeal with the County’s Merit System Protection Board to challenge the decision of the Chief Administrative Officer or agency head to include a no-rehire clause in a proposed settlement agreement under subsection (c)(3). The appeal must:
(1)
be in writing; and
(2)
filed within 10 working days from the employee’s receipt of the proposed settlement agreement which included a no-rehire clause.
(e)
Burden of Proof. The County, upon appeal, has the burden of proof by a preponderance of evidence to provide a legitimate, nondiscriminatory reason for its decision.
Montgomery County, Md., Code § 33-23 (2026)
Sec. 33-23. Prescription Drug Benefit.LinkCopy Citation
(a)
The Director of the Office of Human Resources must offer all County employees and retired employees a prescription drug benefit, independent of any other employee benefit, that allows each employee to buy prescription maintenance medications through one or more domestic or foreign pharmacy benefit managers at the lowest available cost. The pharmacy benefit manager must assure that:
(1)
each medication dispensed under this benefit is consistent with federal Food and Drug Administration standards, including manufacturing location, formulation, source and specifications of active ingredients, processing methods, manufacturing controls, container/closure system, and appearance; and
(2)
any biomedication is not dispensed under this benefit.
(b)
The Director may operate this program through any form of intergovernmental procurement under Article VIII of Chapter 11B if the Director finds that doing so will provide more efficient service or achieve lower costs for participants or the County.
Montgomery County, Md., Code § 33-24 (2026)
Sec. 33-24. Telework.LinkCopy Citation
(a)
Definitions. In this Section, the following words have the meanings indicated:
Director means the Director of the Department of Human Resources or the Director’s designee.
Telework means a work arrangement in which some or all of the work is performed at an alternative work site, such as a home or office space near a home.
(b)
Telework. The County Executive must adopt, by Method 1 regulation, a policy to permit eligible employees to telework and a plan to increase the number of County employees who telework.
(c)
Contents. The telework regulation must:
(1)
require the Director to designate an employee to serve as the County telework manager. The County telework manager must:
(A)
advise each County department and office on telework matters;
(B)
serve as a resource for managers and employees on telework;
(C)
develop, after consulting the County Attorney, a standard written telework agreement between a teleworking employee and the employee’s manager;
(D)
assist managers in determining the eligibility of an employee to telework; and
(E)
be the primary point of contact between the Office of Human Resources and each County department or office on telework issues;
(2)
identify the circumstances under which a County employee may telework;
(3)
identify procedures that a County employee must follow to obtain permission to telework;
(4)
require the execution of a written telework agreement between an employee and the employee’s manager outlining each party’s expectations and responsibilities; and
(5)
identify the required telework training for a teleworking employee and a County manager.
(d)
Training. The Director, after consulting the Chief Information Officer, must establish an appropriate training course for a teleworking employee and a County manager.
(e)
Annual report. The Chief Administrative Officer must report to the County Executive and County Council by January 15 of each year on:
(1)
the actions taken in the preceding fiscal year to implement the telework regulation;
(2)
the number of employees teleworking in each department or office during the preceding fiscal year;
(3)
the number of teleworking hours worked by employees in each department and office in the preceding fiscal year; and
(4)
recommendations for improvements to the teleworking regulation.
Montgomery County, Md., Code § 33-25 (2026)
Sec. 33-25. County Pay Equity Act.LinkCopy Citation
(a)
Definitions. As used in this section:
Applicant means a person seeking a merit system position with the County. Applicant does not include a County merit system employee seeking a new position with the County.
Salary means an applicant’s financial compensation in exchange for labor, including wages, commissions, and bonuses.
Salary history means an applicant’s current and past salary in the applicant’s current or prior position with another employer.
(b)
Requesting salary history prohibited.
(1)
The County must not consider or rely on an applicant’s salary history as a factor in determining whether to offer employment to an applicant or determining pay.
(2)
The County must not seek an applicant’s salary history.
(3)
The County must not refuse to hire or retaliate against an applicant for refusing to disclose the applicant’s salary history.
(4)
This Section does not prohibit:
(A)
an applicant from voluntarily, and without prompting, disclosing the applicant’s salary history, provided the County does not rely on that voluntary disclosure to determine an initial offer of starting salary for the applicant;
(B)
the County from discussing an applicant’s expectations with respect to salary without inquiring about salary history;
(C)
the County from verifying non-salary information disclosed by an applicant or received from a background check, provided that any salary history disclosed by a background check is not used to refuse to hire or determine an applicant’s salary; and
(D)
the County from relying on salary history voluntarily provided by the applicant to pay the applicant a higher wage than initially offered, if reliance on salary history does not result in unequal pay for equal work based on gender.
(a)
study the effect of laws in other jurisdictions prohibiting an employer from considering an applicant’
(b)
provide the Council with a report on gender pay equity among County employees every 2 years beginning on or before July 1, 2022.
Montgomery County, Md., Code § 33-25A (2026)
Sec. 33-25A. Prospective Employees – Health Care Privacy.LinkCopy Citation
(a)
Definitions. As used in this section:
Americans with Disabilities Act means the federal Americans with Disabilities Act of 1990, as amended.
Applicant means a person seeking County employment, including a merit system position, non-merit system position, appointed position, or contractual position.
Business-related health information means health care information that is necessary to evaluate whether an applicant meets a minimum qualification for a position.
Contractual position means an individual providing services to the County pursuant to a procurement under Chapter 11B. Contractual position does not include the employees or subcontractors of a contractor under Chapter 11B.
Health care means any care, treatment, or procedure by a health care provider:
(1)
to diagnose, evaluate, rehabilitate, manage, treat, or maintain the physical or mental condition of a patient or recipient; or
(2)
that affects the structure or any function of the human body.
Health care information means any individually identifiable information related to health care.
Minimum qualification means a mandatory qualification that:
(1)
must be met to perform the required job functions of the position; and
(2)
was posted publicly prior to the acceptance of any application for the position.
Reproductive health information means health care information related to any aspect of reproductive health, including abortion care, miscarriage, contraception, sterilization, pregnancy, and family planning.
(b)
Requesting or considering health care information – Limitations.
(1)
Except as provided in paragraph (2), the County must not:
(A)
request or seek health care information regarding an applicant; or
(B)
consider health care information as a factor in determining whether to hire an applicant.
(2)
Unless otherwise prohibited by law, the County is entitled to:
(A)
request or seek business-related health care information; and
(B)
consider business-related health care information solely to determine whether an applicant meets a minimum qualification.
(c)
Requesting reproductive health information – Prohibited. The County must not request or consider an applicant’s reproductive health information.
(d)
This Section does not prohibit:
(1)
an applicant from voluntarily submitting, or the County from processing, a request for a reasonable accommodation under the Americans with Disabilities Act related to the job application process; or
(2)
if the applicant is a County employee, an applicant from disclosing, or the County from requesting, health care information necessary for:
(A)
enrolling in or processing employee benefits;
(B)
making or processing workers’ compensation claims;
(C)
making or processing leave requests in accordance with County laws and regulations; or
(D)
complying with applicable state or federal law.
(e)
An applicant aggrieved under this section may appeal to the Merit System Protection Board under Section 33-13.
Montgomery County, Md., Code § 33-26 (2026)
Sec. 33-26. Severance pay limits.LinkCopy Citation
The Executive must not authorize any payment of money or paid administrative leave to a merit employee upon separation from County employment unless the payment is expressly authorized by law. This Section must not be interpreted to prohibit:
(a)
the payout of unused leave at termination of employment;
(b)
a discontinued retirement pension authorized under Section 33-45(d); or
(c)
severance pay under Sections 33-139 and 33-140.
Montgomery County, Md., Code § 33-27 (2026)
Sec. 33-27. Paid Parental Leave – Prior to Commencement of the State Family and Medical Leave Insurance Program.LinkCopy Citation
(a)
Definitions. For purposes of this Section, the following words have the meanings indicated.
FMLA leave means employee leave under the federal Family and Medical Leave Act, 29 U.S.C § 2601 et seq., as amended.
Parent means a biological parent, an adoptive parent, or a foster parent. Parent includes the spouse or domestic partner of a parent.
(b)
Paid parental leave – required.
(1)
The County must provide paid parental leave under this Section to a part-time or full-time County employee who:
(A)
has been in a County merit system position for at least 6 consecutive months; and
(B)
is the parent of a newborn child, a stillborn child, a newly adopted child, or a newly placed foster child.
(2)
The paid parental leave under this Section must consist of up to:
(A)
240 hours within a 12-month period, for an employee scheduled to work 40 hours per week; or
(B)
a prorated amount within a 12-month period, for an employee scheduled to work more or less than 40 hours a week.
(3)
The paid parental leave under this Section must be used within 12 months of the birth or stillbirth of the child, the adoption of the child, or the placement of the child in foster care.
(c)
Continuance of salary and benefits.
(1)
The County must continue to pay an employee on parental leave under this Section the full salary of the employee.
(2)
An employee on parental leave under this Section must continue to receive employee insurance benefits.
(3)
An employee on parental leave under this Section must continue to receive retirement credit under the Employees’ Retirement System in Article III or the Retirement Savings Plan in Article VIII, as applicable.
(d)
Relationship to other employee leave.
(1)
Concurrence of leave.
(A)
Except as provided in subparagraph (B) of this paragraph, parental leave taken under this Section must not count against any other type of leave of the employee.
(B)
Parental leave taken under this Section must run concurrently with any FMLA leave of the employee.
(2)
Exhaustion of other leave – not required. Prior to taking parental leave under this Section, an employee must not be required to exhaust any other type of leave provided to the employee under a collective bargaining agreement or other applicable law, including County personnel regulations.
(e)
Collective bargaining. This Section must not be construed to diminish any employee leave required by a collective bargaining agreement under this Chapter.
(f)
Regulations. The Executive may adopt Method (2) regulations to implement this Section.
Montgomery County, Md., Code § 33-28 (2026)
Sec. 33-28. Paid Parental Leave – County supplement to the State Family and Medical Leave Insurance Program.LinkCopy Citation
(a)
The requirements of subsection (c) of this section must not apply if:
(1)
the County establishes a private employer plan approved by the Maryland Secretary of Labor under the Time to Care Act of 2022, Chapter 48 of the 2022 Laws of Maryland, as amended; and
(2)
the plan established by the County under paragraph (1) of this subsection provides to each employee at least 240 hours of paid parental FAMLI leave annually.
(b)
Definitions. For purposes of this Section, the following words have the meanings indicated.
FAMLI leave means employee leave under the State FAMLI Program.
FMLA leave means employee leave under the federal Family and Medical Leave Act, 29 U.S.C § 2601 et seq., as amended.
Parent means a biological parent, an adoptive parent, or a foster parent. Parent includes the spouse or domestic partner of a parent.
Parental FAMLI leave means FAMLI leave, taken by an employee who is a parent, to care for a newborn child, a newly adopted child, or a newly placed foster child within 12 months of the child’s birth, adoption, or placement. Parental FAMLI leave includes FAMLI leave taken by an employee who is the parent of a stillborn child within 12 months of the stillbirth.
State FAMLI Program means:
(1)
the Family and Medical Leave Insurance Program required by the State of Maryland under the Time to Care Act of 2022, Chapter 48 of the 2022 Laws of Maryland, as amended; or
(2)
a private employer plan established by the County and approved by the Maryland Secretary of Labor under the Time to Care Act of 2022, Chapter 48 of the 2022 Laws of Maryland, as amended.
(c)
County supplement to State FAMLI program benefits for parental FAMLI leave – required.
(1)
Except as provided under paragraph (2) of this subsection, the County must pay an employee on parental FAMLI leave the employee’s County salary, reduced by the amount of any benefit the employee is entitled to receive for the leave under the State FAMLI Program.
(2)
The County’s payments under paragraph (1) of this subsection must be provided to compensate up to:
(A)
240 hours of parental FAMLI leave within a 12-month period, for an employee scheduled to work 40 hours per week; or
(B)
a prorated amount of parental FAMLI leave within a 12-month period, for an employee scheduled to work more or less than 40 hours a week.
(d)
Continuance of benefits.
(1)
An employee on parental FAMLI leave must continue to receive employee insurance benefits.
(3)
An employee on parental FAMLI leave must continue to receive retirement credit under the Employees’ Retirement System in Article III or the Retirement Savings Plan in Article VIII, as applicable.
(e)
Relationship to other employee leave.
(1)
Concurrence of leave.
(A)
Except as provided under paragraph (2) of this subsection, parental FAMLI leave taken under this Section must not count against any other type of leave of the employee.
(B)
Parental FAMLI leave must run concurrently with FMLA leave.
(2)
Exhaustion of other leave – not required. Prior to taking parental FAMLI leave under this Section, an employee must not be required to exhaust any other type of leave provided to the employee under a collective bargaining agreement or other applicable law, including County personnel regulations.
(f)
Collective bargaining. This Section must not be construed to diminish any employee leave required by a collective bargaining agreement under this Chapter.
(g)
Regulations. The Executive may adopt Method (2) regulations to implement this Section, including regulations to specify how, consistent with the State FAMLI program and other applicable law, parental FAMLI leave relates to other types of employee leave.
Montgomery County, Md., Code § 33-29 (2026)
Sec. 33-29. Break Time for Lactation.LinkCopy Citation
(a)
An employee must be provided with reasonable break time during the workday to accommodate the need for lactation.
(b)
Compensation. The County may not be required to compensate an employee receiving reasonable break time under subsection (a) for any time spent expressing breast milk at work.
(c)
Regulations. The Director may promulgate Method (2) regulations to implement the requirements of this Section.
Montgomery County, Md., Code § 33-30 (2026)
Sec. 33-30. Lactation Accommodation Policy.LinkCopy Citation
(a)
Personnel regulations. The County Executive must adopt personnel regulations under Method (1) to establish a lactation accommodation policy. The policy, at a minimum, must contain guidelines regarding:
(1)
the process to request the use of a lactation room, as provided under Section 8-14C(b);
(2)
the process to request break time under Section 33-27;
(3)
the availability of a lactation room as required under subsection (c); and
(4)
best practices for maintenance of a lactation room, including recommended general cleaning of milk expression areas and storage of breast milk in the designated refrigerator.
(b)
Outreach and Education. The Director of the Office of Human Resources must provide, or cause to be provided, on its website informational materials related to prenatal and postpartum breastfeeding for County employees.
(c)
The Director of the Office of Human Resources, by use of existing or potential resources, must establish a method to communicate with County employees:
(1)
the location of a lactation room in a County building; and
(2)
the availability of that room for use.
Montgomery County, Md., Code § 33-31—33-33 (2026)
Secs. 33-31—33-33. Reserved.LinkCopy Citation
Article III. Employee's Retirement System.
Division 1. Generally.
Montgomery County, Md., Code § 33-34 (2026)
Sec. 33-34. Declaration of policy.LinkCopy Citation
It is the policy of the county to maintain a system of retirement pay and benefits for its employees which is adequately funded and insures employees sufficient income to enjoy during their retirement years. Any modifications to such retirement system shall not reduce the overall value of benefits which existed for members immediately prior to such modifications except that benefits may be reduced if necessary to maintain the fiscal integrity of the system after a finding by the county council that such change is necessary.
Before all liabilities with respect to the members and their beneficiaries are satisfied, no person may use or divert any part of the corpus or income of the retirement system to purposes other than the exclusive benefit of the members and beneficiaries.
Montgomery County, Md., Code § 33-35 (2026)
Sec. 33-35. Definitions.LinkCopy Citation
In this Article, the following words and phrases have the following meanings:
Account balances: The balances credited to the retirement accounts of each elected officials' participant under the elected officials' plan as of the valuation date preceding the date of distribution, plus any elected officials' participant contributions or county elected officials' contributions allocated to those accounts since that date, determined without regard to vesting.
Accumulated contributions: The sum of all the amounts deducted from the compensation of the member, including picked-up contributions, and all other contributions paid by the member and credited to the member's retirement account plus credited interest as provided in section 33-39.
Actuarial equivalent: As to any amount, an equivalent amount, determined in accordance with actuarial assumptions provided by an independent enrolled actuary to be used in conjunction with the plan in question.
Board or board of investment trustees: The board of investment trustees established under this article.
County elected officials' contributions: The contributions by the county to the elected officials' plan required under section 33-40.
County government: The county government and, when applicable, any agency whose employees are participating in the retirement system.
County merit system protection board: The merit system protection board as defined in the Charter of Montgomery County, Maryland.
County personnel board or personnel board: The county personnel board as defined in the Charter of Montgomery County, Maryland.
County service: Employment with the county government or any agency whose employees participate as members of this retirement system, and full-time or career part-time service with another agency by the incumbent of a position brought under the county's merit system without a break in service.
Department, office or agency head: The administrative head of a department or principal office of the county government and of each fire department, rescue squad and other participating agency or political subdivision.
Domestic partner: A person who was registered as the domestic partner of a member with the Office of Human Resources on or before June 27, 2016 in a domestic partnership that did not end before the member’s death.
Elected official: The sheriff, the state's attorney, and any county official elected for a fixed term as specifically provided in the Charter.
Elected officials' plan: The defined contribution plan that the county establishes for elected officials.
Elected officials' participant: A member who is participating in the elected officials' plan.
Elected officials' participant contributions: The contributions by an elected officials' participant to the elected officials' plan required under subsection 33-39(a)(3) ("required elected officials' participant contributions") and permitted under subsection 33-39(d) ("voluntary elected officials' participant contributions").
Employee: Any eligible elected or appointed official and any full-time or career part-time employee of the County, or of a participating agency or political subdivision.
Employee organization: An employee organization defined in Section 33-76 that is certified under Section 33-79 or an employee organization defined in Section 33-102(5) that is certified under Section 33-106.
Fiduciary: A person who:
(1)
exercises discretionary authority to manage a retirement system;
(2)
exercises authority to invest or manage assets of a retirement system;
(3)
renders investment advice for a fee or other compensation about assets of a retirement system or has authority or responsibility to render that advice; or
(4)
is a trustee on the Board of Investment Trustees.
However, an investment manager of an investment vehicle is only a fiduciary if it holds plan assets as defined under the Employee Retirement Income Security Act (ERISA) and its corresponding regulations.
Final earnings: Except as otherwise provided, the regular earnings of a member as of the last date of active service. Final earnings for a member who filed an application for disability benefits under Section 33-43 before May 19, 2010 that is approved after June 30, 2010 must be the member’s regular earnings on the last pay period in fiscal year 2010.
Firefighter/Rescuer Bargaining Unit: The collective bargaining unit described in Section 33-148 that includes certain non-supervisory employees in the Firefighter/Rescuer series employed by the Department of Fire and Rescue Services.
Guaranteed retirement income plan: A retirement plan that provides retirement benefits based on retirement credits and a guaranteed rate of interest on those credits.
Guaranteed retirement income plan account: A recordkeeping account, consisting of required member contributions under Section 33-39(a)(4), County contribution credits under Section 33-40(e) and the guaranteed credited interest on those contributions.
Guaranteed retirement income plan account balance: The balance credited to the retirement accounts of each participant under the guaranteed retirement income plan, determined without regard to vesting.
Integrated retirement plan: A retirement plan that provides full retirement benefits until the member is eligible for full social security retirement benefits and supplemental benefits thereafter.
Investment funds: The separate investment funds the County establishes to permit elected officials' participants to invest their account balances in the elected officials' plan.
Investment manager: A person or entity who exercises discretion to manage all or part of the assets of an institutional investor.
Maximum covered compensation level: The maximum dollar amount of earnings upon which social security benefits are based, assuming: (1) an employee's annual compensation was or will be at least equal to the taxable wage base each calendar year for a 35-year period through the year in which the employee attains social security retirement age; (2) the employee worked in employment covered by the federal social security act during each of the above mentioned calendar years; and (3) the taxable wage base remains constant from calendar year of termination or retirement to attainment of social security retirement age in this determination.
Member: An employee or official of the County government or of a participating agency or political subdivision who is contributing to this retirement system.
Member contributions: The contributions required under Section 33-39 from a member, including amounts deducted from the member’s compensation, and picked-up contributions made on or after July 1, 1989.
Membership: the period of time that a member is enrolled and has contributed to the Employees’ Retirement System.
Normal working time: The number of hours a member would be expected to work in a yearly period including paid authorized leave as may be provided in the personnel regulations. In the case of part-time career member, such "normal working time" will be whatever scheduled work time may be set forth as a condition of the member's appointment.
Office, Professional and Technical Bargaining Unit: The collective bargaining unit described in Section 33-105(a)(1) which includes certain employees in eligible classes associated with office, professional, paraprofessional, and technical functions.
Optional retirement plan: A retirement plan that provides retirement benefits independent of social security retirement benefits.
Participant: A person who has a benefit under the optional plan, the integrated plan, the elected officials’ plan, or the guaranteed retirement income plan.
Part-time employee: Any employee working less than the normal scheduled work week for full-time employees, on a continuing basis.
Picked-up contributions: The contributions picked up by the County or a participating agency under Sections 33-39(a)(1), 33-39(a)(2), 33-39(a)(3), or 33-39(a)(4).
Plan Year: The 12-month period on the basis of which the books and records of the retirement system are maintained. The plan year of the retirement system is the same as the County fiscal year.
Police Bargaining Unit: The collective bargaining unit defined in Section 33-76 which includes non-supervisory sworn County police officers.
Police Telecommunicator: An employee assigned to a position in a supervisory or nonsupervisory occupational class in the Police Telecommunicator occupational series.
Prior service: County service rendered prior to the date of the establishment of the retirement system or qualified County service rendered prior to membership in the retirement system.
Public safety employee: An employee who is a:
(1)
sworn officer of the Police Department;
(2)
paid firefighter, paid fire officer, or paid rescue service worker of the Montgomery County Fire and Rescue Service;
(3)
sworn deputy sheriff;
(4)
correctional officer; or
(5)
County employee who provides services to a correctional facility and designated as a public safety employee by the Chief Administrative Officer.
Regular earnings: Except as otherwise provided, gross pay for actual hours worked, including paid leave, but not including overtime. To calculate regular earnings, for FY10 only, a Group A, E, or H member who is employed on July 1, 2009 and participates in the integrated or optional plan must include amounts as if the member had received an increase of 4.5% in the member’s gross pay as of July 1, 2009, except for the purpose of calculating a member’s contribution under Section 33-39. To calculate regular earnings, for FY10 only, for a Group F member who is employed on July 1, 2009 and participates in the integrated or optional plan must include amounts as if the member had received an increase of 4.25% in the member’s gross pay as of July 1, 2009, except for the purpose of calculating a member’s contribution under Section 33-39. To calculate regular earnings, for FY10 only, for a Group G member who is employed on July 1, 2009 and participates in the integrated or optional plan must include amounts as if the member had received an increase of 4% in the member’s gross pay as of July 1, 2009, except for the purpose of calculating a member’s contribution under Section 33-39. If a member is required to take any furlough, as defined in personnel regulations adopted under Section 33-7(b), or a collective bargaining agreement, regular earnings must include any amount the member would have received if the member had not been required to take any furlough. Regular earnings for an elected official is gross pay for services rendered to the County. Regular earnings must not exceed the limit under Internal Revenue Code Section 401(a)(17), as adjusted by the Internal Revenue Service. For a member who first became a member in this retirement system before July 1, 1996, the limits in effect before July 1, 1993, and as adjusted by the Internal Revenue Service, shall continue to apply. Gross pay must be used to determine benefits even if the County implements a pick-up plan under Section 414 of the Internal Revenue Code. Gross pay must be used to determine benefits even if a member has agreed to a reduction in earnings under:
(a)
The County's deferred compensation plan under Section 457 of the Internal Revenue Code; or
(b)
Any statutory fringe benefit program sponsored by the County and permitted by the Internal Revenue Code.
Retired member: Any member who is receiving retirement benefits.
Retirement accounts: The accounts, consisting of a required elected officials' participant contributions account, a voluntary elected officials' participant contributions account, and a County elected officials' contributions account, the Board establishes for each elected officials' participant. Investment of the assets of these retirement accounts may be accounted for by maintaining pro rata accounts of a commingled fund or by maintaining separate and distinct accounts for each elected officials' participant. If the Board establishes pro rata accounts, the Board may make the allocation of realized and unrealized gains and losses using the ratio that the account balance of an elected officials' participant bears to the account balances of all elected officials' participants as of the previous valuation date. If the Board establishes separate and distinct accounts, the Board must determine the value of the individual account solely with respect to the activity within each elected officials' participant's account and the valuation must not be affected by the activity of an account of another elected officials' participant.
Retirement savings plan: The defined contribution retirement plan provided in Article VIII for eligible employees of Montgomery County and participating agencies.
Retirement system: The employees' retirement system of Montgomery County, as provided in this Article.
Service, Labor and Trades Bargaining Unit: The collective bargaining unit described in Section 33-105(a)(2) which includes certain employees in eligible classes that are associated with service/maintenance and skilled crafts.
Social security retirement age: The age used as the retirement age for full (unreduced) benefits under the Federal Social Security Act as follows:
(a)
Age 65 with respect to an employee who attains age 62 before January 1, 2000;
(b)
Age 66 with respect to an employee who attains age 62 after December 31, 1999 and before January 1, 2017; and
(c)
Age 67 with respect to an employee who attains age 62 after December 31, 2016.
Social security retirement age for members who retire or qualify for discontinued service under Section 33-45(d) and (e) before July 1, 1989, is age 65. Social security retirement age for members who are elected officials on July 1, 1989, is age 65 until December 2, 1990, and thereafter is the age set forth in this definition, as appropriate.
Social security wage base: For any particular year, the maximum amount of earnings creditable for benefit computation purposes under the old age, survivors, and disabilities insurance program established by the Federal Social Security Act.
Spouse: Only the husband or wife of a member.
Valuation date: The last business day of March, June, September and December of each year, and any other date the Board establishes for determining the fair market value of the assets of the elected officials' plan.
Montgomery County, Md., Code § 33-36 (2026)
Sec. 33-36. Establishment.LinkCopy Citation
(a)
Effective date. A retirement system is hereby established, effective August 15, 1965.
(b)
Coverage generally. The primary purpose of this retirement system is to provide a pension and other benefits for full-time and career part-time paid employees of the county, the Montgomery County Employees Federal Credit Union, fire department, rescue squads, office of the state's attorney, office of the sheriff, office of the board of supervisors of elections, housing opportunities commission, agencies supported or financed in whole or in part by taxes levied by the county council, agencies supported by bond issues underwritten by the county, and political subdivisions of the county. Any agency or political subdivision desiring coverage for its employees may make a written request to the county personnel board for approval. No liability shall accrue to the county by the inclusion of other than county employees. Each participating agency or political subdivision shall be fully responsible for the cost of coverage for its employees and any necessary costs for administrative services provided.
(c)
Name of retirement system. The retirement system shall be known as the "employees' retirement system of Montgomery County," and it shall have the powers and privileges of a corporation.
(d)
Uniformed Services Employment and Reemployment Rights Act. Notwithstanding the provisions of any plan, the County must provide rights, contributions, benefits, and service credit for qualified military service according to Section 414(u) of the Internal Revenue Code, including subsection 414(u)(12).
Division 2. Eligibility and Qualifications.
Montgomery County, Md., Code § 33-37 (2026)
Sec. 33-37. Membership requirements and membership groups.LinkCopy Citation
(a)
Full-time employees.
(1)
A full-time employee of the County or participating agency must become a member of a County retirement plan as a condition of employment, when the employee meets the applicable eligibility requirements, if the employee waives all rights of membership under any other retirement system supported in whole or in part by the State, a political subdivision of the State, or the County.
(2)
A part-time employee who becomes a full-time employee and is not an active member of any County retirement plan must become an active member of:
(A)
the integrated retirement plan, if the employee is eligible for membership in the integrated plan;
(B)
the Retirement Savings Plan, if the employee satisfies the requirements for membership in Group I or II, even if the employee did not begin or return to County service on or after October 1, 1994 and participates as described in Section 33-115; or
(C)
the guaranteed retirement income plan if the employee is eligible for membership and participates as described in subsection (k).
(3)
A temporary employee who becomes a full-time employee must become an active member of:
(A)
the integrated plan, if the employee is eligible for membership in the integrated plan;
(B)
the Retirement Savings Plan, if the employee satisfies the requirements for membership in Group I or II, even if the employee did not begin or return to County service on or after October 1, 1994 and participates as described in 33-115; or
(C)
the guaranteed retirement income plan if the employee is eligible for membership and participates as described in subsection (k).
(b)
Part-time employees.
(1)
A part-time employee of the County or participating agency may become a member of a County retirement plan if the employee waives all rights of membership under any other retirement system supported in whole or in part by the State, a political subdivision of the State, or the County. Membership is effective on the date the employee's application for membership is approved.
(2)
A part-time employee who is not an active member of a retirement plan may become a member of either:
(A)
the integrated plan, if the employee is eligible for membership in the integrated plan;
(B)
the Retirement Savings Plan if the employee satisfies the requirements for membership in Group I or II, even if the employee did not begin or return to County service on or after October 1, 1994 and elects to participate as described in Section 33-115; or
(C)
the guaranteed retirement income plan if the employee is eligible for membership and elects to participate as described in subsection (k).
(3)
A part-time employee who withdraws from active membership in a County retirement plan may not become an active member again unless the employee becomes a full-time employee or an elected official.
(4)
An employee who becomes a member of the integrated plan may not withdraw from active membership except by transferring to the Retirement Savings Plan under Section 115(c)(2).
(5)
A full-time employee who becomes a part-time employee may withdraw from active membership in the optional, integrated, or guaranteed retirement income plan and stop making retirement contributions, but must not become an active member of a County retirement plan again unless the employee becomes a full- time employee or an elected official.
(c)
Appointed officials. Each person appointed by the Executive or Council to head a principal department or office of the County government must be subject to all regulations and laws governing full-time members of the retirement system.
(d)
Hearing Examiners. Any person appointed by the Executive or Council to serve as a hearing examiner must be treated as a full-time employee under the laws and regulations governing members of the retirement system if that person serves full time as a hearing examiner, and must be treated as a part-time employee under the laws and regulations governing members of the retirement system if that person serves less than full time as a hearing examiner.
(e)
Retirement plans.
(1)
This retirement system consists of an integrated retirement plan, an optional retirement plan, an elected officials' plan, and a guaranteed retirement income plan.
(2)
An employee enrolled or re-enrolled on or after July 1, 1978, and before October 1, 1994, is a member of the integrated retirement plan unless the employee becomes a member of the Retirement Savings Plan through transfer or election. An employee enrolled before July 1, 1978, may be a member of the optional retirement plan, the integrated retirement plan, or the Retirement Savings Plan. A member’s decision to transfer from the optional retirement plan or the integrated retirement plan is irrevocable. A former County employee who returns to County service is a member of the plan in which the employee was enrolled when the employee left County service if the employee:
(A)
was vested under Section 33-45 when the employee left County service;
(B)
left all member contributions plus credited interest in the fund;
(C)
returned to County service within 25 months; and
(D)
did not transfer to the Retirement Savings Plan.
(3)
(A)
If the County or a participating agency withdraws from Social Security, each member of the integrated retirement plan must have an opportunity to re-enter the optional retirement plan after repaying the prior refund and any difference in member contributions required for the period of membership in the integrated retirement plan. Any additional contributions must not be treated as picked-up contributions.
(B)
The Chief Administrative Officer may treat a member as if the member had been in the optional retirement plan since the beginning of the member’s entry into the retirement system if the member is:
(i)
employed by a participating agency; and
(ii)
a member of the integrated plan; but not covered by Social Security during the period of employment by the participating agency.
The Chief Administrative Officer may require additional member contributions and participating agency contributions.
(4)
(A)
(B)
(C)
(k)
(5)
Except as provided in subparagraphs (B), (C), and Subsection (k)(5), any individual who becomes an elected official must become a member of the elected officials' plan on the date the individual becomes an elected official.
(B)
If an individual was an active member of a County retirement plan, including an employee on leave without pay, before becoming an elected official, the individual may choose to continue or return to participate in the retirement plan in which the individual participated before becoming an elected official, subject to the eligibility and transfer rules set out in this subsection and subsection (f).
(C)
An individual who chooses to continue to participate in a County retirement plan in which the individual participated before becoming an elected official must not participate in the elected official’s plan.
(5)
(A)
(4)
(B)
An elected official who chooses to continue to participate in another County retirement plan under paragraph (4)(B) may become a member of the elected officials' plan at any time while an elected official after terminating participation in the other plan.
(B)
An individual who chooses to become a member of the elected officials’ plan under subparagraph (A) retains the individual's rights under the plan in which the individual was a member before becoming a member of the elected officials’ plan, except for disability, but is not entitled to a refund of contributions from that plan. The disability benefits of an individual who chooses to become a member of the elected officials’ plan under subparagraph (A) are provided in article VIII. The individual's vested rights under the elected officials' plan must be determined based on the individual's total credited service, which includes service in the prior plan. The amount of the individual's retirement benefit under the prior plan must be determined based only on credited service while participating in the prior plan. However, the individual's regular earnings until retirement or other termination of service with the County or a participating agency must be used in determining final average earnings for purposes of determining the amount of the retirement benefit under the prior plan.
(C)
The Executive must adopt regulations under method (3) to allow an eligible individual to make the choice authorized by subparagraph (A).
(6)
A former County employee who returns to County service may transfer to the retirement savings plan or to the guaranteed retirement income plan the actuarial present value of the employee’s benefit in the optional plan or integrated plan, calculated using the latest published valuation assumptions, as of the date the employee returns to County service, if the employee:
(A)
was vested under Section 33-45 when the employee left County service;
(B)
left all member contributions plus credited interest in the fund;
(C)
left County service before October 1, 1994; and
(D)
did not return to County service within 25 months.
(f)
Membership groups and eligibility. Any full-time or part-time employee is eligible for membership in the appropriate membership group if the employee meets all of the requirements for the group:
(1)
Group A: An employee, elected official, or appointed official not eligible for membership in another group is a group A member. An employee who otherwise would be eligible for membership in group A must participate in the guaranteed retirement income plan or the retirement savings plan if the employee:
(A)
begins, or returns to, County service on or after October 1, 1994 (except as provided in the last sentence of subsection (e)(2));
(B)
is not represented by an employee organization;
(C)
does not occupy a bargaining unit position; and
(D)
is not an elected official (except as provided in subsection (e)(4)(D)(ii)).
(2)
Group B: Any correctional officer, fire prevention officer or deputy sheriff, appointed or promoted to the position on or before June 30, 1978, who has not elected to transfer to any other membership group. Any correctional officer, fire prevention officer or deputy sheriff who is a group A member as of June 30, 1978, may elect to retain membership therein.
(3)
Group D: Any full-time police officer appointed on or before August 15, 1965, who has been continuously employed as a police officer and has not elected to transfer to any other membership group.
(4)
Group E: The Chief Administrative Officer, the Executive Director of the Office of the County Council, the hearing examiners, the County Attorney and each head of a principal department or office of the County government, if appointed to that position before July 30, 1978, or a member having held that position on or before October 1, 1972. Any sworn deputy sheriff or uniformed County correctional officer in the position of Correctional Officer I, Correctional Officer II, Correctional Officer III, Correctional Dietary Officer I, Correctional Dietary Officer II, Resident Supervisor I, Resident Supervisor II, Resident Supervisor III, Correctional Supervisor-Sergeant, Correctional Dietary Supervisor, Correctional Shift Commander-Lieutenant, Correctional Unit Commander-Captain, Deputy Warden, or Warden, or the following positions in the Emergency Communications Center: Public Safety Emergency Communications Specialist I, Public Safety Emergency Communications Specialist II, Public Safety Emergency Communications Specialist III, Public Safety Emergency Communications Specialist IV, Senior Public Safety Emergency Communications Specialist, Public Safety Communications Supervisor, Public Safety Emergency Communications Manager, or Emergency Communications MLS Manager II and III. Any Group E member who has reached elective early retirement date may retain membership in Group E if the member transfers from the position which qualified the member for Group E. Any Group E member who is temporarily transferred from the position which qualified the member for Group E may retain membership in Group E as long as the temporary transfer from the Group E position does not exceed 3 years. Notwithstanding the foregoing provisions in Group E, any employee who is eligible for membership in Group E must participate in the guaranteed retirement income plan or the retirement savings plan under Article VIII if the employee:
(A)
(i)
(e)
(2)
begins, or returns to, County service on or after October 1, 1994 (except as provided in the last sentence of subsection (e)(2));
(ii)
is not represented by an employee organization; and
(iii)
does not occupy a bargaining unit position; or
(B)
(i)
begins County service on or after October 1, 1994; and
(ii)
is subject to the terms of a collective bargaining agreement between the County and an employee organization which requires the employee to participate in the guaranteed retirement income plan or the retirement savings plan.
(5)
Group F: sworn police officers.
(A)
A group F member who has reached elective early retirement date may retain membership in group F if the member is transferred from the position that qualified the member for group F membership.
(B)
A group F member who is temporarily transferred from the position that qualified the member for group F membership may retain membership in group F as long as the temporary transfer from the group F position does not exceed 3 years.
(C)
Notwithstanding the foregoing provisions in group F, an employee who is eligible for membership in group F must participate in the retirement savings plan under Article VIII or the guaranteed retirement income plan if the employee:
(i)
begins, or returns to, County service on or after October 1, 1994 (except as provided in the last sentence of subsection (e)(2));
(ii)
is not represented by an employee organization; and
(iii)
does not occupy a bargaining unit position.
(D)
An employee who is eligible for membership in group F must participate in the retirement savings plan under Article VIII if the employee:
(i)
begins County service on or after October 1, 1994; and
(ii)
is subject to the terms of a collective bargaining agreement between the County and an employee organization that requires the employee to participate in the retirement savings plan.
(E)
A group F member who is a member of the Police Bargaining Unit may transfer to the retirement savings plan under Article VIII if the employee has accumulated enough credited service to obtain the maximum retirement benefit under the optional or integrated plan.
(6)
Group G: Any paid firefighter, paid fire officer, and paid rescue service personnel. Any group G member who has reached normal retirement may retain membership in group G if the member transfers from the position which qualified the member for group G. Any group G member who is temporarily transferred from the position which qualified the member for Group G may retain membership in group G as long as the temporary transfer from the group G position does not exceed 3 years.
(A)
Notwithstanding the foregoing provisions in group G, any employee who is eligible for membership in group G must participate in the retirement savings plan under Article VIII if the employee:
(i)
begins County service on or after October 1, 1994; and
(ii)
is subject to the terms of a collective bargaining agreement between the County and an employee organization which requires the employee to participate in the retirement savings plan.
(B)
An employee who is eligible for membership in group G must participate in the retirement savings plan under Article VIII or the guaranteed retirement income plan if:
(i)
the employee begins, or returns to, County service on or after October 1, 1994 (except as provided in the last sentence of subsection (e)(2);
(ii)
is not represented by an employee organization; and
(iii)
does not occupy a bargaining unit position.
(7)
Group H: Any member, including any probationary employee, who holds a bargaining unit position described in section 33-105(a)(1) or section 33-105(a)(2), unless the member is eligible for membership in group B or E. Notwithstanding the foregoing provisions in group H, any employee who is eligible for membership in group H must participate in the guaranteed retirement income plan or the retirement savings plan under Article VIII if the employee:
(A)
begins, or returns to, County service on or after October 1, 1994 (except as provided in the last sentence of subsection (e)(2)); and
(B)
is subject to the terms of a collective bargaining agreement between the County and an employee organization which requires the employee to participate in the guaranteed retirement income plan or the retirement savings plan.
(8)
Group J: Any County member who works in a correctional facility or the Emergency Communications Center and due to the required duties of the member’s position, is designated by the Chief Administrative Officer. Any Group J member who has reached elective early retirement date may retain membership in Group J if the member transfers from the position which qualified the member for Group J. Any Group J member who is temporarily transferred from the position which qualified the member for Group J may retain membership in Group J as long as the temporary transfer from the Group J position does not exceed 3 years. Notwithstanding the foregoing provisions in Group J, any employee who is eligible for membership in Group J must participate in the guaranteed retirement income plan or the retirement savings plan under Article VIII if the employee:
(A)
(i)
(e)
(2)
begins, or returns to, County service on or after October 1, 1994 (except as provided in the last sentence of subsection (e)(2));
(ii)
is not represented by an employee organization; and
(iii)
does not occupy a bargaining unit position; or
(B)
(i)
begins County service on or after October 1, 1994; and
(ii)
is subject to the terms of a collective bargaining agreement between the County and an employee organization which requires the employee to participate in the guaranteed retirement income plan or the retirement savings plan.
(g)
Transfer from one group to another. A member who elects to transfer from one membership group to another as a result of amendments to this Article must transfer by December 31, 1978, or forfeit this option. However, under paragraph 4, a group D member may transfer to group F at any time before the member's retirement date. Additional contributions made as a result of the transfer must not be treated as picked-up contributions.
(1)
Transfers From Group A to Group E, F, G, H, or J. Whenever a group A member transfers to a position which is qualified for membership in group E, F, G, H, or J, the retirement service credits earned as a group A member must be used for the purpose of qualifying for retirement. Except for the contribution rate increase as of the effective date of transfer, there will be no additional charges levied on any member who is transferred prior to July 1, 1970. Any member who transfers after July 1, 1970, in addition to paying the contribution rate increase as of the effective date of transfer, must pay the additional amount of contributions that would have been paid as a member of group E, F, G, H, or J from July 1, 1970, or hire date, if later, plus interest at the rate of 6 ½ percent per annum to date of full payment.
(2)
Transfers From Group B, D, E, F, G, or J to Group A or H. Whenever a group B, D E, F, G, or J member transfers to a position which is qualified for membership in group A or H, the retirement service credits earned as a group B, D, E, F, G, or J member must be used for the purpose of qualifying for retirement as a group A or H member. The rate of contribution must be decreased as of the date of transfer, and the difference in member contributions must not be refunded. Notwithstanding any other provision of this Article, any group E, F, or J member who has not met the elective early retirement date and who transfers to group A or H must receive credited service at the rate of 1.25 years of service for each full year of service as a member of group E, F, or J. Notwithstanding any other provision of this Article, any group G member who has not met the normal retirement date and who transfers to group A or H must receive credited service at the rate of 1.25 years of service for each full year of service as a member of group G.
(3)
Transfers From Group B to Group E, F, G, or J. Whenever a group B member transfers to a position which is qualified for membership in group E, F, G, or J, the retirement date must be adjusted accordingly. Except for the contribution rate increase as of the effective date of transfer, there must be no additional charges levied on any member who transferred on or before July 1, 1970. Any member who transfers after July 1, 1970, in addition to paying the contribution rate increase as of the effective date of transfer, must pay the additional amount of contributions that would have been paid as a member of group E, F, G, or J from July 1, 1970, or hire date, if later, plus interest at the rate of 6 ½ percent per annum to date of full payment.
(4)
Transfers From Group D to Group E, F, G, or J. A group D member may transfer to group E, F, G, or J and the retirement service credits earned as a group D member must be used for the purpose of qualifying for retirement under group E, F, G, or J. Except for the contribution rate increase as of the effective date of transfer, there will be no additional charges levied on any member who transferred on or before July 1, 1970. Any member who transfers after July 1, 1970, in addition to paying the contribution rate increase as of the effective date of transfer, must pay the additional amount of contributions that would have been paid as a member of group E, F, G, or J from July 1, 1970, plus interest at the rate of 6 ½ percent per annum to date of full payment.
(5)
Transfers From Group H to Group A, E, F, G, or J. A group H member may transfer to group A, E, F, G, or J and the retirement service credits earned as a group H member must be used for the purpose of qualifying for retirement under group A, E, F, G, or J. Any member who transfers on or after July 1, 1989, in addition to paying the contribution rate increase as of the effective date of transfer, must pay the additional amount of contributions that would have been paid as a member of group A, E, F, G, or J from July 1, 1970, or hire date, if later, plus interest at the rate of 6 ½ percent per annum to date of full payment.
(h)
Requirements of membership. Unless specifically exempt from membership by the chief administrative officer, each full-time employee of the county government or a participating agency must become a member or forfeit employment when the employee meets the eligibility requirements. If the administrative head of a participating agency does not enforce this provision, any new employee of the agency must not be enrolled as a member.
(i)
Transfers to the Retirement Savings Plan. Any member in the optional retirement plan or in the integrated retirement plan may elect to participate in the Retirement Savings Plan under Article VIII if the member otherwise qualifies for participation under Section 33-115, even if the member did not begin County service on or after October 1, 1994. If an employee transfers from the optional retirement plan or the integrated plan to the Retirement Savings Plan:
(1)
transfers must not be made before April 1, 1995;
(2)
the election to transfer to the retirement savings plan is irrevocable;
(3)
the member's credited service for purposes of vesting in the optional retirement plan or the integrated plan must include the member's years of credited service earned while participating in the retirement savings plan;
(4)
the amount of the member's benefit under the optional retirement plan or the integrated plan must not be increased by the member's credited service earned while participating in the retirement savings plan; and
(5)
the member's retirement benefit under the optional retirement plan or the integrated plan must be determined using the regular earnings of the member during the applicable years preceding the member's transfer to the retirement savings plan.
(6)
the amount of sick leave used for credited service under Section 33-41(f) must not exceed the amount of sick leave accumulated on the date the employee transferred to the Retirement Savings Plan, or the amount accumulated on the effective date of the employee’s retirement or separation from County service, whichever is less.
(j)
Election to join the Retirement Savings Plan. An employee who is eligible for membership in the integrated retirement plan but who chooses to become a member of the Retirement Savings Plan must remain a member of the Retirement Savings Plan until the employee becomes ineligible for membership in Group I or II.
(k)
Eligibility for the guaranteed retirement income plan.
(1)
A full time or part time employee hired on or after October 1, 1994 and before January 1, 2009 who participates in the retirement savings plan and who is not a public safety employee as defined in Section 33-113(o) may make a one time irrevocable election to terminate participation in the retirement savings plan and participate in the guaranteed retirement income plan, effective the first full paycheck after July 1, 2009. An employee must make this election between December 31, 2008 and June 1, 2009. An employee who makes this election must have his or her retirement savings plan account balance transferred to the guaranteed retirement income plan. The amount transferred into the guaranteed retirement income plan must become the participant’s initial guaranteed retirement income plan account balance. An employee who does not make this election must continue to participate in the retirement savings plan.
(2)
A full time or part time employee hired between December 31, 2008 and July 1, 2009 who participates in the retirement savings plan and who is not a public safety employee as defined in Section 33-113(o) may make a one time irrevocable election to terminate participation in the retirement savings plan. An employee has 150 days after the date the employee was hired to make this election and must begin participation on the first full payroll after completing 180 days of employment. An employee who makes this election must have his or her retirement savings plan account balance transferred to the guaranteed retirement income plan. The amount transferred into the guaranteed retirement income plan must become the participant’s initial guaranteed retirement income plan account balance. An employee who does not make this election must continue to participate in the retirement savings plan.
(3)
An eligible full-time employee hired on or after July 1, 2009 and before July 1, 2015, and a part time or temporary employee who becomes full time on or after July 1, 2009 and before July 1, 2015, who does not participate in the retirement savings plan, may elect to participate in the guaranteed retirement income plan. An eligible employee must make an irrevocable election during the first 150 days of full time employment. If an eligible employee elects to participate, participation must begin on the first pay period after an employee has completed 180 days of full time employment. An employee who does not participate in the guaranteed retirement income plan must participate in the retirement savings plan beginning on the first pay period after the employee completes 180 days of full time employment.
(4)
An eligible part time employee who does not participate in the retirement savings plan may make a one time irrevocable election to participate in the guaranteed retirement income plan after the employee completes at least 150 days of employment. Participation must begin on the first full pay period beginning 30 days after the employee makes the election.
(5)
An eligible full-time or part-time public safety employee hired on or after October 1, 1994 and before January 1, 2009 who participates in the retirement savings plan may make a one time irrevocable election to terminate participation in the retirement savings plan and participate in the guaranteed retirement income plan, effective the first full pay period after December 31, 2009. An employee must make this election between October 1, 2009 and December 1, 2009. An employee who makes this election must have his or her retirement savings plan account balance transferred to the guaranteed retirement income plan. The amount transferred into the guaranteed retirement income plan must become the participant’s initial guaranteed retirement income plan account balance. An employee who does not make this election must continue to participate in the retirement savings plan.
(6)
An individual who is an elected official after December 6, 2010 who participates in the elected officials’ plan may make a one-time irrevocable decision to terminate participation in the elected officials’ plan and participate in the guaranteed retirement income plan. An elected official must make this decision during the first 150 days after becoming an elected official. If an eligible elected official decides to participate, participation must begin on the first pay period after the elected official has been in office for 180 days. An elected official who decides to participate must have his or her elected officials’ plan account balance transferred to the guaranteed retirement income plan. The amount transferred into the guaranteed retirement income plan must become the participant’s initial guaranteed retirement income plan account balance. An elected official who does not participate in the guaranteed retirement income plan must continue to participate in the elected officials’ plan.
(7)
A member of the Office, Professional and Technical (OPT) or the Service, Labor and Trades (SLT) collective bargaining unit of the County government must participate in the guaranteed retirement income plan unless the employee makes a one-time irrevocable election to participate in the retirement savings plan during the first 150 days of employment, if the employee:
(A)
is hired as a full-time employee on or after July 1, 2015;
(B)
is a part time employee who does not participate in the retirement savings plan and becomes a full-time employee on or after July 1, 2015; or
(C)
is hired as a part time employee on or after July 1, 2023, and does not elect to forego participation in either the guaranteed retirement income plan or the retirement savings plan.
Participation must begin on the first pay period after an employee has completed 180 days of full time employment.
(8)
On or after July 1, 2015, an eligible full-time employee or a part-time or temporary employee who becomes a full-time employee in a position that is not within a bargaining unit or an eligible employee of a participating agency must participate in the retirement savings plan unless the employee makes a one-time irrevocable election to participate in the guaranteed retirement income plan during the first 150 days of full time employment. If the employee elects to participate, participation must begin on the first pay period after an employee has completed 180 days of full-time employment. A part-time employee who participates in either the retirement savings plan or the guaranteed retirement income plan when the employee becomes a full-time employee must continue to participate in the same retirement plan.
(9)
An individual who changes employment from the County government to a participating agency or from a participating agency to the County government must continue to participate in his or her retirement plan and is not eligible to make an election.
Montgomery County, Md., Code § 33-38 (2026)
Sec. 33-38. Normal retirement date, mandatory retirement date, early retirement date, and trial retirement.LinkCopy Citation
(a)
Normal retirement date. The normal retirement date is the first day of the month elected by a member after the member meets the years of service and age requirements for the applicable membership group. For normal retirement:
(1)
Group A:
(A)
The member must have at least:
(i)
5 years of credited service and be at least age 60; or
(ii)
30 years of credited service and be at least age 55.
(B)
After June 30, 2002, a Group A member who is a Police Telecommunicator must have at least:
(i)
5 years of credited service and be at least age 60; or
(ii)
30 years of credited service and be at least age 50.
(2)
Group B: The member must have at least:
(A)
15 years of credited service and be at least age 55; or
(B)
30 years of credited service and be at least age 51.
(3)
Group D: The member must meet the requirements of the County police relief and retirement fund law.
(4)
Group E: The member must have at least:
(A)
15 years of credited service and be at least age 55; or
(B)
25 years of credited service and be at least age 46.
(5)
Group F: The member must have at least:
(A)
15 years of credited service and be at least age 55; or
(B)
25 years of credited service.
(6)
Group G: The member must have at least:
(A)
15 years of credited service and be at least age 55; or
(B)
20 years of credited service regardless of age.
(7)
(A)
Group H: The member must have at least:
(i)
5 years of credited service and be at least age 60; or
(ii)
30 years of credited service and be at least age 55.
(B)
After June 30, 2002, a Group H member who is a Police Telecommunicator must have at least:
(i)
5 years of credited service and be at least age 60; or
(ii)
30 years of credited service and be at least age 50.
(C)
After June 30, 2002, a Group H member who is also an SLT bargaining unit member must have at least:
(i)
5 years of credited service and be at least age 60; or
(ii)
30 years of credited service and be at least age 50.
(8)
Group J: The member must have at least:
(A)
15 years of credited service and be at least age 55; or
(B)
25 years of credited service and be at least age 46.
(9)
An elected officials’ participant or an elected official who participates in the guaranteed retirement income plan must have at least the lesser of a full term of office or 4 years of credited service and be at least age 62.
(10)
A guaranteed retirement income plan participant, except an elected official, must be at least age 62 with 3 years of credited service.
(b)
Retirement date election. A member other than a Group F member must submit written application for retirement at least 30 days before the date elected. A Group F member must submit a written application for retirement at least 14 days before the date elected. In extenuating circumstances, the Chief Administrative Officer may waive this requirement.
(c)
Early retirement date.
(1)
A member, other than a group G member, who has not met the age and service requirements for a normal retirement may elect to receive pension payments beginning on an early retirement date the first day of a month after the following requirements are met:
(A)
the group A member has at least 15 years of credited service and has reached age 50, or has at least 20 years of credited service and has reached age 45;
(B)
the group B member has at least 15 years of credited service and has reached age 45;
(C)
the group E member has at least 15 years of credited service and has reached age 45, or has at least 20 years of credited service and has reached age 41;
(D)
the group F member has at least 15 years of credited service and has reached age 45, or has at least 20 years of credited service and has reached age 41;
(E)
the group H member has at least 15 years of credited service and has reached age 50, or has at least 20 years of credited service and has reached age 45; or
(F)
the group J member has at least 15 years of credited service and has reached age 45, or has at least 20 years of credited service and has reached age 41.
(2)
A group G member is not eligible for an early retirement.
(3)
A participant in the guaranteed retirement income plan is not eligible for early retirement.
(d)
Trial retirement.
(1)
A trial retirement under this subsection is not available to:
(A)
an elected official;
(B)
a non-merit appointed official;
(C)
a member covered under a collective bargaining agreement, except a member of the Police Bargaining Unit;
(D)
a non-County Government employee; or
(E)
a member who participates in a retirement incentive program.
(2)
A member who is eligible for normal retirement may retire on a trial basis for a period not to exceed 9 months.
(3)
A member may retire on a trial basis only once.
(4)
A member who wishes to retire on a trial basis must notify the Chief Administrative Officer in writing at least 30 days before the retirement date of the member's intention to retire on a trial basis.
(5)
A member may elect to return to County service before the end of the nine- month trial retirement period by notifying the Chief Administrative Officer in writing at least 30 days before the member returns to service, under procedures adopted by the Chief Administrative Officer.
(6)
(A)
After the member notifies the Chief Administrative Officer that the member intends to return to County service, the Chief Administrative Officer must return the member to:
(i)
the position the member held before retirement, if it is still available;
(ii)
a position with an equivalent salary and grade in the same or another office of the County government; or
(iii)
if the member was a member of the Police Bargaining Unit, to a position in the Department of Police with an equivalent salary and grade, when such a position becomes available.
(B)
The member may accept a position with a lower salary or grade, but is not required to do so.
(C)
If the member does not accept an offer of the position that the member held before retirement or a position with an equivalent salary and grade, the member is considered to have permanently retired.
(7)
A member returning from trial retirement:
(A)
Has the same rights and benefits as the member had before the trial retirement; and
(B)
Receives a salary reflecting all cost-of-living adjustments granted to that position while the member was on trial retirement.
(8)
When the Chief Administrative Officer receives notice of a member's intention to retire on a trial basis, the member must not be paid for accrued annual leave until:
(A)
The member notifies the Chief Administrative Officer in writing that the member no longer intends to retire on a trial basis; or
(B)
The member retires permanently.
Montgomery County, Md., Code § 33-38A (2026)
Sec. 33-38A. Deferred Retirement Option Plans.LinkCopy Citation
The Chief Administrative Officer must establish Deferred Retirement Option Plans, or DROP plans, that allow any employee who is a member of a specified membership group or bargaining unit and who meets the eligibility requirements to elect to retire but continue to work. Pension payments must not be paid to the member while the member participates in the DROP Plan. When the member's participation in the DROP Plan ends, the member must stop working for the County, draw a pension benefit based on the member's credited service and earnings as of the date that the member began to participate in the DROP Plan, and receive the value of the DROP Plan payoff.
(a)
DROP Plan for Group F members. "Discontinued Retirement Service Program" or "DRSP" means the DROP program for Group F members.
(1)
Eligibility. A Group F member who has reached their normal retirement date may participate in the DRSP.
(2)
Application requirements. An eligible employee must apply at least 60 days before the employee becomes a participant. An employee may withdraw a pending application within 2 weeks after submitting the application.
(3)
Employee participation and termination. The employee's participation in the DRSP must begin on the first day of a month that begins at least 60 days, but not more than 90 days, after the employee applied and must end 3 years after the employee begins to participate or at an earlier date chosen by the employee. When the employee's participation in the program ends, the employee must stop working for the County and receive a pension benefit.
(4)
Employment status. An employee who participates in the program must continue to be a member of the retirement system, earn sick and annual leave, and remain eligible to participate in health and life insurance programs.
(5)
Retirement date, retirement contributions, and credited service. The retirement date of an employee who participates in the program is the date when the employee begins to participate in the DRSP, and neither the employee nor the County will make retirement contributions after that date. An employee who wishes to purchase prior service must do so before the employee's participation in the program begins. Sick leave in excess of 80 hours will be credited towards retirement at the beginning of the employee's participation.
(6)
Pension benefits.
(A)
Before an employee's participation begins, the employee must select a:
(i)
pension payment option under Section 33-44 for the regular retirement pension payments; and
(ii)
pension payment distribution option for the distribution of the employee's DRSP account.
(B)
A pension benefit must not be paid to the employee while the employee participates in the program, but must be deposited in a DRSP account established for the participant by the County. The participant must receive the account balance and the County must close the account within 60 days after the employee stops participating in the program. Subject to any requirements of the Internal Revenue Code and other applicable law, the employee may roll over the account balance into an eligible retirement plan.
(C)
An employee must direct the Board of Investment Trustees to allocate contributions to the employee's DRSP account to be invested in one or more of the investment funds selected by the Board. The investment fund options selected by the Board must conform to all applicable requirements of the Internal Revenue Code. An employee must allocate contributions among the investment funds in percentages of the value of the employee's DRSP account balances. An employee's direction of investment must remain in effect until the employee changes the direction. If an employee does not provide a valid direction of investment, the Board must select an appropriate investment option and invest the DRSP account balances not governed by a valid direction of investment in the investment option.
(D)
After the employee's participation in the program ends, the employee's pension benefit will be based on:
(i)
the employee's credited service immediately prior to the beginning of the employee's participation in the program, adjusted to include credit for unused sick leave under Section 33-41;
(ii)
the employee's average final earnings, excluding earnings during the period of participation in the program; and
(iii)
increases in the Consumer Price Index for All Urban Consumers (CPI-U) for the Washington-Arlington-Alexandria Core Based Statistical Area (CBSA), as published by the United States Department of Labor, Bureau of Labor Statistics, during the period of the employee’s participation that would have resulted in an increase in the employee’s pension benefit if the employee had not been participating in the program.
(7)
Disability retirement. An employee may apply for disability retirement prior to the termination of the employee’s participation in the program.
(A)
A DRSP participant who is eligible for a service-connected disability retirement must choose either:
(i)
the retirement benefit under the DRSP and the DRSP account balance; or
(ii)
the service-connected disability retirement benefit that the employee would have received if the employee had continued as an active employee and had not elected to participate in the DRSP, and no DRSP account balance.
(B)
A DRSP participant who is eligible for a non-service-connected disability retirement benefit must receive the non-service-connected disability retirement benefit under Section 33-43(h), with the benefit calculated as of the member’s DRSP exit date, plus the DRSP account balance.
(C)
If a DRSP participant ends participation in the program before a final decision is made on the disability retirement application, the DRSP account must not be distributed until a final decision is made.
(8)
Death benefit. If an employee dies during the employee’s participation in the program, the employee’s beneficiary will receive:
(A)
the death benefit that the beneficiary would have received if the employee had retired on the date on which the employee began to participate in the program, adjusted under subsection (6)(D); and
(B)
the balance of the employee’s DRSP account.
(9)
DRSP account distribution options. A member may have the balance of the DRSP account distributed as a lump sum or an annuity, or have some or all paid directly to an eligible retirement plan as a direct rollover distribution. To the extent feasible, as determined by the Chief Administrative Officer, a member alternatively may receive the account balance as periodic payments calculated and distributed as an addition to the member’s regular retirement benefit. If the member dies before the balance of the DRSP account is distributed, the beneficiary may receive distribution of the balance under any option described in this paragraph.
(b)
DROP Plan for Group G members.
(1)
Eligibility. An employee who is a member of Group G and who has met the minimum requirements for a normal retirement may participate in the DROP Plan.
(2)
Application requirements. An eligible employee must apply at least 45 days before the employee becomes a participant. An employee may withdraw a pending application within 2 weeks after submitting the application.
(3)
Employee participation and termination.
(A)
The employee’s participation in the DROP Plan must begin on the first day of a month that begins at least 45 days, but not more than 75 days, after the employee applied.
(B)
A Group G member may participate in the DROP Plan for up to 36 months. An employee who elects to stop participating before the end of the 36-month period must notify Fire and Rescue Services and the Office of Human Resources at least 60 days before stopping participation in the program.
(C)
When the employee’s participation in the DROP Plan ends, the employee must stop working for the County and receive a pension benefit.
(4)
Employment status. A DROP Plan participant must continue to be a member of the retirement system, earn sick and annual leave, and remain eligible to participate in health and life insurance programs for employees while the member participates in the DROP Plan.
(5)
Retirement date, retirement contributions, and credited service.
(A)
The retirement date of a member who participates in the DROP Plan is the date when the employee begins to participate in the DROP Plan.
(B)
The member will continue to make retirement contributions to the Optional Plan or Integrated Plan while participating in the DROP Plan. The County must not make retirement contributions on behalf of the member after the date on which the member’s DROP Plan participation begins.
(C)
Sick leave credited towards retirement at the beginning of the member’s participation will not be available for the member’s use after participation in the DROP Plan begins.
(D)
A member who wishes to purchase prior service must do so before the member’s participation in the DROP Plan begins.
(6)
Pension benefits.
(A)
Before a member’s participation begins, the member irrevocably must choose a pension payment option under Section 33-44 for retirement pension payments.
(B)
Pension benefits will not be paid to the member while the member participates in the DROP Plan. Pension payments that are deferred while the member participates in the DROP Plan must not include cost- of-living increases under Section 33-44 that were given to retirees and beneficiaries during the period of the member’s participation in the DROP Plan. The participant will receive the deferred pension payments when the member’s participation in the DROP Plan ends, or within 60 days after the member gives notice under paragraph (3)(B), whichever is later.
(C)
After the member’s participation ends, the member’s pension benefit will be based on the member’s:
(i)
credited service, including credit for unused sick leave, before the member’s participation in the DROP Plan began, adjusted to include credit for unused sick leave accrued during the period of DROP Plan participation; and
(ii)
average final earnings, excluding earnings during the period of participation in the DROP Plan.
(D)
The pension benefit that a member receives after the member’s participation in the DROP Plan ends must be adjusted to reflect cost-of- living adjustments under Section 33-44(c) that occurred during the period of the member’s participation in the DROP Plan, but the pension payments that are deferred during the participation period must not include cost-of-living adjustments.
(7)
Disability retirement.
(A)
A member may apply for disability retirement prior to the termination of the member’s participation in the DROP Plan.
(B)
If the Chief Administrative Officer determines that a DROP participant is eligible for a service-connected disability retirement, the participant must elect to receive either:
(i)
the retirement benefit under subsection (6)(C) and the DROP Plan payoff; or
(ii)
the service-connected disability retirement benefit that the member would have received if the member had continued as an active employee and not elected to participate in the DROP Plan.
(C)
A member who elects to receive a service-connected disability retirement must not receive the DROP Plan payoff.
(D)
If the Chief Administrative Officer determines that a DROP participant is eligible for a non-service connected disability retirement, the participant must receive:
(i)
the non-service connected disability retirement benefit provided under Section 33-43(h), with the benefit calculated as of the member’s DROP entry date; and
(ii)
the DROP account balance.
(E)
If a DROP participant ends participation in the program before a final decision is made on the disability retirement application, the DROP account must not be distributed until a final decision is made.
(8)
Death benefit. If a member dies during the member’s participation in the DROP Plan, the member’s beneficiary will receive the greater of:
(A)
the death benefit that the beneficiary would have received if the member had retired on the date on which the member began to participate in the DROP Plan, calculated to reflect cost-of-living adjustments under Section 33-44(c) that occurred during the period of DROP Plan participation, and the value of the DROP Plan payoff, not including retroactive cost-of-living adjustments to the deferred pension payments; or
(B)
the service-connected death benefit that the beneficiary would have received if the member had not elected to participate in the DROP Plan, but not the DROP Plan payoff.
(9)
DROP Plan payoff and distribution.
(A)
DROP Plan payoff. The DROP Plan payoff must include the total of the following, accumulated over the period of the member’s participation in the DROP Plan:
(i)
the member’s deferred monthly pension payments, not including any cost-of-living adjustments;
(ii)
the member’s retirement contributions to the Optional Plan or Integrated Plan treated as picked-up contributions; and
(iii)
for a member beginning DROP Plan participation before July 1, 2013, 8.25 percent annual interest rate credited monthly, compounded quarterly on the amount in the DROP Plan payoff during the member’s participation in the DROP Plan. For a member beginning DROP Plan participation on or after July 1, 2013, 7.5 percent annual interest credited monthly, compounded quarterly on the amount in the DROP Plan payoff during the member’s participation in the DROP plan.
(B)
DROP Plan payoff distribution options. At the time that a member’s DROP Plan participation ends, the member must elect to have the DROP Plan payoff:
(i)
distributed as a:
(a)
lump sum payment;
(b)
annuity; or
(c)
direct rollover distribution, in compliance with the Internal Revenue Code, to an eligible retirement plan; or
(ii)
remain in the retirement system in a DROP Plan Payoff Account and receive interest at a 4.0 percent annual rate, credited monthly, for the period of time during which the DROP Plan Payoff Account remains in the retirement system.
(C)
Distribution of DROP Plan Payoff Account.
(i)
A former member may elect to receive a distribution of the DROP Plan Payoff Account in a single lump sum payment or a single direct rollover distribution to an eligible retirement plan at any time, but must receive a distribution by the date required under Internal Revenue Code Section 401(a)(9)k, as amended, and the corresponding regulations.
(ii)
The Chief Administrative Officer must pay the balance of the DROP Plan Payoff Account to a designated beneficiary of a former member who dies without receiving the DROP Plan Payoff Account as soon as practicable after the former member’s death.
(c)
DROP Plan for Sworn Deputy Sheriffs and Uniformed Correctional Officers.
(1)
Uniformed correctional officer means Correctional Officer I, Correctional Officer II, Correctional Officer III, Correctional Dietary Officer I, Correctional Dietary Officer II, Resident Supervisor I, Resident Supervisor II, Resident Supervisor III, Correctional Supervisor-Sergeant, Correctional Dietary Supervisor, Correctional Shift Commander-Lieutenant, Correctional Unit Commander-Captain, Deputy Warden, and Warden. The Director of the Department of Corrections must not begin participation in the DROP after appointment as Director.
(2)
Sworn Deputy Sheriff means Deputy Sheriff I, Deputy Sheriff II, Deputy Sheriff III, Deputy Sheriff Sergeant, Deputy Sheriff Lieutenant, Deputy Sheriff Captain, Assistant Sheriff, and the Chief Deputy Sheriff (Colonel).
(3)
Eligibility. A sworn deputy sheriff or uniformed correctional officer who is at least age 55 years old and has at least 15 years of credited service or is at least 46 years old and has at least 25 years of credited service may participate in the DROP. A uniformed correctional officer or sworn deputy sheriff must participate in the optional retirement plan or the integrated retirement plan as a Group E member in order to participate in the DROP.
(4)
Application requirements. An eligible employee must apply at least 60 days before the employee becomes a participant. An employee may withdraw a pending application within 2 weeks after submitting the application.
(5)
Employee participation and termination. The employee's participation in the DROP must begin on the first day of a month that begins at least 60 days, but not more than 90 days, after the employee applied and must end 3 years after the employee begins to participate or at an earlier date chosen by the employee. When the employee's participation in the DROP ends, the employee must stop working for the County and receive a pension benefit.
(6)
Employment status. An employee who participates in the DROP must continue to be a member of the retirement system, earn sick and annual leave, and remain eligible to participate in health and life insurance programs.
(7)
Retirement date, retirement contributions, and credited service. The retirement date of an employee who participates in the DROP is the date when the employee begins to participate in the DROP, and the employee must not make retirement contributions after that date. An employee who wishes to purchase prior service must do so before the employee's participation in the DROP begins. Sick leave in excess of 80 hours must be credited towards retirement at the beginning of the employee's participation.
(8)
Pension benefits.
(A)
Before an employee's participation begins, the employee must select a:
(i)
pension payment option under Section 33-44 for the regular retirement pension payments; and
(ii)
pension payment distribution option for the distribution of the employee's DROP account.
(B)
A pension benefit must not be paid to the employee while the employee participates in the DROP, but must be deposited in a DROP account established for the participant by the County. The participant must receive the account balance and the County must close the account within 60 days after the employee stops participating in the DROP. Subject to any requirements of the Internal Revenue Code and other applicable law, the employee may roll over the account balance into an eligible retirement plan.
(C)
An employee must direct the Board of Investment Trustees to allocate pension benefits contributed to the employee's DROP account in one or more of the investment funds selected by the Board. An employee's direction of investment must remain in effect until the employee changes the direction. An employee must select investment options in order to participate in the DROP.
(D)
After the employee's participation in DROP ends, the employee's pension benefit will be based on:
(i)
the employee's credited service immediately prior to the beginning of the employee's participation in the DROP, adjusted to include credit for unused sick leave under Section 33-41;
(ii)
the employee's average final earnings, excluding earnings during the period of participation in the DROP; and
(iii)
increases in the Consumer Price Index for All Urban Consumers (CPI-U) for the Washington-Arlington-Alexandria Core Based Statistical Area (CBSA), as published by the United States Department of Labor, Bureau of Labor Statistics, during the period of the employee’s participation that would have resulted in an increase in the employee’s pension benefit if the employee had not been participating in the DROP.
(9)
Disability retirement. An employee may apply for disability retirement prior to the termination of the employee's participation in the DROP.
(A)
A DROP participant who is eligible for a service-connected disability retirement must choose either:
(i)
the retirement benefit under the DROP and the DROP account balance; or
(ii)
the service-connected disability retirement benefit that the employee would have received if the employee had continued as an active employee and had not elected to participate in the DROP, and no DROP account balance.
(B)
A DROP participant who is eligible for a non-service-connected disability retirement benefit must receive the non-service-connected disability retirement benefit under Section 33-43(h), with the benefit calculated as of the member's DROP entry date, plus the DROP account balance.
(C)
If a DROP participant ends participation in the DROP before a final decision is made on the disability retirement application, the DROP account must not be distributed until a final decision is made.
(10)
Death benefit. If an employee dies during the employee's participation in the DROP, the employee's beneficiary will receive:
(A)
the death benefit that the beneficiary would have received if the employee had retired on the date on which the employee began to participate in the DROP, adjusted under subparagraph (7)(D); and
(B)
the balance of the employee's DROP account.
(11)
DROP account distribution options. A member may have the balance of the DROP account distributed as a lump sum or an annuity, or have some or all paid directly to an eligible retirement plan as a direct rollover distribution. If the member dies before the balance of the DROP account is distributed, the beneficiary may receive distribution of the balance under any option described in this paragraph as allowed under the Internal Revenue Code and applicable regulations.
Montgomery County, Md., Code § 33-39 (2026)
Sec. 33-39. Member contributions and credited interest.LinkCopy Citation
(a)
Member contributions. Each member of the retirement system must contribute a portion of the member’s regular earnings through regular payroll deductions.
(1)
Member Contributions to the Optional Retirement Plan. A member of the Optional Retirement Plan must contribute the following percentage of regular earnings:
(A)
Group A or H member, 7 percent for service beginning on the first pay period after June 30, 2011 and 8 percent for service beginning on the first pay period after June 30, 2012;
(B)
Group B member, 7 percent;
(C)
Group D member, 7 ½ percent; and
(D)
Group E, F, G, or J member, 9 ½ percent for service beginning on the first pay period after June 30, 2011 and 10 ½ percent for service beginning on the first pay period after June 30, 2012.
(2)
Member Contributions to the Integrated Retirement Plan. A member of the Integrated Retirement Plan must contribute the following percentage of regular earnings:
(A)
Group A, 5 percent for service beginning on the first pay period after June 30, 2011 and 6 percent for service beginning on the first pay period after June 30, 2012 up to the maximum Social Security wage base, and 7 percent for service beginning on the first pay period after June 30, 2011 and 8 percent for service beginning on the first pay period after June 30, 2012 of regular earnings that exceed the wage base;
(B)
Group B, 4 ½ percent up to the maximum Social Security wage base, and 7 percent of regular earnings that exceed the wage base;
(C)
Group E and Group J, 5 ¾ percent for service beginning on the first pay period after June 30, 2011 and 6 ¾ percent for service beginning on the first pay period after June 30, 2012 up to the maximum Social Security wage base, and 9 ½ percent for service beginning on the first pay period after June 30, 2011 and 10 ½ percent for service beginning on the first pay period after June 30, 2012 of regular earnings that exceed the wage base;
(D)
Group F, 5 ¾ percent for service beginning on the first pay period after June 30, 2011 and 6 ¾ percent for service beginning on the first pay period after June 30, 2012 up to the maximum Social Security wage base and 9 ½ percent for service beginning on the first pay period after June 30, 2011 and 10 ½ percent for service beginning on the first pay period after June 30, 2012 of regular earnings that exceed the wage base;
(E)
Group G:
(i)
6 ½ percent for service beginning on the first pay period after June 30, 2011 and 7 ½ percent for service beginning on the first pay period after June 30, 2012 up to the maximum Social Security wage base, and 10 ¼ percent for service beginning on the first pay period after June 30, 2011 and 11 ¼ percent for service beginning on the first pay period after June 30, 2012 of regular earnings that exceed the wage base;
(ii)
starting in the 25th year from the member’s leave accrual date under the County payroll system, 5 ¾ percent for service beginning on the first pay period after June 30, 2011 and 6 ¾ percent for service beginning on the first pay period after June 30, 2012 up to the maximum Social Security wage base, and 9 ½ percent for service beginning on the first pay period after June 30, 2011 and 10 ½ percent for service beginning on the first pay period after June 30, 2012 of regular earnings that exceed the wage base on and after the member’s 25th year of credited service;
(F)
Group H, 5 percent for service beginning on the first pay period after June 30, 2011 and 6 percent for service beginning on the first pay period after June 30, 2012 up to the maximum Social Security wage base and 7 percent for service beginning on the first pay period after June 30, 2011 and 8 percent for service beginning on the first pay period after June 30, 2012 of regular earnings that exceed the wage base.
(3)
Member Contributions to the Elected Officials' Plan. A member of the Elected Officials’ Plan must contribute 4 percent. To the extent allowed under Section 414(h)(2) of the Internal Revenue Code, the County must “pick up” (as described in the Internal Revenue Code) mandatory member contributions to the Elected Officials’ Plan.
(4)
Member contributions to the guaranteed retirement income plan.
(A)
A non-public safety employee member in the guaranteed retirement income plan must contribute 4% of regular earnings less than or equal to the Social Security wage base and 8% of regular earnings that exceed the Social Security wage base.
(B)
A public safety employee member in the guaranteed retirement income plan must contribute 3% of regular earnings less than or equal to the Social Security wage base and 6% of regular earnings that exceed the Social Security wage base.
(C)
For service beginning on the first pay period after June 30, 2011 and before the first pay period beginning after July 1, 2012, a member may contribute an additional 2% of regular earnings on an after-tax basis by making an irrevocable election in writing on or before September 1, 2011.
(D)
To the extent allowed under Section 414(h)(2) of the Internal Revenue Code, the County must “pick up” (as described in the Internal Revenue Code) member contributions to the guaranteed retirement income plan. A member is always vested in the member’s contributions.
(E)
When a member rejoins County service after military service that qualifies under Section 33-41(q) as credited service, the County must credit the member with the amount that the member would have contributed if the member had worked for the County during military service. Contribution credits for military service must be based on the regular earnings the member would have earned during military service. If the regular earnings are not reasonably ascertainable, the credit must be based on the member’s regular earnings during a period immediately preceding the military service. The averaging period is 12 months, or the full length of the member’s County service, whichever is shorter. The member must not receive any retroactive credited interest on the contribution credits. The County must not credit a member with a discretionary after-tax contribution under subparagraph C unless the member elects to make up the contribution under Internal Revenue Code Section 414(u), as amended.
(5)
To the extent allowed under Section 414(h)(2) of the Internal Revenue Code, the County must “pick up” (as described in the Internal Revenue Code) mandatory member contributions to the Optional and Integrated, Retirement Plans for pay periods beginning after June 30, 1989.
(6)
The Chief Administrative Officer may allow an agency that is not an “employing unit” (as described in Section 414(h)(2) of the Internal Revenue Code) to participate in the retirement system. The County must not “pick up” (as described in the Internal Revenue Code) mandatory contributions of members employed by a participating agency that is not an “employing unit.”
(b)
Credited interest.
(1)
For the period beginning July 1, 1978, and ending June 30, 1989, interest must be credited annually on each member's accumulated contributions at a rate of 4 percent per annum for the first 5 years of membership only. Members who had more than 5 years of membership on July 1, 1978, must retain all credited interest as of that date.
(2)
Members who have terminated employment and vested prior to July 1, 1978, must receive interest at the rate of 4 percent per annum for as long as they remain a vested member.
(3)
Effective July 1, 1989, interest must be credited annually on each member's accumulated contributions as of June 30, 1989, and thereafter, as follows:
(A)
For group A members, interest will be credited at a rate of 4 percent per annum.
(B)
For group B members, interest will be credited at a rate of 4 percent per annum.
(C)
For group D members, interest will be credited at a rate of 4 percent per annum.
(D)
For group E and J members, interest will be credited at a rate of 4 percent per annum.
(E)
For group F members, interest will be credited at a rate of 4 percent per annum.
(F)
For group G members, interest will be credited at a rate of 4 percent per annum.
(G)
For group H members, interest will be credited at a rate of 4 percent per annum.
(4)
If a member is an elected official on July 1, 1989, interest on that member's accumulated contributions must be credited under subsection (b)(1) until December 2, 1990. On and after December 3, 1990, interest must be credited on the elected official's accumulated contributions as of December 3, 1990 under subsection (b)(3) of this subsection.
(5)
A member of the guaranteed retirement income plan must receive credited interest at an annual rate of 7.25% on the member’s contributions in the member’s guaranteed retirement income plan account. If the annual 7.25% interest rate does not comply with applicable law, the third segment rate described in Internal Revenue Code Section 430(h)(2)(G) or any successor provision must apply. Interest must be credited to a member’s guaranteed retirement income plan account balance on a monthly basis as of the last day of the month.
(c)
Return of member contributions.
(1)
Refund after employee’s separation under the optional and integrated plans.
(A)
If a member who is separated from County service properly completes and submits an application for a refund of the member’s contributions, the County must refund the contributions with credited interest, unless the member dies or retires.
(B)
Upon receipt of a properly completed application, the County must pay a member who is separated from County service and has not elected to vest the full amount of accumulated contributions with credited interest, less any indebtedness to the County government or the Montgomery County Employees Federal Credit Union.
(C)
If a member who is separated from County service does not properly complete and submit an application for a refund, the County must refund the contributions with credited interest under the minimum distribution requirements of the Internal Revenue Code and corresponding regulations.
(D)
Notwithstanding any other provision, if the member’s contributions and interest are $1,000 or less, the amount must be distributed in a lump sum as soon as administratively feasible after termination of employment even if the member does not submit an application. If the distribution cannot be made because the member cannot be located, the member will forfeit the amount. If the member later contacts the County, the member will receive the forfeited amount.
(2)
Refund after separation of an elected officials’ participant. An elected officials' participant who ends employment with the County before that participant’s normal retirement date, and who does not receive a mandatory refund of the participant's account balances under Section 33-40(d)(2)(D), may, at the participant's request, receive the account balances, including picked-up contributions, in the required and the voluntary elected officials' participant contributions accounts established for that participant, less any indebtedness to the County or the Montgomery County Employees Federal Credit Union, in a single lump-sum payment.
(3)
Refund after a member’s death. If a member dies, the Chief Administrative Officer must pay to the designated beneficiary accumulated member contributions plus credited interest, less any indebtedness to the County government, unless the beneficiary is eligible for an annuity under Section 33-46. If an elected officials' participant dies before the county has implemented the method of distribution under section 33-44, the chief administrative officer must pay to the beneficiary, in accordance with Section 33-46(g), the account balances, including picked-up contributions, in the required and the voluntary elected officials' participant contributions accounts, less any indebtedness to the County or the Montgomery County Employees Federal Credit Union.
(4)
Refund after an employee elects to participate in the integrated plan instead of the optional plan. When a member elects to participate in the integrated retirement plan instead of the optional retirement plan, the member must receive a refund of member contributions that exceeded the amount that would have been paid if the contribution rate of the integrated retirement plan had been in effect from date of enrollment to date of election, plus credited interest earned on those contributions. Despite this requirement, a member who elects to participate in the integrated retirement plan instead of the optional retirement plan while still employed by the County government must not receive a refund of picked-up contributions made on or after July 1, 1989 or credited interest earned on those contributions. Picked-up contributions made on or after July 1, 1989 and credited interest may be refunded only if one of the events described in Section 33-45(b) occurs.
(5)
Refund after a statutory change that reduces the maximum years of credited service for a retirement group.
(A)
(i)
If a member purchases prior service and this Chapter is later amended to reduce the maximum years of service for which a member may receive credit, the County must refund to the member that portion of the retirement contributions made to purchase the unneeded prior service, with interest, if the member requests a refund before the member retires.
(ii)
Notwithstanding clause (i), the County must refund to a Group G member whose retirement is effective during the period March 1, 2000, through November 1, 2001, that portion of the member’s retirement contributions made to purchase the unneeded prior service, with interest, if the member requests a refund before or after the member retires.
(B)
The County must refund the retirement contributions used to purchase excess service credits only if the member’s total credited service, excluding sick leave, exceeds the new maximum for the member’s retirement group on the date that the amendment reducing the maximum years of credited service became effective.
(C)
The County must refund to the member, with interest, that portion of the payment made to purchase any prior service that exceeds the maximum credited service for the employee’s retirement group. The County must determine the amount of the refund based on the member’s total credited service, excluding sick leave, on the effective date of the amendment to the County Code that reduced the maximum years of service. In this subsection “payment” means the lump sum amount, determined at the time of purchase on an actuarial or flat payment basis, less any interest paid by the member or any contributions that were previously refunded.
(D)
Under this subsection, the County must pay interest in the same manner and amount as for a member’s accumulated contributions under subsection (b). To calculate interest on a refunded payment, the County must assume that the member paid the amount in full when the service was purchased.
(E)
The County must pay the proper refund to the member after the member’s retirement begins.
(6)
Refund of member contributions in the guaranteed retirement income plan. A member who ends employment with the County who is not vested must receive a distribution of the member’s guaranteed retirement income plan account balance attributable to member contributions under Section 33-39 and interest on those contributions as soon as reasonably feasible after the member submits a properly completed distribution form. Any death benefits must be paid under Section 33-46. Any indebtedness to the County government must be subtracted from the member’s refund.
(d)
Voluntary elected officials' participant contributions.
(1)
An elected officials' participant may voluntarily contribute up to an additional 7% of regular earnings to the elected officials' plan. Voluntary elected officials' participant contributions must be deducted from the regular earnings of the elected officials' participant.
(2)
An elected officials' participant may:
(A)
Change the amount of the voluntary elected officials' participant contributions;
(B)
Cease making voluntary elected officials' participant contributions; or
(C)
Withdraw all or part of the voluntary elected officials' participant contributions and the earnings thereon under procedures established in executive regulation under method (1).
(e)
Treatment of elected officials' participant contributions.
(1)
Required elected officials' participant contributions must be allocated to the required elected officials' participant contributions account established for that elected officials' participant. Voluntary elected officials' participant contributions must be allocated to the voluntary elected officials' participant contributions account established for that elected officials' participant. In addition, amounts allocated to the required elected officials' participant contributions account and voluntary elected officials' participant contributions account of an elected officials' participant must be further allocated to sub-accounts to reflect the proportionate amount of such accounts invested in each of the applicable investment funds by that elected officials' participant. As of each valuation date, the chief administrative officer must value the assets of the required elected officials' participant contributions account and the voluntary elected officials' participant contributions account on a current market value basis.
(2)
An elected officials' participant is always fully vested in the amount of the required elected officials' participant contributions account and the voluntary elected officials' participant contributions account for that elected officials' participant.
Montgomery County, Md., Code § 33-39A (2026)
Sec. 33-39A. Investment of contributions to the elected officials' plan.LinkCopy Citation
(a)
Investment funds.
(1)
An elected officials' participant must direct that contributions allocated to that participant's retirement accounts be invested in one or more of the investment funds selected by the Board for the retirement savings plan under Article VIII.
(2)
An elected officials' participant may allocate investments in the investment funds in any amounts or multiples permitted by the Board in the retirement savings plan.
(3)
An elected officials' participant's direction of investment must remain in effect until the elected officials' participant changes the direction under subsection 33-39A(b). If an elected officials' participant does not provide a valid direction of investment, the account balances of that elected officials' participant, to the extent they are not governed by a valid direction of investment, must be invested in an appropriate investment option selected by the Board.
(b)
Change of allocation.
(1)
An elected officials' participant may change the allocation of that elected officials' participant's account balances among the investment funds, in amounts and at times set by the Board for investments in the retirement savings plan. The change will be effective at times set by the Board for the retirement savings plan.
(2)
An elected officials' participant may designate that the change of the allocation among investment funds is effective as to:
(A)
Only the elected officials' participant's account balances as of the effective date of the change; or
(B)
Only the elected officials' participant's contributions and county contributions made after the effective date of the change; or
(C)
Both a. and b.
Montgomery County, Md., Code § 33-40 (2026)
Sec. 33-40. Employer contributions.LinkCopy Citation
The county and each participating agency must pay to the board each fiscal year a normal contribution and, if necessary, an additional contribution to be known as unfunded accrued liability contribution. The actuary for the retirement system must prepare an actuarial valuation and report each year.
(a)
Normal contribution. The amount of normal contribution must at least match the contribution made by members each fiscal year but must not be less than the amount which could be provided by multiplying the latest published actuarial normal cost accrual rate, expressed as a percentage of covered payroll, times the payroll of covered members. The actuary for the retirement system must determine a single normal contribution, and, if necessary, an unfunded accrued liability contribution for each group which must be applicable to and payable by each participating agency. The normal contribution must be determined by the actuary for the retirement system after each actuarial valuation as the percentage of the compensation of all members which is sufficient to cover the cost of benefits determined under an actuarial cost method acceptable under the United States Treasury Regulations with respect to qualified retirement plans after taking into account members' contributions.
(b)
Unfunded accrued liability contribution. The unfunded accrued liability contribution shall be the amount necessary to liquidate the base amount of the unfunded accrued liability and additions thereto, over not more than forty (40) years. The amount to liquidate annually shall be determined from the unfunded accrued liability published in the latest actuarial report. The base amount of unfunded accrued liability contributions payable by each participating agency shall be determined by the actuary on the basis of June 30, 1975, membership. Thereafter, the actuary shall determine additional unfunded accrued liabilities in excess of the June 30, 1975 base amount that emerge as the result of benefit improvements, salary increases or other applicable factors, which shall be applicable to and payable by each participating agency. The additional unfunded accrued liabilities shall be liquidated over not more than forty (40) years from date incurred.
(c)
Additional contributions. The County shall make such contributions as are required annually to provide benefits under subsections (d) and (e) of section 33-45. Any contributions made on behalf of an employee who ceases to be a member as the result of separation from the County service shall be used each fiscal year to accelerate the payment of any unfunded accrued liability or to fund retirement plan improvements.
(d)
Elected officials' plan. Subsections 33-40(a), (b), and (c) do not apply to the elected officials' plan. Instead, the following provisions apply:
(1)
The County must contribute to the elected officials' plan in monthly installments, on behalf of each elected officials' participant, an amount equal to 8 percent of the elected officials' participants' regular earnings. The county's elected officials' contributions are to be adjusted to take into account any forfeiture under subsection 33-40(d)(2)d. In determining the amount of the County elected officials' contributions, only an elected officials' participant's regular earnings earned while that elected officials' participant made required elected officials' participant contributions are counted.
(2)
The Board must allocate the County elected officials' contributions made on behalf of each elected officials' participant to a County elected officials' contributions account the Board establishes for that elected officials' participant. In addition, amounts allocated to the County elected officials' contributions account must be further allocated to sub-accounts to reflect the proportionate amount of each account in each of the applicable investment funds.
(A)
As of each valuation date, the Board must value the County elected officials' contributions account of each participant on a current market value basis.
(B)
An elected officials' participant has a one hundred (100) percent vested interest in that elected officials' participant's County elected officials' contributions account after the elected officials' participant attains the lesser of a full term of office or four (4) years of credited service. An elected officials' participant whose account balance in the County elected officials' contributions account is not one hundred (100) percent vested in accordance with the preceding sentence will nonetheless be one hundred (100) percent vested in that account balance from and after the effective date of a termination of the elected officials' plan.
(C)
An elected officials' participant who has a one hundred (100) percent vested interest in the County elected officials' contributions account of that elected officials' participant and ends employment with the County before the participant's normal retirement date may, at the elected officials' participant's request, receive the account balance in the County elected officials' contributions account in a single lump-sum payment. An elected official who chooses to withdraw the account balance in the County elected officials' contributions account must at the same time withdraw the account balances in the required and voluntary elected officials' participant contributions accounts, and if that elected officials' participant again participates in the elected officials' plan after the withdrawal, that elected officials' participant must complete the lesser of an additional four (4) years of credited service or a full term of office in order to vest in any County elected officials' contributions made after the withdrawal.
(D)
An elected officials' participant who ends employment with the County and who is not vested in any County contributions must forfeit the full account balance in the County elected officials' contributions account. If that occurs, the Chief Administrative Officer, upon the participant’s completion of a properly completed distribution form, must pay the participant, in a single lump-sum payment, the full account balances in the required elected officials' participant contributions account and the voluntary elected officials' participant contributions account, less any indebtedness to the county government or the Montgomery County Employees Federal Credit Union. The Chief Administrative Officer must consider all forfeitures arising under the elected officials' plan in determining the County elected officials' contributions and must use the forfeitures to reduce the amount of the county elected officials' contributions.
(e)
Guaranteed Retirement Income Plan.
(1)
Each pay period, the County must credit to each non-public safety member’s guaranteed retirement income plan account an amount equal to 6 percent for service beginning on the first pay period after June 30, 2011 and 8 percent for service beginning on the first pay period after June 30, 2012 of the member’s regular earnings. Interest must be credited at an annual rate of 7.25 percent on the County contribution credits. If the annual 7.25 percent interest rate does not comply with applicable law, the third segment rate described in Internal Revenue Code Section 430(h)(2)(G) or any successor provision must apply. Interest must be credited to a member’s guaranteed retirement income plan account balance on a monthly basis as of the last day of the month.
(2)
Each pay period, the County must credit to each public safety member’s guaranteed retirement income plan account an amount equal to 8 percent for service beginning on the first pay period after June 30, 2011 and 10 percent for service beginning on the first pay period after June 30, 2012 of the member’s regular earnings. Interest must be credited at an annual rate of 7.25 percent on the County contribution credits. If the annual 7.25 percent interest rate does not comply with applicable law, the third segment rate described in Internal Revenue Code Section 430(h)(2)(G) or any successor provision must apply. Interest must be credited to a member’s guaranteed retirement income plan account balance on a monthly basis as of the last day of the month.
(3)
When a member rejoins County service after military service that qualifies under Section 33-41(q) as credited service, the County must credit the member the amount that the County would have credited the member if the member worked for the County during military service. The credits must be based on the regular earnings the member would have earned during military service. If the regular earnings are not reasonably ascertainable, the County contribution credit must be based on the member’s regular earnings during a period immediately preceding military service. The averaging period is 12 months, or the full length of the member’s County service, whichever is shorter. The member must not receive any retroactive credited interest on the County contribution credits.
(4)
For any member who received a contribution to the member’s guaranteed retirement income plan account under Section 33-42A, interest must be credited at an annual rate of 7.25 percent. If the annual 7.25 percent interest rate does not comply with applicable law, the third segment rate described in Internal Revenue Code Section 430(h)(2)(G) or any successor provision must apply. Interest must be credited to a member’s guaranteed retirement income plan account balance on a monthly basis as of the last day of the month.
Montgomery County, Md., Code § 33-41 (2026)
Sec. 33-41. Credited service.LinkCopy Citation
(a)
Member's credited service.
(1)
A member's credited service is the total service rendered under the employees' retirement system of Montgomery County, plus any credited service earned under the employees' retirement system of the State of Maryland and/or the Montgomery County police relief and retirement fund law plus any other credited service purchased or granted pursuant to this section.
(2)
However, credited service earned while an individual is a participant in the elected officials’ plan must be used only for the purposes described in Section 33-37(e) and Section 33-55A. Credited service earned while an individual is a participant in the retirement savings plan under Article VIII must be used only as provided in Section 33-37(i). Credited service earned while an individual is a participant in the GRIP must only be used for GRIP and must not be used as credited service while an individual is a member of the integrated plan. Notwithstanding the preceding sentence, for purposes of determining vested benefits in the integrated plan, a member must receive one year of credited service for each year of County service and one month of credited service for each month of County service during which the member contributed to a County retirement plan. Each year of County service ends on the anniversary of the member’s date of retirement plan participation.
(3)
The Chief Administrative Officer must notify each eligible employee who attains 5 years of County service of the opportunity provided under this Section to purchase credited service. The Chief Administrative Officer must also notify each new employee that any person who transfers from State service or from a dual merit system position may be eligible to transfer credited service to the County retirement system.
(4)
Notwithstanding other provisions of this Section, a member must not be granted or permitted to purchase credited service for any period of actual or credited service under another retirement system if the member is receiving retirement benefits or has retained a vested right to retirement benefits from that system, unless federal law provides that the member must be permitted to purchase the credited service.
(5)
Member contributions paid under this Section to purchase credited service must not be treated as picked-up contributions.
(b)
Procedures for determining credited service.
(1)
Full-Time Members. Service rendered during the full normal working time in a 12-month period, including paid authorized leave or other leave specifically provided here, will equal one year of credited service. The 12-month period referred to in the preceding sentence is the 12-month period that starts on the date (or the anniversary of the date) the employee first completed one hour of County service as a member.
(2)
Part-Time Members. Any member working less than the normal scheduled work week for full-time employees on a continuing basis shall receive one year of credited service for each 12-month period. The 12-month period referred to in the preceding sentence is the 12-month period that starts on the date (or the anniversary of the date) the employee first completed one hour of County service as a member.
(3)
Combined Full-Time and Part-Time Service.
(A)
Except to determine the date that benefits begin under subsection (b)(3)(B), service credits for any member who has a combination of part-time and full-time service must be determined as follows: Each 176 hours equals one month of credited service. Accumulated hours of 88 to 176 equals one month of credited service. An accumulation of less than 88 hours must not be credited, and excess hours must not be carried over from one fiscal year to the next. For both full-time and part-time members, one month's credit must be granted for service of 15 days or more in any one calendar month.
(B)
For purposes of determining years of credited service to establish the date of commencement of benefits, credited service means service completed in accordance with paragraphs (b)(1) and (b)(2), plus any service granted or purchased under the retirement system. Years of credited service of less than one full year must be prorated. This subsection does not apply to members who retire before July 1, 1989 or to members who are elected officials on July 1, 1989, and who retire before December 3, 1990.
(c)
Credit for service in the armed forces of the United States, state militia, national guard, or other service covered under the Uniformed Services Employment and Reemployment Rights Act.
(1)
A member who enters the armed forces of the United States, a state militia, national guard, or other service covered under the Uniformed Services Employment and Reemployment Rights Act and does not withdraw member contributions and interest must receive service credit for periods of active military service if the member:
(A)
does not remain in the military service for more than 5 years, not including any military service described in Section 4312(c) of Title 38 of the United States Code; and
(B)
reports for County service or applies for reemployment and submits proof of military service:
(i)
within one year after completing the military service and without any other employment after discharge from the military service; or
(ii)
within 2 years after completing the military service, if the member was hospitalized or convalescing from an illness or injury incurred in, or aggravated during, military service.
(2)
A member who withdraws member contributions and redeposits the withdrawn contributions with interest at a rate of 6.5% must receive the credited service under this Section. The member must make the repayment while employed by the County, and not later than the earlier of the period of military service or 5 years, beginning on the date of reemployment.
(3)
The participating agency from which a member enters the military service must contribute on a current basis the funds necessary to purchase retirement service credit while the member is in the military service.
(d)
Credited service as a fire alarm dispatcher, firefighter, or fire officer in Montgomery County. Any member shall have the opportunity to obtain credit for any period of full- time paid service as a fire alarm dispatcher, firefighter or fire officer in a county fire department (including the Takoma Park fire department) or as rescue service personnel in a county rescue squad if such service has not otherwise been credited. In order to receive credit for such service, the member shall pay, in a lump-sum or by extended payments, the full cost which shall be determined on an actuarial basis.
(e)
Credited service for prior military service.
(1)
In this subsection, “uniformed services” means the United States Army, Navy, Air Force, Marine Corps, Coast Guard, the commissioned corps of the National Oceanic and Atmospheric Administration and the Public Health Service of the United States, and active duty service in the National Guard of any state of the United States.
(2)
A member with 5 years of membership in the Employees Retirement System enrolled or re-enrolled on or after July 1, 1978, may obtain credited service for all or part of any military service in the uniformed services of the United States up to a maximum of 48 months. A member exercising this option must pay, in a lump sum or on an extended payment basis, the full actuarial cost for these service credits.
(3)
Group G.
(A)
A Group G member may obtain credited service for all or part of any military service in the uniformed services of the United States, at no cost to the employee, up to a maximum of 24 months.
(B)
The amount of the credited service must be:
(i)
12 months of credited service, for 7 years of County service; or
(ii)
24 months of credited service, for 15 years of County service.
(C)
The credited service must be applied when the years-of-service threshold under subparagraph (B) is reached.
(4)
A Group E member with 5 years of membership in the Employees’ Retirement System enrolled or re-enrolled on or after July 1, 1978, may elect to obtain credited service for all or part of any military service in the uniformed services of the United States up to a maximum of 48 months, up to 24 months of which will be credited by the County Government at no cost to the member. A member exercising this option must pay, in a lump sum or an extended payment basis, the actuarial cost for credited service above the 24 months credited by the County Government.
(f)
Use of sick leave for credited service.
An employee must receive credit toward retirement for any accumulated sick leave, up to a maximum of 4,224 hours. Each 176 hours of accumulated sick leave is equal to 1 month of credited service. Accumulated sick leave totaling less than 11 days must not be credited for retirement purposes. Accumulated sick leave totaling 11 to 22 days must be credited as 1 month of service for retirement purposes. A member must have sick leave credited for vesting purposes under Section 33-45. An employee who transfers to the Retirement Savings Plan must receive credit toward retirement under the optional plan or integrated plan under Section 33-37(i) for the employee’s accumulated sick leave.
(g)
Credited service for period of sick leave without pay. Any member who is granted authorized sick leave without pay shall have the opportunity to obtain credited service for up to one (1) year of such absence. Before receiving credited service, the member shall pay both the member contributions and the county contributions on a current basis during the period of time on sick leave without pay.
(h)
Transfers between the county retirement system and any public retirement system in the State of Maryland. Under State law, a member entering or leaving County employment may transfer to or from any public retirement system in the State and receive credited service. A member may transfer to the County service credits accumulated under the previous system if the transfer complies with State law. If the member retires within 5 years after transferring to the County, the benefits payable for the transferred service are limited to the benefits that would have been payable under the other plan. The Chief Administrative Officer may provide by regulation adopted under method (3) procedures to assure favorable income tax treatment for members who transfer picked-up contributions between any of the eligible retirement systems. The two systems must have a reciprocity agreement to share contributions under State law.
(i)
Purchase of service credits for prior service with the federal government, a municipality, or another state. A vested member may purchase prior service credits for any period of membership in the retirement system of the federal government, a municipality, or a state in the United States. Before receiving any of that credited service, the member must pay, in a lump sum or on an extended basis, both the employee and employer share of the actuarial value of the purchased prior service.
(j)
Limitation on credited service. Credited service purchased may not be used to qualify for vesting or retirement before at least 5 years of membership. Under Section 33-45(a), service credits transferred from a public retirement system in Maryland may be used to qualify for vesting.
(k)
Purchase of part-time service credits. A member may purchase service credit for any period of career part-time Montgomery County service or career part-time service in a participating agency. A member exercising this option must pay, in a lump sum or on an extended payment basis, the full actuarial cost for prior service credits.
(l)
Purchase of prior State of Maryland and Montgomery County service credits. A member may purchase service credits for any period of prior temporary or regular State of Maryland or Montgomery County service. A member exercising this option must pay, in a lump sum or on an extended payment basis, the full actuarial cost for prior service credits.
(m)
Purchase of service credits for periods of leave without pay. A Group F member who is on leave without pay may buy service credits at their full actuarial cost, in a lump sum or on an extended basis, for up to one year of that leave. A member must not buy service credits for a period of leave without pay in connection with an act for which the member was charged with a felony unless the charge is resolved by other than a finding of guilty.
(n)
Payment for purchase of service credits.
(1)
The Chief Administrative Officer may approve a member’s request to pay for a purchase of service credits over an extended period, if:
(A)
the payment period does not exceed 5 years; and
(B)
the member agrees to pay an additional payment of at least 6 ½ % per year until the purchase is complete.
(2)
In extenuating circumstances, the Chief Administrative Officer may approve an extension of the payment period.
(3)
A member may pay for the purchase of service credits by having some or all of the member’s account balance in an eligible governmental 457(b) plan transferred to the retirement system through a trustee to trustee transfer.
(o)
[Limitation on purchase of credited service.] Except as required by state or federal law, an elected officials' participant may not be granted or permitted to purchase credited service for any purpose under the elected officials' plan.
(p)
Despite any other provision in this Section, a member must not transfer or purchase credited service for membership in a defined contribution or capital accumulation plan or in a plan with both defined contribution and defined benefit elements.
(q)
For the guaranteed retirement income plan, subsections (a)-(o) do not apply and credited service must be determined only under this subsection.
(1)
Credited service includes the total County service the participant rendered under the guaranteed retirement income plan, the retirement savings plan, the optional retirement plan, the integrated plan, and the elected officials’ plan. Each participant must receive one year of credited service for each year of County service and one month of credited service for each month of County service during which the participant contributed to a County retirement plan. Each year of County service ends on the anniversary of the participant’s date of participation.
(2)
County service includes any period of service in the armed forces of the United States or a state militia or other military service covered under the Uniformed Services Employment and Reemployment Rights Act if the member:
(A)
was a member of the retirement savings plan, the optional retirement plan, the integrated plan, or the guaranteed retirement income plan when the military service began;
(B)
applied for reemployment or returned to County service within:
(i)
one year after discharge from the military service and without any other employment after discharge from the military service; or
(ii)
within 2 years after completion of military service if the member was hospitalized or convalescing from an illness or injury incurred or aggravated during military service; or
(iii)
more than 2 years if circumstances beyond the control of the participant made it impossible or unreasonable for the participant to apply for reemployment within 2 years; and
(C)
the total period of military service did not exceed 5 years, excluding periods of military service described under Section 4312(c) of Title 38 of the United States Code.
(3)
An employee who did not become a member of the guaranteed retirement income plan solely because the employee was called to active duty before completing 180 days of County employment, must be eligible to receive contribution credit under Sections 33-39 and 33-40 if the employee elects to participate in the guaranteed retirement income plan upon reemployment.
(r)
Positions added to Group E eligibility.
(1)
Notwithstanding subsection (a)(2), an employee in the position of Public Safety Emergency Communications Specialist I, Public Safety Emergency Communications Specialist II, Public Safety Emergency Communications Specialist III, Public Safety Emergency Communications Specialist IV, Senior Public Safety Emergency Communications Specialist, Public Safety Communications Supervisor, Public Safety Emergency Communications Manager, or Emergency Communications MLS Manager 2 who was hired on or before July 1, 2023, and who was participating in the guaranteed retirement income plan or the retirement savings plan prior to eligibility in Group E may:
(A)
make a one-time irrevocable election to purchase credited service with their entire existing guaranteed retirement income plan or retirement savings plan balances up to and including August 7, 2024, in accordance with an actuarial determination of the value transferred; or
(B)
retain guaranteed retirement income plan or retirement savings plan balances, will no longer participate in the guaranteed retirement income plan or retirement savings plan, and will enter Group E with a credited service balance of 0 years, unless the employee is otherwise eligible to purchase other service credits provided for in this section.
(2)
Eligible employees who elect to purchase credited service under this subsection may not apply any years of service while a member of the guaranteed retirement income plan or the retirement savings plan for the purposes of calculating years of service under either the optional retirement plan or the integrated retirement plan.
(3)
Eligibility for early or normal retirement will be based upon the credited service at the time the employee enters Group E plus any credited service purchased by the employee.
(4)
The vesting provisions in subsection (a)(2) will apply to employees listed in subsection (r)(1) regardless of whether they elect to purchase service credit under this subsection.
(s)
Positions added to Group J eligibility.
(1)
Notwithstanding subsection (a)(2), a County member who was hired on or before July 1, 2023, and who was participating in the guaranteed retirement income plan or the retirement savings plan prior to Group J eligibility, and who becomes Group J eligible after July 1, 2023 may:
(A)
make a one-time irrevocable election to purchase credited service with their entire existing guaranteed retirement income plan or retirement savings plan balances up to and including August 7, 2024, in accordance with an actuarial determination of the value transferred; or
(B)
retain guaranteed retirement income plan or retirement savings plan balances, will no longer participate in the guaranteed retirement income plan or retirement savings plan, and will enter Group J with a credited service balance of 0 years, unless the employee is otherwise eligible to purchase other service credits provided for in this section.
(2)
Eligible employees who elect to purchase credited service under this subsection may not apply any years of service while a member of the guaranteed retirement income plan or the retirement savings plan for the purposes of calculating years of service under either the optional retirement plan or the integrated retirement plan.
(3)
Eligibility for early or normal retirement will be based upon the credited service at the time the employee enters Group J plus any credited service purchased by the employee.
(4)
The vesting provisions in subsection (a)(2) will apply to employees listed in subsection (s)(1) regardless of whether they elect to purchase service credit under this subsection.
"Sec. 2. Limited opportunity to purchase military service credit.
(a)
A member with 5 years of credited service who was enrolled or re-enrolled before July 1, 1978, may obtain credited service for all or part of any service in the uniformed services of the United States, up to a maximum of 48 months, if the member:
(1)
exercises the option to purchase this credited service by December 31, 1993; and
(2)
pays, in a lump sum or on an extended payment basis, the sum of:
(A)
an amount determined by multiplying the member's salary on the day before the fifth anniversary of service by the member's group contribution rate, multiplied by the number of full years of military service the member wishes to purchase. The member must pay a pro-rata amount for any period less than one year; and
(B)
interest on the amount determined under subparagraph (2)(A) at the rate of 4 percent per year from the member's fifth anniversary of service to July 1, 1970, and at the rate of 6 percent per year from July 1, 1970 to the day the member exercises the option to purchase credited service under this Section.
However, if under federal law a person must be permitted to purchase a period of actual or credited service under another retirement system when that person is receiving retirement benefits or has retained a vested right to retirement benefits from that system, the person must pay the full actuarial cost of the service to be credited.
(b)
In this Section, ‘uniformed services’ means the Army, Navy, Air Force, Marine Corps, and Coast Guard."
Division 3. Benefits.
Montgomery County, Md., Code § 33-42 (2026)
Sec. 33-42. Amount of pension at normal retirement date or early retirement date.LinkCopy Citation
(a)
Average final earnings. For a full-time or part-time career member enrolled on or before June 30, 1978, and continuously enrolled to date of retirement, average final earnings shall be the regular earnings for the twelve-month period immediately preceding retirement, or any consecutive twelve-month period, whichever is greater. Whenever such member is on leave without pay status during part of the final twelve-month period of membership, average final earnings will be based on regular earnings for the last twelve (12) months during which the member was in full pay status or any consecutive twelve-month period, whichever is greater. Average final earnings for each employee who became a member on or before June 30, 1978, and remained a member continuously to the date of retirement, who has full-time service credits and is a part-time career member at time of retirement are the average hourly rate of earnings during the last twelve (12) months of membership or any consecutive twelve-month membership period, whichever is greater, multiplied by two thousand eighty (2,080). The average hourly rate for any twelve-month period is equal to the total regular earnings of the member, divided by the total number of hours worked during the period. Average final earnings for each employee who became a member on or after July 1, 1978, shall be the average of regular annual earnings of the member for the thirty-six-month period immediately preceding retirement, or any consecutive thirty-six-month period, whichever is greater. Whenever such employee is on leave without pay status during part of the final thirty-six-month period of membership, average final earnings will be based on regular earnings for the last thirty-six (36) months during which the member was in full pay status, or any consecutive thirty-six-month period, whichever is greater. Average final earnings for an employee who became a member on or after July 1, 1978, who has full-time service credits and is a part-time career member at the time of retirement will be the average hourly rate of earnings during the thirty-six-month period immediately preceding retirement or any consecutive thirty-six-month period, whichever is greater, multiplied by two thousand eighty (2,080). The average hourly rate for any thirty-six-month period is equal to the total regular earnings of the member divided by the total number of hours worked during the period.
(b)
Amount of pension at normal retirement date.
(1)
Pension amount for an Optional Retirement Plan member.
(A)
Except for a Group E, F, G, or J member, the annual pension for a member of the optional retirement plan who retires on a normal retirement must equal 2 percent of average final earnings multiplied by years of credited service, up to a maximum of 36 years, plus sick leave credits. Years of credited service of less than one full year must be prorated.
(B)
For a Group E member who is a member of the optional plan and retires on a normal retirement, the annual pension must equal 2.6 percent of average final earnings for each of the first 25 years of credited service completed, and 2.25 percent of average final earnings for each year of credited service of more than 25 years, to a maximum of 30 years plus sick leave credits. Years of credited service of less than one full year must be prorated. Sick leave credits used for years in excess of 25 years must be credited at 2 percent of average final earnings. The maximum benefit with the application of sick leave credits must not exceed 80.25 percent of average final earnings.
(C)
For a Group F member who is a member of the optional plan and retires on a normal retirement, the annual pension must equal 2.4% of average final earnings multiplied by years of credited service, up to a maximum of 36 years, including sick leave credits. Years of credited service of less than one full year must be prorated. The maximum benefit with the application of sick leave credits must not exceed 86.4% of average final earnings.
(D)
For a Group G member who is a member of the optional plan and retires on a normal retirement, the annual pension must equal:
(i)
2.6 percent of average final earnings for each of the first 25 years of credited service completed; and
(ii)
1.25 percent of average final earnings for each year or prorated portion of a year of credited service of more than 25 years, to a maximum of 31 years, plus sick leave credits; and
(iii)
5 percent for each year of credited service received for accumulated sick leave; and
(iv)
0 percent for years after year 31 (except sick leave credits referred to in subclause (c)).
(E)
For a Group J member who is a member of the optional plan and retires on a normal retirement, the annual pension must equal 2.5 percent of average final earnings for each of the first 25 years of credited service completed, and 2 percent of average final earnings for each year of credited service of more than 25 years, to a maximum of 30 years plus sick leave credits. Years of credited service of less than one full year must be prorated. Sick leave credits used for years in excess of 25 years must be credited at 2 percent of average final earnings. The maximum benefit with the application of sick leave credits must not exceed 76.5 percent of average final earnings.
(2)
Pension amount for an Integrated Retirement Plan member.
(A)
For a Group A, B, or H member in the integrated retirement plan who retires on a normal retirement, the annual pension must be computed as follows:
(i)
From date of retirement to the month of attainment of Social Security retirement age: 2 percent of average final earnings multiplied by years of credited service up to a maximum of 36 years, plus sick leave credits. Credited service of less than one full year must be prorated.
(ii)
From the month of attainment of Social Security retirement age: 1 ¼ percent of average final earnings up to the Social Security maximum covered compensation level at time of retirement, plus 2 percent of average final earnings above the Social Security maximum covered compensation level at time of retirement, multiplied by years of credited service up to a maximum of 36 years, plus sick leave credits. Credited service of less than one full year must be prorated. This amount is subject initially to the cost-of-living adjustment provided in Section 33-44(c) from date of retirement to Social Security retirement age.
(B)
For a Group D member, the annual pension for a member of the integrated retirement plan who retires on a normal retirement must be computed as follows:
(i)
From date of retirement to the month of attainment of social security retirement age: 2 percent of average final earnings multiplied by years of credited service up to a maximum of 36 years, plus sick leave credits. Years of credited service of less than one full year must be prorated.
(ii)
From the month of attainment of social security retirement age: one percent of average final earnings up to the social security maximum covered compensation level at time of retirement, plus 2 percent of average final earnings in excess of the social security maximum covered compensation level at time of retirement, multiplied by years of credited service, up to a maximum of 36 years, plus sick leave credits. Years of credited service of less than one full year must be prorated. This amount is subject initially to the cost-of-living adjustment provided in Section 33-44(c) from date of retirement to Social Security retirement age, if any.
(C)
For a Group E member in the integrated retirement plan who retires on a normal retirement, the annual pension must be computed as follows:
(i)
From the date of retirement to the month that the member reaches Social Security normal retirement age: 2.6 percent of average final earnings for each of the first 25 years of credited service completed, and 2.25 percent of average final earnings for each year of credited service of more than 25 years, to a maximum of 30 years plus sick leave credits. Years of credited service of less than one full year must be prorated. Sick leave credits used for years in excess of 25 years must be credited at 2 percent of average final earnings. The maximum benefit with the application of sick leave credits must not exceed 80.25 percent of average final earnings. Beginning July 1, 2024, from the date of retirement to the month that the member reaches the maximum Social Security retirement benefit age: 2.6 percent of average final earnings for each of the first 25 years of credited service completed, and 2.25 percent of average final earnings for each year of credited service of more than 25 years, to a maximum of 30 years plus sick leave credits. Years of credited service of less than one full year must be prorated. Sick leave credits used for years in excess of 25 years must be credited at 2 percent of average final earnings. The maximum benefit with the application of sick leave credits must not exceed 80.25 percent of average final earnings.
(ii)
From the month the member reaches Social Security normal retirement age: 1.65 percent of average final earnings up to the Social Security maximum covered compensation in effect on the date of retirement for each year of credited service to a maximum of 30 years plus sick leave credits, plus 2.6 percent of average final earnings above the Social Security maximum covered compensation in effect on the date of retirement for each of the first 25 years of credited service completed, and 2.25 percent of average final earnings above the Social Security maximum covered compensation in effect on the date of retirement for each year of credited service of more than 25 years, to a maximum of 30 years plus sick leave credits. Years of credited service of less than one full year must be prorated. Sick leave credits used for years in excess of 25 years must be credited at 2 percent of average final earnings above the Social Security maximum covered compensation in effect on the date of retirement. The County must increase this initial amount by the cost-of-living adjustments provided under Section 33-44(c) for the period from the member’s date of retirement to the month in which the member reaches Social Security retirement age. Beginning July 1, 2024, from the month the member reaches the maximum Social Security retirement benefit age: 1.65 percent of average final earnings up to the Social Security maximum covered compensation in effect on the date of retirement for each year of credited service to a maximum of 30 years plus sick leave credits, plus 2.6 percent of average final earnings above the Social Security maximum covered compensation in effect on the date of retirement for each of the first 25 years of credited service completed, and 2.25 percent of average final earnings above the Social Security maximum covered compensation in effect on the date of retirement for each year of credited service of more than 25 years, to a maximum of 30 years plus sick leave credits. Years of credited service of less than one full year must be prorated. Sick leave credits used for years in excess of 25 years must be credited at 2 percent of average final earnings above the Social Security maximum covered compensation in effect on the date of retirement. The County must increase this initial amount by the cost-of-living adjustments provided under Section 33-44(c) for the period from the member’s date of retirement to the month in which the member reaches the maximum Social Security retirement benefit age.
(D)
For a Group F member in the integrated retirement plan who retires on a normal retirement, the annual pension must be computed as follows:
(i)
From date of retirement to the month of attainment of the maximum Social Security retirement benefit age: 2.4 percent of average final earnings multiplied by years of credited service up to a maximum of 36 years, including sick leave credits. Credited service of less than one full year must be prorated. The maximum benefit with the application of sick leave credits must not exceed 86.4 percent of average final earnings. Effective January 1, 2025, the multiplier will increase to 2.6 percent of average final earnings multiplied by years of credited service up to 25 years, and 2.4 percent of average final earnings multiplied by years of credited service from 25 years to a maximum of 34 years, including sick leave credits.
(ii)
From the month the member reaches the maximum Social Security retirement benefit age: 1.65 percent of average final earnings up to the maximum of 36 years, including sick leave credits, up to the Social Security maximum covered compensation in effect on the date of retirement, plus 2.4 percent of average final earnings above the Social Security maximum covered compensation in effect on the date of retirement, multiplied by years of credited service up to a maximum of 36 years, including sick leave credits. Years of credited service of less than one full year must be prorated. The County must increase this initial amount by the cost-of-living adjustments provided under Section 33-44(c) for the period from the member’s date of retirement to the month in which the member reaches the maximum Social Security retirement benefit age. Effective January 1, 2025, the multiplier will increase to 1.8 percent of average final earnings up to a maximum of 25 years, and 1.65 percent of average final earnings for more than 25 years to a maximum of 34 years, including sick leave credit, up to the Social Security maximum covered compensation in effect on the date of retirement, plus 2.6 percent of average final earnings above the Social Security maximum covered compensation in effect on the date of retirement multiplied by years of credited service up to 25 years, and 2.4 percent of average final earnings above the Social Security maximum covered compensation in effect on the date of retirement multiplied by years of credited service from 25 years to a maximum 34 years, including sick leave credits.
(E)
The County must compute the annual pension of a Group G member in the integrated retirement plan who retires on a normal retirement as follows:
(i)
from the date of retirement to the month that the member reaches Social Security retirement age, the following percentages of average final earnings apply:
(a)
2.6 percent, for each of the first 25 years of credited service; and
(b)
1.25 percent, for each year of credited service of more than 25 years to a maximum of 31 years, plus sick leave credits; and;
(c)
5 percent for each year of credited service received for accumulated sick leave; and
(d)
0 percent for years after year 31 (except sick leave credits referred to in subclause (c)); and
(ii)
from the month the member reaches Social Security retirement age, the percentages specified in clause (i) must be reduced, respectively, by the following percentages of average final earnings for the portion of any amount equal to or less than the Social Security maximum covered compensation in effect on the date of retirement:
(a)
0.81250 percent, for each of the first 25 years of credited service;
(b)
0.390625 percent for each year of credited service of more than 25 years, to a maximum of 31 years, plus sick leave credits; and
(c)
1.5625 percent, for each year of credited service received for accumulated sick leave.
(iii)
The County must increase the initial amount of a pension computed under (ii) above by the cost-of-living adjustments provided under Section 33-44(c) for the period from the member’s date of retirement to the month in which the member reaches Social Security retirement age.
(iv)
The County must prorate any portion of a year described in this subparagraph.
(v)
Effective September 1, 2024, from the date of retirement to the month that the member reaches the maximum Social Security retirement benefit age, the following percentages of average final earnings apply:
(a)
2.6 percent, for each of the first 25 years of credited service; and
(b)
1.25 percent, for each year of credited service of more than 25 years to a maximum of 31 years, plus sick leave credits; and
(c)
5 percent for each year of credited service received for accumulated sick leave; and
(d)
0 percent for years after year 31 (except sick leave credits referred to in subclause (c)); and
(vi)
from the month the member reaches the maximum Social Security retirement benefit age, the percentages specified in clause (v) must be reduced, respectively, by the following percentages of average final earnings for the portion of any amount equal to or less than the Social Security maximum covered compensation in effect on the date of retirement:
(a)
0.81250 percent, for each of the first 25 years of credited service;
(b)
0.390625 percent, for each year of credited service of more than 25 years, to a maximum of 31 years, plus sick leave credits; and
(c)
1.5625 percent, for each year of credited service received for accumulated sick leave.
(vii)
The County must increase the initial amount of a pension computed under (vi) above by the cost-of-living adjustments provided under Section 33-44(c) for the period from the member’s date of retirement to the month in which the member reaches the maximum Social Security retirement benefit age.
(viii)
The County must prorate any portion of a year described in this subparagraph.
(F)
For a Group J member in the integrated retirement plan who retires on a normal retirement, the annual pension must be computed as follows:
(i)
From the date of retirement to the month that the member reaches Social Security retirement age: 2.5 percent of average final earnings for each of the first 25 years of credited service completed, and 2 percent of average final earnings for each year of credited service of more than 25 years, to a maximum of 30 years plus sick leave credits. Years of credited service of less than one full year must be prorated. Sick leave credits used for years in excess of 25 years must be credited at 2 percent of average final earnings. The maximum benefit with the application of sick leave credits must not exceed 76.5 percent of average final earnings. Beginning July 1, 2024, from the date of retirement to the month that the member reaches the maximum Social Security retirement benefit age: 2.5 percent of average final earnings for each of the first 25 years of credited service completed, and 2 percent of average final earnings for each year of credited service of more than 25 years, to a maximum of 30 years plus sick leave credits. Years of credited service of less than one full year must be prorated. Sick leave credits used for years in excess of 25 years must be credited at 2 percent of average final earnings. The maximum benefit with the application of sick leave credits must not exceed 76.5 percent of average final earnings.
(ii)
From the month the member reaches Social Security normal retirement age: 1.65 percent of average final earnings up to the Social Security maximum covered compensation in effect on the date of retirement for each year of credited service to a maximum of 30 years plus sick leave credits, plus 2.5 percent of average final earnings above the Social Security maximum covered compensation in effect on the date of retirement for each of the first 25 years of credited service completed, and 2 percent of average final earnings above the Social Security maximum covered compensation in effect on the date of retirement for each year of credited service of more than 25 years, to a maximum of 30 years plus sick leave credits. Years of credited service of less than one full year must be prorated. Sick leave credits used for years in excess of 25 years must be credited at 2 percent of average final earnings above the Social Security maximum covered compensation in effect on the date of retirement. The County must increase this initial amount by the cost-of-living adjustments provided under Section 33-44(c) for the period from the member’s date of retirement to the month in which the member reaches Social Security retirement age. Beginning July 1, 2024, from the month the member reaches the maximum Social Security retirement benefit age: 1.65 percent of average final earnings up to the Social Security maximum covered compensation in effect on the date of retirement for each year of credited service to a maximum of 30 years plus sick leave credits, plus 2.5 percent of average final earnings above the Social Security maximum covered compensation in effect on the date of retirement for each of the first 25 years of credited service completed, and 2 percent of average final earnings above the Social Security maximum covered compensation in effect on the date of retirement for each year of credited service of more than 25 years, to a maximum of 30 years plus sick leave credits. Years of credited service of less than one full year must be prorated. Sick leave credits used for years in excess of 25 years must be credited at 2 percent of average final earnings above the Social Security maximum covered compensation in effect on the date of retirement. The County must increase this initial amount by the cost-of-living adjustments provided under Section 33-44(c) for the period from the member’s date of retirement to the month in which the member reaches the maximum Social Security retirement benefit age.
(3)
Elected Officials' Plan. An elected officials' participant who retires on or after the normal retirement date of that elected officials' participant may receive that elected officials' participant's account balances in the elected officials' plan.
(4)
Guaranteed retirement income plan. A member who retires on or after the member’s normal retirement date, except a member who receives a contribution under Section 33-42A, may receive that member’s vested guaranteed retirement income plan account balance under Section 33-44. A member who receives a contribution under Section 33-42A must not receive a distribution of the member’s guaranteed retirement income plan account balance until the member attains the Social Security retirement age.
(c)
Amount of pension at early retirement date and early retirement reduction factors.
(1)
The yearly amount of pension for a member who retires on an early retirement date will be a percentage of the amount of normal retirement benefit which would have been paid on the basis of years of credited service including sick leave credits. The schedule of early retirement reduction factors is as follows:
Years Early | Reduction Factor | Percentage of Normal Retirement Benefit
(2)
An elected officials' participant who retires before the normal retirement date of that elected officials' participant may receive the elected officials' participant's vested account balances in the elected officials' plan.
(3)
Guaranteed retirement income plan. A participant who terminates employment before the member’s normal retirement date may receive the participant’s vested guaranteed retirement income plan account balance upon termination of employment under Section 33-44.
(d)
Adjustment for pension payments previously paid.
(1)
If a member who retires has previously retired and received pension payments, the number of years of prior service plus the number of years of service accrued after re-entering the retirement system will be used in computing the amount of pension at subsequent retirement.
(2)
If a member receives service connected disability pension payments, and subsequently returns to work and re-enters the retirement system within 5 years of the date that disability retirement commenced and prior to attaining age 55, if a group A or H member, or age 45 if a group B, E, F, G, or J member, the number of years of prior service, plus the number of years the member was on retirement, plus the number of years accrued after re-entering the system must be used in computing the amount of pension at subsequent retirement.
(e)
Early retirement on full benefits. Notwithstanding other provisions of this article, whenever a member's credited service plus age equals eighty-five (85), the member may elect early retirement and the early retirement reduction factors shall not apply, provided the member has at least thirty-five (35) years of credited service.
(f)
Pension limitation. Notwithstanding any other provision of this section, the initial retirement benefit as provided under this section for those employees enrolled or re-enrolled on or after July 1, 1978, when combined with the primary benefit from social security for which the member is eligible or will be eligible at social security retirement age, must not exceed 90 percent of member's average final earnings. This limitation does not apply to the cost-of-living adjustments received under subsection (c) of section 33-44.
(g)
Maximum annual contribution to elected officials' plan.
(1)
Regardless of any other provision in this article, the annual addition described in this subsection that is allocated in any limitation year to the retirement accounts of any elected officials' participant must not exceed the lesser of:
(A)
$40,000.00 (the “dollar limitation”), as adjusted by the Internal Revenue Service from time to time to reflect cost of living increases; or
(B)
100 percent of the participant's compensation (as defined below) (the “percent limitation”).
(2)
For purposes of this subsection (g), the annual addition must be comprised of:
(A)
County elected officials’ contributions;
(B)
required elected officials’ participant contributions;
(C)
voluntary elected officials’ participant contributions; and
(D)
forfeitures used to reduce the County elected officials’ contributions in accordance with Section 33-40(d)(2)(D).
(3)
In this subsection (g), only:
(A)
for purposes of applying Section 415 of the Internal Revenue Code, “compensation” has the same meaning as provided in Treasury Regulation Section 1.415-2(d)(1), including amounts contributed at the election of the participant that are not includible in the gross income of the participant under Sections 125, 132(f)(4), 402(g)(3), or 457 of the Internal Revenue Code. Effective for limitation years after December 31, 2008, must include amounts required to be included pursuant to Section 414(u)(12) of the Internal Revenue Code; and
(B)
The limitation year means the twelve (12) consecutive calendar months comprising the fiscal year of the county.
(4)
For purposes of this subsection, the maximum dollar limitation of $40,000.00 must be automatically increased as permitted by United States treasury regulations to reflect cost-of-living adjustments.
(5)
Multiple plan participation. This paragraph applies only for limitation years ending before January 1, 2000. Regardless of paragraph (1), the otherwise permissible annual benefits for any participant in the elected officials' plan who also participates in another qualified plan sponsored by the County or a participating agency that is a defined benefit plan must be further adjusted to the extent necessary to prevent disqualification of the plans under Section 415 of the Internal Revenue Code. Section 415 imposes the following additional limitations on the benefits payable to a participant in the elected officials' plan who also may be participating in another qualified plan of the county or any participating agency that is a defined benefit plan:
(A)
If an individual is a participant at any time of both a defined benefit plan and a defined contribution plan maintained by the county or any participating agency, the sum of the “defined benefit plan fraction” and the “defined contribution plan fraction” for any limitation year must not exceed 1.0. In making this adjustment, the maximum benefit payable under the elected officials' plan must be reduced to the extent necessary to meet the multiple plan limitation.
(i)
Defined Benefit Plan Fraction. The defined benefit plan fraction for any limitation year is a fraction, the numerator of which is the elected officials' participant's projected aggregate annual benefit under all defined benefit plans of the county or any participating agency determined at the close of the limitation year, and the denominator of which is the lesser of:
(a)
1.25 multiplied by the defined benefit dollar limitation set forth in section 415(b)(1)(A) of the Internal Revenue Code as applicable from time to time, or
(b)
1.4 multiplied by the defined benefit compensation limitation set forth in section 415(b)(1)(B) of the Internal Revenue Code.
(ii)
Defined Contribution Plan Fraction. The defined contribution plan fraction for any limitation year is a fraction, the numerator of which is the sum of the annual additions to the elected officials' participant's accounts under all defined contribution plans of the county or any participating agency in such limitation year and for all prior limitation years, and the denominator of which is the sum of the applicable maximum amounts of annual additions which could have been made under section 415(c) of the Internal Revenue Code for the limitation year and for all prior limitation years of the participant's employment, assuming, for this purpose, that section 415(c) had been in effect during such prior year. The applicable maximum amount for any limitation year must be equal to the lesser of 1.25 multiplied by the dollar limitation in effect for each such limitation year under subsection 415(c)(1)(A) of the Internal Revenue Code, or 1.4 multiplied by twenty-five (25) percent of the elected officials' participant's total annual compensation for each such year.
(iii)
For purposes of the above limitations, all defined benefit plans of the county or any participating agency, whether or not terminated, are to be treated as one defined benefit plan and all defined contribution plans of the county or any participating agency, whether or not terminated, are to be treated as one defined contribution plan. defined contribution plan.
(h)
Maximum annual benefit. Despite any other provision governing the retirement system, the annual benefit of a member must not exceed the limits of Internal Revenue Code Section 415 that apply to the plan. The Chief Administrative Officer must freeze or reduce a member’s annual benefit to comply with this subsection. Effective for limitation years after December 31, 2008, amounts required to be included under Section 414(u)(12) of the Internal Revenue Code must be included in compensation for purposes of Section 415 of the Internal Revenue Code.
(i)
Retirement incentive Program.
(1)
Eligibility.
(A)
A Group A or H member may participate in the Retirement Incentive Program if the member is eligible for normal retirement as of July 1, 2008 or if the member is eligible for early retirement and within two years of meeting the criteria for normal retirement as of July 1, 2008
(B)
An elected or appointed official is not eligible to participate.
(C)
A member who wishes to participate must notify the Office of Human Resources in writing by May 21, 2008. Any member chosen to participate must complete all required forms and retire as of July 1, 2008.
(D)
Any member employed by a participating agency is not eligible to participate.
(E)
A member who retires on a disability retirement under Section 33-43 or a discontinued service retirement under Section 33-45(d) is not eligible to participate.
(2)
Early Retirement Reduction.
(A)
A member who is eligible for early retirement and within one year of meeting the criteria for normal retirement must not have any early retirement reduction applied to the member’s pension benefit.
(B)
A member who is eligible for early retirement and within two years of meeting the criteria for normal retirement must have an early retirement reduction factor of 2% applied to the member’s pension benefit.
(3)
Additional Retirement Benefit.
In addition to a member’s pension benefit calculated under this Section, the member must receive an additional $25,000 retirement benefit. The member may elect to receive the additional $25,000 retirement benefit as follows:
(A)
When the member retires, the additional $25,000 retirement benefit must be paid:
(i)
to the member in one lump sum;
(ii)
as a direct rollover to an eligible retirement plan (as defined in the Internal Revenue Code); or
(iii)
a combination of (i) and (ii);
(B)
Beginning on the member’s retirement date, 12 monthly installment payments must be paid:
(i)
to the member;
(ii)
as a direct rollover to an eligible retirement plan (as defined in the Internal Revenue Code); or
(iii)
a combination of (i) and (ii); or
(C)
as an additional retirement benefit paid over the member’s lifetime in the pension option elected by the member under Section 33-44.
(4)
Cost of Living.
Cost of living adjustments do not apply to this benefit. A cost of living adjustment under section 33-44(c) must not include the $25,000 additional retirement benefit.
(5)
Approval.
The Chief Administrative Officer must approve a request to participate in the program from a member employed in the Executive Branch. The Executive Director of the Office of the County Council must approve a request to participate in the program from a member employed in the Legislative Branch. If more than 20% of members eligible to participate in the Executive Branch, either Countywide or by department, apply to participate in the program, the Chief Administrative Officer may limit the number of participants, either on a Countywide or department basis. If more than 20% of members eligible to participate in the Legislative Branch apply to participate in the program, the Executive Director of the Office of the County Council may limit the number of participants. The Chief Administrative Officer and the Executive Director of the Office of the County Council must base any limits on the number of participants on years of service with the County. Years of service with the County must not include service with a participating agency, purchased service, or sick leave.
(6)
Survivor Benefit.
If a member elects to receive the additional retirement benefit over a 12 month period and the member dies before receiving all 12 payments, the remaining payments must not be paid.
Montgomery County, Md., Code § 33-42A (2026)
Sec. 33-42A. 2010 Retirement Incentive Program.LinkCopy Citation
(a)
Definitions.
Affected class means an occupational class or a group of occupational classes in a department, including all classes in an occupational series at and below the budget level class, if:
(1)
the class includes a position that the department director intends to eliminate; and
(2)
eliminating the position may cause an employee in the class to be demoted or terminated.
Affected employee means an employee assigned to a position in an affected class who has received a notice of intent or notification of a Reduction in Force (RIF).
Enhanced retiree life insurance benefit means no reduction in any provided basic life insurance benefit for the first 10 years after the employee’s retirement date.
Enhanced retiree health plan cost sharing benefit means a County contribution of 90% of the premium for individual coverage for any health insurance plan provided by the County for the first 5 years after the employee’s retirement date.
(b)
Eligibility.
(1)
A Group A, E or H member who is employed in a part time or full time position may apply to participate in the 2010 Retirement Incentive Program if the member:
(A)
is eligible for:
(i)
normal retirement on or before June 1, 2010; or
(ii)
early retirement, and is within 2 years of meeting the criteria for normal retirement on June 1, 2010; and
(B)
is an affected employee.
(2)
A member is not eligible to participate in the 2010 Retirement Incentive Program if the member:
(A)
receives a disability retirement under Section 33-43;
(B)
receives a discontinued service retirement under Section 33-45(d);
(C)
is an elected or appointed official; or
(D)
is employed by a participating agency.
(3)
A member must apply to participate in the 2010 Retirement Incentive Program, must complete all required forms by May 14, 2010, and must retire on June 1, 2010.
(4)
A member who applies for a disability retirement under section 33-43 must not receive any benefit under this Section unless the member’s application for disability retirement is denied and all appeals from that denial are exhausted.
(c)
Early retirement reduction. A member’s pension benefit must not be reduced for early retirement if the member is eligible for early retirement and within 2 years of eligibility for normal retirement.
(d)
Additional Retirement Benefit. In addition to the pension benefit calculated under this Section, a participant must elect one of the following additional retirement benefits. A part time participant must receive a pro-rata portion of the applicable retirement benefit, based on that participant’s percent of budgeted full time employment.
(1)
$35,000 pension benefit;
(2)
$30,000 pension benefit and an enhanced retiree life insurance benefit; or
(3)
$28,000 pension benefit and an enhanced retiree health plan cost sharing benefit.
(e)
The participant must elect to receive the cash portion of the additional pension benefit paid under Subsection (d) as:
(1)
a single lump sum on July 1, 2010:
(A)
to the member or the member’s designated beneficiary if the member dies before receiving the lump sum payment;
(B)
as a direct rollover to an eligible retirement plan (as defined in the Internal Revenue Code); or
(C)
a combination of (A) and (B);
(2)
12 equal monthly payments beginning on July 1, 2010:
(A)
to the member or the member’s designated beneficiary if the member dies before receiving all 12 payments;
(B)
as a direct rollover to an eligible retirement plan (as defined in the Internal Revenue Code); or
(C)
a combination of (A) and (B);
(3)
a contribution to an account established for the member under the guaranteed retirement income plan. A member must receive the member’s guaranteed retirement income plan account balance when the member attains the Social Security retirement age; or
(4)
an additional pension benefit paid over the member’s lifetime in the pension option elected by the member under Section 33-44, beginning on July 1, 2010.
(f)
Cost of Living. Any cost of living adjustment does not apply to this benefit. A cost of living adjustment under Section 33-44(c) must not include the additional pension benefit paid under this Section.
(g)
Approval. The Chief Administrative Officer must approve a request to participate in the program from a member employed in the Executive Branch. The Executive Director of the Office of the County Council must approve a request to participate from a member employed in the Legislative Branch. The Chief Administrative Officer and the Executive Director of the Office of the County Council must not approve more applications from an affected class than the number of positions that are abolished in the affected class. The Chief Administrative Officer and the Executive Director of the Office of the County Council may disapprove an application if a vacancy created by a member participating in the program cannot be filled by a member of an affected class. If more members apply to participate in the program than the number of positions abolished, the participants must be approved in order of County seniority calculated under the RIF personnel regulation in the following order:
(1)
participants who applied for the proposed 2009 Retirement Incentive Program; and
(2)
all other participants.
(h)
Repayment. A participant must repay the lump sum benefit received to the Employees’ Retirement System Trust Fund before returning to County service as an employee or under a contract.
(a)
retired with a discontinued service pension; or
(b)
participated in the retirement incentive program.
The Executive’s Recommended Budgets for FY12, FY13, and FY14 must compare the number of positions in each class of positions eligible for the retirement incentive program approved for funding in FY11 with the number of positions in the same class recommended for funding in the recommended budget.
Montgomery County, Md., Code § 33-43 (2026)
Sec. 33-43. Disability retirement.LinkCopy Citation
(a)
Applicability. This Section applies to an application for disability benefits filed by any member or a medical reevaluation of a disability retiree under subsection (g).
(b)
Definitions. In this Section, the following words and phrases have the following meanings:
Applicant means any member who has filed an application for disability retirement under subsection (d)(1).
Certified representative means an employee organization certified under Section 33-79, 33-106, or 33-151 to represent a bargaining unit.
Disability Arbitration Board or Board means one of the 3 panels designated under subsection (m)(1) to review an appeal of the Chief Administrative Officer's final decision regarding an application for disability benefits filed by any member except a member of the Police Bargaining Unit.
Disability Review Panel or Panel means the 4 medical doctors appointed as Panel members by the Chief Administrative Officer under subsection (c).
Medical doctor means a doctor of medicine or osteopathy who graduated from a medical school accredited by the American Medical Association and is licensed to practice medicine in Maryland.
Medical specialty means a field of medicine, such as orthopedic surgery or neurology, which requires specialized training and certification.
Occupational medicine means a medical speciality which focuses on the health of workers, including the ability to perform work; the physical, chemical, biological, and social environments of the workplace; and the health outcomes of environmental exposures. Practitioners of occupational medicine address the promotion of health in the work place and the prevention and management of occupational and environmental injury, illness, and disability.
Partial incapacity means a member’s inability to perform one or more essential functions of the position the member holds because of impairment that:
(1)
is unlikely to resolve in the next 12 months;
(2)
may be permanent; and
(3)
does not prevent the member from performing any other substantial gainful activity.
Police Disability Arbitration Board or Police Board means the 3 persons designated under subsection (m)(1) to review an appeal of a decision by the Chief Administrative Officer affecting a member of the Police Bargaining Unit’s right to disability benefits.
Residual functional capacity means what the individual can still do, despite the individual’s impairment. The County must give the term residual functional capacity the same meaning as the term is given by the U.S. Social Security Administration.
Substantial gainful activity means a level of productive work that requires significant physical or mental duties, or a combination of both, performed for pay or profit on a full- time or part-time basis. An individual is able to perform a substantial level of work if the individual is able to earn more than the U.S. Social Security Administration’s current monthly earnings limit for a disabled person. The County must give the term substantial gainful activity the same meaning as the term is given by the U.S. Social Security Administration.
Total incapacity means the member's inability to perform substantial gainful activity because of an impairment that:
(1)
is unlikely to resolve in the next 12 months; and
(2)
may be permanent.
(c)
Selection of the Disability Review Panel.
(1)
The Chief Administrative Officer must appoint 4 members of the Disability Review Panel from a list of at least 5 impartial, unbiased medical doctors willing and able to serve provided by one or more impartial medical organizations retained by the Chief Administrative Officer. If the list of doctors provided by the impartial medical organization is not agreed to by the certified representatives and the County, the certified representatives must strike 1 name from the list and the County must strike 1 name from the list by alternating strikes. The Chief Administrative Officer must appoint a member from the remaining 3 names on the list.
(2)
The Chief Administrative Officer must appoint members who are licensed to practice medicine and certified in a medical specialty under standards established by the American Board of Medical Specialties (or a successor organization). At least 1 member must be either:
(A)
certified by the American Board of Preventive Medicine (or a successor organization) as a specialist in occupational medicine; or
(B)
certified in a different medical specialty and have at least 10 years of experience practicing occupational medicine.
(3)
(A)
(c)
(1)
(c)
(6)
The Chief Administrative Officer must appoint members under subsection (c)(1) for staggered 3-year terms. To implement the staggered terms, the Chief Administrative Officer must appoint the first member to a 3-year term, the second member to a one-year term, and the third and fourth members to a 2-year term. After these initial appointments, the Chief Administrative Officer must appoint all members to 3-year terms, except for any member appointed under subsection (c)(6) to fill a vacancy.
(B)
After the Chief Administrative Officer appoints or reappoints a Panel member, the Chief Administrative Officer must promptly send each certified representative a copy of the document confirming the appointment.
(4)
When a Panel member's term expires, the Panel member my be reappointed to a new 3-year term unless, at any time within 30 days to 60 days prior to the expiration of the term, a certified representative notifies the County and the other certified representatives or the County notifies the certified representatives that it objects to the reappointment of the Panel member. If there is no objection, the Panel member is eligible to serve an additional term or terms.
(5)
If a Panel member declines to be reappointed to the Panel, the Chief Administrative Officer must appoint a new Panel member from a list of at least 5 medical doctors as provided for in subsection (c)(1).
(6)
If a vacancy on the Panel is created by a Panel member's death, disability, resignation, non-performance of duty, or other cause, the Chief Administrative Officer must appoint a medical doctor to complete the Panel member's term from a list of at least 5 medical doctors as provided for in subsection (c)(1).
(7)
The County must pay the impartial medical organization retained by the County and each Panel member reasonable compensation, as determined by the Chief Administrative Officer, for services rendered.
(d)
Disability retirement procedures.
(1)
An application for disability retirement may be filed with the Chief Administrative Officer by:
(A)
a member;
(B)
a certified representative on behalf of a represented member or
(C)
the department, office, or agency head under subsection (k).
(2)
The Disability Review Panel must consider an application for disability retirement benefits filed by a member or a certified representative. The Panel must determine if an applicant is eligible for non-service-connected disability or service-connected disability in accordance with subsections (e)(2) through (4) and subsection (f).
(3)
Subject to the limitations in subsection (f)(4)(E), the Panel may consider any information or material submitted by the applicant, the certified representative or the County.
(4)
Before the Panel discusses an application for a member other than a member of the Firefighter/Rescuer Bargaining Unit, the Panel must advise each party of the deadline date for submitting information to the Panel. The Panel must allow a reasonable amount of time for the parties to submit additional information, and may extend the deadline at the request of either party for good cause shown.
(5)
Except for information from a member of the Firefighter/Rescuer Bargaining Unit, the Panel must not accept or consider information from a member if the information is received after the established deadline date unless the information is related to:
(A)
the applicant’s reinjury that occurred or was diagnosed after the deadline date; or
(B)
a change in the applicant’s medical condition that occurred or was diagnosed after the deadline date.
(6)
The Panel must review and consider all evidence submitted to it no later than 60 days after the application is filed. A Panel must include either 2 or 3 members. At least 2 members must vote in favor of a decision to take any action under this Section.
(7)
Within 30 calendar days after the Panel's final discussion at which the application was considered, the Panel must issue a written recommendation to the Chief Administrative Officer regarding whether the applicant meets the criteria for disability retirement benefits for non-service-connected disability in accordance with subsections (e)(2), (3) and (4) or service-connected disability in accordance with subsection (f).
(8)
(A)
Before making its recommendation, the Panel must:
(i)
direct the applicant to undergo an independent medical examination (including all relevant medical tests) by a medical doctor who is not a member of the Disability Review Panel, unless the Panel finds that a medical examination is unnecessary because of the nature and severity of the injury or illness; and
(ii)
if required for the Panel to make a recommendation as to residual functional capacity or substantial gainful capacity, request an independent vocational assessment.
(B)
The County must pay the cost of the examination and assessment. The results of the examination, including findings, conclusions, medical opinions and diagnoses, must be given to the applicant or the applicant’s representative immediately after the County or the Panel receives it.
(C)
The Panel must issue its written recommendation within 30 days after the Panel receives the later of:
(i)
the full report from the medical doctor who conducted the examination; or
(ii)
the full report of the results of the independent vocational assessment.
(9)
Within 20 calendar days following receipt of the Panel's written recommendation, the Chief Administrative Officer or designee must issue a final decision regarding whether the applicant meets the criteria for disability retirement benefits for non-service-connected disability in accordance with subsection (e) or service-connected disability in accordance with subsection (f).
(10)
A disability retirement is effective on the date a member exhausts all accrued sick leave and accrued compensatory leave in excess of 80 hours, if any, or on the date the application is approved by the Chief Administrative Officer, whichever comes first.
(11)
For a Group F or Group G member, the amount of any lump sum retroactive disability retirement benefit must be reduced by the total amount of any temporary total disability, temporary partial disability, or permanent partial disability payments that the County paid to the employee under the Workers’ Compensation laws after the disability retirement took effect.
(e)
Non-service-connected disability retirement. A member may be retired on a non-service-connected disability retirement if the member:
(1)
has 5 years of credited service;
(2)
is mentally or physically incapacitated for the further performance of duty as the result of an illness or injury incurred after enrollment as a member, the incapacity is not due to the member's willful negligence, and the incapacity is likely to be permanent. In extenuating circumstances, the Chief Administrative Officer may waive the requirement that a member's incapacity is likely to be permanent and may approve a temporary disability retirement for one or more one-year periods until the incapacity is either removed or it becomes apparent that it is likely to be permanent;
(3)
is not eligible for service-connected disability retirement; and
(4)
is unable to productively perform the duties of another available position for which qualified.
(f)
Service-connected disability retirement.
(1)
A member may be retired on a service-connected disability retirement if:
(A)
the member is totally or partially incapacitated as the natural and proximate result of an accident occurring, or an occupational disease incurred or condition aggravated while in the actual performance of duty;
(B)
the incapacity is not due to the member’s willful negligence;
(C)
the incapacity is likely to be permanent;
(D)
the member is unable to perform the duties of either:
(i)
the occupational classification to which the member was assigned when the disability occurred; or
(ii)
a position of comparable status in the same department for which the member is qualified; and
(E)
the member has not committed an offense that would justify termination for misconduct.
(F)
For an accidental injury that does not cause mental impairment, the member must:
(i)
report the claimed accidental injury as soon as practicable, but no later than one year after the applicant knew or should have known that the injury is likely to be disabling; or
(ii)
submit a claim for Workers’ Compensation benefits for the accidental injury that is not dismissed as untimely.
(G)
The time periods for reporting in subparagraphs (i) and (ii) do not begin while the member is unable to report because of incapacitating injuries.
(H)
For an accidental injury that occurs after July 1, 2009, the member must apply for disability benefits:
(i)
within one year after separation from County service or before July 1, 2010, whichever is later; and
(ii)
if the applicant is a member of Group F, within 5 years after the date of the accident causing the impairment or before July 1, 2014, whichever is later, unless the member is in a chronic incapacity duty assignment.
(2)
A Group F member who otherwise satisfies the requirements of subsection (f)(1) must not be denied a disability retirement because the member is able to perform a chronic incapacity duty assignment.
(3)
In extenuating circumstances, the Chief Administrative Officer may waive the requirement that a member's incapacity is likely to be permanent and may approve a temporary disability retirement for one or more one-year periods until the incapacity is either removed or it becomes apparent that it is likely to be permanent.
(4)
A Group G member who has an occupational disease that is compensable under Section 9-503 of the Maryland Workers’ Compensation Act or who incurs esophageal, lymphatic, testicular, brain, lung, bladder, or kidney cancer, multiple myeloma, melanoma, or any blood borne pathogen, is entitled to receive service- connected disability benefits if:
(A)
the employee became a member of Group G on or after July 1, 1999, and did not use, or get terminated for using tobacco products for any purpose either on-duty or off-duty while employed by the County as a Group G member; or
(B)
the employee became a member of Group G before July 1, 1999 and:
(i)
did not use tobacco products more than 3 times for any purpose while on-duty after June 30, 2000;
(ii)
if a tobacco user, completed a tobacco-cessation program approved by the County; and
(iii)
completed a cardiovascular fitness assessment and evaluation program established by the County (or by the County and the certified representative, for members of the Firefighter/Rescuer Bargaining Unit) and made a good faith effort to follow the health and fitness recommendations that resulted from the cardiovascular assessment.
(5)
Alternative placement incentive.
(A)
The Chief Administrative Officer may offer a 5-percent salary increase to an employee who:
(i)
is not a member of the Police Bargaining Unit;
(ii)
is eligible to receive a service-connected disability retirement; and
(iii)
accepts an alternative position in the County government for which the employee is qualified.
(B)
The employee’s salary in the alternative position must not exceed the maximum salary of the pay grade assigned to the position.
(C)
A member of the Office, Professional and Technical Bargaining Unit or the Service, Labor and Trades Bargaining Unit who accepts an alternative placement incentive is not eligible to apply for a service connected disability retirement based on the disability for which the alternative placement was made.
(D)
A Group G member who accepts an alternative placement incentive:
(i)
must remain a Group G member for the remainder of the member’s County employment; and
(ii)
is not eligible for a service-connected disability retirement based on the medical condition that existed at the time the alternative placement was made.
(E)
If a member applies for service-connected disability retirement instead of accepting an alternative placement incentive, the member’s failure to accept the incentive must not:
(i)
be included in the information considered by the Disability Review Panel, Chief Administrative Officer, or Disability Arbitration Board;
(ii)
be considered at any time by the Disability Review Panel, Chief Administrative Officer, or Disability Arbitration Board; or
(iii)
effect the member’s eligibility for service-connected disability retirement or the amount of the service-connected disability pension benefit.
(g)
Medical reexamination of disability retiree. The Chief Administrative Officer must require a member receiving disability pension payments to undergo either a yearly physical examination or to submit a medical doctor’s certificate verifying continuation of the disability during the 5 years after retirement, and once in every 3 years thereafter, until age 55 for a member of group B, E, F, G, or J or age 60 for a member of group A or H, unless the Chief Administrative Officer finds that a physical examination is unnecessary because of the nature and severity of the injury or illness. The Chief Administrative Officer must review the findings of the physical examination and take appropriate action, which may include submitting the results of the evaluation to the Disability Review Panel for a redetermination whether the individual qualifies for disability benefits in accordance with subsection (d). If a member does not submit to the examination, the Chief Administrative Officer may reduce or discontinue any disability pension payments which the member receives. The Disability Review Panel may require the member to submit to an additional independent medical examination. A member may appeal a decision to reduce or discontinue disability pension payments to the appropriate Disability Arbitration Board.
(h)
Amount of pension at non-service-connected disability retirement. A member who retires on non-service-connected disability retirement must receive an annual pension equal to the greater of:
(1)
the amount calculated under Section 33-42(b)(1); or
(2)
33 percent of final earnings.
(i)
Amount of pension at service-connected disability retirement.
(1)
Total incapacity. The County must pay a member who retires on service-connected disability retirement with total incapacity an annual pension calculated under Section 33-42(b)(1), except that:
(A)
the County must substitute final earnings for average final earnings; and
(B)
the pension must be at least 70% of the member’s final earnings.
(2)
If the benefit calculation under Section 33-42(b)(1) is greater than any other benefit under this subsection, the County must pay a Group G member who retires on a service-connected disability retirement between June 26, 2002, and June 30, 2007, a pension based on the member’s average final earnings if that member’s average final earnings result in a greater benefit than final earnings.
(3)
The Disability Review Panel must recommend a finding of total incapacity if the member’s service-connected disability is severe enough to meet the Social Security Administration’s requirements for disability, meaning that the member is unable to engage in any substantial gainful activity because of a medically determinable physical or mental impairment that can be expected to end in death or has lasted, or can be expected to last, for a continuous period of at least 12 months. The member does not have to qualify for Social Security disability benefits to be eligible for benefits under this subsection.
(A)
The Panel must base its determination of whether an individual is able to engage in any substantial gainful activity on an assessment from an independent vocational expert that considers the member’s age, education, work experience, transferable skills, and residual functional capacity.
(B)
The Panel must determine the member’s residual functional capacity and provide this information to the independent vocational expert.
(C)
A Panel determination that the member’s service-connected disability is severe enough to be considered a disability by the Social Security Administration is not a recommendation that the member is entitled to, or should be granted, a disability benefit by the Social Security Administration.
(D)
If a member has already been granted disability benefits by the Social Security Administration when the member applies for a service-connected disability pension, the County must pay the member a pension of at least 70% if the Disability Review Panel finds that the award of disability benefits from the Social Security Administration was based primarily on the same medically determinable physical or mental impairment on which the Disability Review Panel awards the member a service-connected disability benefit.
(4)
The County must pay a member who retires with partial incapacity on a service-connected disability retirement an annual pension calculated under Section 33-42(b)(1), but the benefit must be at least 52½% of final earnings if the Chief Administrative Officer finds, based on a recommendation from the Disability Review Panel, that:
(A)
the member meets the standards to receive a service-connected disability benefit under subsection (f); and
(B)
the member is not eligible to receive a benefit for total incapacity under subsection (i)(3).
(5)
(A)
(b)
(1)
The County must increase the partial incapacity service-connected disability pension benefit of a member calculated under Section 33-42(b)(1), from a benefit of at least 52½% to a benefit of at least 70%, if:
(i)
the Social Security Administration awards disability benefits to the member;
(ii)
the member submits all relevant information about the award of disability benefits from the Social Security Administration to the Disability Review Panel within 60 days after the member receives the award;
(iii)
the Disability Review Panel finds that the award of disability benefits from the Social Security Administration was based primarily on the same medically determinable physical or mental impairment on which the Disability Review Panel originally awarded the member a service-connected disability benefit; and
(iv)
the member applies for disability benefits with the Social Security Administration within 90 days after the Chief Administrative Officer notified the member that the service-connected disability pension benefit would be calculated as a partial incapacity.
(B)
If a member qualifies for an increased pension benefit under subparagraph (A), the County must increase the member’s service-connected pension retroactively to the date when the pension began.
(6)
Under this subsection, “final earnings” for a Group F or G member who is participating in a job-sharing program under a collective bargaining agreement between the County and a certified representative means the regular earnings that the member would have received if the member had been employed on a full-time basis on the last date of active service.
(7)
The County must pay a Group F member who retires on a service-connected disability retirement on or after June 26, 2002, an annual pension calculated under subsection (i)(1) or subsection (i)(4). However, if a greater benefit results from the calculation under Section 33-42(b)(1), the County must pay a Group F member a pension based on the member’s average final earnings if that member’s average final earnings result in a greater benefit than final earnings.
(j)
Adjustment or cessation of disability pension payments.
(1)
If a member receiving service-connected disability pension payments reaches the first day of the month after the member’s normal retirement date, the amount of pension then payable must not be less than the amount that would have been payable under Section 33-45(c) if the member had terminated service when the disability pension began and had not elected a return of member contributions with credited interest.
(2)
(A)
The Chief Administrative Officer may reduce the amount of the disability pension payments of a member retired with total incapacity who:
(i)
has not reached the normal retirement date; and
(ii)
is engaged in, or is able to engage in, an occupation that pays more than the difference between the disability pension payments and the current maximum earnings of the occupational classification from which the member was disabled.
(B)
If a member other than a Group F member meets the criteria in subparagraph (A), the Chief Administrative Officer may reduce the member’s disability pension payments until the disability pension payments plus the amount that the employee earned or is able to earn equals the maximum earnings of the occupational class from which the member was disabled.
(C)
If a Group F member receives a non-service connected disability pension and meets the criteria in subparagraph (A), the Chief Administrative Officer may reduce the member’s disability pension payments until the disability pension payments plus the amount the employee earned or is able to earn equals 120 percent of the maximum earnings of the occupational class from which the employee was disabled.
(D)
If a member receives a disability retirement pension, except for a Social Security disability benefit, from another employer for the same impairment, the Chief Administrative Officer must reduce the member’s disability pension payment by the amount of the other disability retirement pension.
(3)
If the earnings capacity of a disability retiree with a total incapacity changes, the Chief Administrative Officer may change the amount of the disability retirement pension. In this subsection, “disability pension” is the amount of pension payable without election of a pension payment option.
(A)
For a disability retiree other than a group F member, the Chief Administrative Officer must ensure that the amount of the revised pension does not exceed:
(i)
the original disability retirement pension plus cost-of-living increases; or
(ii)
an amount that, when added to the amount the member earns or is able to earn, equals the maximum earnings of the occupational classification from which the member was disabled.
(B)
For a Group F member who receives a non-service connected disability pension, the Chief Administrative Officer must ensure that the amount of the revised pension must not exceed:
(i)
the original disability retirement pension plus cost-of-living increases; or
(ii)
an amount that, when added to the amount that the member earns or is able to earn, equals 120 percent of the maximum earnings of the occupational classification from which the member was disabled.
(4)
A member who receives a disability retirement pension for a total incapacity must submit to the Chief Administrative Officer by May 30 of each year a copy of that portion of the member’s federal income tax return which shows the member’s income. If a member who receives disability pension payments does not supply the Chief Administrative Officer any information the Chief Administrative Officer needs to decide the amount of retirement pay legally due, the Chief Administrative Officer must suspend the member's pension payments until the member submits the needed information.
(5)
If a member receiving disability pension payments returns to the service of the County or is appointed or elected to any office, the salary or compensation of which is paid wholly or in part by the County, pension payments will cease, and the individual will again become a member of the retirement system and resume member contributions.
(6)
For any employee, except as provided below, who enrolled or re-enrolled in the retirement system on or after July 1, 1978, the member's disability retirement benefit for any month must be integrated with the primary disability benefits received from Social Security, and the total benefits from both sources must not exceed 100% of the member’s average final earnings. This limit does not apply to cost-of-living adjustments made under Section 33-44(c). The benefit for a member who received a disability retirement benefit on or after January 1, 2000, must not be integrated with the primary disability benefits received from Social Security, and the total benefits from both sources may exceed 100% of the member’s average final earning.
(7)
The Chief Administrative Officer must not reduce the service-connected disability pension payments of a Group F or G member by earned income received from any source except:
(A)
County Government employment; or
(B)
for a Group F member, employment as a sworn law enforcement officer with full powers of arrest and authority to carry a firearm in connection with that employment.
(k)
Administrative disability retirement. Whenever any member becomes disabled or incapacitated and is demonstrably not capable of performing the duties and responsibilities of the position to which assigned at an acceptable level of competence for medical reasons, the member must be notified by the head of the department, office or agency that in consideration of the medical condition, a disability retirement application should be initiated. If the member fails or refuses to make an application for disability retirement, the department, office or agency head may initiate a disability retirement application on behalf of the member. All pertinent information, including the member's attendance record, job performance record and medical record, must be transmitted to the Disability Review Panel.
(l)
Appeal procedures.
(1)
An applicant who is a member of the Police Bargaining Unit or the certified representative of the Police Bargaining Unit may appeal a decision of the Chief Administrative Officer that affects the member’s right to disability benefits to the Police Disability Arbitration Board. An applicant who is not a member of the Police Bargaining Unit, or the certified representative on behalf of the applicant, may appeal the written decision of the Chief Administrative Officer to one of 3 Disability Arbitration Boards. An applicant must file an appeal within 20 calendar days of the date on which the applicant receives the Chief Administrative Officer's decision.
(2)
The Police Disability Arbitration Board must consider appeals filed by members of the Police Bargaining Unit. The 3 Disability Arbitration Boards must consider all other appeals on a rotating basis in the order in which the County receives the appeals.
(3)
After an applicant files an appeal, the appropriate Disability Arbitration Board or Police Disability Arbitration Board with whom the appeal is filed must convene within a reasonable time and consider the appeal.
(4)
The appeal and judicial review proceedings are governed by the Maryland Uniform Arbitration Act, except that a Board decision must not be vacated on the ground that the applicant who filed the appeal is not a bargaining unit member and did not agree to arbitrate the appeal.
(5)
The Chairpersons of the Disability Arbitration Boards and Police Disability Arbitration Board must, for the appeals before them:
(A)
decide all issues on prehearing procedures, including any issue related to discovery; and
(B)
rule on all issues of law that arise before the hearing, unless ruling on the issue would decide the appeal.
(6)
The Disability Arbitration Boards and Police Disability Arbitration Board must render decisions quickly. The Disability Arbitration Boards and Police Disability Arbitration Board should issue written decisions on appeals within 30 calendar days after the hearing or after receiving any post-hearing briefs.
(m)
Disability Arbitration Boards and Police Disability Arbitration Board.
(1)
(A)
The County Executive must appoint a different neutral arbitrator to be the Chairperson of each Disability Arbitration Board. The County Executive must select the neutral arbitrators from a list of 6 arbitrators agreed upon by the County and the certified representatives that represent all bargaining units except for the Police Bargaining Unit. To the extent possible, the 6 neutral arbitrators on the list should be experienced in law and occupational medicine. The appointment of the Chairperson of each Disability Arbitration Board must be confirmed by the County Council. The County must give each certified representative a copy of the Council resolution confirming the appointment or reappointment of each Chairperson promptly after the Council’s action.
(B)
The County Executive must appoint a neutral arbitrator to be Chairperson of the Police Disability Arbitration Board. The neutral arbitrator must be selected by the County and the certified representative of the Police Bargaining Unit either by agreement or through the processes of the American Arbitration Association. To the extent possible, the neutral arbitrator should be experienced in law and occupational medicine. The appointment of the Chairperson of the Police Disability Arbitration Board must be confirmed by the County Council
(2)
Each neutral arbitrator appointed by the County Executive under paragraph (1) must serve for a term of 3 years. At the expiration of the arbitrator's term, the arbitrator is eligible for reappointment to a new 3-year term unless, at any time within 30 to 60 days prior to the expiration of the 3-year term, either a certified representative gives written notice to the County or the County gives written notice to the certified representatives that it objects to the neutral arbitrator serving another term. If no objection is filed, the arbitrator is eligible for appointment to an additional term.
(3)
If the neutral arbitrator declines to be reappointed, dies, resigns, or for other cause is unable or ineligible to serve on one of the Disability Arbitration Boards or the Police Disability Arbitration Board, a new arbitrator must be appointed by the County Executive under paragraph (1).
(4)
The County must pay all reasonable fees and expenses of the arbitrators, as determined by the Chief Administrative Officer, except that a certified representative representing an applicant who is a member of the Office, Professional or Technical or Service, Labor and Trades Bargaining Unit must pay any fee resulting from the cancellation of a scheduled hearing if the certified representative:
(A)
causes a hearing to be canceled and the application remanded to the Disability Review Panel; or
(B)
causes a hearing to be canceled and rescheduled on a later date.
(5)
The applicant, or the certified representative on behalf of the applicant, must designate an individual to serve as a member of the Disability Arbitration Board that will consider and decide the applicant's appeal. The applicant must designate an individual to serve as a member of the Police Disability Arbitration Board. The Chief Administrative Officer must designate an individual to serve on the Disability Arbitration Board or Police Disability Arbitration Board that will consider and decide the applicant's appeal. The applicant, or the certified representative on behalf of the applicant, and the County, respectively, may designate Board members on a case-by-case basis according to each party's chosen procedure. There must be no restriction on who may serve as the designee of the applicant or the County, except that no member of the Board that will consider and decide an appeal may be involved in, or be a witness to, any matter that is before that Board.
(6)
Each party, including participating agencies, must be responsible for the fees and expenses of its respective members. Each party, including participating agencies, must also be responsible for its own witness fees and expenses.
(n)
Guaranteed retirement income plan. Subsections (a)-(m) do not apply to a participant in the guaranteed retirement income plan.
(1)
Non-public safety employees. If a non-public safety employee participant incurs a disability before termination from County employment which makes the participant unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months, the disabled participant must remain a participant in the guaranteed retirement income plan under the following rules:
(A)
All amounts credited to the participant’s guaranteed retirement income plan account, including County contributions, are 100% vested regardless of the participant’s credited service.
(B)
The participant must participate in the guaranteed retirement income plan under this Section until the participant dies, reaches his or her normal retirement date, or recovers from the disability.
(C)
In determining the credit amount of County contributions under Section 33-40, the participant’s regular earnings means the regular earnings the participant would have received for the year if the participant were paid for the full year at the rate of compensation paid in the pay period immediately before the participant became disabled.
(D)
The participant must not receive a distribution during any period in which the participant receives a County contribution credit.
(E)
The participant must not make member contributions under Section 33-39 during the disability participation.
(2)
Public Safety Employees. If a public safety employee participant incurs a disability before retirement or other separation from service which, in the opinion of a physician selected or approved by the Chief Administrative Officer, renders the participant unable to perform duties satisfactorily for the employment the participant held with the County before the disability, the participant’s employment and participation in the guaranteed retirement income plan must be terminated and deemed a disability retirement under the following rules:
(A)
All amounts credited to the participant’s guaranteed retirement income plan account, including County contributions, are 100% vested regardless of the participant’s years of credited service.
(B)
The Chief Administrative Officer must determine the date on which a disability retirement is effective. After a participant submits a properly completed distribution form, the Chief Administrative Officer must distribute the value of the former participant’s account balance to the former participant under this Section.
Montgomery County, Md., Code § 33-44 (2026)
Sec. 33-44. Pension payment options and cost-of-living adjustments.LinkCopy Citation
(a)
Pension payment options for optional and integrated plans.
(1)
A member may elect an optional form of pension actuarially equivalent to the normal form of retirement pension otherwise payable, unless the member qualifies for a non-service-connected disability retirement before reaching the early retirement date. The Chief Administrative Officer must not consider the health condition of the member when deciding what is “actuarially equivalent”.
(2)
A member who qualifies for non-service connected disability retirement on or after reaching the early retirement date may elect a pension payment option.
(3)
A member who qualifies for a service-connected disability retirement may elect a pension payment option, regardless of age and credited service.
(4)
To elect a pension payment option, the member must file the appropriate form at least one month before the normal, early, or disability retirement date.
(5)
The pension payment option must take effect on the member's retirement date and is void if the member or the named beneficiary dies before that date.
(6)
The following forms of pension options are available:
(A)
Ten-Year Certain and Continuous. The member will be paid a monthly income until death, with payments continued to the designated beneficiary until a total of one hundred twenty (120) monthly payments have been made. If the designated beneficiary dies before the end of the ten-year certain period, payments will be made to the contingent beneficiary. If the designated beneficiary and contingent beneficiary predecease the retiree, the retiree's estate shall be paid the amount of money representing the value of the annuity as of the date of death of the retiree. This option shall be the normal form of retirement pension for members enrolled before July 1, 1978, and continuously enrolled to date of retirement.
(B)
Cash Refund Pension Option (available to members who were members of the employees' retirement system of the state on August 15, 1965). If a member dies before the total pension payments made or due equal the present value of the pension determined on the member's retirement date, the difference will be paid to the member's beneficiary.
(C)
Joint and Survivor Pension Option.
(i)
Under this option, the County must make pension payments in an adjusted amount to the member during the member's lifetime and, at the member's death, make pension payments to the designated beneficiary (spouse, domestic partner, or children only) who survives. The County must make the pension payments to the surviving beneficiary for the rest of the beneficiary’s lifetime [pension payments] in the amount payable to the member or other amount elected by the member, but not less than 10 percent of the amount payable to the member.
(ii)
Upon the death of both the member and the beneficiary, a death benefit must be paid in the same manner as is provided under the normal form of retirement pension for which the member had been eligible.
(iii)
Pop-up Option. At retirement, the member may elect the pop-up variation of a joint and survivor option with an appropriate actuarial reduction. Under this option, if the member and designated beneficiary divorce or the designated beneficiary dies before the member dies, the member’s monthly payments for the rest of the member’s life must “pop up” to the amount that they would have been if the member had elected the modified cash refund annuity at retirement.
(D)
Modified Cash Refund Annuity. Lifetime pension payments will be payable to the member. If a member dies before receiving benefits in an amount equal to member contributions plus credited interest the difference will be payable to the designated beneficiary. This option shall be the normal form of retirement pension for members enrolled on or after July 1, 1978.
(b)
Voluntary adjustment of pension payment by a member who retires before qualifying to receive social security benefits.
(1)
A member may elect to receive an actuarial equivalent benefit of a certain level of pension payments until normal social security payments begin and an adjusted level of payments after normal social security payments begin. A member may elect these adjustments to receive a more uniform total income from both sources.
(2)
A member who elects to receive adjusted levels of pension payments under subsection (1) above must also choose one of the forms of pension payment options described in subsection (a)(6).
(3)
If a member dies, the County must pay the pension benefit to the member's designated beneficiary in the form elected by the member under subsection (a)(6).
(c)
Cost-of-living adjustment. A retired member or beneficiary, including the surviving spouse or domestic partner of a group D member or other beneficiary who survives the member under a pension option or who is otherwise eligible to receive benefits, must receive an annual cost-of-living adjustment in pension benefits.
(1)
Each retired member or beneficiary must have a cost-of-living base which must be the Consumer Price Index most recently preceding the date of the member's retirement or death.
(2)
The Consumer Price Index to be used for the fiscal year in which the cost-of-living adjustment is payable must be the index calculated for the month last preceding the end of the fiscal year immediately preceding the fiscal year in which the adjustment is to be effective.
(3)
The percentage cost-of-living adjustment of pension benefits must be obtained by dividing the most recent index determined under paragraph (2) by the next preceding index multiplied by 100 less 100.
(A)
A member enrolled before July 1, 1978, must receive the full cost-of- living adjustment.
(B)
A member enrolled on or after July 1, 1978, must receive 100 percent of the change in the consumer price index up to 3 percent, and 60 percent of any change in the consumer price index greater than 3 percent, up to a total adjustment of 7 ½ percent in any year. The 7 ½ percent annual limit does not apply to:
(i)
a retired member who is disabled; or
(ii)
a pensioner aged 65 or older for a fiscal year beginning after the date the pensioner reaches age 65.
(C)
A Group G member enrolled on or after July 1, 1978, must receive 100 percent of the change in the consumer price index up to 3 percent, and 60 percent of any change in the consumer price index greater than 3 percent, up to a total adjustment of 5 percent in any year. The 5 percent annual limit does not apply to:
(i)
a retired Group G member who is disabled; or
(ii)
a Group G pensioner aged 65 or older for a fiscal year beginning after the date the pensioner reaches age 65.
(4)
For the purpose of this section, “Consumer Price Index” means, beginning January 1, 1978, the Consumer Price Index for All Urban Consumers (CPU-I) for the Washington-Arlington-Alexandria Core Based Statistical Area (CBSA), as published by the United States Department of Labor, Bureau of Labor Statistics (for months before 1978, the Consumer Price Index published previously for urban wage earners and clerical workers for such months must be applicable.)
(5)
Pension benefits are subject to decreases in the Consumer Price Index. In no instance, however, must a retired member or beneficiary receive less than the amount of pension benefits for which eligible at the time of the member's retirement.
(6)
Notwithstanding the provisions of this Section, for members other than Group G members that qualify under subsection (3)(C), the cost-of-living adjustment must not exceed 2.5 percent for:
(A)
credited service beginning on the first pay period after June 30, 2011; or
(B)
a disability retirement pension based on a disability occurring after June 30, 2011.
(d)
Applicability of cost-of-living adjustments to surviving spouses or domestic partners of group D members. Effective July 1, 1973, the provisions of subsection (c) apply to an eligible surviving spouse or domestic partner of a group D member. The cost-of-living adjustment for the surviving spouse or domestic partner of a group D member who retired or died before July 1, 1970, must be based on the Consumer Price Index published as of August 15, 1955. The cost-of-living adjustment for the surviving spouse or domestic partner of a group D member who was an active member on June 30, 1970, and who retired or died on or after July 1, 1970, must be based on the Consumer Price Index published as of the date of the member's retirement or death, whichever is earlier.
(e)
Applicability of cost-of-living adjustments to elected officials' plan and the guaranteed retirement income plan. Cost-of-living adjustments do not apply to the elected officials' plan and the guaranteed retirement income plan.
(f)
Distributions from the elected officials' plan. The chief administrative officer must pay an elected officials' participant's account balances in the elected officials' plan upon normal retirement or withdrawal of vested county contributions under the provisions of this subsection.
(1)
Normal Method of Distribution. Unless the elected officials' participant elects an option under paragraph (2), the normal method of distribution must be a variable annuity that reflects investment gains and must be paid for the elected officials' participant's life.
(2)
Optional Methods of Distribution. An elected officials' participant may choose to have the account balances paid to that elected officials' participant in one of the following optional methods:
(A)
A single, lump-sum cash payment.
(B)
A joint and survivor annuity. A joint and survivor annuity as used in this subsection means an annuity payable for the life of the elected officials' participant, with a survivor's annuity payable for the life of the spouse or domestic partner of the elected officials' participant in an amount at least equal to one-half of the amount of the annuity payable during the joint lives of the elected officials' participant and the spouse or domestic partner of the elected officials' participant, and which is the actuarial equivalent of a single annuity for the life of a participant.
(C)
A single-life annuity that will be payable to the elected officials' participant during the life of that participant. If the elected officials' participant dies before receiving an amount equal to the required and voluntary elected officials' participant contributions account balances, including picked-up contributions, the difference must be paid to the beneficiary of the elected officials' participant.
(D)
A life annuity with a ten-year certain option. This option provides an adjusted pension payable as long as the elected officials' participant lives, but guaranteed for a period of ten (10) years beginning on the date the payment of the account balances is to begin. If an elected officials' participant dies before expiration of the guaranteed period, payment is continued to the beneficiary at the same rate. If the beneficiary dies after having received at least one (1) payment while further payments are due, the further payments are made to a person designated by the elected officials' participant as a contingent beneficiary, or, in the absence of a contingent surviving beneficiary, the commuted value of the payments is paid to the estate of the last surviving beneficiary in a single lump-sum.
(E)
An annuity that provides gradually increasing pension payments, based on the elected officials' participant's life expectancy at the time of retirement. The payments are made for the life of the elected officials' participant.
(F)
Payment of the account balances of the elected official participant in the form of as nearly equal periodic payments as the market will allow, over a period not exceeding the lesser of the joint life expectancy of the elected officials’ participant and the elected officials’ participant’s beneficiary or twenty (20) years. Notwithstanding the preceding, payments must comply with the requirements of Internal Revenue Code Section 401(a)(9), as amended, and the corresponding Treasury Regulations.
(3)
If benefits under the elected officials' plan are payable under any method other than the lump sum method, the chief administrative officer may utilize the account balances of the elected officials' participant to buy an annuity contract from an insurance company authorized to do business in the State of Maryland. The contract must provide for payment in the method the elected officials' participant chose.
(4)
The county executive may adopt regulations under method (3) to provide a procedure for an elected officials' participant to choose an alternate method of distribution.
(g)
Distributions from the Guaranteed Retirement Income Plan. A participant who receives a contribution under Section 33-42A must not receive a distribution until the participant attains the Social Security retirement age. Any other participant may receive a distribution when the participant terminates County employment. A participant may elect a distribution from the guaranteed retirement income plan of a participant’s vested guaranteed retirement income plan account balance as follows:
(1)
Lump Sum Method of Distribution. Unless a participant elects an annuity under paragraph (2), a participant must receive the participant’s vested guaranteed retirement income plan account balance in a single lump sum. The participant may have the lump sum paid as a direct rollover to an eligible retirement plan as defined in the Internal Revenue Code.
(2)
Annuity Method of Distribution. A participant may elect to receive the participant’s guaranteed retirement income plan account balance paid in:
(A)
a single life annuity payable to the participant during the life of that participant; or
(B)
a joint and survivor annuity payable to the participant over the participant’s lifetime and, at the participant’s death, payable to the designated beneficiary (spouse, domestic partner, or children only) who survives. Payments must be made for the designated beneficiary’s lifetime in the amount payable to the participant or another amount elected by the participant, but not less than 10 percent of the amount payable to the participant.
(3)
No other form of payment options listed in this Section is available to guaranteed retirement income plan participants.
(h)
(1)
Required commencement of benefit payments from the elected officials’ plan. The distribution of an elected officials’ participant’s retirement benefits must be made no later than April 1 of the calendar year following the later of the calendar year in which the elected officials’ participant attains age 72 or the calendar year in which the elected officials’ participant retires. In the alternative, the payment of benefits to an elected officials’ participant must begin not later than such April 1 under a method of payment that, in accordance with the applicable United States Treasury Regulations, provides for distribution of the elected officials’ participant’s benefits over:
(A)
The life of the elected official's participant;
(B)
The lives of the elected officials' participant and the elected officials' participant's designated beneficiary;
(C)
A period not extending beyond the life expectancy of the elected officials' participant; or
(D)
A period not extending beyond the life expectancy of the elected officials' participant and the elected officials' participant's designated beneficiary.
(2)
Notwithstanding any other provision, an elected official’s account balance of $1,000 or less must be automatically distributed in a lump sum as soon as administratively feasible after termination of employment without a request from the elected official. If the distribution cannot be made because the elected official cannot be located, the elected official will forfeit the amount. If the elected official later contacts the County, the elected official will receive the forfeited amount.
(3)
Notwithstanding this subsection, an elected officials’ participant or beneficiary who would have been required to receive a minimum required distribution for 2020 but for the enactment of Internal Revenue Code Section 401(a)(9)(I), must receive those distributions for 2020 unless the participant or beneficiary elects not to receive such distributions.
(i)
Period for distribution of death benefits of a retired elected officials’ participant who elected to receive benefits in the form of an annuity.. Any death benefits must be paid to a joint annuitant or beneficiary under the terms of the annuity elected.
(j)
Period for distribution of death benefits of an elected officials’ participant who was not receiving benefits or who was receiving benefits in the form other than an annuity. Benefits must be distributed before the end of the calendar year containing the fifth anniversary of the elected official participant’s death; however, the five-year rule does not apply:
(1)
If any portion of the elected officials’ participant’s benefit is payable to, or for the benefit of, an individual designated as a beneficiary, the benefits must be distributed by the end of the calendar year containing the tenth anniversary of the elected officials’ participant’s death.
(2)
If any portion of the elected officials’ participant’s benefit is payable to, or for the benefit of, an eligible designated beneficiary as defined in Internal Revenue Code Section 401(a)(9)(E)(ii), benefits are payable as follows:
(A)
The distributions must commence before the end of the calendar year following the calendar year in which the elected official’s participant’s death occurred.
(B)
The portion of the elected officials’ participant’s benefit to which the eligible designated beneficiary is entitled must be distributed over the life of the eligible designated beneficiary, or over a period not extending beyond the life expectancy of the eligible designated beneficiary.
(C)
If the eligible designated beneficiary is a surviving spouse, the distributions may instead commence before the later of the end of the calendar year following the calendar year in which the participant died or the end of the calendar year in which the elected officials’ participant would have attained age 72.
(D)
If the eligible designated beneficiary is a child who has not reached majority, the benefit must be paid within 10 years of the date when the child reaches the age of majority (or other designated event permitted under applicable Treasury Regulations).
(k)
Required commencement of benefit payments for members of the optional or integrated plans. The distribution of a member’s retirement benefit must be made, or must begin, no later than April 1 of the calendar year following the later of the calendar year in which the member attains age 72 or the calendar year in which the member retires.
(l)
Period for distribution of death benefits of a retired member of the optional or integrated plan who was receiving benefits in the form of an annuity. Any death benefits must be paid to a joint annuitant or beneficiary under the terms of the annuity elected.
(m)
Period for distribution of death benefits of a member of the optional or integrated plan who was not receiving benefits and the death benefit is a return of member contributions with credited interest. The benefit must be distributed before the end of the calendar year containing the fifth anniversary of the member’s death.
(n)
Required distribution for guaranteed retirement income plan participants.
(1)
The distribution of a participant’s guaranteed retirement income plan account balance must be made no later than April 1 of the calendar year after the later of the calendar year in which the participant attains age 72 or the calendar year in which the participant terminates employment. Distributions must be made in accordance with subsection (g). If the participant does not elect a form of distribution, the distribution must be made in a lump sum. If the participant dies before beginning to receive benefits, the participant’s designated beneficiary under 33-46(h) must receive a lump sum distribution as soon as practicable after the participant’s death, but not later than the December 31st of the year containing the fifth anniversary of the participant’s death.
(2)
A participant’s account balance of $1,000 or less must be automatically distributed in a lump sum as soon as administratively feasible after termination of employment without a request from the participant.
(o)
Actuarial assumptions. The actuarial assumptions that will be used to determine the equivalence of various optional benefits are:
(1)
Net interest rates (the difference between a gross interest rate and a cost-of-living allowance assumption): for actuarial equivalence under the optional nonintegrated and optional integrated provisions, the gross interest rate is six (6) percent per year, the cost-of-living allowance assumption is three (3) percent per year, and the net interest rate is three (3) percent per year; for actuarial equivalence under the mandatory integrated plan, the gross interest rate is six (6) percent per year, the cost-of-living allowance assumption is one and eight-tenths (1.8) percent per year and the net interest rate is four and two-tenths (4.2) percent per year.
(2)
Mortality rate: UP 84 Mortality Table.
(p)
Limitation on benefits. Notwithstanding any provision governing the retirement system to the contrary, the benefits provided by the retirement system for members whose anticipated annual benefit provided by such contributions will exceed fifteen hundred dollars ($1,500.00), and who are within the twenty-five (25) highest paid employees as of the time of the establishment of the retirement system (including any such highest paid employees who are not members at the time but who may later become members) must be subject to the conditions which are stated from time to time in applicable United States Treasury Regulations. The restrictions also apply to any increases in benefits following the establishment of the retirement system, as may be provided for in applicable United States Treasury Regulations.
(q)
Direct rollover distributions.
A member or beneficiary may elect, in any manner prescribed by the Chief Administrative Officer at any time, to have any portion of eligible rollover distribution paid directly to an eligible retirement plan specified by the member in a direct rollover. A member may not elect a direct rollover if the eligible rollover distribution is less than $200.00. As used in this subsection:
(1)
direct rollover means a payment from the retirement system to the eligible retirement plan specified by the member;
(2)
eligible retirement plan means:
(A)
an individual retirement account described in Internal Revenue Code Section 408(a);
(B)
an individual retirement annuity described in Internal Revenue Code Section 408(b) (other than an endowment contract);
(C)
a qualified trust;
(D)
an annuity plan described in Internal Revenue Code Section 403(a);
(E)
an eligible deferred compensation plan described in Internal Revenue Code Section 457(b) which is maintained by an eligible employer described in Internal Revenue Code Section 457(e)(1)(A); or
(F)
an annuity described in Internal Revenue Code Section 403(b).
(3)
eligible rollover distribution means any distribution of all or any portion of the retirement benefit; except:
(A)
any distribution which is one of a series of substantially equal periodic payments (not less frequently than annually) made:
(i)
for the life (or life expectancy) of the employee or the joint lives (or joint life expectancies) of the employee and the employee’s designated beneficiary; or
(ii)
for a specified period of 10 years or more; or
(B)
any distribution to the extent such distribution is required under Section 401(a)(9) of the Internal Revenue Code, as amended; and
(4)
beneficiary includes a non-spouse beneficiary. A non-spouse beneficiary may make a direct rollover only to an inherited individual retirement account or annuity described in Sections 408(a) or 408(b) of the Internal Revenue Code that is established on behalf of the non-spouse beneficiary. Such rollover must be made in a manner consistent with Section 402(c)(11) of the Internal Revenue Code and any other applicable guidance.
(r)
Limitations Under Internal Revenue Code. Distributions under a plan must be subject to the limitations of Section 401(a)(9) of the Internal Revenue Code, including the incidental death benefit rules under Section 401(a)(9)(G) of the Internal Revenue Code, in accordance with any proposed or final regulations under Section 401(a)(9) of the Internal Revenue Code.
(s)
Transfer from Retirement Savings Plan. A participant who transfers his or her retirement savings plan account balance under Section 33-120 may elect to receive his or her account balance paid as an annuity under subsection (g)(2).
(a)
the amendments in Section 1 to §§ 33-44 and 33-120 increasing the required distribution age from 70 ½ to 72 must take effect for individuals attaining age 70 ½ after December 31, 2019; and
(b)
the amendments in Section 1 to §§ 33-44 and 33-120 requiring distributions to beneficiaries upon a participant’s death must take effect for deaths occurring after December 31, 2021.
2003, ch. 3, § 1, states: Rule of Interpretation. The amendments made by Section 1 of this Act must be interpreted to comply with requirements stated in letters issued on December 11, 2002, and January 14, 2003, by the Internal Revenue Service to the County regarding the continued qualification of County employee retirement plans. 2003, ch. 3, § 2, states, in part: Retroactivity. (f) The amendment made by Section 1 of this Act to Code Section 33-44 takes effect January 1, 2001.
Montgomery County, Md., Code § 33-45 (2026)
Sec. 33-45. Vested benefits and withdrawal of contributions.LinkCopy Citation
(a)
Eligibility for vesting for optional and integrated plans. A member must complete 5 years of membership before the member is qualified to vest, except that a member who has transferred service credit from a public retirement system in Maryland may use that service credit to qualify for vesting. A vested member must leave all member contributions, plus credited interest, in the fund to be eligible to receive retirement benefits. Notwithstanding the preceding, a member may use credited service under any County retirement plan as credited service for vesting purposes.
(b)
Withdrawal of contributions for optional and integrated plans.
(1)
In accordance with paragraph (2), the County must refund a member’s contributions with credited interest to:
(A)
a member whose County service ends before the member is eligible to vest; and
(B)
a member eligible to vest whose County service ends and who voluntarily elects to withdraw, thus ceasing to be a member.
(2)
(A)
If a member’s contributions and interest are more than $1,000, to obtain a refund of contributions, a member must properly complete and submit an application for a refund.
(B)
If a member’s contribution and interest are more than $1,000, and the member does not properly complete and submit an application for a refund, the County must refund the contributions with credited interest under the minimum distribution requirements of the Internal Revenue Code and corresponding regulations.
(C)
Notwithstanding any other provision, if the member’s contributions and interest is $1,000 or less, the amount must be distributed in a lump sum as soon as administratively feasible after termination of employment even if the member does not submit an application. If the distribution cannot be made because the member cannot be located, the member will forfeit the amount. If the member later contacts the County, the member will receive the forfeited amount.
(3)
If a vested member dies before the normal retirement date, the County must pay the designated beneficiary a lump sum death benefit equal to the member's contributions plus credited interest.
(c)
Vested benefits.
(1)
Before July 1, 1989, a vested member is eligible to receive a percentage of the normal retirement pension that has accrued to date of termination, with payments beginning on the first day of the month following the member's normal retirement date. Percentage of vested rights will be based on years and months of credited service under the following schedule:
Completed Years of Credited Service | Percentage of Vested Rights
5 | 50%
6 | 60%
7 | 70%
8 | 80%
9 | 90%
10 or more | 100%
If a vested member who has reached normal retirement date dies after qualifying to receive retirement benefits, the designated beneficiary is entitled to receive whatever benefits may be provided under the pension payment option elected. However, an elected or appointed member who has completed 5 years in office, vests 100 percent if the member's service terminates before normal retirement date with a minimum monthly benefit of $150.00.
(2)
On or after July 1, 1989, a member who has completed 5 years of credited service is fully vested in a normal retirement pension that has accrued to date of termination, with payments beginning on the first day of the month following the member's normal retirement date.
(3)
A former member who has completed 5 years of credited service but has not completed 10 years of credited service, who did not elect to receive a return of accumulated member contributions upon termination of employment, and who returns to county service on or after July 1, 1989, must complete one additional year of credited service before becoming fully vested.
(4)
A former member who has completed 10 years of credited service, who did receive a return of accumulated member contributions upon termination of employment and who returns to county service on or after July 1, 1989, must complete 5 additional years of credited service, before becoming fully vested. However, if the member purchases prior county service under section 33-41(1), the member must complete the number of years of credited service which in addition to those years purchased under section 33-41(1) equals 5 years of credited service, but in no event may the member fully vest without completing at least one additional year of credited service.
(5)
If a vested member who has reached normal retirement date dies after qualifying to receive retirement benefits, the designated beneficiary is entitled to receive whatever benefits are provided under the pension payment option elected. If a vested member who has reached normal retirement date dies after qualifying to receive retirement benefits, but has not designated a beneficiary, no benefit will be paid unless required by another provision governing the retirement system.
(6)
An elected or appointed member who has completed 5 years in office, and is not otherwise fully vested under paragraphs (c)(2) through (c)(5) of this section will vest 100 percent if the member's service terminates before normal retirement date with a minimum monthly benefit of $150.00. However, an elected or appointed member who has any combination of years of credited service or years in office, will vest 100 percent if the member's service terminates before normal retirement date.
(7)
Vested benefits for a member who is an elected official on July 1, 1989, will be determined under paragraph (c)(1) of this section before December 3, 1990. On and after December 3, 1990, the elected official's vested benefits will be determined under paragraphs (c)(2) through (c)(6) of this section.
(8)
Vesting for the guaranteed retirement income plan. A member, except a member who is an elected official, has a 100% vested interest in the member’s County contribution credits and the credited interest on the member’s County contribution credits after the member attains 3 years of credited service. A member who is an elected official has a 100% vested interest in the member’s County contribution credits and the credited interest on the member’s County contribution credits after the member attains the lesser of a full term of office or 4 years of credited services. A member who is not 100% vested in accordance with the preceding two sentences must become 100% vested in the member’s County contribution credits and the credited interest on the County contribution credits from the effective date of a termination of the guaranteed retirement income plan or upon death or disability. A member is disabled if the member is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months. A member who terminates employment with the County and is not vested in any County contribution credits or the credited interest on the County contribution credits must forfeit the County contribution credits plus the credited interest on the County contributions credits.
(9)
For purposes of this subsection, vesting will be in accordance with Section 401(a)(37) of the Internal Revenue Code. Effective January 1, 2007, the beneficiary of a member on a leave of absence to perform military service with reemployment rights described in Section 414(u) of the Internal Revenue Code, where the member cannot return to employment on account of his or her death, must be entitled to any additional benefits (other than benefit accruals relating to the period of qualified military service) that would be provided under the employees’ retirement system had the member died as an active employee, in accordance with Section 401(a)(37) of the Internal Revenue Code. This provision applies to the elected officials’ plan, the guaranteed retirement income plan, and the optional and integrated plans.
(d)
Discontinued service retirement for optional and integrated plans.
(1)
Any member whose employment has been terminated by an administrative action may elect a discontinued service pension if the member has at least 10 years of continuous service. Except for a Group G member, pension payments must begin on the member's early retirement date, or immediately if the member is eligible for early retirement. For a Group G member, pension payments must begin on the member’s normal retirement date, or immediately if the member is eligible for normal retirement.
(2)
A member who has been dismissed for cause or who has resigned is not eligible for a discontinued service pension.
(3)
A member enrolled on or before June 30, 1978, and continuously enrolled thereafter, may substitute 10 or more years of credited service for the 10 or more years of continuous service requirement.
(4)
The discontinued service retirement pension of a member who has been continuously enrolled in the retirement system since before July 1, 1978, is the amount of pension the member would have received under Section 33-42(b) for regular retirement, as modified as follows:
(A)
substitute "final earnings" wherever the term "average final earnings" appears in the applicable formula under Section 33-42(b);
(B)
add 5 percent of final earnings; and
(C)
treat a member who submitted an application to transfer from the optional plan to the integrated plan before September 26, 1983, as if the member had remained in the optional plan.
(5)
The discontinued service retirement pension of any other member is the amount of pension the member would have received under Section 33-42(b)(2) for regular retirement.
(e)
Discontinued service benefits of elected and appointed members.
(1)
If an elected or appointed member with 10 or more years of credited service, is not reappointed or reelected, the member may opt to:
(A)
receive a pension immediately, if the member enrolled or reenrolled before January 22, 1974; or
(B)
receive a pension at age 60, if the member enrolled or reenrolled on or after January 22, 1974.
(2)
The pension for a member enrolled or reenrolled on or before September 26, 1983, or who submitted an application to transfer from the optional plan to the integrated plan before September 26, 1983, is the pension the member would have received under Section 33-42(b) for regular retirement, except that:
(A)
"final earnings" replaces "average final earnings" in the applicable formula in Section 33-42(b);
(B)
a member who submitted an application to transfer from the optional plan to the integrated plan before September 26, 1983, must be treated as if the member had remained in the optional plan; and
(C)
the monthly benefit must be at least $300.00.
(3)
The pension for a member enrolled or reenrolled after September 26, 1983, or a member who submits an application to transfer from the optional plan to the integrated plan after September 26, 1983, is the amount of pension the member would have received under Section 33-42(b)(2) for regular retirement, except that:
(A)
"final earnings" replaces "average final earnings" in the applicable formula in Section 33-42(b); and
(B)
the monthly benefit must be at least $300.
(f)
[Exception.] Section 33-45 does not apply to the elected officials' plan.
(g)
Limitation on the use of forfeitures. Except as provided in section 33-40(c), any forfeitures arising through the termination of members who have not attained full vesting must not be used to increase the benefits of any other member in the retirement system.
Montgomery County, Md., Code § 33-46 (2026)
Sec. 33-46. Death benefits and designation of beneficiaries.LinkCopy Citation
(a)
Beneficiary death benefits of an active member whose death is not service connected. Upon the death of a member under circumstances not covered by subsection (b), the designated beneficiary must receive a death benefit payment equal to:
(1)
member contributions, including picked-up contributions, with credited interest, or a spouse's, or domestic partner's, and children's benefit as provided in subsection (e); plus
(2)
50 percent of average final earnings if the member was a member of the employees' retirement system of the state of Maryland as of August 15, 1965, and became a member of the employees' retirement system of the County on or before December 31, 1966, or such later agency entrance date without a break in service, and who is not on leave without pay except for authorized leave without pay for illness.
(b)
Spouse's, or domestic partner’s, and children's benefits of a member whose death is service connected.
(1)
(A)
If a member other than a Group F or G member dies while employed by the County or a participating agency and the employing department or agency, a beneficiary, or another person submits satisfactory proof to the Chief Administrative Officer that the employee’s death resulted from injuries sustained in the line of duty or was directly attributable to the inherent hazards of the duties the employee performed and the death was not due to willful negligence, the County must pay benefits as follows:
(i)
a spouse's or domestic partner’s benefit equal to 25 percent of the member's final earnings, paid as a monthly benefit for the spouse’s or partner’s life, but not less than $250 per month; plus
(ii)
a child's benefit equal to 5 percent of the member's final earnings, paid as a monthly benefit, but not less than $50 per month until the child reaches age 21 or for life if the child is disabled and incapable of self-support.
(B)
The Chief Administrative Officer must ensure that the maximum total benefit for a spouse or domestic partner and child must not exceed 40 percent of the member's final earnings.
(C)
The Chief Administrative Officer must not pay the benefit to the spouse or domestic partner and child if the spouse or domestic partner elects to receive benefits under subsection (e). However, the Chief Administrator must pay a child's benefit if the eligible spouse or domestic partner dies before the child is 21 years old.
(2)
Except as provided under paragraph (4) of this subsection (b), the Chief Administrative Officer must pay death benefits to the spouse or domestic partner and child of a Group F or G member as if the member had been receiving a service-connected disability pension on the date of the member’s death and had selected a joint and survivor pension option of 100 percent of the amount payable to the member, if:
(A)
the Group F or G member died while employed by the County; and
(B)
the employing department, a beneficiary, or another person submits satisfactory proof to the Chief Administrative Officer that the member’s death:
(i)
resulted from injuries the employee received in the line of duty or was directly attributable to the inherent hazards of the duties the employee performed; and
(ii)
was not due to the employee’s willful negligence.
(3)
Except as provided under paragraph (4) of this subsection (b), the Chief Administrative Officer must pay a benefit to the spouse or domestic partner and children of a Group G member who dies on or after July 1, 2004, or of a Group F member who dies on or after January 1, 2025, under the conditions stated in paragraph (2) of subsection (b) as if the member had died while receiving a service connected disability retirement benefit of at least 70 percent of the member’s final earnings.
(4)
Group F or G – Line of duty death benefits for surviving spouses or domestic partners and children.
(A)
Within 60 days of the death of a Group F or G member under the conditions stated under paragraph (2) of subsection (b), the surviving spouse or domestic partner and children may elect to receive:
(i)
upon the death of a Group F member, the benefit the spouse or domestic partner and children would have received if the member had terminated employment on the day before the date of death with exactly 25 years of total credited service, as described in Section 33-41, and had elected a 100 percent joint and survivor pension option;
(ii)
upon the death of a Group G member, the benefit the spouse or domestic partner and children would have received if the member had terminated employment on the day before the date of death with exactly 20 years of total credited service, as described in Section 33-41, and had elected a 100 percent joint and survivor pension option;
(iii)
the benefit under paragraph (2) of this subsection (b); or
(iv)
if the member died after becoming eligible to vest or retire, the benefit under subsection (e) of this section.
(B)
The Chief Administrative Officer must process the election under subparagraph (A) of this paragraph immediately upon receipt of the election.
(C)
The benefit under subparagraph (A) of this paragraph:
(i)
becomes payable upon the date the Group F or G member died; and
(ii)
must be paid beginning on the first of the month following the date the County receives the election of benefit under subparagraph (A) of this paragraph.
(c)
Spouse's, or domestic partner's, and children's benefits when a member who has retired on a disability dies. When a member who has retired on a disability dies, the spouse or domestic partner is entitled to receive the death benefits provided under the pension payment option elected. If the spouse or domestic partner died before the member, any child of the retiree less than 21 years old is entitled to receive these death benefits, shared equally among the member's children who are less than 21 years old.
(d)
Actuarial value of spouse's, or domestic partner's, and children's benefits. If the actuarial value of a spouse's, or domestic partner's, and children's benefit is less than the death benefit payment otherwise payable under subsection (a), the County must pay the death benefit or the benefit's actuarial equivalent instead of the spouse's, or domestic partner's, and children's benefit.
(e)
Spouse's, or domestic partner's, and children's benefits when an active member eligible for vesting or retirement dies.
(1)
A surviving spouse, domestic partner, or child who is the designated beneficiary of a member who died after becoming eligible to vest or retire, may elect within 60 days after the member’s death a benefit equal to the yearly amount of benefits that would have been payable if the member had vested or retired immediately before death and had elected a 100 percent joint and survivor pension option. The payments must begin on the member’s normal retirement date if the member was eligible for vesting, or immediately if the member was eligible for retirement.
(2)
If the designated beneficiary who would receive a death benefit under paragraph (1) dies before the death benefit payments begin and the member designated a contingent beneficiary, the death benefit under subsection (a) must be paid to the contingent beneficiary designated by the member (or to a person designated by the beneficiary if the member left no enforceable contingent beneficiary designation.)
(3)
If the member meets the requirements for the benefit in subsection (a)(2), the beneficiary also is entitled to receive a death benefit equal to 50 percent of the member's average final earnings.
(f)
Designation of beneficiaries.
(1)
A member may name a primary beneficiary or beneficiaries and contingent beneficiary or beneficiaries on a designation of beneficiaries form to be filed with the Office of Human Resources. If a member names 2 or more persons as beneficiaries, the persons must be considered co-beneficiaries unless the member specifies otherwise. A member may change any named beneficiary by written request. The consent of the beneficiary or beneficiaries is not required to name or change a beneficiary. The designation is effective when the member signs the request even if the member is not living when the Office receives the request, but without prejudice for any payments made before the Office received the request.
(2)
If a member dies without designating a surviving beneficiary or the designation is not enforceable, the surviving spouse or domestic partner (or if there is no surviving spouse or domestic partner, each surviving child, sharing equally with any other surviving child) is the designated beneficiary for purposes of this Section and any other death benefit provided to a "designated beneficiary" under the Employees' Retirement System. If no spouse, domestic partner, or child survives a member who left no enforceable beneficiary designation, the member's estate is the designated beneficiary.
(g)
Elected officials plan. If an elected officials' participant dies before the County has implemented the method of distribution of benefits to the elected officials participant under a method of distribution designated in Section 33-44, the elected officials' participant's vested County elected officials' contributions account balance, including picked-up contributions, and the amounts distributable under Section 33-39(c)(2) from the elected officials' plan, must be distributed to the elected officials' participant's designated beneficiary. A beneficiary may choose to have benefits distributed in any method listed in Section 33-44(f)(2). If the beneficiary does not choose a method of distribution, the method of distribution must be a variable annuity that reflects investment gains and is payable for the beneficiary's life. The County Executive may provide by regulation adopted under method (3) a procedure for a beneficiary to choose a method of distribution.
(1)
A participant may name a primary beneficiary or beneficiaries and contingent beneficiary or beneficiaries on a designation of beneficiary form filed with the Office of Human Resources, or designee of the Chief Administrative Officer, including a third party service provider. If a participant names 2 or more persons as beneficiaries, the persons are considered co-beneficiaries and share the benefit equally unless the participant specifies otherwise on the designation of beneficiary form. A participant may change any named beneficiary by completing a new designation of beneficiary form. The consent of the beneficiary or beneficiaries is not required to name or change a beneficiary. The designation is effective if the form is received by the Office or the designee of the Chief Administrative Officer, including a third party service provider, during a participant’s lifetime.
(2)
If a participant dies without designating a surviving beneficiary or the designation is not enforceable under subsection (i), the surviving spouse or domestic partner (or if there is no surviving spouse or domestic partner, each surviving child, sharing equally with any other surviving child) is the designated beneficiary. If no spouse, domestic partner, or child survives a participant who left no enforceable beneficiary designation, the participant’s estate is the designated beneficiary.
(h)
Guaranteed retirement income plan. Subsections (a)-(g) do not apply to the guaranteed retirement income plan. If a participant dies before receiving the participant’s guaranteed retirement income plan account, the guaranteed retirement income plan account balance must be distributed to the participant’s designated beneficiary in a lump sum as soon as practicable after the participant’s death, but not later than the December 31st of the year containing the fifth anniversary of the participant’s death.
(1)
A participant may name a primary beneficiary or beneficiaries and contingent beneficiary or beneficiaries on a designation of beneficiaries form filed with the Office of Human Resources, or designee of the Chief Administrative Officer. If a participant names 2 or more persons as beneficiaries, the persons are considered co-beneficiaries and share the benefit equally unless the participant specifies otherwise on the designation of beneficiaries form. A participant may change any named beneficiary by completing a new designation of beneficiaries form. The consent of the beneficiary or beneficiaries is not required to name or change a beneficiary. The designation is effective when the participant signs the form even if the participant is not living when the Office, or designee of the Chief Administrative Officer, receives the request, but without prejudice for any payments made before the Office, or the designee of the Chief Administrative Officer, received the request.
(2)
If a participant dies without designating a surviving beneficiary or the designation is not enforceable under subsection (i), the surviving spouse or domestic partner (or if there is no surviving spouse or domestic partner, each surviving child, sharing equally with any other surviving child) is the designated beneficiary. If no spouse, domestic partner, or child survives a participant who left no enforceable beneficiary designation, the participant’s estate is the designated beneficiary.
(i)
For purposes of this Section, a beneficiary designation is “not enforceable” if:
(1)
the designated beneficiary:
(A)
predeceases the member;
(B)
disclaims the benefit; or
(C)
is not an identifiable person; or
(2)
the designation is legally void for any reason.
Sec. 4. Retroactivity. Section 33-46(b)(4), as amended by this Act, must apply retroactively to the death of a member occurring on or after January 1, 2025. A surviving spouse of a member who died on or after January 1, 2025 and before the effective date of this Act may make their election of a benefit under Section 33-46(b)(4) within 60 days after the effective date of this Act. The benefit under this Section 3 becomes payable upon the date the member died.
Sec. 5. Construction. This Act must not be construed to: (1) offset, diminish, or alter death benefits provided under a collectively bargained agreement; or (2) reopen a collectively bargained agreement.
(a)
This Act applies to Employees’ Retirement System benefits that are based on the death of a member on or after January 1, 1995.
(b)
The Department of Human Resources must notify:
(1)
active employees;
(2)
retirees; and
(3)
any surviving spouse or child of a member who died on or after January 1, 1995,
about the changes in law contained in this Act. The Department may notify active employees and retirees in any form designed to reach substantially all active employees and retirees. The Department must provide actual notice to any known surviving spouse, surviving child, and other person affected by this Act in connection with the death of a member between January 1, 1995 and the date this Act takes effect [Nov. 17, 1997].
(c)
Any person affected by this Act in connection with the death of a member between January 1, 1995, and the date this Act takes effect [Nov. 17, 1997], within 60 days after the person receives the notice required by this Section, file any election of benefits or any other document that the person could have filed if this Act were in effect when the member died.
(d)
The notification requirement in subsection (b) and the authority under subsection (c) to file an election of benefits or other document expire after December 31, 1999.
(e)
If the System paid a death benefit on behalf of a member who died on or after January 1, 1995, to the member’s estate before May 15, 1997, any benefit that becomes payable to a surviving spouse or child of the member because of this Act must be reduced by the amount of the System’s payment to the member’s estate."
Division 4. Administration.
Montgomery County, Md., Code § 33-47 (2026)
Sec. 33-47. Administration.LinkCopy Citation
(a)
Responsibility for administration. Except as otherwise provided in this chapter, the Chief Administrative Officer has the exclusive authority to manage and administer the eligibility for benefits, mandatory financial reporting, and calculation and distribution of benefits under the retirement system.
(b)
Regulations for administration. The County Executive must establish regulations, adopted under method (1) of Section 2A-15 of this Code, for the administration of the retirement system, within the limitations of this Article. However, the County Executive must establish regulations, adopted under method (3) of Section 2A-15, for the administration of the elected officials’ plan.
(c)
Reserved.
(d)
Powers and duties of the Chief Administrative Officer. The Chief Administrative Officer has, but is not limited to, the following powers and duties:
(1)
interpret the provisions of the retirement system;
(2)
decide the eligibility of any employee and the rights of any member or beneficiary to receive benefits;
(3)
compute the amount of benefits payable to any member or beneficiary;
(4)
authorize disbursements of benefits;
(5)
keep records;
(6)
consider the recommendation of the actuary for the retirement system on contributions the County makes under this article;
(7)
incur expenses as necessary for the Chief Administrative Officer to administer the retirement system;
(8)
disclose the reports prepared under Section 33-51;
(9)
prepare and file reports that are required by law;
(10)
in connection with the participation or withdrawal of an agency as a participating agency in the retirement system:
(A)
obtain any data and require any documentation that the Chief Administrative Officer finds necessary;
(B)
retain an independent actuary not otherwise under contract to the system to compute the valuation of the accrued benefit of any member or group of members upon withdrawal from the retirement system by a formula set out in regulations adopted under subsection (b); and
(C)
authorize the transfer of accrued benefits to another retirement system qualified under the Internal Revenue Code;
(11)
authorize the refund of member contributions, and earnings thereon, to correct any contribution or withholding error; and
(12)
delegate any power or duty under this Section.
(e)
Payment of expenses and contributions.
(1)
The County must pay contributions of the County to the retirement system from appropriations approved by the County Council.
(2)
The board must pay:
(A)
operating expenses of the integrated retirement plan, the optional retirement plan, and the guaranteed retirement income plan from the assets of these plans; and
(B)
operating expenses of the elected officials’ plan from plan assets or from County government assets, at the direction of the Chief Administrative Officer.
(f)
Exemption. Chapter 11B does not apply to procurement of goods and services for the retirement system by the chief administrative officer.
Montgomery County, Md., Code § 33-48 (2026)
Sec. 33-48. Reserved.LinkCopy Citation
In adopting chapter 49 of the Laws of Montgomery County (Bill 54-84), it was not the legislative intent that the disability retirement hearing board and any medical review committee cease to function immediately. It was the legislative intent that the board and committees continue to function until a final decision is made on all disability retirement applications filed before the date on which the disability benefits program under article VI of chapter 33 takes effect.
Any action taken by the disability hearing board and any medical review committee since August 11, 1985, are to be given the same force and effect as if this act had been in effect when the actions were taken.”
Montgomery County, Md., Code § 33-49 (2026)
Sec. 33-49. Reserved.LinkCopy Citation
Montgomery County, Md., Code § 33-50 (2026)
Sec. 33-50. Reserved.LinkCopy Citation
Montgomery County, Md., Code § 33-51 (2026)
Sec. 33-51. Reports and audits.LinkCopy Citation
(a)
Annual and quarterly reports.
(1)
By February 15 of each year, the chief administrative officer must submit to the county council and county executive an annual report on the status of the retirement system for the preceding fiscal year. The chief administrative officer must make the report available to all interested county officials, each member of the retirement system, and the public.
(2)
The chief administrative officer must submit to the council a proposed format of the first annual report that includes the investment performance report of the board. The council must approve or disapprove the format and may request the chief administrator officer to provide additional information in the report. If the council does not act on the format within forty-five (45) days after the chief administrative officer submits the format, the format is automatically approved. The council may extend the time to consider the format for an additional forty-five (45) days.
(3)
The council may request the chief administrative officer or the board to provide additional information in the annual report or in additional reports. The chief administrative officer and the board must provide the additional information.
(4)
The chief administrative officer must submit to the council quarterly reports on the status of the retirement system. In a quarterly report the chief administrative officer may summarize information provided in an annual report.
(5)
By March 31 of each year, the Chief Administrative Officer must submit to the Council and the Executive an annual report on the disability retirement system for the preceding calendar year that includes the number of disability retirement applications, awards, appeals, and re-examinations of retirees for each retirement group. The Council may request the Chief Administrative Officer to provide additional information in the annual report or in additional reports. The Chief Administrative Officer must provide the additional information.
(b)
Annual report of member contributions and credited interest. Except for the elected officials' participant contributions to the elected officials' plan, the Board must give each member by December 1 of each year a report on the member's contributions with credited interest as of June 30 of the preceding fiscal year. The Board must give each elected officials' participant a report on the elected officials' participant contributions on a quarterly basis.
(c)
Independent audit of the retirement system. A complete independent audit of the retirement system shall be made at least annually by the firm of certified public accountants under contract by the county council for the purpose of implementing the provisions of article III, section 315, of the charter of the county. The complete audit shall be filed with the county council and copies thereof shall be made available to the public and open to public inspection.
Montgomery County, Md., Code § 33-52 (2026)
Sec. 33-52. Payment of benefits.LinkCopy Citation
(a)
Pension payment. A member's pension will be paid in advance each month during retirement, beginning on the retirement date elected. In the event of the member's death before the end of the month, advanced retirement pension for such month is not returnable. The full monthly amount of each payment will equal one-twelfth of the yearly amount of pension for the member. Payments for less than one (1) full month must be prorated on a daily basis. When pension payments begin, the chief administrative officer must send the member a notice showing the amount and terms of payment. If the payee for any payment is a minor or an incompetent person, the chief administrative officer may authorize payments be made to the person legally responsible for the payee.
(b)
Discontinuance of pension payments. A member must not receive pension payments while serving in an appointed or elected County office that receives any compensation paid by the County. A member appointed to a full-time County position must become a member of the retirement system or the Retirement Savings Plan under Sections 33-37 and 33-115 and make member contributions until later separation under Article III or Article VIII. The retirement benefit of an employee who resumes membership in the optional or integrated plan must be recalculated when the employee later separates from service. The retirement benefit under the integrated or optional plans of Article III of an employee who becomes a member of the Retirement Savings Plan or the guaranteed retirement income plan must resume when the employee later separates from service.
(c)
Exemption from claims. All pension payments under the system are non-assignable and are exempt from the claims of creditors to the maximum extent permitted by law.
(d)
Advanced quarterly payments. Quarterly payments may be made in advance, or with the consent of the payee, a single sum payment in an actuarially equivalent amount may be made, if the amount of any monthly payment payable to any payee would be less than twenty-five dollars ($25.00).
(e)
Seven-year limitation. There will be no obligation to make any payment to a payee hereunder unless the payor has received proof that the payee was living on the due date of the payment. If such proof is not received within seven (7) years after the due date of the payment, and if no proof of death of the payee is received during such seven-year period, the obligations of the payor as to the payment will be the same as if the payee had died immediately before the due date of the payment.
(f)
Lost Participants in the Elected Officials’ Plan or Guaranteed Retirement Income Plan. The Chief Administrative Officer must use all reasonable resources to locate or communicate with a former participant or a beneficiary in order to make and process required minimum distributions as required by Internal Revenue Code Section 401(a)(9). If such efforts fail, the Chief Administrative Officer, or a third party holding these amounts, must distribute the former participant’s or beneficiary’s unprocessed required minimum distributions to the State under the unclaimed property laws. No amounts will be due to a former participant or beneficiary once paid to the State. The former participant or beneficiary must claim the distributed amounts directly from the State.
Montgomery County, Md., Code § 33-53 (2026)
Sec. 33-53. Protection against fraud.LinkCopy Citation
Any person who shall knowingly make any false statement or shall falsify or permit to be falsified any record or records of this retirement system in any attempt to defraud such system as a result of such act, shall be charged with a misdemeanor, and may be punishable under the laws of the county and the state. Should any change or error in the records result in any member or beneficiary receiving from the retirement system more or less than entitled to receive had the records been correct, the error shall be corrected and as far as practicable the payment shall be adjusted in such manner that the actuarial equivalent of the benefit to which such member or beneficiary was correctly entitled will be paid. Any member or beneficiary who has received payment from the retirement system of any monies to which not entitled under the provisions of this act, shall be required to refund such monies to the system.
Montgomery County, Md., Code § 33-54 (2026)
Sec. 33-54. Exemption from execution, garnishment, or attachment.LinkCopy Citation
The right of a person to pension, the return of member contributions with credited interest, any pension payment option, death benefit, or any other right accrued or accruing to any person under this Article, and the money used to fund the retirement system created by this Article are not subject to execution, garnishment, attachment or any other process, and are not assignable, except as provided in this Article, or when an employee is indebted to the County or the Montgomery County Employees' Federal Credit Union.
Despite any other provision in this Section, a benefit is payable to an alternate payee under a domestic relations order, as defined in Section 414(p)(1)(B) of the Internal Revenue Code, if the order is considered a qualified domestic relations order under Section 414(p)(11) of the Internal Revenue Code. The Chief Administrative Officer must authorize forms and procedures to determine whether a domestic relations order is qualified, and must determine the form and timing of distributions under a qualified order.
Montgomery County, Md., Code § 33-55 (2026)
Sec. 33-55. Filing of retirement system plan and contract.LinkCopy Citation
(a)
Filing of plan. The plan of the employees' retirement system of the county shall be filed with the Insurance Department of the State of Maryland and the Internal Revenue Service, United States Treasury Department.
(b)
Filing of contract. The contract entered into between the county and the funding agent shall be filed with the Insurance Department of the State of Maryland and the Internal Revenue Service, United States Treasury Department.
Montgomery County, Md., Code § 33-55A (2026)
Sec. 33-55A. Qualification contingency for elected officials' plan.LinkCopy Citation
(a)
In the event it is determined that the elected officials' plan is not a qualified plan within the meaning of section 401(a) of the Internal Revenue Code, then the provisions of this chapter regarding the elected officials' plan are repealed as of the date of the determination. The repeal dates back to the original effective date of this act.
(b)
Any account balance with respect to county elected officials' contributions must be returned to the county as soon as administratively possible after the repeal.
(c)
Any account balance with respect to required elected officials' participant contributions or account balance with respect to voluntary elected officials' participant contributions, including any amount picked up by the county pursuant to section 33-39(a)(3), must, as soon as administratively possible following a repeal under this section 33-55A, be returned to the elected officials' participant who made them.
(d)
(1)
(e)
Following a repeal under this section 33-55A, an elected officials' participant who does not make the election provided for in subsection 33-55A(e) may choose to become a participant in a retirement plan of the retirement system in which that individual would have been eligible to participate if the elected officials' plan had never existed.
(2)
Benefits and vesting under a plan in which the individual becomes a participant under paragraph (d)(1) must be determined based only on credited service earned or purchased after the individual becomes a participant in the plans, plus any credited service earned or purchased prior to the individual's becoming an elected officials' participant, except as otherwise provided in paragraph (d)(3).
(3)
Credited service earned while an elected officials' participant must be counted in determining benefits and vesting under a plan in which the individual becomes a participant under paragraph (d)(1) if the individual so chooses. An individual making that choice must contribute to the plan, in a single lump-sum cash payment, the total nonvoluntary employee contributions that the employee would have been required to make under the plan for the period during which that individual was an elected officials' participant if the individual had participated in the plan instead of the elected officials' plan. The county must also make, on behalf of any individual making the choice and contribution, contributions to the plan in the amount the county would have made on behalf of that individual for the period during which that individual was an elected officials' participant if the individual had participated in the plan instead of the elected officials' plan.
(e)
Following a repeal under this section 33-55A, an individual who was an elected officials' participant may choose to have the county establish on that individual's behalf a nonqualified deferred compensation arrangement within the meaning of section 457 of the Internal Revenue Code. The arrangement must provide for deferral of compensation, beginning as of the first day of the month following the month in which the arrangement is entered into, until the individual's normal retirement date, in amounts that are sufficient to provide for a benefit comparable to the benefit the individual would have received under the elected officials' plan from the county elected officials' contributions account of the individual, assuming for purposes of the arrangement that the elected officials' plan would have continued to the individual's date of distribution and that all county elected officials' contributions would have been made to the elected officials' plan on the individual's behalf up to that date and that the account balance in the county elected officials' contributions account as of the date of repeal under this section 33-55A, and all subsequent contributions, would have earned interest, from and after the date of repeal under this section 33-55A, at the rate of six (6) percent per year. The regular earnings of such elected official must be increased as of the first day of the month following the month in which such arrangement is entered into by an amount equal to the amount to be deferred each month under such arrangement.
Montgomery County, Md., Code § 33-56 (2026)
Sec. 33-56. Interpretations.LinkCopy Citation
(a)
The Chief Administrative Officer is responsible for deciding questions arising under this Article. Any member of the County's retirement system and any retiree or designated beneficiary eligible to receive benefits from the retirement system, may request, in writing, a decision on questions arising under this Article from the Chief Administrative Officer, who must respond in writing to such request within 60 days. The response must include a statement of appeal rights.
(b)
The Chief Administrative Officer's decision on a disability application under Section 33- 43 may be appealed under subsection 33-43.
(c)
Any other decision by the Chief Administrative Officer may be appealed within 15 days to the Merit System Protection Board under procedures established by the Board. The decision of the Board is final.
Montgomery County, Md., Code § 33-57 (2026)
Sec. 33-57. Records.LinkCopy Citation
(a)
Records generally. The chief administrative officer must prescribe the form, the scope, and the maintenance of records. The records of the retirement system must be maintained on the basis of the plan year.
(b)
Decision of chief administrative officer on records. The decision of the chief administrative officer relating to the confidentiality, use, maintenance and disposition of all records and materials relating to the employees' retirement system of the county, and as to whether any information contained therein may be disclosed, shall be final.
(c)
Time limit records are to be kept. The chief administrative officer, when not in conflict with state or county law, shall determine the time limit that retirement system records shall be kept on file and the final disposition of such records.
Montgomery County, Md., Code § 33-58 (2026)
Sec. 33-58. Trust established-Trust fund.LinkCopy Citation
(a)
The county establishes a trust, which is part of the retirement system, for the benefit of the members of the retirement system. The trust consists of the money and property of the retirement system on the day before the day all the trustees have accepted the trust in writing, and any earnings, profits, increments, appreciation, and other additions that accrue.
(b)
All of the money and property, all investments made with that money and property, and all earnings, profits, increments, and other additions, less the payments previously made by the board, are to be referred to as the trust fund.
(c)
The board has legal title to all cash and other property of the retirement system, but may delegate some or all incidents of ownership as provided in this article.
Montgomery County, Md., Code § 33-59 (2026)
Sec. 33-59. Board of investment trustees.LinkCopy Citation
(a)
Established.
(1)
The Board of Investment Trustees is established to manage the trust under this Article.
(2)
The Board continues until abolished by law.
(b)
Membership.
(1)
The Board has 13 trustees.
(2)
The County Executive must appoint 4 voting, ex officio members of the Board, subject to County Council confirmation as members, who serve indefinitely while each holds the respective office. These ex officio trustees should be:
(A)
the Director of Management and Budget;
(B)
the Director of Finance;
(C)
the Chief Labor Relations Officer; and
(D)
the Executive Director of the Office of the County Council.
(3)
The County Executive must appoint 3 voting certified employee organization representatives, subject to County Council confirmation, as members of the Board, who serve indefinitely while each remains the designee of the certified employee representative. These trustees must not vote on any matter involving the County deferred compensation plan. These trustees should be:
(A)
one representative nominated by the employee organizations certified as the representative of the Office, Professional, and Technical (OPT) and Service, Labor and Trades (SLT) bargaining units; and
(B)
one representative nominated by the employee organization certified as the representative for the fire and rescue employee unit; and
(C)
one representative nominated by the employee organization certified as the representative for the police employee bargaining unit under Article V.
(4)
The following 6 trustees must be appointed by the Executive and confirmed by the Council:
(A)
An active County employee who is a vested member of the retirement system and the Merit System, and not a member of a collective bargaining unit. A 3-year term for this trustee ends on March 1 of every third year after the trustee is confirmed by the Council.
(B)
A retired County employee who is a member of the retirement system. Before appointing this trustee, the Executive must consider, and should select from, a list of 3 to 5 individuals recommended by the Montgomery County Retired Employees’ Association. The Executive must notify the Council when nominating an individual not recommended by the Association. A 3-year term for this trustee ends on March 1 of every third year after the trustee is confirmed by the Council.
(C)
Two persons recommended by the Council who are knowledgeable in pensions, investments, or financial matters. A 3-year term for these trustees ends on March 1 of every third year after each trustee is confirmed by the Council.
(D)
Two individuals knowledgeable in pensions, investments, or financial matters. Before nominating these trustees, the Executive must consider, and should select from, individuals recommended by citizens or countywide citizens’ groups. An individual recommended by a citizens’ group need not be a member of the group. The Executive must notify the Council when nominating an individual not recommended by a citizens’ group. A 3-year term for these trustees ends on March 1 of every third year after each trustee is confirmed by the Council.
(5)
A trustee appointed under paragraph (4) continues to serve after the trustee’s term ends until the Council confirms a successor, but the term for each position is not affected by any holdover. A trustee who, after appointment and before the end of a term, is no longer qualified for the trustee’s position is removed from the Board by operation of law.
(6)
The Executive must not appoint as a trustee any person who furnishes, or is employed by a firm that furnishes, to pension funds and other institutional investors the kind of investment services purchased by the Board.
(c)
Vacancies.
(1)
A trustee may be automatically removed for missing meetings as described in Section 2-148(b).
(2)
A vacancy on the Board must be filled for the unexpired term in the same manner as the previous trustee was appointed.
(d)
Compensation. The trustees must serve without compensation from any source for service rendered to the Board, except that an active employee trustee may receive administrative leave to serve on the Board. The Board must reimburse trustees for any expense approved by the Board. A trustee must not receive reimbursement for expenses from any other source.
(e)
Acceptance of trust. Within 10 days after the Council confirms a trustee, the trustee must certify in writing to the Chief Administrative Officer that the trustee accepts the trust and will administer the affairs of the trust with care, skill, prudence, and diligence.
(f)
Written policies.
(1)
The Board must establish written policies to administer and invest the funds created by this Article and to transact the business of the trust and the retirement system.
(2)
The Board must apply the policies to all members and beneficiaries of the retirement system and must not discriminate in favor of or against any member or beneficiary of the retirement system.
(3)
Any delegation of duties by the Board under Section 33-60, 33-125, or 33-145 must be specified in written policies and procedures.
(g)
Officers. The Board must select a chair, vice chair, and secretary from the Board’s members.
(1)
The chair must preside at meetings of the Board and may take administrative action on behalf of the Board.
(2)
The vice chair must perform the duties and exercise the powers of the chair when the chair is unavailable, or the Board determines is otherwise unable to perform the duties of the chair.
(3)
The secretary must record the proceedings and actions of the Board and may certify a document or action of the Board. A person may rely in good faith on the secretary’s certification as proof of the document or action.
(h)
Meetings and actions.
(1)
The Board must meet at least once during each calendar quarter. The chair, or 7 members of the Board, may call a meeting of the Board, in the manner and at times and places provided under the policies of the Board. The Board is a public body under the State Open Meetings Act.
(2)
A. Seven trustees constitute a quorum.
B. Each trustee has one vote.
C. Seven trustees must agree for the Board to act.
(3)
The Board may act without a meeting. All of the trustees must concur in writing for the Board to approve any action the Board takes without a meeting.
(4)
The Board may adopt procedures consistent with this Section.
(i)
Records.
(1)
The Board must keep investment accounts and records necessary to calculate the value of each retirement system fund and evaluate the experience and performance of the retirement system.
(2)
The Board may designate a person to maintain the records.
(3)
Accounts and records are subject to State law on public records.
(j)
Removal of trustee. With the Council’s approval, the County Executive may remove a trustee for violating this Article or other good cause.
(k)
Legal adviser. The County Attorney is the legal adviser to the Board.
(l)
In this Section, “retirement system” means the Employees’ Retirement System, the Retirement Savings Plan, or the Deferred Compensation Plan under Article IX.
Montgomery County, Md., Code § 33-60 (2026)
Sec. 33-60. The board of investment trustees-Powers and duties.LinkCopy Citation
(a)
General.
(1)
Except as otherwise provided in this chapter, the board of investment trustees has the exclusive authority to manage and administer the investments of the assets of the retirement system. However, the powers and duties of the board must not become effective until all of the trustees have accepted the trust in writing.
(2)
(A)
(c)
(1)
The board must invest and reinvest, or cause to be invested or reinvested, as authorized in subsection (c)(1), the principal and income of the retirement system and keep the same invested without distinction between principal and income. The board has the exclusive authority to manage the assets of the retirement system. However, any investment of the retirement system in existence on the day before all members have accepted the trust may remain as an investment until the earlier of:
(i)
Its maturity date, if any; or
(ii)
The date it is liquidated under the investment policy of the board.
The board must hold the annuities purchased under the Amendment, Settlement and Transfer agreement under Group Annuity Contract #1920 until Aetna Life Insurance Company has completed its performance under that agreement.
(B)
At any time the board is selecting a new investment manager, the board may have fewer than 3 investment managers.
(3)
Chapter 11B does not apply to procurement of goods and services for the retirement system by the board.
(b)
Agents for transfer of property.
(1)
The board may register any securities or other property in its own name or in the name of a nominee. The board may hold any security in bearer form. However, the board or its agent must keep records that show that the investments are part of the trust fund.
(2)
The board may form a partnership under the laws of Maryland for the purpose of holding or transferring securities as the nominee of the board.
(3)
The board may designate in writing a trustee to hold or transfer securities as nominee of the board.
(4)
The board must provide that trustees or a partnership that the board designates must act only as agents of the board. The board may set other conditions that the board considers prudent.
(5)
The trustees of a partnership the board designates may agree with a bank or other financial institution to:
a. Guarantee the signatures made as nominee of the board; and
b. Conduct settlements and transfers through participation in central security depositories.
(c)
Authorized investments.
(1)
The board may invest or permit an investment manager to invest the assets of the retirement system fund in any investment it considers prudent within the policies set by the board. The board must use an investment manager except when investing in any pooled investment vehicle, including any combined, common or commingled trust fund, retirement or annuity contract, mutual fund, investment company, association, or business trust. The board also may authorize the Executive Director to make investments in pooled investment vehicles and transition assets from one investment manager to another investment manager as the board specifies.
(2)
If an investment through any combined, common or commingled trust fund exists, the declaration of trust of that fund is a part of the retirement system trust under this Article.
(d)
Trustee powers. Subject to the limitations under subsection (a)(2) of this section, the board has the power to:
(1)
select and retain the actuary for the retirement system;
(2)
after consultation with the actuary for the retirement system, determine the actuarial cost method, and the mortality, turnover, interest rates, and other assumptions to be used in actuarial and other computations for the retirement system;
(3)
with any cash, purchase or subscribe for any investment, at a premium or discount, and retain the investment;
(4)
sell, exchange, convey, transfer, lease for any period, pledge, mortgage, grant options, contract with respect to, or otherwise encumber or dispose, at public or private sale, for cash or credit or both, any part of the retirement system;
(5)
except as provided in Section 33-61A(h)(2), sue, defend, compromise, arbitrate, compound, and settle any debt, obligation, claim, suit, or legal proceeding involving the retirement system, and reduce the rate of interest on, extent or otherwise modify, foreclose upon default or otherwise enforce any debt, obligation, or claim;
(6)
retain uninvested that part of the retirement system fund described in subsection (f) without being liable for the payment of interest;
(7)
exercise any option on any investment for conversion into another investment, exercise any rights to subscribe for additional investments, and make all necessary payments;
(8)
join in, consent to, dissent from, oppose, or deposit in connection with the reorganization, recapitalization, consolidation, sale, merger, foreclosure, or readjustment of the finances of any corporation or property in which the assets of the retirement system are invested, or the sale, mortgage, pledge, or lease of that property or the property of any such corporation upon such terms and conditions that the board considers prudent; exercise any options, make any agreements or subscriptions, pay any expenses, assessments, or subscriptions, and take any other action in connection with these transactions that the board considers prudent; and accept and hold any investment that may be issued in or as a result of any such proceeding;
(9)
vote, in person or by any proxy, at any election of any corporation in whose stock the assets of the retirement system are invested, and exercise, personally or by any power of attorney, any right appurtenant to any investment held in the retirement system; and give general or specific proxies or powers of attorney with or without power of substitution;
(10)
sell, either at public or private sale, option to sell, mortgage, lease for a term of years less than or continuing beyond the possible date of the termination of the trust, partition or exchange any real property for such prices and upon such terms as the board considers prudent, and execute and deliver deeds of conveyance and all assignments, transfers, and other legal instruments for passing the ownership to the purchaser, free and discharged of all liens;
(11)
renew or extend any mortgage, upon such terms that the board considers prudent, and increase or reduce the rate of interest on any mortgage or modify the terms of any mortgage or of any guarantee as the board considers prudent to protect the retirement system or preserve the value of the investment; waive any default or enforce any default in a manner that the board considers prudent; exercise and enforce any right of foreclosure, bid on property in foreclosure, take a deed in lieu of foreclosure with or without paying a consideration, and release the obligation on the bond secured by the mortgage; and exercise and enforce in any action, suit, or proceeding at law or in equity any rights or remedies in respect to any mortgage or guarantee;
(12)
form a corporation or corporations under the laws of any jurisdiction or acquire an interest in or otherwise make use of any corporation already formed to invest in and hold title to any property;
(13)
for the purpose of investing in and holding title to real or personal property or part interests therein, as described in subsection (c)(1)h., including equipment pertaining thereto, leaseholds, and mortgages, to take any action it considers prudent;
(14)
incur and pay expenses for agents, financial advisors, actuaries, accountants, and counsel, if those expenses are incurred solely to perform the board’s duties under this Article;
(15)
borrow, raise, or lend moneys, for the purposes of the retirement system, in such amounts and upon such terms and conditions as the board in its discretion considers prudent; for any money borrowed, issue a promissory note and secure the repayment of this note by pledging or mortgaging all or any part of the retirement system;
(16)
hold, buy, transfer, surrender, and exercise all other incidents of ownership of any annuity contract;
(17)
if payments to a member or beneficiary are to be made in the form of an annuity based upon one or more lives or life expectancies, buy from any legal reserve life insurance company a single premium, nontransferable annuity contract providing for the payment of the benefits;
(18)
pool all or any of the assets of the trust, from time to time, with assets belonging to any other retirement plan trust or retiree health benefit trust created by the County, and any subtrust thereof, and commingle such assets and make joint or common investments and carry joint accounts on behalf of this trust, such other trust or trusts, or subtrusts, allocating undivided shares or interests in such investments or accounts or in any pooled assets to the two or more trusts or subtrusts in accordance with their respective interests. Any such trusts or subtrusts may be unitized for investment purposes. Consistent with its investment authority in this Article, the Board or its delegate may also buy or sell any assets or undivided interests in this trust or in any other trust with which the assets of this trust may be pooled, to or from this trust or such other trusts at such prices or valuations as the Board or its delegate may determine in reasonable good faith. For the avoidance of doubt, the Board must determine that it is consistent with its fiduciary duties to participate in a pooled investment that permits the sale or purchase of its units as an investment option under another retirement plan or retiree health benefit trust created by the County;
(19)
do all acts which it considers necessary and exercise any and all powers of this article with respect to the management of the retirement system, and in general, exercise all powers in the management of the assets which an individual could exercise in the management of property owned in the individual’s own right except for making an individual investment selection; and
(20)
appoint, supervise, and remove an Executive Director under Section 33-60C.
(e)
Prohibited transactions. The board must not engage in any transaction between the trust and the county or any entity controlled by the county in which the board:
(1)
Lends any part of its income or corpus, without receiving adequate security and a reasonable rate of interest;
(2)
Pays any compensation, more than a reasonable allowance for salaries or other compensation or personal services actually rendered;
(3)
Makes any part of its services available on a preferential basis;
(4)
Makes any substantial purchase of securities or other property, for more than adequate consideration which, for avoidance of doubt, does not include a transfer conducted on the terms described in Section 33-170(i) between employee benefit plan trusts or a subtrust;
(5)
Sells any substantial part of its securities or other property, for less than adequate consideration which, for avoidance of doubt, does not include a transfer conducted on the terms described in Section 33-170(i) between employee benefit plan trusts or a subtrust; or
(6)
Engages in any transaction which results in a substantial diversion of its income or corpus.
(f)
Available cash. The board may keep cash available in an amount it considers prudent to pay benefits, expenses and other payments. The board may keep cash on deposit in one (1) or more banks or trust companies organized under the laws of any state, or of the United States, but the sum on deposit in any one (1) bank or trust company must not exceed twenty-five (25) percent of the paid-in capital and surplus of that bank or trust company.
(g)
Investment management agreements.
(1)
Appointment of investment manager. Except as permitted under subsection (c)(1), the board must appoint investment managers to manage, acquire, or dispose of all or some of the assets of the retirement system. The board may dismiss any manager the board appoints. The fees charged by any manager are expenses of the retirement system.
(2)
Investment contract. Any contract must provide that when the investment manager is making individual investment selections, the investment manager must make the individual investment selections subject to the written policies of the board. In any contract, the board must identify the assets that are the subject to the contract. In any contract, the board may give an investment manager the right to invest the assets of the retirement system specified in the contract without prior notice to or approval by the board. In any contract, the board may limit the investment of a specified portion of the retirement system to a certain type of property, such as but not limited to common stocks, bonds, or real estate. If a contract only applies to a portion of the assets of the retirement system and specifies the type of property to be invested in, the manager must achieve diversification within the specified category of property, but is not responsible for diversification of investments of the entire retirement system. In any contract, the board may delegate to the investment manager any power or discretion conferred on the board under this Article and may provide that the investment manager must have custody and control of certain assets of the retirement system.
(3)
Monitoring of investment manager. The board must monitor the performance of the managers and may terminate any appointment. Monitoring may include any tests or analyses that the board considers prudent in the circumstances to ensure the stability and growth of the retirement system.
(h)
(1)
(d)
(14)
Except as provided in subsection (d)(14), the board must pay all benefits and expenses of the retirement system as directed by the chief administrative officer.
(2)
If the board approves a contract for delegation of the custodial functions as provided in section 33-61, the board must coordinate the payment of benefits and must monitor the timeliness and accuracy of such benefit payments.
(3)
The board is entitled to rely on the decision of the chief administrative officer as to the proper recipient of benefit payments.
(i)
Delegation of duties. The Board may delegate its duties to the Executive Director or a similarly situated County employee as it deems appropriate and consistent with its fiduciary duties in a written policy and procedure. If the Board has prudently delegated its duties and monitored the delegation, the trustees must not be liable for an act or omission made by its delegate.
Montgomery County, Md., Code § 33-60A (2026)
Sec. 33-60A. Sudan Investments—RestrictionsLinkCopy Citation
(a)
Definitions. In this Section, the following words have the meanings indicated:
Actively managed separate account means assets held in a separate account by an investment manager hired by the Board. Actively managed separate account does not include an indexed fund, private equity fund, real estate fund, mutual fund, or other commingled or passively managed fund.
Board means the Board of Investment Trustees established by Section 33-59.
Company means any sole proprietorship, organization, association, corporation, partnership, joint venture, limited partnership, limited liability partnership, limited liability company, or other entity or business association, including any wholly-owned subsidiary, majority-owned subsidiary, and parent company of any of them, or business association, that exists for profit-making purposes.
Divestment action means selling, redeeming, transferring, exchanging, or otherwise disposing of, and refraining from further buying of, certain investments.
Doing or does 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:
(1)
for the purpose of:
(A)
engaging in any business activity with the Government of Sudan; or
(B)
conducting business with any company in which the Government of Sudan has a direct or indirect equity share; or
(C)
participating in a Government of Sudan-commissioned consortium or project; and
(2)
if the business operation includes:
(A)
supplying military equipment in Sudan; or
(B)
oil-related activities constituting more than 10% of the entity’s operations in Sudan; or
(C)
mineral extraction activities constituting more than 10% of the entity’s operation in Sudan; or
(D)
power production activities constituting more than 10% of the entity’s operations in Sudan.
Government of Sudan means the government in Khartoum, Sudan, 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 upon in the Comprehensive Peace Agreement for Sudan). Government of Sudan does not include the regional government of southern Sudan.
Marginalized populations of Sudan means adversely affected groups in regions authorized to receive assistance under section 8(c) of the Darfur Peace and Accountability Act (Public Law 109-344) or areas in Northern Sudan described in section 4(9) of that Act.
Military equipment means:
(1)
weapons, arms, military supplies, and equipment that readily may be used for military purposes, including radar systems or military-grade transport vehicles; or
(2)
supplies or services sold or provided directly or indirectly to any force actively participating in armed conflict in Sudan.
Mineral extraction activity means exploring, extracting, processing, transporting, or wholesale selling or trading any elemental mineral or associated metal alloy or oxide (ore), including gold, copper, chromium, chromite, diamonds, iron, iron ore, silver, tungsten, uranium, and zinc.
Oil-related activity means exporting, extracting, producing, refining, processing, exploring for, transporting, selling, or trading oil; or constructing, maintaining, or operating a pipeline, refinery, or other oilfield infrastructure. Oil-related activity does not include the retail sale of gasoline or related consumer products in Sudan or leasing or owning rights to an oil block in Sudan.
Power production activity means any business operation that involves a project commissioned by the National Electricity Corporation of Sudan or any similar Government of Sudan entity whose purpose is to facilitate power generation and delivery, including establishing any power-generating plant or hydroelectric dam, selling or installing components of any such plant or dam, or providing service contracts related to installing or maintaining any such plant or dam.
Substantial action means:
(1)
adopting, publicizing, and implementing a formal plan to cease business operations in Sudan within one year and to refrain from any such new business operations;
(2)
undertaking significant humanitarian efforts in conjunction with an international organization, the Government of Sudan, the regional government of southern Sudan, or a non-profit entity that is evaluated and certified by an independent third party to be substantial in relationship to the company’s business operations in Sudan and of benefit to one or more marginalized populations of Sudan; or
(3)
engaging the Government of Sudan for the purpose of materially improving conditions for the victimized populations in Darfur.
Trust funds means the assets held for the Employees’ Retirement System and the assets held for the Retiree Health Benefits Trust.
(b)
Review of investments. The Board must review the investment holdings in each actively managed separate account of the trust funds and identify each investment in any company that does business in Sudan. The Board must review its investment holdings in these accounts periodically and update the list of companies doing business in Sudan at least every 6 months.
(c)
Divestment. The Board:
(1)
must take divestment action with regard to investments in any company doing business in Sudan within 12 months after the Board finds that the company is doing business in Sudan; and
(2)
must not make any new investments in an actively managed separate account in any company that does business in Sudan.
(d)
Research. In determining if any company does business in Sudan, the Board may:
(1)
retain a professional consultant; and
(2)
review publicly available information regarding companies doing business in Sudan, including information provided by a non-profit organization, research firm, international organization, or government.
(e)
Exemption. The divestment or investment prohibition under this Section must not apply to a company that can demonstrate that its business operations in Sudan:
(1)
are conducted under contract directly and exclusively with the regional government of southern Sudan;
(2)
are conducted under a license from the federal Office of Foreign Assets Control, or are expressly exempted under Federal law from the requirement to be conducted under such a license;
(3)
consist of providing goods or services to marginalized populations of Sudan for at least 75% of its business operations in Sudan;
(4)
consist of providing goods or services to an internationally recognized peacekeeping force or humanitarian organization;
(5)
consist of providing goods or services that are used only to promote health or education; or
(6)
have been voluntarily suspended.
(f)
Notice. The Board:
(1)
before taking any divestment action under this Section, must provide written notice and an opportunity to comment in writing to each company subject to the action;
(2)
must not take the divestment action until 90 days after written notice is provided to the company; and
(3)
must not take the divestment action if the company shows that it:
(A)
is not doing business in Sudan;
(B)
has taken substantial action, as defined in subsection (a); or
(C)
is exempt from divestment under subsection (e).
(g)
Report. The Board must report annually to the Council and Executive on the operation of and compliance with this Section. The report must:
(1)
identify each investment in a company doing business in Sudan held in an actively managed separate account of the trust funds;
(2)
list each divestment action taken under this Section; and
(3)
calculate the administrative cost of compliance.
(h)
Sunset. This Section expires 30 days after the President of the United States certifies to Congress that the government of Sudan has honored its commitments to:
(1)
abide by United Nations Security Council Resolution 1769 (2007);
(2)
cease attacks on civilians;
(3)
demobilize and demilitarize the Janjaweed and associated militias;
(4)
grant free and unfettered access for delivery of humanitarian assistance; and
(5)
allow for the safe and voluntary return of refugees and internally displaced persons.
Montgomery County, Md., Code § 33-60B (2026)
Sec. 33-60B. Emerging Investment Managers.LinkCopy Citation
(a)
Legislative findings.
(1)
Emerging investment managers, including businesses owned by women, minorities and disabled individuals, should receive an equal opportunity to provide investment management services to the Board of Investment Trustees.
(2)
The Board of Investment Trustees has adopted a policy requiring its staff to identify qualified emerging investment managers to participate in an investment manager search, including regular monitoring of investment managers.
(3)
Expanding opportunities for emerging investment managers will increase competition.
(b)
Definitions.
As used in this Section:
Assets means total client assets managed by an investment manager.
Emerging investment manager means:
(1)
an investment manager with assets or product assets below the 75th percentile of their respective peer group; or
(2)
a new or developing investment manager.
New or developing investment manager means an investment manager:
(1)
raising its first or second private institutional investment fund; or
(2)
creating its first institutional product.
Product Assets means client assets managed by an investment manager in a single strategy.
(c)
Consistent with the fiduciary duties established in Section 33-61C, the Board must make a good faith effort to remove any barriers that limit participation by qualified emerging investment managers to manage funds for the Employees’ Retirement System.
(d)
The Board must adopt guidelines to identify and evaluate qualified emerging investment managers. The guidelines must include procedures for:
(1)
identifying possible firms;
(2)
reviewing, evaluating and interviewing emerging investment managers on an ongoing basis; and
(3)
maintaining research files on emerging investment managers.
(e)
The Board must report annually to the Council and the Executive on compliance with this Section on or before September 1 for the prior fiscal year. The report must:
(1)
identify each emerging investment manager used during the fiscal year;
(2)
list the percentage and dollar value of the assets of the trust fund, by investment sector, managed by each emerging investment manager; and
(3)
describe the good faith effort made to include qualified emerging investment managers in the procurement process during the fiscal year.
Montgomery County, Md., Code § 33-60C (2026)
Sec. 33-60C. Executive Director.LinkCopy Citation
(a)
Under the merit system, including the personnel regulations under Section 33-7 and the administrative procedures under Section 33-8, the board of investment trustees must:
(1)
appoint an Executive Director of the retirement system from a list of qualified applicants identified under subsection (c); and
(2)
supervise the Executive Director, up to and including the removal the Executive Director.
(b)
The Executive Director is a County employee under the merit system.
(c)
Under the merit system, including the personnel regulations under Section 33-7 and the administrative procedures under Section 33-8, the Chief Administrative Officer must:
(1)
establish minimum qualifications for the position of Executive Director;
(2)
recruit applicants for the position;
(3)
evaluate the qualifications of applicants, including through the use of an interview panel that includes the chair of the board of trustees, or the chair’s designee, and the chair of the board of the Consolidated Retiree Health Benefits Trust, or the chair’s designee; and
(4)
identify for the board of investment trustees at least 2 applicants that meet the minimum qualifications for the position.
(d)
The board of investment trustees may delegate to the Chief Administrative Officer the responsibilities and duties of the board under subsection (a).
Montgomery County, Md., Code § 33-61 (2026)
Sec. 33-61. Custodian.LinkCopy Citation
(a)
The director of finance is the custodian of the retirement system assets. The director must give bond with such surety and for such periods and in such amount as the board determines. All payments from the retirement system assets must be made by (i) the director of finance, (ii) a designee of the director of finance, or (iii) two (2) persons designated by the board, acting jointly. The board must file a duly attested copy of the resolution of the board designating the two (2) persons, with specimen signatures of those persons, with the director of finance to indicate their authority for making payments.
(b)
If the board approves, the director of finance may make written contracts with banks, trust companies, insurance companies or investment companies authorized to do business in any state for the safe custody of investments, banking services, the payment of benefits and expenses and any other function necessary for the management and safeguarding of the assets of the retirement system. The contract may provide that a bank, trust company, insurance company, or investment company may invest assets of the retirement system in:
(1)
Money market funds;
(2)
A short-term investment fund of a bank, trust company, or insurance company; or
(3)
Their substantial equivalent. As soon as possible after all members of the board have accepted the trust, the board must approve a written contract for the investment purposes described in this subsection.
(c)
If the board approves, the director of finance may direct the payment of benefits and expenses from a trust account of the board.
(d)
Chapter 11B does not apply to the procurement of goods and services for the retirement system by the director of finance.
Montgomery County, Md., Code § 33-61A (2026)
Sec. 33-61A. Indemnification of trustees.LinkCopy Citation
(a)
Authorized. The County must indemnify every member of the Board who is or may become a party to any action, suit, or proceeding, including administrative and investigative proceedings, because of service as a member of the Board, including any action taken to comply with Section 33-60A, subject to the conditions stated in this section.
(b)
Standards for indemnification.
(1)
The county must indemnify a member of the board:
a. With respect to civil matters, if the member acted in good faith and in a manner that the member reasonably believed to be in the best interest of the retirement system; and
b. With respect to criminal matters, if the member had no reasonable cause to believe that the member's conduct was unlawful.
(2)
If the county must indemnify a member of the board under this article, the county must indemnify the member for expenses when the member incurs the expense, including but not limited to:
a. Reasonably attorney fees;
b. Judgments;
c. Damages;
d. Fines; and
e. Settlements.
(c)
Effect of termination of any suit or proceeding. The termination of any suit or proceeding does not, by itself, create a presumption that a trustee did not act in good faith and in a manner reasonably believed to be in the best interest of the retirement system. The termination of a criminal action or proceeding does not, by itself, create a presumption that a trustee had reasonable cause to believe that the conduct was unlawful.
(d)
Exceptions to indemnification. The county must not indemnify any member of the board if:
(1)
The member of the board is found by a court or other tribunal to be liable for gross negligence or willful and wanton misconduct in the performance of a duty to the retirement system; or
(2)
Liability arises from action that occurred before the date on which all the trustees have accepted the trust in writing.
(e)
Recovery of payments. If the county attorney determines that indemnification payments have been made that are outside the scope of indemnification, the county attorney must take appropriate action, on behalf of the county, to recover the payments.
(f)
Insurance provided. The county must provide insurance for each member of the board against any liability asserted against or incurred by the member of the board with respect to service on the board. Premiums for any insurance must not be paid with assets of the retirement system. The county may self-insure for this purpose, wholly or partly. If the county does not provide adequate insurance coverage or indemnification under this section, a member of the board need not pay any amount attributable to liability incurred by serving on the board, and the county must pay any amount due.
(g)
Defenses. The county may assert the defense of governmental immunity, or any other defense available to the county, in suits or other actions brought against the county.
(h)
County attorney.
(1)
The county attorney must make the final determination of eligibility of a member of the board for indemnification with respect to a matter, and of the reasonableness of all fees, expenses, and settlements.
(2)
Unless the county attorney approves the settlement, a trustee must not use:
a. County funds;
b. Funds provided by a self-insurance program of the county; or
c. Funds provided under a policy the county has with an insurance company; to settle a claim against the trustee.
Montgomery County, Md., Code § 33-61B (2026)
Sec. 33-61B. Accounts and records of the board of investment trustees.LinkCopy Citation
(a)
Maintenance of records and accounts. The board must keep accurate and detailed accounts of all investments, receipts, disbursements, and other transactions, including any specific records that are required by law and any additional records it considers necessary. All accounts, books and records are subject to state law on public records.
(b)
Annual accounting by board. The fiscal year of the retirement system is the same as the fiscal year of the county. On or before January 1 of each year, the board must file with the chief administrative officer a written account, listing all investments, receipts, disbursements, and other transactions during the preceding fiscal year or during the period from the close of the last preceding fiscal year to any interim date that the board selects. This account must describe all securities and investments bought and sold, with the cost or net proceeds of each purchase or sale, and must list all cash, securities, and other property held at the end of that period. The account must include a list of the retirement system assets and the current fair market value of each asset at the end of that period. If a current fair market value is not available for a particular investment or is not applicable to a particular investment, the board must assign a value to that investment. The board must apply the investment valuation method on a consistent basis. If the board changes the investment valuation method, the board must notify the council of the change.
(c)
Reporting and disclosure. The board must prepare for the chief administrative officer any documents required by law.
Montgomery County, Md., Code § 33-61C (2026)
Sec. 33-61C. Standard of care.LinkCopy Citation
A fiduciary must discharge the fiduciary’s duties regarding the retirement systems:
(a)
only in the best interest of the participants and their beneficiaries;
(b)
only to provide benefits to the participants and their beneficiaries, and defray reasonable expenses of administering the retirement systems;
(c)
with the care, skill, prudence, and diligence under the circumstances that a prudent person acting in a similar capacity and familiar with the same matters would use to conduct a similar enterprise with similar purposes;
(d)
by diversifying the investments of the retirement systems to minimize the risk of large losses, unless it is clearly not prudent to diversify under the circumstances;
(e)
according to a good faith interpretation of the law governing the retirement systems;
(f)
according to a good faith interpretation of the documents and instruments governing the retirement systems, if they comply with this Article.
Montgomery County, Md., Code § 33-61D (2026)
Sec. 33-61D. Ethics; conflict of interest.LinkCopy Citation
(a)
Members of the board are subject to the provisions of chapter 19A, "Ethics," of the Montgomery County Code.
(b)
Except as otherwise provided in this section, members and employees of the board must not:
(1)
Be a party to any transaction engaged in by the board or an investment manager involving the assets of the retirement system;
(2)
Use the gains or profits of the system for any purpose except to make investments or payments that are authorized by the board;
(3)
Deal with the assets of the retirement system for their own interest or account;
(4)
Act in any transaction involving the retirement system on behalf of a party whose interests are adverse to the interests of the retirement system or the interests of the members or beneficiaries of the retirement system; or
(5)
Become an endorser or surety, or in any manner an obligor, for moneys loaned to or borrowed from the board.
(c)
In this section, nothing prohibits a member or employee of the board from:
(1)
Being a member of the retirement system;
(2)
Receiving a benefit the member or employee of the board is entitled to as a member or beneficiary in the retirement system so long as the benefit is computed and paid on a basis that is consistent with the terms of the retirement system as applied to all other members or beneficiaries; or
(3)
Serving as a trustee or employee of the board in addition to being an officer, employee, agent, or other representative of a party in interest.
Montgomery County, Md., Code § 33-61E (2026)
Sec. 33-61E. Qualification amendments to elected officials' plan.LinkCopy Citation
The elected officials' plan and any related trust agreement, investment advisory agreement, custodial agreement, annuity contract, or similar agreement, may be amended by the county at any time, either prospectively or retroactively, to conform to the provisions of the Internal Revenue Code. However, if the Internal Revenue Service requires an amendment and the amendment reduces a benefit provided by the elected officials' plan, the required reduction must be paid as a separate benefit from a nonqualified supplemental plan to be established by the county. The benefit payable to a member from the elected officials' plan and the related benefit payable from the supplemental plan, when taken together, must equal the benefit promised under the elected officials' plan immediately before the benefit amendment required by the Internal Revenue Service.
Montgomery County, Md., Code § 33-61F (2026)
Sec. 33-61F. Qualification amendments.LinkCopy Citation
The retirement system and any related trust agreement, investment advisory agreement, custodial agreement, or similar agreement, may be amended by the county at any time, either prospectively or retroactively, to conform to the provisions of the Internal Revenue Code or similar act or amendment thereto or regulations promulgated thereunder. However, if the Internal Revenue Service requires an amendment and the amendment reduces a benefit provided by the retirement system, the required reduction must be paid as a separate benefit from a nonqualified supplemental plan to be established by the county. The benefit payable to a member from the retirement system and the related benefit payable from the supplemental plan, when taken together, must equal the benefit promised under the retirement system immediately before the amendment required by the Internal Revenue Service.
Montgomery County, Md., Code § 33-61G (2026)
Sec. 33-61G. Termination and discontinuance of contributions.LinkCopy Citation
(a)
Rights upon termination or discontinuance of contributions. Full vesting of all accrued benefits must occur upon termination of the retirement system, or upon complete discontinuance of contributions thereto, to the extent that such accrued benefits are funded.
(b)
Provision for allocation of unallocated funds. Upon termination of the retirement system, or complete discontinuance of contributions thereto, any unallocated funds which are not necessary for the satisfaction of liabilities under the retirement system must be returned to the county.
(c)
Limitation on the use of certain dividends and credits. Credits or returns under any annuity contract, other than those arising from corrections of errors in records or computations (such as misstated ages or similar corrections), must not be paid to the county prior to permanent discontinuance of contributions or discontinuance of the retirement system. All dividends, experience rating credits, or employer surrender or cancellation credits ascertained prior to permanent discontinuance of contributions or termination of the retirement system must be applied regularly toward the premiums (or required contributions) next due for the purchase of any annuities. Any surrender or cancellation credits made available after discontinuance of contributions or termination of the retirement system, but before all retirement annuities with respect to service prior to such discontinuance or termination have been purchased, must be applied regularly as they are determined to purchase such retirement benefits so as not to discriminate in favor of officers and highly compensated persons. Any dividends, experience credits, surrender credits or cancellation credits made after permanent discontinuance of contributions or termination of the retirement system and after the satisfaction of all liabilities of the retirement system must be paid to the county.
(d)
Reversion of surplus assets upon termination of the retirement system or discontinuance of contributions thereto. Upon termination of the retirement system or complete discontinuance of contributions thereto, any assets which are not necessary for the satisfaction of liabilities under the retirement system, must be returned to the county.
Montgomery County, Md., Code § 33-61H (2026)
Sec. 33-61H. Nonqualified supplemental retirement plan.LinkCopy Citation
(a)
The county executive must establish a nonqualified supplemental retirement plan if it is necessary to pay benefits to members of the employees' retirement system whose benefits were reduced so that the employees' retirement system would receive a favorable letter of determination from the Internal Revenue Service as to qualification under the Internal Revenue Code. The plan must be a nonqualified and unfunded retirement plan within the meaning of the Internal Revenue Code and the related United States Treasury Regulations and Revenue Rulings. However, the nonqualified supplemental retirement plan will not be an eligible or ineligible state deferred compensation plan within the meaning of section 457 of the Internal Revenue Code. The plan must not permit an employee to defer payment of an amount of the employee's basic or regular compensation, increases in compensation or supplements of compensation such as bonuses or overtime.
(b)
The benefits provided pursuant to the nonqualified supplemental retirement plan must be paid from the general assets of the county or through such funding vehicle as may be permitted by the Internal Revenue Service with respect to nonqualified supplement retirement plans.
(c)
If the nonqualified supplemental retirement plan is established, the county executive must obtain a private letter ruling from the Internal Revenue Service with respect to the plan.
Montgomery County, Md., Code § 33-61I (2026)
Sec. 33-61I. Termination of participation by a participating agency.LinkCopy Citation
If a participating agency decides to stop participating in any retirement system plan, it must give written notice to the Chief Administrative Officer. The Chief Administrative Officer and the withdrawing agency must agree on a date for the withdrawal, and, to the extent applicable to the plan at issue, comply with Section 33-47(d)(12). Any transfer of assets resulting from the withdrawal must comply with Section 414(l) of the Internal Revenue Code. No assets may revert to a withdrawing agency unless the Internal Revenue Service approves the reversion.
Montgomery County, Md., Code § 33-61J (2026)
Sec. 33-61J. Transfer of assets between trust funds of the retirement system.LinkCopy Citation
To the extent permitted by the Internal Revenue Code and applicable guidance under the Internal Revenue Code, the County may transfer assets of the retirement system relating to an account or accrued benefit of a participant in trust-to-trust transfers between the trusts of the Employees' Retirement System and the Retirement Savings Plan to correct operational failures relating to such accounts or accrued benefits.
Article IV. Employer-Employee Relations.
Montgomery County, Md., Code § 33-62 (2026)
Sec. 33-62. Reserved.LinkCopy Citation
Montgomery County, Md., Code § 33-63 (2026)
Sec. 33-63. Definitions.LinkCopy Citation
For the purposes of this article, the following words and phrases have the meanings indicated:
(1)
Certification: The procedure by which an employee organization is selected and recognized to represent the employee unit.
(2)
Decertification: The procedure by which the chief administrative officer withdraws county recognition of the employee organization with or without an election by the employees of the unit.
(3)
Employee: Any state-county merit system employee except persons described in subparagraphs 33-102(4) a, c, d, e, m, n, r and s of article VII of this chapter.
(4)
Employee organization: Any organization that admits employees to membership and that has as a primary purpose the representation of employees in collective bargaining or meet and confer representation or both.
(5)
Employee unit or unit: All employees as defined in subsection 33-63(3) of this chapter.
(6)
Position paper: A nonbinding written memorandum reflecting all items discussed by the county and the employee organization.
(7)
State-county merit system employee: A state merit system employee whose salary is supplemented by the county.
Montgomery County, Md., Code § 33-64 (2026)
Sec. 33-64. Employee rights.LinkCopy Citation
(a)
An employee shall have the right, freely and without fear of penalty or reprisal, to form, join or assist and be represented by an employee organization or to refrain from any such activity.
(b)
The employees have the right to be represented by an employee organization, including the right to meet with representatives of the county concerning conditions of employment and the resolution of grievances.
(c)
Nothing in this article shall preclude the rights of an employee to pursue an individual grievance through established administrative procedures or through appeal to the personnel board, in that nothing in this article shall circumvent or shall be deemed to supersede or annul the provisions of the laws of the state, the county charter, or the laws and ordinances of the county, including the personnel regulations.
(d)
An employee who is not a member of an employee organization must never be required to become a member of an employee organization or to pay money to an employee organization except on a purely voluntary basis.
Montgomery County, Md., Code § 33-65 (2026)
Sec. 33-65. Procedures for certification of an employee organization.LinkCopy Citation
(a)
The chief administrative officer, upon petition of an employee organization showing written evidence of interest by at least thirty (30) percent of the employees of the unit, shall arrange for the conducting of a secret ballot election to determine whether the employees desire such organization to act as their representative. Following such petition, the chief administrative officer shall give an appropriate notice to the employees.
(b)
An employee organization seeking to represent the unit shall submit to the personnel office a roster of its officers and representatives, a copy of its constitution and bylaws, and a schedule of dues for its members.
(c)
Eligibility to vote in any election for choice of an official representative shall be limited to persons who are employees as of the beginning of the pay period preceding the election date.
(d)
Elections will be conducted by the personnel office, which may use the services of the state division of labor and industry or any other third party having similar qualifications.
(e)
The ballot shall contain the name of any additional employee organization showing timely written evidence of interest by at least ten (10) percent of the employees within the unit. In every instance, the ballot shall contain a provision for a marking of "no representation." Where more than one (1) employee organization is on the ballot and no one (1) of the organizations receives a majority vote of the employees voting, a runoff election shall be held. The runoff election shall contain the two (2) choices which received the largest and second largest number of votes in the original election.
(f)
When an organization receives at least fifty (50) percent of valid votes cast in the election, the chief administrative officer shall certify it as the official employee organization for the unit. If the majority vote is for "no representation," the chief administrative officer shall so certify.
(g)
If, during the thirty (30) days following the effective date of this revised article*, a petition is filed by the incumbent meet and confer representative of unit employees certified under the prior article IV of this chapter, and no other employee organization files a valid petition, and no petition calling for an election signed by twenty (20) percent of unit employees has been filed with the chief administrative officer, the incumbent certified representative shall be certified without an election, provided it produces evidence, acceptable to the chief administrative officer and dated after the enactment of this revised article [June 24, 1986], that a majority of the employees in the unit desire to be represented by the incumbent representative for the purposes of meet and confer representation under the provisions of this revised article.
(h)
The county shall recognize as the official employee relations representative an employee organization that has been selected in accordance with the procedures outlined in this section.
(i)
Recognizing an employee organization does not preclude the county from dealing with religious, social, fraternal, professional, or other lawful associations with respect to matters or policies that involve individual members of the associations or are of particular applicability to it or its members.
(j)
No question concerning certification may be raised by an employee or an employee organization within one (1) year of the date of certification of an employee organization or the date that a majority of the employees voting voted for no representation.
(k)
The county may, after discussions with an employee organization and on the basis of written authorization from each employee, provide for deduction from the pay of such employee monies in payment of membership dues in a duly certified employee organization. Such monies shall be remitted to the employee organization.
Montgomery County, Md., Code § 33-66 (2026)
Sec. 33-66. Procedure for decertification of employee organizations.LinkCopy Citation
(a)
An employee organization shall be subject to decertification when thirty (30) percent of the employees in the employee unit petition for the employee organization to be decertified. The procedures for determining whether, in fact, an employee organization shall be decertified shall be the same as those prescribed in section 33-65 for the certification of an employee organization, except as provided in subsection (b) of this section.
(b)
If an employee organization fails to adhere to any of the provisions of section 33-72 dealing with employee organization responsibilities, then:
(1)
Its certification may be revoked by the chief administrative officer after notice and an opportunity to be heard; and
(2)
It may be disqualified by the chief administrative officer from participating in representation elections for a period of up to two (2) years after notice and an opportunity to be heard.
Montgomery County, Md., Code § 33-67 (2026)
Sec. 33-67. Costs of conducting elections.LinkCopy Citation
Any cost of conducting a secret ballot election under this article shall be borne fifty (50) percent by the county and fifty (50) percent borne equally by the employee organization(s) whose names(s) appear on the ballots.
Montgomery County, Md., Code § 33-68 (2026)
Sec. 33-68. County-employee organization meetings and discussions.LinkCopy Citation
(a)
An employee organization that has been recognized by the county under section 33-65 of this article shall be entitled to meet at reasonable times with county representatives to discuss with such representatives personnel policies, practices and matters affecting working conditions of the employee unit it represents, so far as discussions may be appropriate under existing laws or regulations. The county shall meet at least two (2) times annually with the certified employee organization.
(b)
The requirement to meet shall not obligate either the county or the employee organization to agree to any proposal or to make any concession with respect to any matter discussed by the parties at such a meeting. Any decision made at any such meeting is in no way binding upon the parties.
(c)
The county and the employee organization may, if desired, and at the conclusion of their discussions, jointly or separately, prepare written position papers that reflect for future reference the respective positions of the parties on the issues discussed at such meetings. Such position papers shall in no way legally bind any party to the matters expressed in them, and the county shall not be obligated to concur in a position paper addressing the inherent right to manage the county government.
Montgomery County, Md., Code § 33-69 (2026)
Sec. 33-69. Employee organization representation of employee members.LinkCopy Citation
(a)
An employee who is a member of the employee organization may request and shall be granted the right for a member or representative of such organization to be present in any discussions or counseling with county representatives concerning an individual grievance.
(b)
The employee organization may submit a grievance concerning any dispute involving a claim of violation, misinterpretation, or misapplication of the personnel regulations or work practices of the county on the same basis as provided for individual grievances.
Montgomery County, Md., Code § 33-70 (2026)
Sec. 33-70. Disputed.LinkCopy Citation
All decisions of the chief administrative officer under the provisions of this article shall be final, subject to appeal to the merit system protection board where provided by law.
Montgomery County, Md., Code § 33-71 (2026)
Sec. 33-71. County responsibilities.LinkCopy Citation
It shall be the responsibility of the county not to:
(a)
Interfere with, restrain, or coerce an employee in the exercise of the rights assured by this article;
(b)
Encourage or discourage membership in an employee organization by discrimination in regard to hiring, tenure, promotion, or other conditions of employment;
(c)
Sponsor, control, or otherwise assist the employee organization; except that the county may furnish customary and routine services and facilities when consistent with the best interest of the county, its employees, and the organization, and when the services and facilities are furnished, if requested, on an impartial basis to organizations having equivalent status;
(d)
Refuse to accord appropriate recognition to the employee organization qualified for such recognition; or
(e)
Refuse to consult, confer, or meet with an employee organization certified under this article.
Montgomery County, Md., Code § 33-72 (2026)
Sec. 33-72. Employee organization responsibilities.LinkCopy Citation
It shall be the responsibility of every employee organization not to:
(a)
Interfere with, restrain or coerce an employee in the exercise of the rights assured by this article;
(b)
Attempt to induce the county to coerce an employee in the exercise of the rights under this article;
(c)
Coerce, attempt to coerce, or discipline, fine, or take other economic sanction against an employee member of an employee organization as punishment or reprisal, or for the purpose of hindering or impeding work performance or the discharge of duties owed as an employee of the county;
(d)
Call or engage in a strike, work stoppage, or slowdown, picket the county in connection with a strike, work stoppage, or slowdown in a county-employee dispute, or condone any such activity by failing to take affirmative action to prevent or stop it;
(e)
Discriminate against an employee with regard to the terms or conditions of membership because of race, color, religion, creed, sex, age, national origin, ancestry, or marital status, as defined in Chapter 27.
Montgomery County, Md., Code § 33-73 (2026)
Sec. 33-73. Reserved.LinkCopy Citation
Montgomery County, Md., Code § 33-74 (2026)
Sec. 33-74. Cost-of-living adjustment.LinkCopy Citation
(a)
The county executive shall provide as a part of the annual recommended operating budget for the county government sufficient funds to implement the cost-of-living adjustment required by this section. The council shall accord one of the highest priorities to the full funding of the cost-of-living adjustment, shall fund fully the seventy-five (75) percent of Consumer Price Index cost-of-living adjustment unless reasons are given for not doing so, and shall make a finding in the budget resolution as to the extent to which full funding is achieved. Unless otherwise provided in the approved budget resolution which includes a finding that implementation of the full amount of the adjustment would necessitate substantial layoffs of personnel or result in other widespread hardship to county government employees, the chief administrative officer shall adjust the uniform salary plan for all classified employees of the county government beginning the first pay period on or after July 1 of each year by an amount not less than seventy-five (75) percent of the change in the Consumer Price Index for All Urban Consumers (CPI-U) for the Washington-Arlington-Alexandria Core Based Statistical Area (CBSA), as published by the United States Department of Labor, Bureau of Labor Statistics, although pay grades 1 through 4 of the uniform salary plan to which minimum wage and certain seasonal employees are assigned will be adjusted by changes in the minimum wage rates and salary surveys to determine the competitiveness of such salaries. The percentage change shall be based on the latest published index for the calendar year preceding the fiscal year in which the adjustment is to be paid.
The chief administrative officer may adjust the uniform salary plan in excess of the base percentage of seventy-five (75) percent, provided funds are available and approved by the county council for such purpose.
(b)
Notwithstanding the provisions in (a) above, for fiscal year 1984 only, the following salary controls shall apply:
(1)
The chief administrative officer shall adjust the salary maxima in effect as of June 30, 1983 for grades 5 through 37 by the full cost-of-living granted by the county council.
(2)
The salary maxima for grades 38, 39 and 40 shall be sixty-eight thousand dollars ($68,000.00), sixty-nine thousand dollars ($69,000.00) and seventy thousand dollars ($70,000.00), respectively.
(3)
The salary for all merit employees will be adjusted by the full cost-of-living granted by the county council to the extent that such salary adjustment does not exceed the maximum of the employee’s grade.
(c)
The provisions of this section shall not apply to an employee of the police department, as defined in section 33-76 of this chapter, who is represented by a certified employee organization pursuant to the provisions of article V, title "Police Labor Relations," of this chapter.
(d)
This section is automatically repealed upon certification that the county merit system employees in the units established under article VII are represented for the purpose of collective bargaining under article VII of this chapter.
Article V. Police Labor Relations.
Montgomery County, Md., Code § 33-75 (2026)
Sec. 33-75. Declaration of policy.LinkCopy Citation
It is the public policy of this county, pursuant to charter section 510, enacted as a result of citizen initiative, and purpose of this article to promote a harmonious, peaceful and cooperative relationship between the county government and its police employees and to protect the public by assuring, at all times, the responsive, orderly and efficient operation of the police department. Since unresolved disputes in the police service are injurious to the public and to police employees as well, adequate means should be provided for preventing such unresolved disputes and for resolving them when they occur. To that end, it is in the public interest that police employees have the opportunity to bargain collectively over wages, hours, and other terms and conditions of employment through a representative of their choice or to refrain therefrom; and that any collective bargaining between the county government and a representative of those police employees be done in good faith with no interference with the orderly process of government and furthermore, that agreements reached through collective bargaining be implemented.
It is also recognized, however, that police employee organizations and the county government each possess substantial means by which they may initiate actions regarding the wages, hours and working conditions of employees. Consequently, in order to preserve an appropriate balance between labor and management in the police service, the council hereby declares that once a representative has been voluntarily selected, collective bargaining shall be utilized in place of, but not in addition to, existing means of initiating governmental action as to those subjects which are defined as appropriate for collective bargaining in this article.
Sections 33-75 through 33-85 and Sections 33-101 through 33-112 are cited, and Section 33-80 is quoted, in Fraternal Order of Police Lodge 35 v. Montgomery County, 436 Md. 1, 80 A.3d 686 (2013).
Sections 33-81 and 33-83 are cited and quoted, and Sections 33-75, 33-76, 33-77, 33-78, 33-79, 33-80, 33-82, 33-84 & 33-85 are cited in Fraternal Order of Police, Montgomery County Lodge 35, Inc., v. Montgomery County Executive, 210 Md. App. 117, 62 A.3d 238 (2013). The Court interpreted Section 33-80 regarding collective bargaining agreements and the funding of future County budgets.
Montgomery County, Md., Code § 33-76 (2026)
Sec. 33-76. Definitions.LinkCopy Citation
When used in this article:
Agency shop means a provision in a collective bargaining agreement requiring, as a condition of continued employment, that bargaining unit employees pay a service fee not to exceed the monthly membership dues uniformly and regularly required by the employee organization of all of its members. An agency shop agreement shall not require the payment of initiation fees, an assessment, fines or any other collections or their equivalent, as a condition of continued employment.
To bargain collectively means to meet at reasonable times and places and to negotiate in good faith with respect to appropriate subjects as set out in subsection 33-80(a) of this article.
Certified representative means an employee organization selected in accordance with this chapter to represent a unit.
Employee means any police officer classified as a sergeant, master police officer I, master police officer II, police officer I, police officer II, police officer III, or police officer candidate, or an equivalent nonsupervisory classification, but not a police officer in any higher classification.
Employer means the county executive and the Executive's designees.
Employee organization means any organization which admits to membership employees and which has as a primary purpose the representation of such employees in collective bargaining, and includes any person acting as an officer, representative or agent of said organization. Such organization shall not admit to membership any person other than law enforcement officers.
Lockout means any action taken by the employer to interrupt or prevent the continuity of work properly and usually performed by the employee for the purpose and with the intent of either coercing the employees into relinquishing rights guaranteed by this article or of bringing economic pressure on employees for the purpose of securing the agreement of their certified representative to certain collective bargaining terms.
Mediation means an effort by an impartial third party confidentially to assist in resolving, through interpretation, suggestion and advice, a dispute arising out of collective bargaining between the employer and the certified representative.
Strike means a concerted failure to report for duty, absence, stoppage of work, or abstinence in whole or in part from the full and faithful performance of the duties of employment with the employer, or deviation from normal or proper work duties or activities, where any of the preceding are done in a concerted manner for the purpose of inducing, influencing or coercing the employer in the determination, implementation, interpretation, or administration of terms or conditions of employment or of the rights, privileges, or obligations of employment or of the status, recognition or authority of the employee or an employee organization.
Unit means all employees.
Sections 33-75 through 33-85 and Sections 33-101 through 33-112 are cited, and Section 33-80 is quoted, in Fraternal Order of Police Lodge 35 v. Montgomery County, 436 Md. 1, 80 A.3d 686 (2013).
Sections 33-81 and 33-83 are cited and quoted, and Sections 33-75, 33-76, 33-77, 33-78, 33-79, 33-80, 33-82, 33-84 & 33-85 are cited in Fraternal Order of Police, Montgomery County Lodge 35, Inc., v. Montgomery County Executive, 210 Md. App. 117, 62 A.3d 238 (2013). The Court interpreted Section 33-80 regarding collective bargaining agreements and the funding of future County budgets.
Montgomery County, Md., Code § 33-77 (2026)
Sec. 33-77. Permanent umpire.LinkCopy Citation
(a)
There is hereby created the position of permanent umpire, so as to provide for the effective implementation and administration of sections 33-79 and 33-82 of this article concerning selection, certification and decertification procedures and prohibited practices. The permanent umpire shall exercise the following powers and perform the following duties and functions:
(1)
Adopt regulations under method (1) of section 2A-15 of this Code, for the implementation and administration of sections 33-79 and 33-82 as are consistent with this article;
(2)
Request from the employer or any employee organization, and the employer or such organization may at its discretion provide, such relevant assistance, service and data as will enable the permanent umpire to properly carry out his functions;
(3)
Hold hearings and make inquiries, administer oaths and affirmations, examine witnesses and documents, take testimony and receive evidence, and compel by issuance of subpoenas the attendance of witnesses and the production of relevant documents;
(4)
Hold and conduct elections for certification or decertification pursuant to the provisions of this article and issue said certification or decertification;
(5)
Investigate and attempt to resolve or settle, as provided in this article, charges of engaging in prohibited practices; however, if the employer and a certified representative have negotiated a valid grievance procedure, the permanent umpire must defer to that procedure for the resolution of disputes properly submissible to the procedure absent a showing that such deferral will result or has resulted in the application of principles repugnant to this article; furthermore, the permanent umpire shall defer to state procedures in those matters which are governed by the law enforcement officers bill of rights, article 27, sections 727 et seq., Annotated Code of Maryland.*
(6)
Obtain any necessary support services and make necessary expenditures in the performance of duties to the extent provided for these purposes in the annual budget of Montgomery County; and
(7)
Exercise any other powers and perform any other duties and functions as may be specified in sections 33-79 and 33-82 of this article.
(b)
The permanent umpire must be appointed by the County Executive, subject to confirmation by the County Council, serve for a term of 5 years, and may be reappointed to another 5-year term. The permanent umpire must not be reappointed if, during the period between 60 days and 30 days before the umpire’s term expires, the certified representative files a written objection to the umpire’s reappointment with the County Executive.
(c)
If the permanent umpire dies, resigns, becomes disabled, or otherwise becomes unable or ineligible to continue to serve, the Executive must appoint a new permanent umpire, subject to confirmation by the Council, to serve the remainder of the previous umpire’s term. The umpire appointed under this subsection may be reappointed under subsection (b).
(d)
The permanent umpire must be a person with experience as a neutral in the field of labor relations and must not be a person who, because of vocation, employment, or affiliation, can be categorized as a representative of the interests of the employer or any employee organization.
(e)
The permanent umpire must be paid a daily fee as specified in a contract with the County, and must be reimbursed for necessary expenses incurred in performing the duties of umpire.
Sections 33-81 and 33-83 are cited and quoted, and Sections 33-75, 33-76, 33-77, 33-78, 33-79, 33-80, 33-82, 33-84 & 33-85 are cited in Fraternal Order of Police, Montgomery County Lodge 35, Inc., v. Montgomery County Executive, 210 Md. App. 117, 62 A.3d 238 (2013). The Court interpreted Section 33-80 regarding collective bargaining agreements and the funding of future County budgets.
Montgomery County, Md., Code § 33-78 (2026)
Sec. 33-78. Employee rights.LinkCopy Citation
(a)
Employees shall have the right:
(1)
To form, join, support, contribute to, or participate in, or to refrain from forming, joining, supporting, contributing to, or participating in, any employee organization or its lawful activities; and
(2)
To be fairly represented by their certified representative, if any.
(b)
The employer must extend to the certified representative the exclusive right to represent the employees for the purposes of collective bargaining, including the orderly processing and settlement of grievances as agreed by the parties.
(c)
Except as provided in subsections (e) and (f), a certified representative must serve as the bargaining agent for all employees and must represent fairly and without discrimination all employees without regard to whether the employees are members of the employee organization, pay dues or other contributions to it, or participate in its affairs.
(d)
The right of the certified representative to receive membership dues deductions must be determined through negotiations, unless the authority to negotiate such provisions has been suspended under section 33-84. No collective bargaining agreement may include a provision requiring membership in, participation in the affairs of, or contributions to an employee organization.
(e)
A certified representative may require an employee who does not pay membership dues or equivalent fees to pay:
(1)
the reasonable costs and fees, including expenses for staff time and materials, arbitrator fees, and related attorney’s fees, for filing a grievance or arbitrating a matter that arises under a collective bargaining agreement brought by the certified representative at the request of the employee; and
(2)
any anticipated proportional costs and fees before a grievance is filed or arbitration is pursued.
(f)
If an employee fails to pay the reasonable costs to file a grievance or pursue arbitration imposed under subsection (e), the certified representative may refuse to file the grievance or pursue arbitration on behalf of the employee. A dispute concerning the reasonableness of the fees imposed by the certified representative under subsection (e) may be submitted to the permanent umpire as a prohibited practice under Section 33-82.
Sections 33-81 and 33-83 are cited and quoted, and Sections 33-75, 33-76, 33-77, 33-78, 33-79, 33-80, 33-82, 33-84 & 33-85 are cited in Fraternal Order of Police, Montgomery County Lodge 35, Inc., v. Montgomery County Executive, 210 Md. App. 117, 62 A.3d 238 (2013). The Court interpreted Section 33-80 regarding collective bargaining agreements and the funding of future County budgets.
Montgomery County, Md., Code § 33-79 (2026)
Sec. 33-79. Selection, certification and decertification procedures.LinkCopy Citation
(a)
The certification or decertification of an employee organization as the unit’s representative for the purpose of collective bargaining shall be initiated in accordance with the following procedures:
(1)
Any employee organization seeking certification as representative of the unit shall file a petition stating its name, address and its desire to be certified with the permanent umpire, and shall transmit forthwith a copy of such, not including the names of the supporting employees, to the employer. Said petition must contain the uncoerced signature of thirty (30) percent of the employees within the unit signifying their desire to be represented by the employee organization for purposes of collective bargaining.
(2)
Where an employee organization has been certified, an employee within the unit may file a petition with the permanent umpire and shall transmit forthwith a copy of such to the employer and the certified representative, not including the names of the supporting employees, for decertification of the certified representative. The petition must contain the uncoerced signatures of at least thirty (30) percent of the employees within the unit alleging that the employee organization presently certified is no longer the choice of the majority of the employees in the unit.
(3)
The employer may file a petition with the permanent umpire seeking an election for certification of an employee organization or, where an employee organization is so certified, to cause decertification of the representative where the employer has reason to believe that the certified representative is not or is no longer the choice of the majority of the employees of the unit, and shall transmit a copy of such to the employee organization seeking to obtain or retain certification.
(4)
Petitions may be filed between September 1 and September 30 of any year, but no sooner than 22 months following an election held pursuant to this section.
(5)
If a lawful collective bargaining agreement is in effect, no petition shall be entertained unless filed during September of the final year of the agreement.
(b)
If the permanent umpire determines that a petition is properly supported and timely filed, the permanent umpire shall cause an election of all eligible employees to be held within a reasonable time, but no later than October 20 of that year, to determine if and by whom the employees wish to be represented, as follows:
(1)
All elections shall be conducted under the supervision of the permanent umpire and shall be conducted by secret ballot at such time and place as the permanent umpire may direct. The permanent umpire may select and retain services of an agency of the State of Maryland, or similarly neutral body to assist in conducting the election.
(2)
The election ballots shall contain, as choices to be made by the voter, the names of the petitioning or certified employee organization, the name or names of any other employee organization showing written proof at least ten (10) days before the election of at least ten (10) percent representation of the employees within the unit, and a choice that the employee does not desire to be represented by any of the named employee organization(s).
(3)
The employer and each party to the election may be represented by observers selected in accordance with such limitations and conditions as the permanent umpire may prescribe.
(4)
Observers may challenge for good cause the eligibility of any person to vote in the election. Challenged ballots shall be impounded pending either agreement of the parties as to the validity of such challenge or the permanent umpire’s decision thereon, unless the number of challenges is not determinative, in which latter event the challenged ballot(s) shall be destroyed.
(5)
After the polls have been closed, the valid ballots cast shall be counted by the permanent umpire in the presence of the observers.
(6)
The permanent umpire immediately shall prepare and serve upon the employer and each of the parties a report certifying the results of the election. If, and only if, an employee organization has received the votes of a majority of the employees who voted, the permanent umpire shall certify the employee organization so elected as the exclusive agent. If no employee organization has received the votes of a majority of the employees, the permanent umpire shall certify no representative, but if a majority of the employees do not vote for no representation, a runoff election shall be conducted. The runoff election shall contain the two (2) choices which received the largest and second largest number of votes in the original election.
(c)
The aforesaid certification of results shall be final unless, within seven (7) days after service of the report and certification, the employer or any other party serves on all parties and files with the permanent umpire objections to the election. Objections shall be verified and shall contain a concise statement of facts constituting the grounds thereof. The permanent umpire shall investigate the objections and, if substantial factual issues exist, the permanent umpire shall hold a hearing thereon. Otherwise, the permanent umpire may determine the matter without hearing. The permanent umpire may invite, either by rule or by invitation, written or oral argument to assist in determination of the merits of the objections. If the permanent umpire finds that the election was conducted in substantial conformity with this article, the permanent umpire shall confirm the certification initially issued. If the permanent umpire finds that the election was not held in substantial conformity with this article, the permanent umpire shall cause another election to be held pursuant to the provisions of this section.
(d)
The cost of conducting an election shall be paid by the county.
(e)
Voluntary recognition is prohibited under this article, and no certification may be issued without an election except as provided for in subsection 33-79(a)(6).
Sections 33-81 and 33-83 are cited and quoted, and Sections 33-75, 33-76, 33-77, 33-78, 33-79, 33-80, 33-82, 33-84 & 33-85 are cited in Fraternal Order of Police, Montgomery County Lodge 35, Inc., v. Montgomery County Executive, 210 Md. App. 117, 62 A.3d 238 (2013). The Court interpreted Section 33-80 regarding collective bargaining agreements and the funding of future County budgets.
Montgomery County, Md., Code § 33-80 (2026)
Sec. 33-80. Collective bargaining.LinkCopy Citation
(a)
Duty to bargain; matters subject to bargaining. A certified employee organization and the employer must bargain collectively on the following subjects:
(1)
Salary and wages, provided, however, that salaries and wages shall be uniform for all employees in the same classification;
(2)
Pension and retirement benefits for active employees only;
(3)
Employee benefits such as, but not limited to, insurance, leave, holidays and vacation;
(4)
Hours and working conditions, including the availability and use of personal patrol vehicles;
(5)
Provisions for the orderly processing and settlement of grievances concerning the interpretation and implementation of the collective bargaining agreement, which may include binding third party arbitration and provisions for exclusivity of forum;
(6)
Matters affecting the health and safety of employees; and
(7)
Amelioration of the effect on employees when the employer’s exercise of rights listed in subsection (b) causes a loss of existing jobs in the unit.
(b)
Employer rights. This article and any agreement pursuant hereto shall not impair the right and responsibility of the employer.
(1)
To determine the overall budget and mission of the employer and any agency of county government;
(2)
To maintain and improve the efficiency and effectiveness of operations;
(3)
To determine the services to be rendered and the operations to be performed;
(4)
To determine the overall organizational structure, methods, processes, means, job classifications or personnel by which operations are to be conducted and the location of facilities;
(5)
To direct or supervise employees;
(6)
To hire, select and establish the standards governing promotion of employees and to classify positions;
(7)
To relieve employees from duties because of lack of work or funds, or under conditions when the employer determines continued work would be inefficient or nonproductive;
(8)
To make and enforce rules and regulations not inconsistent with this law or a collective bargaining agreement;
(9)
To take actions to carry out the mission of government in situations of emergency;
(10)
To transfer, assign and schedule employees.
(c)
Exemptions.
(1)
Nothing contained in this article shall be construed to limit the discretion of the employer voluntarily to discuss with the representatives of its employees any matter concerning the employer’s exercise of any of the enumerated rights set forth in subsection 33-80(b) above, but such matters shall not be subject to bargaining.
(2)
The minimum standards of the policies adopted by the Police Chief under Section 35-22 must not be subject to bargaining.
(d)
Time limits. Collective bargaining shall commence no later than November 1 preceding a fiscal year for which there is no contract between the employer and the certified representative and shall be concluded by January 20. The resolution of an impasse in collective bargaining shall be completed by February 1. These time limits may be waived only by prior written consent of the parties.
(e)
Term of agreement. Any provision of automatic renewal or extension of a collective bargaining agreement shall be void. No agreement shall be valid if it extends for less than one year or for more than three years. All agreements shall become effective July 1 and end June 30.
(f)
Effective date of agreement. Any collective bargaining agreement shall become effective only after ratification of the agreement by the employer and the certified representative, except as provided in subsection 33-81(b)(7). A certified representative may provide its own rules for ratification procedures.
(g)
Submission to Council. A ratified agreement shall be binding on the employer and the certified representative, and shall be reduced to writing and executed by both parties. In each proposed annual operating budget, the County Executive shall describe any collective bargaining agreement or amendment to an agreement that is scheduled to take effect in the next fiscal year and estimate the cost of implementing that agreement. Any term or condition of a collective bargaining agreement which requires an appropriation of funds or enactment, repeal or modification of a County law shall be timely submitted to the County Council by the employer by April 1, unless extenuating circumstances require a later date. If a later submission is necessary, the employer shall specify the submission date and the reasons for delay to the Council President by April 1. The employer shall make a good faith effort to have such term or condition implemented by Council action. Each submission to the Council shall include:
(1)
all proposed legislation and regulations necessary to implement the collective bargaining agreement;
(2)
all changes from the previous collective bargaining agreement, indicated by brackets and underlines or a similar notation system; and
(3)
all side letters or other extraneous documents that are binding on the parties.
(h)
Council review. On or before May 1, the County Council shall indicate by resolution its intention to appropriate funds for or otherwise implement the agreement or its intention not to do so, and shall state its reasons for any intent to reject any part of the agreement. The Council, by majority vote taken on or before May 1, may defer the May 1 deadline to any date not later than May 15. If the Council indicates its intention to reject any part, it shall designate a representative to meet with the parties and present the Council's views in their further negotiations. This representative shall also participate fully in stating the Council's position in any ensuing impasse procedure. The parties shall thereafter meet as promptly as possible and attempt to negotiate an agreement acceptable to the Council. Either of the parties may initiate the impasse procedure set forth in Section 33-81. The results of the negotiation or impasse procedure shall be submitted to the Council on or before May 10. If the Council has deferred the May 1 deadline, that action automatically postpones the May 10 deadline by the same number of days.
(i)
Adjustments. Any agreement shall provide either for automatic reduction or elimination of conditional wage or benefits adjustments if:
(1)
the Council does not take action necessary to implement the agreement, or
(2)
sufficient funds are not appropriated for any fiscal year when the agreement is in effect.
(j)
Later years. The process and timetable in subsection (h) apply to Council review of wage or benefits adjustments after the first year of any multi-year agreement.
(k)
Out-of-cycle amendments. The process in subsection (h) applies to Council review of any amendment to a collective bargaining agreement that the Council receives after May 15 of any year, but the deadlines in subsection (h) do not apply. The Council President shall set action deadlines which result, to the extent feasible, in a similar timetable relative to the date the Council received the amendment.
Sections 33-75 through 33-85 and Sections 33-101 through 33-112 are cited, and Section 33-80 is quoted, in Fraternal Order of Police Lodge 35 v. Montgomery County, 436 Md. 1, 80 A.3d 686 (2013).
Sections 33-81 and 33-83 are cited and quoted, and Sections 33-75, 33-76, 33-77, 33-78, 33-79, 33-80, 33-82, 33-84 & 33-85 are cited in Fraternal Order of Police, Montgomery County Lodge 35, Inc., v. Montgomery County Executive, 210 Md. App. 117, 62 A.3d 238 (2013). The Court interpreted Section 33-80 regarding collective bargaining agreements and the funding of future County budgets.
Sec. 2. Implementation. Notwithstanding any other provision of law, including § 33-80(a)(7) and § 33- 107(a)(7), the implementation of any amendment to County Code Chapter 33 in Section 1 of this Act concerning disability retirement is not subject to collective bargaining with a certified representative of employees in any bargaining unit.
Sec. 3. The amendments to County Code Chapter 33 made in Section 1 of this Act apply to any disability occurring on or after the date this Act takes effect [July 1, 2012].
Montgomery County, Md., Code § 33-81 (2026)
Sec. 33-81. Impasse procedure.LinkCopy Citation
(a)
Before September 10 of any year in which the employer and a certified representative bargain collectively, they shall choose an impasse neutral either by agreement or through the processes of the American Arbitration Association. The impasse neutral shall be required to be available during the period from January 20 to February 1. Fees, costs and expenses of the impasse neutral shall be shared equally by the employer and the certified representative.
(b)
(1)
During the course of collective bargaining, either party may declare an impasse and request the services of the impasse neutral. If the parties have not reached agreement by January 20, an impasse exists.
(2)
Whenever an impasse has been reached, the dispute shall be submitted to the impasse neutral. The impasse neutral shall attempt mediation by bringing the parties together voluntarily under such favorable auspices as will tend to effectuate the settlement of the dispute.
(3)
If the impasse neutral, in the impasse neutral’s sole discretion, finds that the parties are at a bona fide impasse, the impasse neutral must require each party to submit a final offer which must consist either of a complete draft of a proposed collective bargaining agreement or a complete package proposal, as the impasse neutral chooses. If only complete package proposals are required, the impasse neutral must require the parties to submit jointly a memorandum of all items previously agreed upon.
(4)
The impasse neutral may, in the impasse neutral’s discretion, require the parties to submit evidence or make oral or written argument in support of their proposals. The impasse neutral may hold a hearing for this purpose at a time, date and place selected by the impasse neutral. Said hearing must not be open to the public.
(5)
On or before February 1, the impasse neutral must select, as a whole, the more reasonable, in the impasse neutral’s judgment, of the final offers submitted by the parties.
(A)
The impasse neutral must first evaluate and give the highest priority to the ability of the County to pay for additional short-term and long-term expenditures by considering:
(i)
the limits on the County’s ability to raise taxes under State law and the County Charter;
(ii)
the added burden on County taxpayers, if any, resulting from increases in revenues needed to fund a final offer; and
(iii)
the County’s ability to continue to provide the current standard of all public services.
(B)
After evaluating the ability of the County to pay under subparagraph (A), the impasse neutral may only consider:
(i)
the interest and welfare of County taxpayers and service recipients;
(ii)
past collective bargaining contracts between the parties, including the bargaining history that led to each contract;
(iii)
a comparison of wages, hours, benefits, and conditions of employment of similar employees of other public employers in the Washington Metropolitan Area and in Maryland;
(iv)
a comparison of wages, hours, benefits, and conditions of employment of other Montgomery County employees; and
(v)
wages, benefits, hours and other working conditions of similar employees of private employers in Montgomery County
(6)
The impasse neutral must:
(A)
not compromise or alter the final offer that he or she selects;
(B)
select an offer based on the contents of that offer;
(C)
not consider or receive any evidence or argument concerning the history of collective bargaining in this immediate dispute, including offers of settlement not contained in the offers submitted to the impasse neutral; and
(D)
consider all previously agreed on items integrated with the specific disputed items to determine the single most reasonable offer.
(7)
The offer selected by the impasse neutral, integrated with the previously agreed upon items, shall be deemed to represent the final agreement between the employer and the certified representative, without the necessity of ratification by the parties, and shall have the force and effect of a contract voluntarily entered into and ratified as set forth in subsection 33-80(g) above. The parties shall execute such agreement.
(c)
An impasse over a reopener matter must be resolved under the procedures in this subsection. Any other impasse over a matter subject to collective bargaining must be resolved under the impasse procedure in subsections (a) and (b).
(1)
If the parties agree in a collective bargaining agreement to bargain over an identified issue on or before a specified date, the parties must bargain under those terms. Each identified issue must be designated as a “reopener matter.”
(2)
When the parties initiate collective bargaining under paragraph (1), the parties must choose, by agreement or through the processes of the American Arbitration Association, an impasse neutral who agrees to be available for impasse resolution within 30 days.
(3)
If, after bargaining in good faith, the parties are unable to reach agreement on a reopener matter by the deadline specified in the collective bargaining agreement, either party may declare an impasse.
(4)
If an impasse is declared under paragraph (3), the dispute must be submitted to the impasse neutral no later than 10 days after impasse is declared.
(5)
The impasse neutral must resolve the dispute under the impasse procedure in subsection (b), except that:
(A)
the dates in that subsection do not apply;
(B)
each party must submit to the impasse neutral a final offer on only the reopener matter; and
(C)
the impasse neutral must select the most reasonable of the parties’ final offers no later than 10 days after the impasse neutral receives the final offers.
(6)
This subsection applies only if the parties in their collective bargaining agreement have designated:
(A)
the specific reopener matter to be bargained;
(B)
the date by which bargaining on the reopener matter must begin; and
(C)
the deadline by which bargaining on the reopener matter must be completed and after which the impasse procedure must be implemented.
Sections 33-75 through 33-85 and Sections 33-101 through 33-112 are cited, and Section 33-80 is quoted, in Fraternal Order of Police Lodge 35 v. Montgomery County, 436 Md. 1, 80 A.3d 686 (2013).
Sections 33-81 and 33-83 are cited and quoted, and Sections 33-75, 33-76, 33-77, 33-78, 33-79, 33-80, 33-82, 33-84 & 33-85 are cited in Fraternal Order of Police, Montgomery County Lodge 35, Inc., v. Montgomery County Executive, 210 Md. App. 117, 62 A.3d 238 (2013). The Court interpreted Section 33-80 regarding collective bargaining agreements and the funding of future County budgets.
Montgomery County, Md., Code § 33-82 (2026)
Sec. 33-82. Prohibited practices.LinkCopy Citation
(a)
The employer or its agents or representatives are prohibited from:
(1)
Interfering with, restraining or coercing employees in the exercise of any rights granted to them under the provisions of this article;
(2)
Dominating or interfering with the formation or administration of any employee organization or contributing financial or other support to it, pursuant to contract or otherwise; provided that the employer and a certified representative may agree to and apply a membership dues deduction provision as provided herein and to reasonable use of county facilities for communicating with employees;
(3)
Encouraging or discouraging membership in any employee organization by discrimination in regard to hiring, tenure, wages, hours or conditions of employment, provided that nothing in this article shall preclude an agreement from containing a provision for an agency shop;
(4)
Discharging or discriminating against a public employee because he has filed charges, given testimony or otherwise lawfully aided in the administration of this article;
(5)
Refusing to bargain collectively with a certified representative;
(6)
Refusing to reduce to writing or refusing to sign a bargaining agreement which has been agreed to in all respects;
(7)
Refusing to process or arbitrate a grievance if required under a grievance procedure contained in a collective bargaining agreement;
(8)
Directly or indirectly opposing the appropriation of funds or the enactment of legislation by the county council to implement an agreement reached between the employer and the certified representative pursuant to this article;
(9)
Engaging in a lockout of employees;
(10)
delaying or refusing to participate in the impasse procedure in Section 33-81(c)(2) after the employer implements a final offer under Section 33-81(c)(2)(C).
(b)
Employee organizations, and their agents, representatives and employees, are prohibited from:
(1)
Interfering with, restraining or coercing the employer or employees in the exercise of any rights granted under this article;
(2)
Restraining, coercing or interfering with the employer in the selection of its representatives for the purposes of collective bargaining or the adjustment of grievances;
(3)
Refusing to bargain collectively with the employer if such employee organization is the certified representative.
(4)
Refusing to reduce to writing or refusing to sign a bargaining agreement which has been agreed to in all respects;
(5)
Hindering or preventing, by threats of violence, intimidation, force or coercion of any kind, the pursuit of any lawful work or employment by any person, public or private, or obstructing or otherwise unlawfully interfering with the entrance to or egress from any place of employment, or obstructing or unlawfully interfering with the free and uninterrupted use of public roads, streets, highways, railways, airports or other ways of travel or conveyance by any person, public or private;
(6)
Hindering or preventing by threats, intimidation, force, coercion or sabotage, the obtaining, use or disposition of materials, supplies, equipment or services by the employer;
(7)
Taking or retaining unauthorized possession of property of the employer or refusing to do work or use certain goods or materials as lawfully required by the employer;
(8)
Forcing or requiring the employer to assign particular work to employees in a particular employee organization or classification rather than to employees in another employee organization or classification;
(9)
Causing or attempting to cause the employer to pay or deliver or agree to pay or deliver any money or other thing of value, in the nature of an exaction, for services which are neither performed or to be performed.
(c)
A charge of prohibited practice may be filed by the employer, employee organization, or any individual employee. The charge or charges shall be filed with the permanent umpire, with copies to the party alleged to have committed a prohibited practice. All charges shall contain a statement of facts sufficient to enable the permanent umpire to investigate the charge. The permanent umpire may request withdrawal of and, if necessary, summarily dismiss charges if they are insufficiently supported in fact or in law to warrant a hearing. The permanent umpire shall have authority to maintain such independent investigation as the permanent umpire determines necessary and to develop rules and regulations therefor. If, upon investigation, the permanent umpire finds that a charge is sufficiently supported to raise an issue of fact or law, the permanent umpire shall hold a hearing on such charge upon notification to the parties. In any hearing, charging parties shall present evidence in support of the charges and the party or parties charged shall have the right to file an answer to the charges, to appear in person or otherwise and to present evidence in defense of the charges.
(d)
If the permanent umpire determines that the person charged has committed a prohibited practice, the permanent umpire shall make findings of fact and conclusions of law and shall be empowered to issue an order requiring the person charged to cease and desist from the prohibited practice and to take such affirmative action as will remedy the violation(s) of this article. Remedies of the permanent umpire may include, but shall not be limited to, reinstating employees with or without back pay, making employees whole for any loss relating to county employment suffered as a result of any prohibited practice, withdrawing or suspending the employee organization's authority to negotiate or continue membership dues deductions, or agency shop benefits. If the permanent umpire finds that the party or parties charged have not committed any prohibited practices, the permanent umpire shall make findings of fact and conclusions of law and issue an order dismissing the charges.
(e)
The permanent umpire shall not receive or entertain charges based upon an alleged prohibited practice occurring more than six (6) months prior to the filing of the charge.
Sections 33-81 and 33-83 are cited and quoted, and Sections 33-75, 33-76, 33-77, 33-78, 33-79, 33-80, 33-82, 33-84 & 33-85 are cited in Fraternal Order of Police, Montgomery County Lodge 35, Inc., v. Montgomery County Executive, 210 Md. App. 117, 62 A.3d 238 (2013). The Court interpreted Section 33-80 regarding collective bargaining agreements and the funding of future County budgets.
Montgomery County, Md., Code § 33-83 (2026)
Sec. 33-83. Expression of views.LinkCopy Citation
The expression of any views, argument or opinion, or the dissemination thereof, whether orally, in writing or otherwise, shall not constitute or be evidence of a prohibited practice under any of the provisions of this law nor be grounds for invalidating any election conducted under this law if such expression or dissemination contains no threat of reprisal or promise of benefit.
Sections 33-81 and 33-83 are cited and quoted, and Sections 33-75, 33-76, 33-77, 33-78, 33-79, 33-80, 33-82, 33-84 & 33-85 are cited in Fraternal Order of Police, Montgomery County Lodge 35, Inc., v. Montgomery County Executive, 210 Md. App. 117, 62 A.3d 238 (2013). The Court interpreted Section 33-80 regarding collective bargaining agreements and the funding of future County budgets.
Montgomery County, Md., Code § 33-84 (2026)
Sec. 33-84. Strikes and lockouts.LinkCopy Citation
(a)
No employee or employee organization shall either directly or indirectly cause, instigate, encourage, condone or engage in any strike, nor the employer in any lockout. No employee or employee organization shall obstruct, impede or restrict, either directly or indirectly, any attempt to terminate a strike.
(b)
The employer shall not pay, reimburse, make whole or otherwise compensate any employee for or during the period when said employee is directly or indirectly engaged in a strike, nor shall the employer thereafter compensate an employee who struck for wages or benefits lost during such strike.
(c)
If an employee or employee organization violates this section, the employer, after adequate notice and a fair hearing before the permanent umpire who finds that the alleged violations have occurred and that any or all of the following actions are necessary in the public interest, may, subject to the law enforcement officer’s bill of rights, Title 3, Subtitle 1 of the Public Safety Article of the Maryland Code:
(1)
Impose disciplinary action, including dismissal from employment, on employees engaged in such conduct;
(2)
Terminate or suspend employee organization’s dues deduction privilege, if any;
(3)
Revoke the certification of and disqualify the employee organization from participation in representation elections for a period up to a maximum of two (2) years.
(d)
Nothing contained herein shall prohibit an employer from seeking any remedy available in a court of competent jurisdiction.
Sections 33-75 through 33-85 and Sections 33-101 through 33-112 are cited, and Section 33-80 is quoted, in Fraternal Order of Police Lodge 35 v. Montgomery County, 436 Md. 1, 80 A.3d 686 (2013).
Sections 33-81 and 33-83 are cited and quoted, and Sections 33-75, 33-76, 33-77, 33-78, 33-79, 33-80, 33-82, 33-84 & 33-85 are cited in Fraternal Order of Police, Montgomery County Lodge 35, Inc., v. Montgomery County Executive, 210 Md. App. 117, 62 A.3d 238 (2013). The Court interpreted Section 33-80 regarding collective bargaining agreements and the funding of future County budgets.
Montgomery County, Md., Code § 33-85 (2026)
Sec. 33-85. Effect of prior enactments.LinkCopy Citation
Nothing contained in this article shall be construed to repeal any laws, executive orders, legislation, rules or regulations adopted by the county and any department or agency thereof not inconsistent with the provisions of this article.
Sections 33-81 and 33-83 are cited and quoted, and Sections 33-75, 33-76, 33-77, 33-78, 33-79, 33-80, 33-82, 33-84 & 33-85 are cited in Fraternal Order of Police, Montgomery County Lodge 35, Inc., v. Montgomery County Executive, 210 Md. App. 117, 62 A.3d 238 (2013). The Court interpreted Section 33-80 regarding collective bargaining agreements and the funding of future County budgets.
Article VI. RESERVED.
Montgomery County, Md., Code § 33-86 (2026)
Sec. 33-86. Reserved.LinkCopy Citation
Montgomery County, Md., Code § 33-87 (2026)
Sec. 33-87. Reserved.LinkCopy Citation
Montgomery County, Md., Code § 33-88 (2026)
Sec. 33-88. Reserved.LinkCopy Citation
Montgomery County, Md., Code § 33-89 (2026)
Sec. 33-89. Reserved.LinkCopy Citation
Montgomery County, Md., Code § 33-90 (2026)
Sec. 33-90. Reserved.LinkCopy Citation
Montgomery County, Md., Code § 33-91 (2026)
Sec. 33-91. Reserved.LinkCopy Citation
Montgomery County, Md., Code § 33-92 (2026)
Sec. 33-92. Reserved.LinkCopy Citation
Montgomery County, Md., Code § 33-93 (2026)
Sec. 33-93. Reserved.LinkCopy Citation
Montgomery County, Md., Code § 33-94 (2026)
Sec. 33-94. Reserved.LinkCopy Citation
Montgomery County, Md., Code § 33-95 (2026)
Sec. 33-95. Reserved.LinkCopy Citation
Montgomery County, Md., Code § 33-96 (2026)
Sec. 33-96. Reserved.LinkCopy Citation
Montgomery County, Md., Code § 33-97 (2026)
Sec. 33-97. Reserved.LinkCopy Citation
Montgomery County, Md., Code § 33-98 (2026)
Sec. 33-98. Reserved.LinkCopy Citation
Montgomery County, Md., Code § 33-99 (2026)
Sec. 33-99. Reserved.LinkCopy Citation
Article VII. County Collective Bargaining.
Montgomery County, Md., Code § 33-101 (2026)
Sec. 33-101. Declaration of policy.LinkCopy Citation
It is the public policy of Montgomery County to promote a harmonious, peaceful, and cooperative relationship between the county government and its employees and to protect the public by assuring, at all times, the responsive, orderly, and efficient operation of county government and services. Since unresolved disputes in public service are harmful to the public and to employees, adequate means should be available for preventing disputes and for resolving them when they occur. To that end, it is in the public interest that employees have the opportunity to bargain collectively over wages, hours, and other terms and conditions of employment, as authorized by Charter section 511, through a representative of their choice, or to refrain from collective bargaining. It is also in the public interest that the county government and a representative of county employees bargain collectively in good faith without interference with the orderly process of government and that they implement any agreements reached through collective bargaining.
The county council also recognizes that employee organizations and the county government each possess substantial means for initiating actions on wages, hours, and working conditions of employees. Therefore, in order to preserve an appropriate balance between labor and management in the public service, the county council states that once the employees voluntarily select a representative, collective bargaining shall be used in place of, and not in addition to, existing means for initiating governmental action on subjects that are defined as appropriate for like collective bargaining in this article.
Montgomery County, Md., Code § 33-102 (2026)
Sec. 33-102. Definitions.LinkCopy Citation
The following terms have the meaning indicated when used in this Article:
(1)
Agency shop means a provision in a collective bargaining agreement requiring, as a condition of continued employment, that bargaining unit employees pay a service fee not greater than the monthly membership dues uniformly and regularly required by the employee organization of all of its members. An agency shop agreement shall not require an employee to pay initiation fees, assessments, fines, or any other like collections or their equivalent as a condition of continued employment. A collective bargaining agreement shall not require payment of a service fee by any employee who opposes joining or financially supporting an employee organization on religious grounds. However, the collective bargaining agreement may require that employee to pay an amount equal to the service fee to a nonreligious, nonunion charity, or to any other charitable organization, agreed to by the employee and the certified representative, with provision for dispute resolution if there is not agreement, and to give to the employer and the certified representative written proof of this payment. The certified representative shall adhere at all times to all federal constitutional requirements in its administration of any agency shop system maintained by it.
(2)
Certified representative means an employee organization chosen to represent employees as their exclusive bargaining agent in one (1) or both units as defined in Section 33-105 in accordance with the procedures of this Article.
(3)
Collective bargaining means meeting at reasonable times and places and negotiating in good faith on appropriate subjects as defined under this Article. This Article shall not be interpreted to compel either party to agree to a proposal or make a concession.
(4)
Employee means any person who works for the County government, except:
(A)
a confidential aide to an elected official;
(B)
a person holding a position designated by law as a non-merit position;
(C)
a head of a principal department, office, or agency;
(D)
a deputy or assistant to a head of a principal department, office, or agency;
(E)
an employee who provides direct staff or administrative support to the head of a principal department, office, or agency, or to a deputy or assistant within the immediate office of a head of a principal department, office, or agency;
(F)
an employee who reports directly to, or whose immediate supervisor is:
(i)
the County Executive;
(ii)
the Chief Administrative Officer; or
(iii)
a principal aide of the County Executive or Chief Administrative Officer;
(G)
an employee who works for:
(i)
the Office of the County Executive;
(ii)
the Office of the Chief Administrative Officer;
(iii)
the County Council;
(iv)
the Office of the County Attorney;
(v)
the Office of Management and Budget;
(vi)
the Office of Intergovernmental Relations;
(vii)
the Office of Human Resources;
(viii)
the Merit System Protection Board; or
(ix)
the Ethics Commission;
(H)
an employee in a temporary, seasonal, or substitute position, unless the position is in a job class in which the incumbents are predominantly career merit system employees;
(I)
a recently-hired employee who has not completed the probationary period;
(J)
an employee in the police bargaining unit;
(K)
an employee in the firefighter/rescuer bargaining unit;
(L)
a uniformed officer in the Department of Correction & Rehabilitation at the rank of Lieutenant or higher;
(M)
subject to any limitations in State law, a uniformed officer in the Office of the Sheriff at the rank of sergeant or higher;
(N)
an employee who is a member of the State merit system;
(O)
a supervisor, other than a Sergeant in the Department of Correction and Rehabilitiation;
(P)
an employee in a position classified at grade 27 or above unless the employee’s position is reclassified or reallocated on or after July 1, 2002, to a non-supervisory position at grade 27 or above; or
(Q)
an employee in a position classified in the Management Leadership Service.
(5)
Employee organization means any organization that admits employees to membership and that has as a primary purpose the representation of employees in collective bargaining.
(6)
Employer means the County Executive and his or her designees.
(7)
Lockout means any action that the employer takes to interrupt or prevent the continuity of work properly and usually performed by the employees for the purpose and with the intent of either coercing the employees into relinquishing rights guaranteed by this Article or of bringing economic pressure on employees for the purpose of securing the agreement of their certified representative to certain collective bargaining terms.
(8)
Mediation means an effort by the mediator/fact-finder chosen under this Article to assist confidentially in resolving, through interpretation, suggestion, and advice, a dispute arising out of collective bargaining between the employer and the certified representative.
(9)
Strike means a concerted failure to report for duty, absence, stoppage of work, or abstinence in whole or in part from the full and faithful performance of the duties of employment with the employer, or deviation from normal or proper work duties or activities, where any of the preceding are done in a concerted manner for the purpose of inducing, influencing, or coercing the employer in the determination, implementation, interpretation, or administration of terms or conditions of employment or of the rights, privileges, or obligations of employment or of the status, recognition, or authority of the employee or an employee organization.
(10)
Supervisor means an employee who has the authority to:
(A)
hire, assign, transfer, lay off, recall, promote, evaluate, reward, discipline, suspend, or discharge another employee, or effectively recommend any of these actions;
(B)
direct the activity of 3 or more employees; or
(C)
adjust or recommend adjustment of any grievance.
(11)
Unit means either of the units defined in Section 33-105.
Montgomery County, Md., Code § 33-103 (2026)
Sec. 33-103. Labor relations administrator.LinkCopy Citation
(a)
A Labor Relations Administrator must be appointed to effectively administer this Article as it governs selection, certification and decertification procedures, prohibited practices, and the choice of a mediator/fact-finder. The Administrator must:
(1)
Periodically adopt, amend, and rescind, under method (1) of section 2A-15 of this Code, regulations and procedures for the implementation and administration of the duties of the labor relations administrator under this article.
(2)
Request from the employer or an employee organization, and the employer or such organization may at its discretion provide, any relevant assistance, service, and data that will enable her properly to carry out her duties under this article.
(3)
Hold hearings and make inquiries, administer oaths and affirmations, examine witnesses and documents, take testimony and receive evidence, and compel by issuance of subpoenas the attendance of witnesses and the production of relevant documents.
(4)
Hold and conduct elections for certification or decertification pursuant to the provisions of this article and issue the certification or decertification.
(5)
Investigate and attempt to resolve or settle, as provided in this article, charges of engaging in prohibited practices. However, if the employer and a certified representative have negotiated a valid grievance procedure, the labor relations administrator must defer to that procedure to resolve any dispute that properly may be submitted to the procedure, absent a showing that the deferral results in the application of principles repugnant to this Article. The administrator must defer to state procedures in any matter governed by the Law-Enforcement Officers’ Bill of Rights, Title 3, Subtitle 1 of the Public Safety Article of the Maryland Code.
(6)
Determine unresolved issues of a person’s inclusion in or exclusion from the units.
(7)
Obtain any necessary support services and make necessary expenditures in the performance of duties to the extent provided for these purposes in the annual budget of Montgomery County.
(8)
Determine any issue regarding the negotiability of any collective bargaining proposal.
(9)
Exercise any other powers and perform any other duties and functions specified in this Article.
(b)
(1)
The Administrator must be a person with experience as a neutral in the field of labor relations, and must not be a person who, because of vocation, employment, or affiliation, can be categorized as a representative of the interest of the employer or any employee organization.
(2)
The County Executive must appoint, subject to confirmation by the County Council, the Administrator for a term of 5 years from a list of 5 nominees agreed upon by any certified representative(s) and the Chief Administrative Officer. The list may include the incumbent Administrator. If the Council does not confirm the appointment, the new appointment must be from a new agreed list of 5 nominees. If no certified representative has been selected, the Administrator must be appointed for a 4-year term by the Executive, subject to Council confirmation.
(c)
If the Administrator dies, resigns, becomes disabled, or otherwise becomes unable or ineligible to continue to serve, the Executive must appoint a new Administrator, subject to Council confirmation, to serve the remainder of the previous Administrator’s term. The Administrator appointed under this subsection may be reappointed as provided in subsection (b).
(d)
The Administrator must be paid a daily fee as specified in a contract with the County, and must be reimbursed for necessary expenses incurred in performing the duties of Administrator.
Montgomery County, Md., Code § 33-104 (2026)
Sec. 33-104. Employee rights.LinkCopy Citation
(a)
Employees have the right to:
(1)
Form, join, support, contribute to, or participate in, or to refrain from forming, joining, supporting, contributing to, or participating in, any employee organization or its lawful activities; and
(2)
Be represented fairly by their certified representative, if any.
(b)
The employer has the duty to extend to the certified representative the exclusive right to represent the employees for the purposes of collective bargaining, including the orderly processing and settlement of grievances as agreed by the parties in accordance with this article.
(c)
Except as provided in subsections (e) and (f), a certified representative serves as the exclusive bargaining agent for all employees in the unit for which it is certified and has the duty to represent fairly and without discrimination all employees in the unit without regard to whether the employees are members of the employee organization, pay dues or other contributions to it, or participate in its affairs.
(d)
The right of a certified representative to receive voluntary dues or service fee deductions must be determined through negotiations, unless the authority to negotiate these provisions has been suspended under this article. A collective bargaining agreement may not include a provision requiring membership in, participation in the affairs of, or contributions to an employee organization.
(e)
A certified representative may require an employee who does not pay membership dues or equivalent fees to pay:
(1)
the reasonable costs and fees, including expenses for staff time and materials, arbitrator fees, and related attorney’s fees, for filing a grievance or arbitrating a matter that arises under a collective bargaining agreement brought by the certified representative at the request of the employee; and
(2)
any anticipated proportional costs and fees before a grievance is filed or arbitration is pursued.
(f)
If an employee fails to pay the reasonable costs to file a grievance or pursue arbitration imposed under subsection (e), the certified representative may refuse to file the grievance or pursue arbitration on behalf of the employee. A dispute concerning the reasonableness of the fees imposed by the certified representative under subsection (e) may be submitted to the labor relations administrator as a prohibited practice under Section 33-109.
Montgomery County, Md., Code § 33-105 (2026)
Sec. 33-105. Units for collective bargaining.LinkCopy Citation
(a)
There are 2 units for collective bargaining and for purposes of certification and decertification. Members of these units are all County government employees, as defined in Section 33-102(4), and those employees who are limited-scope members of a bargaining unit under subsection (c)(2). The employees are divided into 2 units:
(1)
Service, labor, and trades (SLT) unit: This unit is composed of all eligible classes that are associated with service/maintenance and skilled crafts. This means job classes in which workers perform duties that result in or contribute to the comfort and convenience of the general public or that contribute to the upkeep and care of buildings, facilities, or grounds of public property. Workers in this group may operate specialized machinery or heavy equipment. These job classes may also require special manual skill and a thorough and comprehensive knowledge of the processes involved in the work that is acquired through on-the-job training and experience or through apprenticeship or other formal training programs.
(2)
Office, professional, and technical (OPT) unit: This unit is composed of all eligible classes associated with office, professional, paraprofessional, and technical functions.
(A)
Office: Job classes in which workers are responsible for internal and external communication, recording and retrieval of data and/or information, and other paperwork required in an office.
(B)
Professional: Job classes that require special and theoretical knowledge that is usually acquired through college training or through work experience and other training that provides comparable knowledge.
(C)
Paraprofessional: Job classes in which workers perform, in a supportive role, some of the duties of a professional or technician. These duties usually require less formal training and/or experience than is normally required for professional or technical status.
(D)
Technical: Job classes that require a combination of basic scientific or technical knowledge and manual skill that can be obtained throughspecialized post-secondary school education or through equivalent on-the-job training.
(b)
Specific job classes included in these units of representation, and not otherwise excluded under Section 33-102(4), shall be based on the designations made by the Chief Administrative Officer under the prior meet and confer process if the job class is not specified in this Article. In the event a new classification is created by the County, or an existing classification’s duties and responsibilities are substantially changed, the County Personnel Director must place the classification in one of the units or state that the classification falls within one of the exceptions to the definition of employee under this Article within sixty (60) days of the creation or substantial alteration of the class and must publish the decision in the Montgomery County Register. Any individual or certified representative disagreeing with the decision of the Personnel Director may, within ten (10) days of publication, file objections to the decision with the labor relations administrator, with notice to the Personnel Director. The Labor Relations Administrator shall promptly decide the question on the basis of the duties and responsibilities of the job classification, the unit definition, and the community of interests between and among employees in the job classification and collective bargaining unit.
(c)
Temporary, seasonal, and substitute employees.
(1)
A temporary, seasonal, or substitute employee in an occupational class in which the incumbents are predominantly career merit system employees becomes a member of the applicable bargaining unit when the employee has worked 6 months in a position in that occupational class. However, the employee may be terminated for any cause or without cause and without any right of grievance until the employee has completed 1040 hours of service in that position in any 12-month period.
(2)
A temporary, seasonal, or substitute employee who is excluded from the definition of “employee” under Section 33-102(4)(H) because the employee is not in an occupational class in which the incumbents are predominantly career merit system employees becomes a limited-scope member of the applicable bargaining unit immediately after the employee begins employment if:
(A)
the employee works at least 25 hours per pay period; and
(B)
the employee organization which represents that bargaining unit has adopted a reduced scale of dues and service fees for employees in the limited-scope membership group that is generally proportional to the organization’s representational responsibilities for employees in that group relative to the organization’s representational responsibilities for other bargaining unit members, as determined by the employee organization.
Membership in a bargaining unit on a limited-scope basis must not carry any right to continued employment or access to any grievance procedure or other benefit that is extended to other bargaining unit members.
Montgomery County, Md., Code § 33-106 (2026)
Sec. 33-106. Selection, certification, and decertification procedures.LinkCopy Citation
(a)
The certification or decertification of an employee organization as the representative of a unit for collective bargaining must comply with the following procedures:
(1)
Any employee organization seeking certification as representative of a unit shall file a petition with the labor relations administrator stating its name, address, and its desire to be certified. The employee organization shall also send a copy of the petition, including a copy of the signatures of the supporting employees on the petition, to the employer. The petition shall contain the uncoerced signatures of thirty (30) percent of the employees within the unit signifying their desire to be represented by the employee organization for purposes of collective bargaining.
(2)
If an employee organization has been certified, an employee within the unit may file a petition with the labor relations administrator for decertification of this certified representative. The employee shall also send a copy of the petition to the employer and the certified representative, not including the names of the supporting employees. The petition shall contain the uncoerced signatures of thirty (30) percent of the employees within the unit alleging that the employee organization presently certified is no longer the choice of the majority of the employees in the unit.
(3)
Petitions may be filed within ninety (90) days after any new bargaining unit is established. Thereafter, if a lawful collective bargaining agreement is not in effect, petitions may be filed between September 1 and September 30 of any year, but not sooner than twenty-two (22) months after an election held under this section.
(4)
If a lawful collective bargaining agreement is in effect, a petition filed under this section shall not be entertained unless it is filed during September of the final year of the agreement.
(5)
If a different employee organization is certified as the result of an election carried out under subsection (b)(8), that organization must be treated in all respects as a successor in interest and party to any collective bargaining agreement that the previous employee organization was a party to.
(b)
If the labor relations administrator determines that a petition is properly supported and timely filed, she shall cause an election of all eligible employees to be held within a reasonable time, but no later than October 20 of any year, to determine if and by whom the employees wish to be represented, as follows:
(1)
All elections shall be conducted under the supervision of the labor relations administrator and shall be conducted by secret ballot at the time and place that she directs. The labor relations administrator may select and retain the services of an agency of the State of Maryland responsible for conducting labor elections, or a similarly neutral body, to assist in conducting the election.
(2)
The election ballots shall contain, as choices to be made by the voter, the names of the petitioning or certified employee organization, the name or names of any other employee organization showing written proof at least ten (10) days before the election of at least ten (10) percent representation of the employees within the unit in the same manner as described in paragraph (a)(1) of this section, and a choice that the employee does not desire to be represented by any of the named employee organizations.
(3)
The employer and each party to the election may be represented by observers selected in accordance with limitations and conditions that the labor relations administrator may prescribe.
(4)
Observers may challenge for good cause the eligibility of any person to vote in the election. Challenged ballots shall be impounded pending either agreement of the parties as to the validity of the challenge or the labor relations administrator’s decision as to the validity of the challenge, unless the number of challenges is not determinative, in which case the challenged ballots shall be destroyed.
(5)
After the polls have been closed, the valid ballots cast shall be counted by the labor relations administrator in the presence of the observers.
(6)
The labor relations administrator shall immediately prepare and serve upon the employer and each of the parties a report certifying the results of the election. If an employee organization receives the votes of a majority of the employees who voted, the labor relations administrator shall certify the employee organization so elected as the exclusive agent.
(7)
If no employee organization receives the votes of a majority of the employees who voted, the labor relations administrator shall not certify a representative. Unless a majority of the employees who vote choose "no representative," a runoff election shall be conducted. The runoff election shall contain the two (2) choices that received the largest and second largest number of votes in the original election.
(8)
If a properly supported and timely filed petition to decertify an existing certified employee organization, and a properly supported and timely filed petition to certify another employee organization, are filed during the same time period under subsection (a)(3) or (a)(4), one election must be held to determine which organization, if any, the employees in the unit desire to represent them. The election ballot must contain, as choices to be made by the voter, the names of the petitioning and certified employee organizations, and a choice that the employee does not desire to be represented by any of the named employee organizations. All other applicable requirements and procedures for the election must be followed.
(c)
The labor relations administrator’s certification of results is final unless, within seven (7) days after service of the report and the certification, any party serves on all other parties and files with the labor relations administrator objections to the election. Objections shall be verified and shall contain a concise statement of facts constituting the grounds for the objections. The labor relations administrator shall investigate the objections and, if substantial factual issues exist, shall hold a hearing. Otherwise, she may determine the matter without a hearing. The labor relations administrator may invite, either by rule or by invitation, written or oral argument to assist her in determining the merits of the objections. If the labor relations administrator finds that the election was conducted in substantial conformity with this article, she shall confirm the certification initially issued. If the labor relations administrator finds that the election was not held in substantial conformity with this article, then she shall hold another election under this section.
(d)
The cost of conducting an election shall be paid by the county.
Montgomery County, Md., Code § 33-107 (2026)
Sec. 33-107. Collective bargaining.LinkCopy Citation
(a)
Duty to bargain; matters subject to bargaining. Upon certification of an employee organization, the employer and the certified representative have the duty to bargain collectively with respect to the following subjects for employees other than limited-scope members of the bargaining unit under Section 33-105(c)(2):
(1)
Salary and wages, including the percentage of the increase in the salary and wages budget that will be devoted to merit increments and cash awards, provided that salaries and wages shall be uniform for all employees in the same classification.
(2)
Pension and other retirement benefits for active employees only, but the parties must not bargain over the participation by any employee who is a member of the bargaining unit under Section 33-105(c)(1) in either the Integrated Retirement Plan or the Retirement Savings Plan.
(3)
Employee benefits such as insurance, leave, holidays, and vacations.
(4)
Hours and working conditions.
(5)
Provisions for the orderly processing and settlement of grievances concerning the interpretation and implementation of a collective bargaining agreement, which may include:
(A)
Binding third party arbitration for employees other than members of the bargaining unit under Section 33-105(c)(1), but the arbitrator must not amend, add to, or subtract from the provisions of the collective bargaining agreement; and
(B)
Provisions for exclusivity of forum.
(6)
Matters affecting the health and safety of employees.
(7)
Amelioration of the effect on employees when the exercise of employer rights listed in subsection (b) causes a loss of existing jobs in the unit.
The duty to bargain under this subsection, and any agreement reached as a result of bargaining, must not limit the employer’s authority to require a newly-hired employee to remain in probationary status, during which the employee may be terminated for any cause or without cause and without any right of grievance, for a period that does not exceed 6 months. Unless a specific probationary period is required by law, the parties may agree on any probationary period that is not less than 6 months.
(b)
Duty to bargain for limited-scope employees. The employer and the certified representative have the duty to bargain collectively on only the following subjects with respect to employees who are limited-scope members of the bargaining unit under Section 33-105(c)(2):
(1)
wage scales and general wage adjustments; and
(2)
dues or service fee deductions.
(c)
Employer rights. This article and any agreement made under it shall not impair the right and responsibility of the employer to perform the following:
(1)
Determine the overall budget and mission of the employer and any agency of county government.
(2)
Maintain and improve the efficiency and effectiveness of operations.
(3)
Determine the services to be rendered and the operations to be performed.
(4)
Determine the overall organizational structure, methods, processes, means, job classifications, and personnel by which operations are to be conducted and the location of facilities.
(5)
Direct and supervise employees.
(6)
Hire, select, and establish the standards governing promotion of employees, and classify positions.
(7)
Relieve employees from duties because of lack of work or funds, or under conditions when the employer determines continued work would be inefficient or nonproductive.
(8)
Take actions to carry out the mission of government in situations of emergency.
(9)
Transfer, assign, and schedule employees.
(10)
Determine the size, grades, and composition of the work force.
(11)
Set the standards of productivity and technology.
(12)
Establish employee performance standards and evaluate employees, except that evaluation procedures shall be a subject for bargaining.
(13)
Make and implement systems for awarding outstanding service increments, extraordinary performance awards, and other merit awards.
(14)
Introduce new or improved technology, research, development, and services.
(15)
Control and regulate the use of machinery, equipment, and other property and facilities of the employer, subject to subsection (a)(6) of this section.
(16)
Maintain internal security standards.
(17)
Create, alter, combine, contract out, or abolish any job classification, department, operation, unit, or other division or service, provided that no contracting of work which will displace employees may be undertaken by the employer unless ninety (90) days prior to signing the contract, or such other date of notice as agreed by parties, written notice has been given to the certified representative.
(18)
Suspend, discharge, or otherwise discipline employees for cause, except that, subject to Charter section 404, any such action may be subject to the grievance procedure set forth in the collective bargaining agreement.
(19)
Issue and enforce rules, policies, and regulations necessary to carry out these and all other managerial functions which are not inconsistent with this article, federal or state law, or the terms of the collective bargaining agreement.
(d)
Exemption. This article shall not be construed to limit the discretion of the employer voluntarily to discuss with the representatives of its employees any matter concerning the employer’s exercise of any of the rights set forth in this section. However, these matters shall not be subject to bargaining.
(e)
Agreement. The public employer rights set forth in this section are to be considered a part of every agreement reached between the employer and an employee organization.
Sec. 2. Implementation. Notwithstanding any other provision of law, including § 33-80(a)(7) and § 33-107(a)(7), the implementation of any amendment to County Code Chapter 33 in Section 1 of this Act concerning disability retirement is not subject to collective bargaining with a certified representative of employees in any bargaining unit.
Sec. 3. The amendments to County Code Chapter 33 made in Section 1 of this Act apply to any disability occurring on or after the date this Act takes effect [July 1, 2012].
Montgomery County, Md., Code § 33-108 (2026)
Sec. 33-108. Bargaining, impasse, and legislative procedures.LinkCopy Citation
(a)
Collective bargaining must begin no later than November 1 before the beginning of a fiscal year for which there is no agreement between the employer and the certified representative, and must be finished on or before February 1.
(b)
Any provision for automatic renewal or extension of a collective bargaining agreement is void. An agreement is not valid if it extends for less than one (1) year or for more than three (3) years. All agreements take effect July 1 and end June 30.
(c)
A collective bargaining agreement takes effect only after ratification by the employer and the certified representative. The certified representative may adopt its own ratification procedures.
(d)
Before September 10 of any year in which the employer and the certified representative bargain collectively, the Labor Relations Administrator must appoint a mediator/arbitrator, who may be a person recommended by both parties. The mediator/arbitrator must be available from January 2 to June 30. Fees and expenses of the mediator/arbitrator must be shared equally by the employer and the certified representative.
(e)
(1)
During the course of collective bargaining, either party may declare an impasse and request the services of the mediator/arbitrator, or the parties may jointly request those services before an impasse is declared. If the parties do not reach an agreement by February 1, an impasse exists. Any issue regarding the negotiability of any bargaining proposal must be referred to the Labor Relations Administrator for an expedited determination.
(2)
Any dispute, except a dispute involving the negotiability of a bargaining proposal, must be submitted to the mediator/arbitrator whenever an impasse has been reached, or as provided in subsection (e)(1). The mediator/arbitrator must engage in mediation by bringing the parties together voluntarily under such favorable circumstances as will encourage settlement of the dispute.
(3)
If the mediator/arbitrator finds, in the mediator/arbitrator's sole discretion, that the parties are at a bona fide impasse, or as of February 1 when an impasse is automatically reached, whichever occurs earlier, the dispute must be submitted to binding arbitration.
(f)
(1)
If binding arbitration is invoked, the mediator/arbitrator must require each party to submit a final offer, which must consist either of a complete draft of a proposed collective bargaining agreement or a complete package proposal, as the mediator/arbitrator directs. If only complete package proposals are required, the mediator/arbitrator must require the parties to submit jointly a memorandum of all items previously agreed on.
(2)
The mediator/arbitrator may require the parties to submit oral or written evidence and arguments in support of their proposals. The mediator/arbitrator may hold a hearing for this purpose at a time, date, and place selected by the mediator/arbitrator. This hearing must not be open to the public.
(3)
On or before February 15, the mediator/arbitrator must select, as a whole, the more reasonable of the final offers submitted by the parties. The mediator/arbitrator must not compromise or alter a final offer. The mediator/arbitrator must not consider or receive any argument or evidence related to the history of collective bargaining in the immediate dispute, including any previous settlement offer not contained in the final offers. However, the mediator/arbitrator must consider all previously agreed-on items, integrated with the disputed items, to decide which offer is the most reasonable.
(4)
In making a determination under this subsection, the mediator/arbitrator must first evaluate and give the highest priority to the ability of the County to pay for additional short-term and long-term expenditures by considering:
(A)
the limits on the County’s ability to raise taxes under State law and the County Charter;
(B)
the added burden on County taxpayers, if any, resulting from increases in revenues needed to fund a final offer; and
(C)
the County’s ability to continue to provide the current standard of all public services.
(5)
After evaluating the ability of the County to pay under paragraph (4), the mediator/arbitrator may only consider:
(A)
the interest and welfare of County taxpayers and service recipients;
(B)
past collective bargaining agreements between the parties, including the past bargaining history that led to each agreement;
(C)
a comparison of wages, hours, benefits, and conditions of employment of similar employees of other public employers in the Washington Metropolitan Area and in Maryland;
(D)
a comparison of wages, hours, benefits, and conditions of employment of other Montgomery County employees; and.
(E)
wages, benefits, hours, and other working conditions of similar employees of private employers in Montgomery County.
(6)
The offer selected by the mediator/arbitrator, integrated with all previously agreed on items, is the final agreement between the employer and the certified representative, need not be ratified by any party, and has the effect of a contract ratified by the parties under subsection (c). The parties must execute the agreement, and any provision which requires action in the County budget must be included in the budget which the employer submits to the County Council.
(g)
In each proposed annual operating budget, the County Executive must describe any collective bargaining agreement or amendment to an agreement that is scheduled to take effect in the next fiscal year and estimate the cost of implementing that agreement. The employer must submit to the Council by April 1, unless extenuating circumstances require a later date, any term or condition of the collective bargaining agreement that requires an appropriation of funds, or the enactment or adoption of any County law or regulation, or which has or may have a present or future fiscal impact. If a later submission is necessary, the employer must specify the submission date and the reasons for delay to the Council President by April 1. The employer must expressly identify to the Council and the certified representative any term or condition that requires Council review. Each submission to the Council must include:
(1)
all proposed legislation and regulations necessary to implement the collective bargaining agreement;
(2)
all changes from the previous collective bargaining agreement, indicated by brackets and underlines or a similar notation system; and
(3)
all side letters or other extraneous documents that are binding on the parties.
The employer must make a good faith effort to have the Council approve all terms of the final agreement that require Council review.
(h)
The Council may hold a public hearing to enable the parties and the public to testify on the agreement.
(i)
The Council may accept or reject all or part of any term or condition that requires Council review under subsection (g). On or before May 1, the Council must indicate by resolution its intention to appropriate funds for or otherwise implement the items that require Council review or its intention not to do so, and must state its reasons for any intent to reject any such item. The Council, by majority vote taken on or before May 1, may defer the May 1 deadline to any date not later than May 15.
(j)
If the Council indicates its intention to reject any item that requires Council review, the Council must designate a representative to meet with the parties and present the Council’s views in the parties’ further negotiation on items that the Council has indicated its intention to reject. This representative must also participate fully in stating the Council’s position in any ensuing impasse procedure. The parties must meet as promptly as possible and attempt to negotiate an agreement acceptable to the Council. Either party may at this time initiate impasse procedures under this Section. The parties must submit the results of the negotiation, whether a complete or a partial agreement, to the Council on or before May 10. If the Council has deferred the May 1 deadline, that action automatically postpones the May 10 deadline by the same number of days. The Council then must consider the agreement as renegotiated by the parties and indicate by resolution its intention to appropriate funds for or otherwise implement the agreement, or its intention not to do so.
(k)
Any agreement must provide for automatic reduction or elimination of wage or benefits adjustments if:
(1)
The Council does not take action necessary to implement the agreement or a part of it; or
(2)
Sufficient funds are not appropriated for any fiscal year when the agreement is in effect.
(l)
The Council must take any action required by the public interest with respect to any matter still in dispute between the parties. However, any action taken by the Council is not part of the agreement between the parties unless the parties specifically incorporate it in the agreement.
(m)
Later years. The process and timetable in subsections (i) and (j) apply to Council review of wage or benefits adjustments after the first year of any multi-year agreement.
(n)
Out-of-cycle amendments. The process in subsections (i) and (j) applies to Council review of any amendment to a collective bargaining agreement that the Council receives after May 15 of any year, but the deadlines in those subsections do not apply. The Council President must set action deadlines which result, to the extent feasible, in a similar timetable relative to the date the Council received the amendment.
Section 33-108 is cited and quoted, and Sections 33-109 and 33-110 are cited in Municipal and County Government Employees Organization v. Montgomery County Executive, 210 Md. App. 163, 62 A.3d 265 (2013).
Montgomery County, Md., Code § 33-109 (2026)
Sec. 33-109. Prohibited practices.LinkCopy Citation
(a)
The employer or its agents or representatives are prohibited from any of the following:
(1)
Interfering with, restraining, or coercing employees in the exercise of any rights granted to them under this article.
(2)
Dominating or interfering with the formation or administration of any employee organization or contributing financial or other support to it, under an agreement or otherwise. However, the employer and a certified representative may agree to and apply an agency shop provision under this article and a voluntary dues or service fee deduction provision, and may agree to reasonable use of county facilities for communicating with employees.
(3)
Encouraging or discouraging membership in any employee organization by discriminating in hiring, tenure, wages, hours, or conditions of employment. However, nothing in this article precludes an agreement from containing a provision for an agency shop.
(4)
Discharging or discriminating against a public employee because she or he files charges, gives testimony, or otherwise lawfully aids in the administration of this article.
(5)
Refusing to bargain collectively with the certified representative.
(6)
Refusing to reduce to writing or refusing to sign a bargaining agreement that has been agreed to in all respects.
(7)
Refusing to process or arbitrate a grievance if required under a grievance procedure contained in a collective bargaining agreement.
(8)
Directly or indirectly opposing the appropriation of funds or the enactment of legislation by the county council to implement an agreement reached between the employer and the certified representative under this article.
(9)
Engaging in a lockout of employees.
(b)
Employee organizations, their agents, representatives, and person who work for them are prohibited from any of the following:
(1)
Interfering with, restraining, or coercing the employer or employees in the exercise of any rights granted under this article.
(2)
Restraining, coercing, or interfering with the employer in the selection of its representative for the purposes of collective bargaining or the adjustment of grievances.
(3)
Refusing to bargain collectively with the employer if the employee organization is the certified representative.
(4)
Refusing to reduce to writing or refusing to sign a bargaining agreement which has been agreed to in all respects.
(5)
Hindering or preventing, by threats of violence, intimidation, force, or coercion of any kind, the pursuit of any lawful work or employment by any person, public or private, or obstructing or otherwise unlawfully interfering with the entrance to or exit from any place of employment, or obstructing or unlawfully interfering with the free and uninterrupted use of public roads, streets, highways, railways, airports, or other ways of travel or conveyance by any person, public or private.
(6)
Hindering or preventing by threats, intimidation, force, coercion, or sabotage, the obtaining, use, or disposition of materials, supplies, equipment, or services by the employer.
(7)
Taking or retaining unauthorized possession of property of the employer, or refusing to do work or use certain goods or materials as lawfully required by the employer.
(8)
Causing or attempting to cause the employer to pay or deliver or agree to pay or deliver any money or other thing of value, in the nature of an exaction, for services which are neither performed nor to be performed.
(c)
A charge of prohibited practice may be filed by the employer, an employee organization, or any individual employee. The charge or charges shall be filed with the labor relations administrator, and copies shall be sent to the party alleged to have committed a prohibited practice. All charges shall contain a statement of facts sufficient to enable the labor relations administrator to investigate the charge. The labor relations administrator may request withdrawal of and, if necessary, summarily dismiss charges if they are insufficiently supported in fact or in law to warrant a hearing. The labor relations administrator has the authority to maintain whatever independent investigation she determines is necessary and to develop regulations for an independent investigation. If, upon investigation, the labor relations administrator finds that a charge is sufficiently supported to raise an issue of fact or law, she shall, if she is unable to achieve settlement or resolution of the matter, hold a hearing on the charge after notification to the parties. In any hearing, charging parties shall present evidence in support of the charges; and the party or parties charged shall have the right to file an answer to the charges, to appear in person or otherwise, and to present evidence in defense against the charges.
(d)
If the labor relations administrator determines that the person charged has committed a prohibited practice, she shall make findings of fact and conclusions of law and may issue an order requiring the person charged to cease and desist from the prohibited practice, and may take affirmative actions that will remedy the violation of this article. Remedies of the labor relations administrator include reinstating employees with or without back pay, making employees whole for any loss relating to county employment suffered as a result of any prohibited practices, or withdrawing or suspending the employee organization’s authority to negotiate or continue an agency shop provision or a voluntary dues or service fee deduction provision. If the labor relations administrator finds that the party charged has not committed any prohibited practices, she shall make findings of fact and conclusions of law and issue an order dismissing the charges.
(e)
The labor relations administrator shall not receive or entertain charges based upon an alleged prohibited practice occurring more than six (6) months before the filing of the charge.
Section 33-108 is cited and quoted, and Sections 33-109 and 33-110 are cited in Municipal and County Government Employees Organization v. Montgomery County Executive, 210 Md. App. 163, 62 A.3d 265 (2013).
Montgomery County, Md., Code § 33-110 (2026)
Sec. 33-110. Expression of views.LinkCopy Citation
(a)
The expression or dissemination of any views, argument, or opinion, whether orally, in writing, or otherwise, does not constitute and is not evidence of a prohibited practice under any of the provisions of this article, nor is it grounds for invalidating any election conducted under this article if the expression or dissemination does not contain a threat of reprisal or promise of benefit.
(b)
Recognizing an employee organization does not preclude the county from dealing with religious, social, fraternal, professional, or other lawful associations with respect to matters or policies that involve individual members of the associations or are of particular applicability to it or its members.
Section 33-108 is cited and quoted, and Sections 33-109 and 33-110 are cited in Municipal and County Government Employees Organization v. Montgomery County Executive, 210 Md. App. 163, 62 A.3d 265 (2013).
Montgomery County, Md., Code § 33-111 (2026)
Sec. 33-111. Strikes and lockouts.LinkCopy Citation
(a)
An employee or employee organization shall not either directly or indirectly cause, instigate, encourage, condone, or engage in any strike, nor the employer in any lockout. An employee or employee organization shall not obstruct, impede, or restrict, either directly or indirectly, any attempt to terminate a strike.
(b)
The employer shall not pay, reimburse, make whole, or otherwise compensate any employee for or during the period when that employee is directly or indirectly engaged in a strike, nor shall the employer thereafter compensate an employee who struck for wages or benefits lost during the strike.
(c)
If an employee or employee organization violates this Section, the employer, after adequate notice and a fair hearing before the labor relations administrator who finds that the violations have occurred and that any or all of the following actions are necessary in the public interest, may impose any of the following sanctions, subject to the Law- Enforcement Officers’ Bill of Rights, Title 3, Subtitle 1 of the Public Safety Article of the Maryland Code:
(1)
Impose disciplinary action, including dismissal from employment, on employees engaged in the conduct.
(2)
Terminate or suspend the employee organization’s dues deduction privilege, if any.
(3)
Revoke the certification of and disqualify the employee organization from participation in representation elections for a period up to a maximum of two (2) years.
(d)
This article does not prohibit an employer or a certified employee organization from seeking any remedy available in a court of competent jurisdiction.
Montgomery County, Md., Code § 33-112 (2026)
Sec. 33-112. Effect of prior enactments.LinkCopy Citation
(a)
Nothing contained in this article shall be construed to repeal any law, executive order, rule, or regulation adopted by the county or any of its departments or agencies that is not inconsistent with the provisions of this article.
(b)
Any executive order, rule, or regulation of the county or any of its departments or agencies that regulates any subject that is bargainable under this article shall not be held to be repealed or modified by a provision of a collective bargaining agreement negotiated under this article except to the extent that the application of the order, rule, or regulation is inconsistent with the provision in the collective bargaining agreement. However, if the inconsistent order, rule, or regulation is subject to and has received council approval, the collective bargaining agreement shall not govern unless the order, rule, or regulation was identified to the council by the parties prior to the council’s ratification of the collective bargaining agreement, as required by section 33-108(g); or unless the order, rule, or regulation is repealed or modified by the council.
Article VIII. Employees' Retirement Savings Plan.
Division 1. Retirement Savings Plan.
Montgomery County, Md., Code § 33-113 (2026)
Sec. 33-113. Definitions.LinkCopy Citation
In this Division the following words and phrases have the following meanings:
Account balances means the balance credited to the retirement account of a participant under the retirement savings plan as of the valuation date preceding the date of distribution determined without regard to vesting, including:
(1)
any participant contributions (including contributions picked up by the County);
(2)
County contributions; and
(3)
rollover contributions.
Board or Board of Investment Trustees means the Board of Investment Trustees established under Article III.
County means the Montgomery County Government and, when applicable, any participating agency.
County service means any period of County employment during which a participant is:
(1)
in pay status, or
(2)
on an approved leave of absence without pay on or after January 1, 2002.
Domestic partner means a person who was registered as the domestic partner of a participant with the Office of Human Resources on or before June 27, 2016 in a domestic partenrship that did not end before the participant’s death.
Employee means any eligible elected or appointed County official and any full-time or career part-time County employee.
Employee organization means any organization that:
(1)
admits employees to membership;
(2)
has as a primary purpose the representation of employees in collective bargaining; and
(3)
is certified as an employee organization under applicable law.
Former participant means any individual with an account balance in the retirement savings plan who has ceased to be a participant.
Investment manager means a person or entity who exercises discretion to manage all or part of the assets of an institutional investor. The investment manager is a fiduciary as defined in Section 33-35.
Merit System Protection Board means the Merit System Protection Board established in the Charter.
Non-public safety employee means any employee who is not a public safety employee.
Normal retirement date means the first day of the month after the month in which the participant reaches age 62.
Participant means an employee who is participating in the retirement savings plan.
Participant’s contribution account means the portion of a participant’s account balances in the retirement savings plan that is attributable to participant contributions, including contributions picked up by the County, and any gains or losses attributable to those contributions.
Plan year means the 12-month period beginning January 1 and ending on December 31 each year.
Public safety employee means any employee who is a:
(1)
sworn officer of the Police Department;
(2)
paid firefighter, paid fire officer, or paid rescue service worker of the Montgomery County Fire and Rescue Service;
(3)
sworn deputy sheriff;
(4)
correctional officer; or
(5)
County employee who provides services to a correctional facility and designated as a public safety employee by the Chief Administrative Officer.
Regular earnings means gross pay for actual hours worked, including paid leave, but not including overtime, without reduction for participant contributions that are picked up under Section 33-116(a), or contributions to any County deferred compensation plan or statutory fringe benefit program. If a participant is required to take any furlough, as defined in personnel regulations under Section 33-7(b) or a collective bargaining agreement, regular earnings must include any amount the participant would have received if the participant had not been required to take any furlough.
Retirement accounts means the required participant contributions account, a County contributions account, and any rollover contributions account.
Rollover contributions means that portion of a participant's account balances in the retirement savings plan that is attributable to any assets transferred or rolled over to the retirement savings plan from another eligible retirement plan as defined in the Internal Revenue Code Section 402(c). No after-tax contributions may be transferred or rolled over into the retirement savings plan.
Valuation date means the last business day of March, June, September, and December of each plan year, and any other date the Board establishes in a uniform and nondiscriminatory manner for determining the fair market value of the assets of the retirement savings plan.
Montgomery County, Md., Code § 33-114 (2026)
Sec. 33-114. Establishment.LinkCopy Citation
(a)
Purpose. The retirement savings plan is established to provide a defined contribution retirement plan for County employees.
(b)
Participating agencies.
(1)
Any agency that participates in the retirement system under Article III must also participate in the retirement savings plan.
(2)
A participating agency must:
(A)
execute an adoption agreement in a form satisfactory to the Chief Administrative Officer;
(B)
submit any information and execute any form or document that the Chief Administrative Officer deems prudent for purposes of maintaining the governmental or qualified plan status of the retirement savings plan within the meaning of the Internal Revenue Code; and
(C)
notify the Chief Administrative Officer, in writing, of its intent to adopt an employee benefit plan before adopting any benefit plan which has an impact on the computation of any benefit or any benefit limitation in the retirement savings plan.
(3)
The Chief Administrative Officer may treat a participating agency as having withdrawn from the retirement savings plan if the participating agency does not:
(A)
submit information or execute documents necessary to administer and maintain the plan as requested by the Chief Administrative Officer;
(B)
qualify as a participating agency; or
(C)
adhere to the terms of the plan.
(4)
No liability will accrue to the County Government by the inclusion of participating agency employees. Each participating agency must be fully responsible for the cost of coverage for its employees and any necessary costs for administrative services provided.
(c)
Uniformed Services Employment and Reemployment Rights Act. Notwithstanding any provision of a plan, the County must provide rights, contributions, benefits and service credit for qualified military service according to Section 414(u) of the Internal Revenue Code, including subsection 414(u)(12).
Montgomery County, Md., Code § 33-115 (2026)
Sec. 33-115. Participant requirements and participant groups.LinkCopy Citation
(a)
Participant requirements.
(1)
Full-time employees.
(A)
Except as provided in paragraphs (3) and (4), and the last sentence of Section 33-37(e)(2), a full-time employee eligible for membership in Group I or Group II must participate in the Retirement Savings Plan or the Guaranteed Retirement Income Plan when the full-time employee meets the applicable eligibility requirements or forfeit employment, unless the Chief Administrative Officer exempts the employee from participation.
(B)
A part-time employee who becomes a full-time employee and is not an active member of any retirement plan for County employees, must become a member of:
(i)
the integrated retirement plan, if the employee is eligible for membership in the integrated plan;
(ii)
the Retirement Savings Plan, if the employee qualifies for Group I or II, even if the employee did not begin or return to County service on or after October 1, 1994; or
(iii)
the guaranteed retirement income plan if the employee is eligible for membership in accordance with subsection (7).
(C)
A temporary employee who becomes a full-time employee must become an active member of:
(i)
the integrated plan, if the employee is eligible for membership in the integrated plan;
(ii)
the Retirement Savings Plan, if the employee satisfies the requirements for membership in Group I or II, even if the employee did not begin or return to County service on or after October 1, 1994; or
(iii)
the guaranteed retirement income plan if the employee is eligible for membership in the guaranteed retirement income plan.
(2)
Part-time employees.
(A)
A part-time employee eligible for membership in Group I or Group II may elect to participate in the plan. An employee who becomes a member of the Retirement Savings Plan must remain an active member until the employee becomes ineligible for membership in Group I or II.
(B)
A part-time employee who is not an active member of a retirement plan may become a member of:
(i)
the integrated plan, if the employee is eligible for membership in the integrated plan;
(ii)
the Retirement Savings Plan if the employee satisfies the requirements for membership in Group I or II, even if the employee did not begin or return to County service on or after October 1, 1994; or
(iii)
the guaranteed retirement income plan if the employee is eligible for membership and makes an election under subsection (7).
(C)
A full-time employee who becomes a part-time employee may withdraw from active membership in the Retirement Savings Plan and stop making employee contributions, but may not become an active member again unless the employee becomes a full-time employee or an elected official.
(3)
A person employed by the County Department of Social Services on July 1, 1996, with fewer than 3 years of eligibility service as of October 1, 1996, under the State of Maryland Retirement or Pension Systems must transfer the service to the retirement savings plan and participate in the retirement savings plan, or forfeit employment by the County. If the employee is a part-time employee of the County upon transferring from State to County employment, the employee may, but is not required to, participate in the retirement savings plan.
(4)
A person employed by the County Department of Social Services on July 1, 1996, who earned at least 3 years of eligibility service as of October 1, 1996, under the State of Maryland Retirement or Pension Systems may participate in the retirement savings plan only if the person notifies the Chief Administrative Officer in writing by April 1, 1997. An employee who elects under this paragraph to participate becomes a member of the plan at the beginning of the first pay period after the Chief Administrative Officer receives the employee's written notice.
(5)
If a person transfers under paragraphs (3) or (4) to the retirement savings plan, all funds in the State of Maryland Retirement or Pension Systems attributable to the participation of the person must be transferred directly from the Board of Trustees of the State Retirement or Pension Systems to the Board.
(6)
An employee who is not an active member of a County retirement plan but is eligible for membership in the integrated retirement plan may become a member of the Retirement Savings Plan or the guaranteed retirement income plan. The employee must remain a member of the Retirement Savings Plan or the guaranteed retirement plan until the employee becomes ineligible for membership.
(7)
Participation in the guaranteed retirement income plan.
(A)
A participant who changes employment from the County directly to a participating agency or from a participating agency directly to the County must continue to participate in his or her retirement plan and is not eligible to make an election. A member of the Office, Professional and Technical (OPT) or the Service, Labor and Trades (SLT) collective bargaining unit of the County government must participate in the Guaranteed Retirement Income Plan, unless the employee makes a one-time irrevocable election to participate in the Retirement Savings Plan during the first 150 days of employment, if the employee:
(i)
is hired as a full-time employee on or after July 1, 2015;
(ii)
is a part time employee who does not participate in the Retirement Savings Plan and becomes a full-time employee on or after July 1, 2015; or
(iii)
is hired as a part time employee on or after July 1, 2023, and does not elect to forego participation in either the guaranteed retirement income plan or the retirement savings plan.
Participation must begin on the first pay period after an employee has completed 180 days of full time employment.
(B)
Except as provided in subparagraph (A), an eligible employee must participate in the Retirement Savings Plan unless the employee makes a one-time irrevocable election to participate in the Guaranteed Retirement Income Plan during the first 150 days of full-time employment. Participation must begin on the first pay period after an employee has completed 180 days of full-time employment. A part-time employee who participates in either the Retirement Savings Plan or the Guaranteed Retirement Income Plan when the employee becomes a full-time employee must continue to participate in the same retirement plan.
(C)
A part time employee who is not a participant in the retirement savings plan may make a one time irrevocable election to participate in the guaranteed retirement income plan any time after the employee has completed 150 days of employment.
(b)
Participants groups and eligibility.
(1)
Group I. Except as provided in the last sentence of Section 33-37(e)(2), any full- time or career part-time employee meeting the criteria in paragraphs (A) or (B) must participate in the retirement savings plan if the employee begins, or returns to, County service on or after October 1, 1994. An employee hired on or after July 1, 2009 must be employed on a full time or part time basis with the County for 180 days before participating in the retirement savings plan. An individual who changes employment from the County government directly to a participating agency or from a participating agency directly to the County government must continue to participate in the same retirement plan. Participation in the Retirement Savings Plan must begin on the first payroll after an employee has completed 180 days of employment if the employee:
(A)
(i)
is not represented by a County government employee organization;
(ii)
does not occupy a County government bargaining unit position;
(iii)
is not a public safety employee; and
(iv)
does not elect to participate in the guaranteed retirement income plan; or
(B)
(i)
is not a public safety employee; and
(ii)
is subject to the terms of a collective bargaining agreement between the County and an employee organization which requires the employee to participate in the Guaranteed Retirement Income Plan if the employee does not elect to participate in the Retirement Savings Plan; and
(iii)
elects to participate in the Retirement Savings Plan.
(2)
Group II.
(A)
Except as provided in the last sentence of Section 33-37(e)(2), a full-time or career part-time employee must participate in the retirement savings plan if the employee begins, or returns to, County service on or after October 1, 1994; and
(i)
is a public safety employee; and
(ii)
is subject to the terms of a collective bargaining agreement between the County and an employee organization which requires the employee to participate in the retirement savings plan.
(B)
A member of the Police Bargaining Unit may transfer to Group II of the retirement savings plan if the employee has accumulated enough credited service to obtain the maximum retirement benefit under the optional or integrated plan.
(C)
Except as provided in the last sentence of Section 33-37(e)(2), a full-time or career part-time employee must participate in the retirement savings plan or the guaranteed retirement income plan if the employee begins, or returns to, County service on or after October 1, 1994; and
(i)
is not represented by an employee organization;
(ii)
does not occupy a bargaining unit position; and
(iii)
is a public safety employee.
(c)
Transfers.
(1)
Transfers from the retirement savings plan are only permitted as described in paragraph (4). After an employee enrolls in the retirement savings plan, the employee must continue in the retirement savings plan until the employee is no longer eligible for membership in either Group I or Group II. If an employee is no longer eligible for membership in Group I or Group II, the employee may participate in the plan of the retirement system in which the member qualifies for participation under Article III.
(A)
A former participant who is no longer eligible to participate in the retirement savings plan retains the right to the vested account balances and any distribution under the retirement savings plan, unless the participant elected to participate in the guaranteed retirement income plan under paragraph (4) and the participant’s account balance was transferred to the guaranteed retirement income plan.
(B)
The former participant's participation under the optional retirement plan or the integrated retirement plan, or the guaranteed retirement income plan is governed by Article III.
(2)
Any employee enrolled in the optional retirement plan or the integrated retirement plan under Article III may transfer to the retirement savings plan.
(A)
An employee electing to transfer into the retirement savings plan must transfer into the membership group for which the employee qualifies for participation, excluding the requirement that the employee begin County service on or after October 1, 1994.
(B)
The employee's credited service for purposes of determining the employee's vested benefits in the retirement savings plan must be determined based upon the employee's total number of years of credited service earned under the retirement savings plan, the optional retirement plan, and the integrated retirement plan.
(C)
The employee's benefit calculations under the plan from which the employee transferred is governed by Article III.
(D)
No transfers will be permitted before April 1, 1995. Any transfer takes effect at the beginning of the first pay period following the employee's written election to transfer.
(3)
Transfers between Group I and Group II. If a participant no longer satisfies the requirements for the group in which the participant is enrolled, the participant must transfer to the group in which the participant satisfies the membership requirements.
(4)
Transfer to the guaranteed retirement income plan.
(A)
A full time or part time employee hired on or after October 1, 1994 and before January 1, 2009 who participates in the retirement savings plan, and who is not a public safety employee, may make a one time irrevocable election to terminate participation in the retirement savings plan and participate in the guaranteed retirement income plan effective the first full pay period after July 1, 2009. An employee must make this election between December 31, 2008 and June 1, 2009. An employee who elects to terminate participation in the retirement savings plan must have his or her account balances transferred to the guaranteed retirement income plan. An employee who does not make this election must continue to participate in the retirement savings plan.
(B)
A full time or part time employee hired between December 31, 2008 and July 1, 2009 who participates in the retirement savings plan, and who is not a public safety employee, may make a one time irrevocable election to terminate participation in the retirement savings plan and participate in the guaranteed retirement income plan. An employee has 150 days after the employee was hired to make this election. An employee who makes this election must have his or her account balance transferred to the guaranteed income plan. An employee who does not make this election must continue to participate in the retirement savings plan.
(C)
A full-time or part-time employee hired on or after October 1, 1994 and before January 1, 2009 who participates in the retirement savings plan, and who is a public safety employee not represented by an employee organization and does not occupy a bargaining unit position, may make a one-time irrevocable election to terminate participation in the retirement savings plan and participate in the guaranteed retirement income plan effective the first full pay period after December 31, 2009. An employee must make this election between October 1, 2009 and December 1, 2009. An employee who elects to terminate participation in the retirement savings plan must have his or her account balances transferred to the guaranteed retirement income plan. An employee who does not make this election must continue to participate in the retirement savings plan.
Montgomery County, Md., Code § 33-116 (2026)
Sec. 33-116. Participant contributions.LinkCopy Citation
(a)
Percent of participant contributions.
(1)
(A)
Group I. Each participant in Group I must contribute, through regular payroll deductions, 4 percent of regular earnings less than or equal to the Social Security wage base and 8 percent of regular earnings that exceed the Social Security wage base.
(B)
Group II. Each participant in Group II must contribute, through regular payroll deductions, 3 percent of regular earnings less than or equal to the Social Security wage base and 6 percent of regular earnings that exceed the Social Security wage base.
(C)
For service beginning on the first pay period after June 30, 2011 and before the first pay period beginning after July 1, 2012, a participant may contribute an additional 2 percent of regular earnings on an after-tax basis by making an irrevocable election in writing on or before September 1, 2011.
(2)
To the extent allowed by the Internal Revenue Code, the County must “pick up” (as described in the Internal Revenue Code) mandatory member contributions to the Retirement Savings Plan for pay periods beginning on or after October 1, 1994. A participating agency must execute an adoption agreement before its employees can participate in the pickup plan.
(3)
The Chief Administrative Officer may allow an agency that is not an “employing unit” (as described in Section 414(h)(2) of the Internal Revenue Code) to participate in the Retirement Savings Plan. The County must not “pick up” (as described in the Internal Revenue Code) mandatory contributions of members employed by a participating agency that is not an “employing unit.”
(4)
The County must contribute on behalf of a participant who rejoins County service after military service that qualified under Section 33-119(b) as credited service an amount equal to the amount that the participant could have contributed if the participant had worked for the County during the period of military service.
(A)
Contributions for the period of military service must be based on the regular earnings the participant would have earned during the period of military service. If this amount of regular earnings is not reasonably ascertainable, the contribution must be based on the participant’s average regular earnings during a period immediately preceding military service. The averaging period is 12 months, or the full length of the participant’s County service, whichever is shorter.
(B)
Contributions under this paragraph count toward the maximum annual contribution limits under the Internal Revenue Code for the year for which the contributions relate.
(C)
The participant is not entitled to any retroactive allocation of forfeitures or any retroactive crediting of earnings because of contributions under this subparagraph.
(D)
The County must not credit a participant with a discretionary after-tax contribution under subsection (a)(1)(C) unless the participant elects to make up the contribution under Internal Revenue Code Section 414(u), as amended.
(b)
Treatment of participant contributions.
(1)
Required participant contributions must be allocated to the participant contributions account established for each participant. In addition, amounts allocated to the participant contributions account must be further allocated to sub-accounts to reflect the proportionate amount of each account invested in each of the applicable investment funds by the participant. As of each valuation date, the Board must value the assets of each participant contributions account on a current market value basis.
(2)
A participant is always fully vested in the amount of the participant contributions account.
(c)
Participant rollover contributions. With the Chief Administrative Officer's written consent, a participant may transfer or rollover to the retirement savings plan any interest in any other eligible retirement plan as defined in Internal Revenue Code Section 402(c).
(d)
Treatment of rollover contributions.
(1)
The County must allocate the rollover contributions made on behalf of each participant to a rollover contributions account the Board establishes for that participant. In addition, amounts allocated to each rollover contributions account must be further allocated to sub-accounts to reflect the proportionate amount of each account invested in each of the applicable investment funds by the participant.
(2)
A participant is always fully vested in the amount of the rollover contributions account.
(e)
Treatment of certain transfers.
(1)
For each employee who transfers under Sections 33-115(a)(2) or (3) to the retirement savings plan, the Board must establish a separate employee transfer contributions account, or otherwise separately account, for employee contributions and interest transferred from the State of Maryland Retirement or Pension Systems to the Board under Section 33-115(a)(4). The Board must establish a subaccount of the account for each investment fund selected by the participant.
(2)
A participant is fully vested in the amount transferred under paragraph (1).
(3)
The Chief Administrative Officer may direct the Board to merge the amount transferred under paragraph (1) with the participant's regular account.
Montgomery County, Md., Code § 33-117 (2026)
Sec. 33-117. Employer contributions.LinkCopy Citation
(a)
Amount of employer contributions.
(1)
Group I participants. The County must contribute to the retirement savings plan in quarterly installments, on behalf of each Group I participant, an amount equal to 6 percent for service beginning on the first pay period after June 30, 2011 and 8 percent for service beginning on the first pay period after June 30, 2012 of that participant's regular earnings while a Group I participant during a plan year.
(2)
Group II participants. The County must contribute to the retirement savings plan in quarterly installments, on behalf of each Group II participant, an amount equal to 8 percent for service beginning on the first pay period after June 30, 2011 and 10 percent for service beginning on the first pay period after June 30, 2012 of that participant's regular earnings while a Group II participant during a plan year.
(3)
Group I and Group II. If during a plan year, the participant is a member of Group I for part of the plan year and a member of Group II for the remaining part of the plan year, the participant must receive a prorated employer contribution based on the number of months the participant qualified for each group.
(4)
When a participant rejoins County service after military service that qualified under Section 33-119(b) as credited service, the County must contribute on behalf of the participant the amount that the County would have contributed if the participant had worked for the County during the period of military service.
(A)
The County contributions must be based on the gross pay the participant would have earned during the period of military service. If this amount of gross pay is not reasonably ascertainable, the County contributions must be based on the participant’s average gross pay during a period immediately preceding military service. The averaging period is 12 months, or the full length of the participant’s County service, whichever is shorter.
(B)
County contributions under this paragraph count toward the maximum annual contribution limits under the Internal Revenue Code for the year for which the contributions are made.
(C)
The participant is not entitled to any retroactive allocation of forfeitures or any retroactive crediting of earnings because of employer contributions under this subparagraph.
(b)
Treatment of employer contributions.
(1)
The County must allocate the County contributions made on behalf of each participant to a County contributions account the Board establishes for that participant. In addition, amounts allocated to the County contributions account must be further allocated to sub-accounts to reflect the proportionate amount of each account invested in each of the applicable investment funds.
(2)
As of each valuation date, the Board must value the County contributions account of each participant on a current market value basis by the participant.
(3)
A participant who ends employment with the County and who is not vested in the County contributions account must forfeit the full account balance in the County contributions account. The Chief Administrative Officer must consider all forfeitures arising during the plan year under the retirement savings plan in determining the County contributions and must use the forfeitures as provided in Section 33-120(d)(3).
(c)
Treatment of transferred employer contributions.
(1)
For each employee who elects under Section 33-115(a)(2) or (3) to participate in the retirement savings plan, the Board must establish a separate employer transfer contributions account, or otherwise separately account, for employer contributions and interest transferred from the State of Maryland Retirement or Pension Systems to the Board under Section 33-115(a)(4). The Board must establish a subaccount of the account for each investment fund selected by the participant.
(2)
The Chief Administrative Officer may direct the Board to merge the amount transferred under paragraph (1) with the participant's regular account.
Montgomery County, Md., Code § 33-117A (2026)
Sec. 33-117A. County contributions to State retirement and pension systems on behalf of certain former State employees.LinkCopy Citation
(a)
This section applies to a person who was eligible to transfer to the County retirement savings plan under Section 33-115(a)(2) or (3) but remained a participant in the State of Maryland Retirement and Pensions Systems.
(b)
The County must pay any mandatory employee contributions directly to the State of Maryland Retirement and Pension Systems by deducting the amount from the person's compensation. The County must treat the contributions as if they were paid by the County. A person may not choose to receive the contributions directly.
(c)
The direct payments required by subsection (b) are intended to satisfy the requirements of State law and the Internal Revenue Code for the County to adopt the pick-up plan available under the State of Maryland Retirement and Pension Systems.
(d)
The Chief Administrative Officer, on behalf of the County, may sign documents necessary to implement the pick-up plan under this section.
Montgomery County, Md., Code § 33-118 (2026)
Sec. 33-118. Maximum annual contribution.LinkCopy Citation
(a)
Contribution limitations.
(1)
Notwithstanding any other provision in this Division, to the extent required under the Internal Revenue Code, the annual additions described in this Section that are allocated in any limitation year to the retirement accounts of any participant must not exceed the lesser of:
(A)
$30,000, effective January 1, 1995, or $40,000, effective January 1, 2002 (the “dollar limitation”); as adjusted by the Internal Revenue Service from time to time to reflect cost of living increases; or
(B)
25 percent of the participant's compensation as defined below, or 100 percent of the participant's compensation, effective January 1, 2002, (the "percentage limitation").
(2)
For purposes of this Section, the annual addition must be:
(A)
County contributions;
(B)
required participant contributions;
(C)
forfeitures, but only if the retirement savings plan permits forfeitures to be added to the participant's account; and
(D)
after-tax contributions.
(3)
In this Section, for purposes of applying Section 415 of the Internal Revenue Code, “compensation” has the same meaning as provided in Treasury Regulation Section 1.415-2(d)(1), including amounts contributed at the election of the participant that are not includible in the gross income of the participant, under Sections 402(g)(3), 125, 457, and (effective January 1, 2001) 132(f)(4) of the Internal Revenue Code. Effective for limitation years after December 31, 2008, compensation must include amounts required to be included by Section 414(u)(12) of the Internal Revenue Code.
(4)
For purposes of this Section, the maximum dollar limitation of $30,000 in subsection (a)(1)(A), or $40,000 effective January 1, 2002 and the maximum dollar limitation of $150,000 in subsection (b), or $200,000, effective January 1, 2002, must be automatically increased as permitted by United States Treasury Regulations to reflect cost-of-living adjustments.
(5)
Amounts transferred from the State of Maryland Retirement or Pension Systems to the Board under Section 33-115(a)(4) do not constitute an annual addition under paragraph (2).
(b)
Compensation limitation. For purposes of this retirement savings plan, for plan years beginning on or after January 1, 2002, only the first $200,000 of a participant's regular earnings, or any other amount permitted under Internal Revenue Code Section 401(a)(17), must be taken into account.
(c)
Effective July 1, 2007, all contributions made to a participant’s account within 2 ½ months after termination of employment or within the limitation year that contains the termination from employment must be considered compensation for purposes of Internal Revenue Code Section 415, as amended.
(d)
For purposes of this Section, limitation year means calendar year.
(e)
For purposes of applying this Section, all defined contribution plans maintained by the County must be aggregated.
Montgomery County, Md., Code § 33-119 (2026)
Sec. 33-119. Credited service.LinkCopy Citation
(a)
A participant's credited service is the total years and months of County service the participant rendered under the Retirement Savings Plan, the optional retirement plan, the integrated plan, and the guaranteed retirement income plan. A participant must receive credited service for any period when the participant was a part-time employee contributing to an employer-supported savings program provided by a participating agency. An employee hired before July 1, 2009 must receive 1 year of credited service for each year of County service. Each year of County service ends on the anniversary of the date the participant started working for the County. A participant must also receive one month of credited service for each month during which the participant worked at least one hour for the County. An employee hired on or after July 1, 2009 must receive one year of credited service for each year of participation in a County retirement plan and one month of credited service for each month during which the employee participated in a County retirement plan. A person who transferred to the Retirement Savings Plan under Section 115(a)(3) or (4) must receive credit for County service for creditable State service earned as a State employee of the County Department of Social Services. A person who does not transfer to the Retirement Savings Plan under Section 115(a)(3) or (4) must not receive credit for County service for this State service.
(b)
County service includes any period of compulsory or voluntary service in the armed forces of the United States, a state militia, or other military service covered under the Uniformed Services Employment and Reemployment Rights Act, if the participant:
(1)
was a member of the Retirement Savings Plan, the optional retirement plan, the guaranteed retirement income plan, or the integrated plan when the military service began;
(2)
applied for reemployment or returned to County service within:
(A)
1 year after discharge from the military service, and the participant does not take other employment;
(B)
2 years after completing military service if the member was hospitalized or convalescing from an illness or injury incurred or aggravated during military service, and the participant does not take other employment; or
(C)
more than 2 years if circumstances beyond the control of the participant make it impossible or unreasonable for the participant to apply for reemployment within 2 years, and the participant does not take other employment; and
(3)
the total period of military service did not exceed 5 years, not including any period of military service described under Section 4312(c)(1) - (4) of Title 38, United States Code.
(c)
An employee who did not become a member of the retirement savings plan solely because the employee was called to active duty before completing 180 days of County employment must be eligible to receive contributions under Sections 33-115 and 33-116 if the employee becomes a participant in the retirement savings plan upon re-employment.
Montgomery County, Md., Code § 33-120 (2026)
Sec. 33-120. Distribution of Benefit.LinkCopy Citation
(a)
Normal Retirement Benefits.
(1)
Normal Retirement Benefit. A participant who retires on or after the participant's normal retirement date may receive the participant's total account balances in the retirement savings plan. The Chief Administrative Officer must distribute the value of the participant's account balances to the participant under this Section.
(2)
Vesting. If a participant's normal retirement date occurs before the participant's separation from County service, all amounts credited to the participant's County contributions account are 100% vested regardless of the participant's years of credited service.
(3)
Deferred Retirement. If a participant's employment continues after the participant's normal retirement date, the participant must continue to participate in the retirement savings plan and the distribution of the participant's benefits must begin in accordance with subsection (i).
(b)
Disability Benefits.
(1)
Public Safety Employees. If a participant who is a public safety employee incurs a disability before retirement or other separation from service which, in the opinion of a physician selected or approved by the Chief Administrative Officer, renders the participant unable to perform duties satisfactorily for the employment the participant held with the County before the disability, the participant's employment and participation in the retirement savings plan must be terminated and deemed a disability retirement under the following rules:
(A)
All amounts credited to the participant’s retirement savings plan account, including County contributions, are 100% vested regardless of the participant's years of credited service.
(B)
The Chief Administrative Officer must determine the date on which a disability retirement is effective. After the participant submits a properly completed distribution form, the Chief Administrative Officer must distribute the value of the former participant's account balances to the former participant under this Section.
(2)
Non-public safety employees. If a participant who is a non-public safety employee incurs a disability before retirement or other separation from service which makes the participant unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months, the disabled participant must remain a participant in the retirement savings plan under the following rules:
(A)
All amounts credited to the participant’s retirement savings account, including County contributions, are 100% vested regardless of the participant's years of credited service.
(B)
The participant must remain a participant in the retirement savings plan under this Section until the participant dies, reaches his or her normal retirement date, or recovers from the disability.
(C)
In determining the amount of the County contribution under Section 33-117, the participant's regular earnings means the regular earnings the participant would have received for the year if the participant was paid for the full year at the rate of compensation paid in the pay period immediately before the participant became disabled.
(D)
The participant must not receive a distribution during any period in which the participant receives a County contribution.
(E)
The participant must not make participant contributions under Section 33-116 during the period of disability participation in the retirement savings plan.
(c)
Death benefits.
(1)
Death Benefit. If a participant dies before receiving the participant's total account balances in the retirement savings plan, the Chief Administrative Officer must distribute the value of the participant's account balances to the participant's beneficiary under this Section.
(2)
Vesting. If a participant dies before the participant’s separation from County service, all amounts credited to the participant’s County contributions account are 100% vested regardless of the participant’s years of credited service. For purposes of this subsection, vesting must be in accordance with Section 401(a)(37) of the Internal Revenue Code. Effective January 1, 2007, the beneficiary of a participant on a leave of absence to perform military service with reemployment rights described in Section 414(u) of the Internal Revenue Code, where the participant cannot return to employment on account of his or her death, must be entitled to any additional benefits that would be provided under the retirement savings plan had the participant died as an active employee, in accordance with Section 401(a)(37) of the Internal Revenue Code.
(3)
A participant may name a primary beneficiary or beneficiaries and contingent beneficiary or beneficiaries on a designation of beneficiary form filed with the Office of Human Resources, or designee of the Chief Administrative Officer, including a third party service provider. If a participant names 2 or more persons as beneficiaries, the persons are considered co-beneficiaries and share the benefit equally unless the participant specifies otherwise on the designation of beneficiary form. A participant may change any named beneficiary by completing a new designation of beneficiary form. The consent of the beneficiary or beneficiaries is not required to name or change a beneficiary. The designation is effective if received by the Office or the designee of the Chief Administrative Officer, including a third party service provider, during a participant’s lifetime.
(4)
If a participant dies without designating a surviving beneficiary or the designation is not enforceable under subsection (5), the surviving spouse or domestic partner (or if there is no surviving spouse or domestic partner, each surviving child, sharing equally with any other surviving child) is the designated beneficiary. If no spouse, domestic partner, or child survives a participant who left no enforceable beneficiary designation, the participant’s estate is the designated beneficiary.
(5)
For purposes of this Section, a beneficiary designation is not enforceable if:
(A)
the designated beneficiary:
(i)
predeceases the member;
(ii)
disclaims the benefit; or
(iii)
is not an identifiable person; or
(B)
the designation is legally void for any reason.
(d)
Separation from service before normal retirement, death or disability retirement.
(1)
Distribution of account balances. If a participant separates from County service for any reason other than normal retirement, disability retirement, or death, the Chief Administrative Officer must distribute to the participant the vested portion of the participant's account balances under this Section.
(2)
Vesting Schedule. A participant is 100% vested in all participant contributions accounts and rollover contributions accounts at all times. The vested interest in a participant's County contributions account must be a percentage of the account, determined on the basis of the participant's years of credited service as follows:
Vested Percentage | Years of Credited Service
0% | less than 3
100% | 3 or more
(3)
Forfeitures.
(A)
If a participant has no vested interest in the County contributions account at the time of the participant's separation from service, the participant must forfeit the entire County contributions account as of the date of separation from service.
(B)
The Chief Administrative Officer must allow a one-time reinstatement of the forfeited County contributions to an employee who is reemployed by the County within 12 months of separation and again becomes a member of the Retirement Savings Plan. The amount reinstated by the Chief Administrative Officer must be equal to the value of the County contributions account, including investment gains and losses, as of the date of the employee's separation. This provision applies, regardless of the member's separation or reemployment date, if the member requests the reinstatement in writing while the member is an active County employee.
(C)
The Chief Administrative Officer must use the forfeitures to pay the operating expenses of the retirement savings plan or to reduce the amount of county contributions.
(e)
In service withdrawals. If a participant is employed by the County, no distribution is permitted. Distributions must be made only upon a participant's death, retirement, disability retirement, or separation from County service.
(f)
Distribution methods. The Chief Administrative Officer must pay, at the request of the participant or the designated beneficiary, a participant's account balances in the retirement savings plan upon retirement, disability retirement, death, or separation from County service.
(1)
Normal method of distribution. Unless the participant elects an optional method, the normal method of distribution must be a lump sum distribution.
(2)
Optional method of distribution - Annuity.
(A)
A participant may elect, subject to the conditions of this paragraph, to have the entire account balances used to buy an annuity payable in one of the following actuarially equivalent methods:
(i)
A joint and survivor annuity payable for the life of the participant, with a survivor's annuity payable for the life of the participant's spouse or domestic partner in an amount at least equal to one-half of the amount of the annuity payable during the joint lives of the participant and the participant's spouse or domestic partner.
(ii)
A single life annuity payable for the lifetime of the participant.
(iii)
A period certain annuity in which a certain number of payments are guaranteed regardless of when the participant dies.
(B)
If benefits under the retirement savings plan are payable as an annuity, the Board must use the account balances of the participant to buy an annuity contract from an insurance company authorized to do business in the State. The contract must provide for payment in the method chosen by the participant.
(3)
Optional method of distribution - Installments. A participant may elect to have the entire account balances paid in installments on a monthly or annual basis over a period selected by the participant, subject to applicable restrictions in the Internal Revenue Code and its corresponding regulations.
(4)
Optional method of distribution - Transfer to Employees' Retirement System, Annuity Option. A participant may elect to have the participant's entire account balance transferred to the employees' retirement system and have the account balance paid in one of the annuity options available under Section 33-44(g)(2).
(g)
Direct rollover distributions. Notwithstanding any provision of this Division that would otherwise limit a participant's election under this Section, a participant or beneficiary may elect in any manner prescribed by the Chief Administrative Officer at any time to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the participant in a direct rollover. As used in this subsection:
(1)
direct rollover means a payment from the retirement savings plan to the eligible retirement plan specified by the participant.
(2)
eligible retirement plan means:
(A)
an individual retirement account described in Internal Revenue Code Section 408(a), as amended;
(B)
an individual retirement annuity described in Internal Revenue Code Section 408(b), as amended, (other than an endowment contract);
(C)
a qualified trust;
(D)
an annuity plan described in Internal Revenue Code Section 403(a), as amended;
(E)
an eligible deferred compensation plan described in Internal Revenue Code Section 457(b), as amended, which is maintained by an eligible employer described in Internal Revenue Code Section 457(e)(1)(A), as amended; and
(F)
an annuity contract described in Internal Revenue Code Section 403(b), as amended.
(3)
eligible rollover distribution means any distribution to a participant of all or any portion of the participant’s account balance; except:
(A)
any distribution which is one of a series of substantially equal periodic payments (not less frequently than annually) made:
(i)
for the life (or life expectancy) of the employee or the joint lives (or joint life expectancies) of the employee and the employee’s designated beneficiary; or
(ii)
for a specified period of 10 years or more; or
(B)
any distribution to the extent such distribution is required under Internal Revenue Code Section 401(a)(9), as amended.
(4)
For purposes of this subsection, beneficiary includes a non-spouse beneficiary. A non-spouse beneficiary may make a direct rollover only to an inherited individual retirement account or annuity described in Sections 408(a) or 408(b) of the Internal Revenue Code that is established on behalf of the non-spouse beneficiary. Such rollover shall be made in a manner consistent with Section 402(c)(11) of the Internal Revenue Code and any other applicable guidance.
(h)
Benefit distribution date.
(1)
The Chief Administrative Officer must pay a participant who retires by reason of normal, deferred, or disability retirement the participant’s account balances in the retirement savings plan. The distribution must begin as soon as administratively feasible after the participant’s retirement and after the date elected by the participant, but no later than April 1 following the later of the calendar year in which the participant attains age 72, or the calendar year in which the participant’s County employment ends.
(2)
A participant who has a 100% vested interest in the County contributions account, and whose County employment ends before the participant's death, disability retirement, or normal retirement date, may receive the account balances in the County contribution accounts and the participant contribution accounts before reaching the normal retirement date only upon filing written consent for the distribution with the Chief Administrative Officer. The distribution must be made as soon as administratively feasible after the Chief Administrative Officer receives the written consent for the distribution.
(3)
(A)
If a participant's County employment ends before the participant has a vested interest in the County contributions and the participant properly completes and submits an application for distribution of the participant’s contribution account, the County must distribute the participant's contribution account as soon as administratively feasible.
(B)
If a participant does not properly complete and submit an application for a distribution, the County must distribute the participant’s contribution account under the time limits described in this Section.
(4)
Notwithstanding any other provision of this subsection, a participant’s account balance of $1000 or less must be automatically distributed in a lump sum as soon as administratively feasible after termination of employment without a request from the participant.
(i)
Required commencement of benefit payments.
(1)
The distribution of a participant's or former participant's retirement benefits must begin no later than April 1 following the later of:
(A)
the calendar year in which the participant attains age 72; or
(B)
the calendar year in which the participant separates from County service.
(2)
The distribution may be made as provided in subsection (f).
(j)
Notwithstanding the preceding subsections, a participant or beneficiary who would have been required to receive minimum required distributions for 2020 but for the enactment of Internal Revenue Code Section 401(a)(9)(I), must receive those distributions for 2020 unless the participant or beneficiary elects not to receive such distributions.
(k)
Period for distribution of death benefits of a participant who was not receiving benefits or did not receive the entire benefit. If a participant dies before payment of all benefits, the benefits must be distributed before the end of the calendar year containing the fifth anniversary of the participant’s death unless:
(1)
any portion of the participant’s benefit is payable to, or for the benefit of, an individual designated by the participant as a beneficiary. In such case, the benefits must be distributed by the end of the calendar year containing the tenth anniversary of the participant’s death;
(2)
any portion of the participant’s benefit payable to, or for the benefit of, an eligible designated beneficiary as defined in Internal Revenue Code Section 401(a)(9)(E)(ii). In such a case:
(A)
the portion of the benefit to which the eligible designated beneficiary is entitled will be distributed over the life of the eligible designated beneficiary or over a period not extending beyond the life expectancy of the eligible designated beneficiary; and
(B)
the distributions begin before the end of the calendar year following the calendar year in which the participant’s death occurred; or
(3)
(A)
if the eligible designated beneficiary is a surviving spouse, the portion of the participant’s benefit to which the surviving spouse is entitled will be distributed over the life of the surviving spouse, or over a period not extending beyond the life expectancy of the surviving spouse; and
(B)
the distributions begin before the later of the end of the calendar year following the calendar year in which the participant died or the end of the calendar year in which the participant would have reached age 72.
(4)
If the eligible designated beneficiary is a child who has not reached majority, the benefit must be paid within 10 years of the child reaching the age of majority or other designated event permitted under federal regulation.
(l)
Limitations of Internal Revenue Code Section 401(a)(9). Distributions under a plan must be subject to the limitations of Section 401(a)(9) of the Internal Revenue Code, including the incidental death benefit rules in Section 401(a)(9)(G) of the Internal Revenue Code, in accordance with any proposed or final regulations under Section 401(a)(9) of the Internal Revenue Code.
(a)
the amendments in Section 1 to §§ 33-44 and 33-120 increasing the required distribution age from 70 ½ to 72 must take effect for individuals attaining age 70 ½ after December 31, 2019; and
(b)
the amendments in Section 1 to §§ 33-44 and 33-120 requiring distributions to beneficiaries upon a participant’s death must take effect for deaths occurring after December 31, 2021.
Montgomery County, Md., Code § 33-121 (2026)
Sec. 33-121. Investment of contributions to the retirement savings plan.LinkCopy Citation
(a)
Investment options.
(1)
A participant must direct that contributions allocated to the participant's retirement accounts be invested in one or more of the investment options selected by the Board. The investment options selected by the Board must conform to all applicable requirements of the Internal Revenue Code.
(2)
A participant must allocate contributions among the investment options only in percentages of the value of the account balances of the participant, as determined by the Board.
(3)
A participant's direction of investment must remain in effect until the participant changes the direction. If a participant does not provide a valid direction of investment, the account balances of the participant, to the extent they are not governed by a valid direction of investment, must be invested in an appropriate investment option selected by the Board.
(b)
Change of allocation.
(1)
A participant or former participant may change the allocation of the participant's account balances among the investment options in accordance with procedures set by the Board. The changes must take effect on the date or dates set by the Board.
(2)
A participant or former participant may designate that the change of the allocation among investment options is effective as to one or both of:
(A)
the participant's or former participant's account balances on the effective date of the change; and
(B)
the participant's contributions and County contributions made after the effective date of the change.
(c)
Gains and losses. The Board must maintain separate and distinct accounts for each participant. The Board must determine the value of an individual account solely with respect to the activity within each participant's account and unrealized gains to a participant's account.
Montgomery County, Md., Code § 33-122 (2026)
Sec. 33-122. Administration.LinkCopy Citation
(a)
Regulations for administration. The County Executive must issue regulations under method (2) to administer the retirement savings plan.
(b)
Responsibility for administration. The Chief Administrative Officer must administer the retirement savings plan. Except for the powers of the Board, the Chief Administrative Officer must take all actions and make all decisions to administer the retirement savings plan, including, but not limited, to:
(1)
interpret the provisions of the retirement savings plan;
(2)
decide the eligibility of any employee and the rights of any participant or beneficiary to receive benefits;
(3)
compute the amount of benefits payable to any participant or beneficiary;
(4)
authorize disbursements of benefits;
(5)
keep records;
(6)
consult with the Board regarding the selection of a record keeper for the retirement savings plan;
(7)
incur expenses as necessary to administer the retirement savings plan, subject to appropriation;
(8)
disclose the reports prepared under this Section;
(9)
prepare and file reports that are required by law; and
(10)
delegate any power or duty under this Section.
The Chief Administrative Officer's determination on any matter within the Chief Administrative Officer's authority under this plan is final and binding on all interested parties.
(c)
Payment of expenses and contributions. The County Government must make contributions to the retirement savings plan, subject to appropriation. The County Government may make additional contributions to the trust to cover operating expenses of the retirement savings plan. The Board must pay operating expenses of the savings plan from savings plan assets or from County Government assets, at the direction of the Chief Administrative Officer. A participating agency must pay any amounts necessary to cover the agency's respective contributions and operating expenses of the retirement savings plan.
(d)
Procurement. Chapter 11B does not apply to procurement of goods and services for the retirement savings plan by the Chief Administrative Officer.
(e)
Records. The Chief Administrative Officer must prescribe the form, scope, maintenance, and disclosure of records for the retirement savings plan under State law.
(f)
Interpretations. The Chief Administrative Officer must decide questions arising under this Division. Any participant, former participant, or designated beneficiary eligible to receive benefits from the retirement savings plan may request, in writing, a decision on questions arising under this Division. The Chief Administrative Officer must respond in writing to the request within 60 days. The response must include a statement of appeal rights. A decision by the Chief Administrative Officer may be appealed within 15 days to the Merit System Protection Board. The decision of the Merit System Protection Board is final.
(g)
Independent audit. The retirement savings plan must be included in the annual audit performed by a certified public accountant under contract to the County Council as required by Section 315 of the Charter.
(h)
Annual reports. By March 1 of each year, the Chief Administrative Officer must submit to the County Council and County Executive an annual report on the status of the retirement savings plan for the preceding plan year, including the extent and content of counseling made available to participants. The Chief Administrative Officer must make the report available to all County officials, each participant of the retirement savings plan, and the public. The County Council may ask the Chief Administrative Officer or the Board to provide additional information in the annual report or in additional reports. The Chief Administrative Officer and the Board must provide the additional information promptly.
(i)
Participant statements. The Chief Administrative Officer must supply to each participant for each plan year a report stating the amount of the participant's account balances and the participant's vested interest. The report must be distributed as soon as administratively feasible after the close of each plan year. The Chief Administrative Officer is not required to provide more than one report during any plan year.
(j)
Investment information. The Board must supply the Chief Administrative Officer with sufficient participant investment information so that the Chief Administrative Officer may prepare the required participant statements.
Montgomery County, Md., Code § 33-123 (2026)
Sec. 33-123. Qualification contingency.LinkCopy Citation
(a)
Qualified plan. If it is determined that the retirement savings plan is not a qualified plan under the Internal Revenue Code, this Article is ineffective as of the date of the determination.
(b)
Return of County contributions. Any account balance with respect to County contributions must be returned to the County as soon as administratively possible after this Division becomes ineffective.
(c)
Return of participant contributions. Any account balances with respect to required participant contributions, including any amount picked up by the County, must be returned to the participant who made them as soon as administratively possible after this Division becomes ineffective.
(d)
Participation.
(1)
After a determination under this Section, a participant must become a member of the retirement system under Article III in which that employee would have been eligible to participate if the retirement savings plan had never existed.
(2)
An employee's credited service earned while a participant in the retirement savings plan must be counted in determining benefits and vesting under a plan in which the employee becomes a member after the retirement savings plan becomes ineffective.
(3)
An employee must contribute to the new plan, in a single lump-sum cash payment, the total nonvoluntary employee contributions that the employee would have been required to make under the plan for the period during which the employee was a participant in the retirement savings plan as if the employee had participated in the plan instead of the retirement savings plan.
(4)
The County must make, on behalf of the employee, contributions to the new plan in the amount the County would have made on behalf of that employee for the period during which the employee was a participant in the retirement savings plan as if the employee had participated in the plan instead of the retirement savings plan, except as restricted by the Internal Revenue Code.
Montgomery County, Md., Code § 33-124 (2026)
Sec. 33-124. Trust fund.LinkCopy Citation
A trust is established as part of the retirement savings plan for the benefit of the participants in the retirement savings plan. The trust consists of the money and property of the retirement savings plan and any earnings, profits, increments, appreciation, and other additions that accrue. All of the money and property, all investments made with that money and property, and all earnings, profits, increments and other additions, less the payments previously made by the Board, are the retirement savings plan trust fund.
Montgomery County, Md., Code § 33-125 (2026)
Sec. 33-125. Powers and duties of the Board.LinkCopy Citation
(a)
General.
(1)
Except as otherwise provided in this Division, the powers and duties with respect to investments of the retirement savings plan are vested in the Board of Investment Trustees. The Board has legal title to all cash and other property of the retirement savings plan, but may delegate some or all of the incidents of ownership as provided in this Division. Sections 33-61A, 33-61C, and 33-61D apply to the Board with respect to its powers and duties under the retirement savings plan.
(2)
The Board must invest and reinvest, or cause to be invested or reinvested, the principal and income of the retirement savings plan and keep the same invested without distinction between principal and income. The Board has the exclusive authority to manage the assets of the retirement savings plan, but must, to the extent directed by participants, invest each participant’s accounts in the manner directed by the participant. The Board may select mutual funds, commingled funds, unitized investments in the Montgomery County Group Trust, or any combination of other investments as investment options for the retirement savings plan.
(3)
Chapter 11B does not apply to procurement of goods and services for the retirement savings plan by the Board.
(4)
After consulting the Chief Administrative Officer, the Board must:
(A)
develop record keeping functions for the purpose of maintaining and reporting on participant account balances;
(B)
designate appropriate investment options to be offered to plan participants;
(C)
designate methods of accounting for investments; and
(D)
designate methods of selecting annuity contracts for distribution of participant account balances.
(5)
The Board must make counseling available to each participant during each plan year to advise the participant regarding investment selections for participant and County contributions.
(b)
Agents for transfer of property.
(1)
The Board may register any securities or other property in its own name or in the name of a nominee. The Board may hold any security in bearer form. However, the Board or its agent must keep records that show that the investments are part of the trust fund.
(2)
The Board may form a partnership under State law to hold or transfer securities as the nominee of the Board.
(3)
The Board may designate in writing a trustee to hold or transfer securities as nominee of the Board.
(4)
The Board must provide that trustees or a partnership that the Board designates must act only as agents of the Board. The Board may set other conditions that the Board considers prudent.
(5)
The trustees or a partnership the Board designates may agree with a bank or other financial institution to:
(A)
guarantee the signatures made as nominee of the Board; and
(B)
conduct settlements and transfers through participation in central security depositories.
(c)
Authorized investments.
(1)
The Board may select or remove any investment option for the retirement savings plan that the Board finds prudent under the policies set by the Board.
(2)
If an investment through any combined, common, or commingled trust fund exists, the declaration of trust of that fund is a part of the retirement savings plan trust.
(d)
Trustee powers. Except as otherwise provided in this Division, the Board may:
(1)
with any cash, purchase or subscribe for any investment, at a premium or discount, and retain the investment;
(2)
sell, exchange, convey, transfer, lease for any period, pledge, mortgage, grant options, contract with respect to, or otherwise encumber or dispose, at public or private sale, for cash or credit or both, any part of the retirement savings plan;
(3)
subject to Section 33-61A(h)(2), sue, defend, compromise, arbitrate, compound and settle any debt, obligation, claim, suit, or legal proceeding involving the retirement savings plan, and reduce the rate of interest on, extent or otherwise modify, foreclose upon default, or otherwise enforce any debt, obligation, or claim;
(4)
retain uninvested a part of the retirement savings plan fund in preparation for the payment of distributions;
(5)
exercise any option on any investment for conversion into another investment, exercise any rights to subscribe for additional investments, and make all necessary payments;
(6)
join in, consent to, dissent from, oppose, or deposit in connection with the reorganization, recapitalization, consolidation, sale, merger, foreclosure, or readjustment of the finances of any corporation or property in which the assets of the retirement savings plan are invested, or the sale, mortgage, pledge or lease of that property or the property of any such corporation upon such terms and conditions that the Board considers prudent; exercise any options, make any agreements or subscriptions, pay any expenses, assessments, or subscriptions, and take any other action in connection with these transactions that the Board considers prudent; and accept and hold any investment that may be issued in or as a result of any such proceeding;
(7)
vote, in person or by any proxy, at any election of any corporation in whose stock the assets of the retirement savings plan are invested, and exercise, personally or by any power of attorney, any right appurtenant to any investment held in the retirement savings plan; and give general or specific proxies or powers of attorney with or without power of substitution;
(8)
sell, either at public or private sale, option to sell, mortgage, lease for a term of years less than or continuing beyond the possible date of the termination of the trust, partition or exchange any real property for such prices and upon such terms as the Board considers prudent, and execute and deliver deeds of conveyance and all assignments, transfers, and other legal instruments for passing the ownership to the purchaser, free and discharge of all liens;
(9)
renew or extend any mortgage, upon such terms that the Board considers prudent, and increase or reduce the rate of interest on any mortgage or modify the terms of any mortgage or of any guarantee as the Board considers prudent to protect the retirement savings plan or preserve the value of the investment; waive any default or enforce any default in a manner that the Board considers prudent; exercise and enforce any right of foreclosure, bid on property in foreclosure, take a deed in lieu of foreclosure with or without paying a consideration, and release the obligation on the bond secured by the mortgage; and exercise and enforce in any action, suit, or proceeding at law or in equity any rights or remedies in respect to any mortgages or guarantee;
(10)
form a corporation or corporations under the laws of any jurisdiction or acquire an interest in or otherwise make use of any corporation already formed to invest in and hold title to any property;
(11)
for the purpose of investing in and holding title to real or personal property or part interests in property, including equipment pertaining to property, leaseholds, and mortgages;
(12)
incur and pay expenses for agents, financial advisors, actuaries, accountants and counsel, if those expenses are incurred solely to perform the Board's duties under this retirement savings plan;
(13)
borrow, raise or lend moneys, for the purpose of the retirement savings plan, in such amounts and upon such terms and conditions as the Board in its discretion considers prudent; for any money borrowed, issue a promissory note and secure the repayment of this note by pledging or mortgaging all or any part of the retirement savings plan;
(14)
hold, buy, transfer, surrender, and exercise all other incidents of ownership of any annuity contract;
(15)
if payments to a participant or beneficiary are to be made in the form of an annuity based on one or more lives or life expectancies, buy from any legal reserve life insurance company a single premium, nontransferable annuity contract providing for the payment of the benefits;
(16)
pool all or any of the assets of the trust, from time to time, with assets belonging to any other retirement plan trust or retiree health benefit trust created by the County, including any subtrust thereof, and commingle such assets and make joint or common investments and carry joint accounts on behalf of this trust, such other trust or trusts, or subtrusts, allocating undivided shares or interests in such investments or accounts or in any pooled assets to the two or more trusts or subtrusts in accordance with their respective interests. Any such trusts or subtrusts may be unitized for investment purposes. The Board may, subject to its fiduciary duties, offer units of such pooled trust or subtrust as an investment option under the Retirement Savings Plan. Consistent with its investment authority, the Board or its delegate may also buy or sell any assets or undivided interests in this trust or in any other trust with which the assets of this trust may be pooled, to or from this trust or such other trusts at such prices or valuations as the Board may determine in reasonable good faith; and
(17)
do all acts which the Board considers necessary and exercise any and all powers of this Division with respect to the management of the retirement savings plan, and in general, exercise all powers in the management of the assets which an individual could exercise in the management of property owned in the individual's own right except for making an individual investment selection.
(e)
Prohibited transactions. The Board must not engage in any transaction between the trust and the County, or any entity controlled by the County, in which the Board:
(1)
lends any part of its income or corpus, without receiving adequate security and a reasonable rate of interest;
(2)
pays any compensation, more than a reasonable allowance for salaries or other compensation or personal services actually rendered;
(3)
makes any service available on a preferential basis;
(4)
makes any substantial purchase of securities or other property for more than adequate consideration which, for avoidance of doubt, does not include a transfer conducted on the terms described in Section 33-170(i) between employee benefit plan trusts or a subtrust;
(5)
sells any substantial part of its securities or other property for less than adequate consideration which, for avoidance of doubt, does not include a transfer conducted on the terms described in Section 33-170(i) between employee benefit plan trusts or a subtrust; or
(6)
engages in any transaction which results in a substantial diversion of its income or corpus.
(f)
The Board must monitor the performance of investment options. Monitoring may include any tests or analyses that the Board finds prudent.
(g)
Except for expenses incurred under paragraph (d)(12), the Board must pay all benefits and expenses of the retirement savings plan as directed by the Chief Administrative Officer.
(h)
The Board may rely on the decision of the Chief Administrative Officer as to the proper recipient of benefit payments.
(i)
Delegation of duties. The Board may delegate its duties to the Executive Director or a similarly situated County employee as it deems appropriate and consistent with its fiduciary duties in a written policy and procedure. If the Board has prudently delegated its duties and monitored the delegation, the trustees must not be liable for an act or omission made by its delegate.
Montgomery County, Md., Code § 33-126 (2026)
Sec. 33-126. Amendment and termination.LinkCopy Citation
(a)
Right to Amend. The County Government expects to continue the retirement savings plan, but it assumes no contractual obligation to continue the plan and reserves the right at any time for any reason to amend the retirement savings plan.
(b)
Qualification amendments. The retirement savings plan and any related trust agreement, investment advisory agreement, custodial agreement, annuity contract, or similar agreement may be amended by the County Government at any time, either prospectively or retroactively, to conform to the Internal Revenue Code.
(c)
Termination of the retirement savings plan. The County Government has established the retirement savings plan with the expectation that the County Government will be able to make contributions indefinitely, but the County Government is not under any obligation to continue contributions, or maintain the retirement savings plan for any length of time, and may terminate the retirement savings plan. In the event of a termination of the retirement savings plan, a participant will become 100% vested in the County contributions account on the effective date of a termination of the retirement savings plan.
(d)
Termination of participation by a participating agency. If a participating agency decides to withdraw or otherwise terminate its participation in the retirement savings plan, the agency must notify the Chief Administrative Officer in writing. The Chief Administrative Officer and the appropriate officer of the withdrawing agency must agree on a date for withdrawal. Any transfer of assets pursuant to the withdrawal must satisfy the requirements of the Internal Revenue Code.
Montgomery County, Md., Code § 33-127 (2026)
Sec. 33-127. Miscellaneous.LinkCopy Citation
(a)
Exemption from Execution, Garnishment, or Attachment.
(1)
The right of a participant in that participant's account balances or any other right or benefit under this Division are not subject to execution, garnishment, attachment, or any other process, and are not assignable.
(2)
Notwithstanding the foregoing, a portion or all of a participant's account balances may be paid to an alternate payee pursuant to a qualified domestic relations order under the Internal Revenue Code. The Chief Administrative Officer must establish forms and procedures to determine the qualified status of domestic relations orders and must determine the form and timing of distributions permissible under such qualified orders.
(b)
Protection Against Fraud. Any person who knowingly makes any false statement or falsifies or permits to be falsified any record of the retirement savings plan in any attempt to defraud the retirement savings plan is subject to punishment for a class A violation.
(c)
Error in records. If any change or error in the records results in any participant or beneficiary receiving from the retirement savings plan more or less than the participant or beneficiary is entitled to receive had the records been correct, the error must be corrected, and as far as practicable, the payment must be adjusted in such manner that the amount of the benefit to which that participant or beneficiary was correctly entitled will be paid. If any participant or beneficiary has received any payment from the retirement savings plan to which the participant or beneficiary is not entitled, the participant or beneficiary must refund that amount to the retirement savings plan.
(d)
Lost Participants. The Chief Administrative Officer must use all reasonable resources to locate or communicate with a former participant or beneficiary, in order to make and process required minimum distributions as required by Internal Revenue Code Section 401(a)(9). If such efforts fail, the Chief Administrative Officer or a third party holding these amounts, must distribute the former participant’s or beneficiary’s unprocessed required minimum distributions to the State under the unclaimed property laws. No amounts must be due to a former participant or beneficiary once paid to the State. The former participant or beneficiary must claim the distributed amounts directly from the State.
(e)
Transfer of assets between trust funds of the retirement system. To the extent permitted by the Internal Revenue Code and applicable guidance under the Internal Revenue Code, the County may transfer assets of the retirement system relating to an account or accrued benefit of a participant in trust-to-trust transfers between the trusts of the Employees' Retirement System and the Retirement Savings Plan to correct operational failures relating to such accounts or accrued benefits.
(f)
Exclusive Benefit. The Retirement Savings Plan Trust Fund must be held for the exclusive purpose of providing benefits to participants and beneficiaries and defraying reasonable expenses of administering the plan, and except as otherwise provided under the Internal Revenue Code, no part of the trust fund shall ever enure to the benefit of the County.
Division 2. Disability Benefits Plan.
Montgomery County, Md., Code § 33-128 (2026)
Sec. 33-128. Definitions.LinkCopy Citation
In this Division, the following words and phrases have the following meanings:
Administrator means either the Chief Administrative Officer or the entity that contracts with the County to administer this disability plan.
Applicant means an employee who has filed an application for benefits under Division 2 of Article VIII, or for whom the Chief Administrative Officer has filed an application.
Certified representative means an employee organization certified under Sections 33-79, 33-106, or 33-151 to represent a bargaining unit.
Continued non-service-connected disability means a condition of the employee that:
(1)
continues after the period of initial non-service-connected disability closes;
(2)
makes the employee unable to engage in any available employment commensurate with the employee’s training or retraining, education, and experience; and
(3)
is likely to be permanent.
Continued service-connected disability for a non-public safety employee means a condition of a non-public safety employee that:
(1)
continues after the period of initial service-connected disability closes;
(2)
makes the employee unable to engage in available employment commensurate with the employee’s training or retraining, education, and experience; and
(3)
is likely to be permanent.
Continued service-connected disability for a public safety employee means a condition of a public safety employee that:
(1)
continues after the period of initial service-connected disability closes;
(2)
makes the employee unable to:
(A)
engage in available employment commensurate with the employee’s training or retraining, education, and experience; and
(B)
earn substantially similar final earnings; and
(3)
is likely to be permanent.
County means Montgomery County Government and, when applicable, any agency that adopts this plan under an adoption agreement approved by the Chief Administrative Officer.
Disability Arbitration Board or Board means the 3 persons designated under Section 33-43(m) to review an appeal of the final decision of the Administrator regarding an application for disability benefits.
Disability Review Panel or Panel means the 4 medical doctors appointed as Panel members by the Chief Administrative Officer under Section 33-43(c).
Employee means a County employee who participates in the retirement savings plan under this Article or in the elected officials’ plan under Article III or the guaranteed retirement income plan under Article III.
Final earnings means the annual average of the regular salary of an employee less any shift pay differential for the 18-month period immediately before the disability or any period of 18 consecutive months, whichever is greater. If a participant is required to take any furlough, as defined in personnel regulations adopted under Section 33-7(b) or a collective bargaining agreement, final earnings must include any amount the participant would have received if the participant had not been required to take any furlough.
Initial non-service-connected disability means a condition of an employee that:
(1)
is the natural and proximate result of an accident, illness, or injury;
(2)
is not due to the employee’s willful misconduct or willful negligence;
(3)
makes the employee incapable of performing the job that the employee performed immediately before the accident, illness, or injury; and
(4)
is not an initial service-connected disability.
Initial service-connected disability means a condition of an employee that:
(1)
is the natural and proximate result of an accident, illness, or injury occurring, an occupational disease incurred, or a condition aggravated while in the performance of duty as an employee;
(2)
is not due to the employee’s willful misconduct or willful negligence; and
(3)
makes the employee incapable of performing the job that the employee performed immediately before the accident, illness, or injury.
Medical doctor means a doctor of medicine or osteopathy who graduated from a medical school accredited by the American Medical Association and is licensed to practice medicine in Maryland.
Non-public safety employee means any employee who is not a public safety employee.
Partial incapacity means a member’s inability to perform one or more essential functions of the position the member holds because of impairment that:
(1)
is unlikely to resolve in the next 12 months;
(2)
may be permanent; and
(3)
does not prevent the member from performing any other substantial gainful activity.
Plan means the disability benefits plan established under this Division.
Public safety employee means any employee who is a:
(1)
sworn, ranking officer of the Police Department;
(2)
paid firefighter, paid fire officer, or paid rescue service employee of the Montgomery County Fire and Rescue Service;
(3)
sworn deputy sheriff;
(4)
correctional officer; or
(5)
County employee who provides services to a correctional facility and designated as a public safety employee by the Chief Administrative Officer.
Residual functional capacity means what the individual can still do, despite the individual’s impairment. The County must give the term residual functional capacity the same meaning as the term is given by the Social Security Administration.
Substantial gainful activity means a level of productive work that requires significant physical or mental duties, or a combination of both, performed for pay or profit on a full-time or part-time basis. An individual is able to perform a substantial level of work if the individual is able to earn more than the Social Security Administration’s current monthly earnings limit for a disabled person. The County must give the term substantial gainful activity the same meaning as the term is given by the Social Security Administration.
Total Incapacity means the member’s inability to perform substantial gainful activity because of an impairment that:
(1)
is unlikely to resolve in the next 12 months; and
(2)
may be permanent.
Montgomery County, Md., Code § 33-129 (2026)
Sec. 33-129. Disability benefits.LinkCopy Citation
(a)
Initial non-service-connected disability benefits.
(1)
An employee is entitled to receive disability benefits if the administrator determines that the employee has:
(A)
incurred an initial non-service-connected disability; and
(B)
worked for the County for the 6 months immediately preceding the disability.
(2)
The employee is entitled to receive disability benefits subject to this plan for a period of:
(A)
12 consecutive months for a public safety employee; and
(B)
36 consecutive months for a non-public safety employee.
(b)
Continued non-service-connected disability benefits. Before the end of the distribution period for initial non-service-connected disability benefits, the administrator must re-evaluate the employee to determine if the employee satisfies the requirements for a continued non-service-connected disability. If the employee does not meet the requirements for a continued non-service connected disability, the payment of disability benefits must stop. If a participant meets the requirements for a continued non-service connected disability, the payment of disability benefits must continue, subject to this plan.
(c)
Temporary disability. In extenuating circumstances, the administrator may:
(1)
waive the requirement that an employee's disability is likely to be permanent for continued service-connected or non-service-connected disability benefits; and
(2)
approve temporary disability benefits for one or more one-year periods until the administrator determines that the disability:
(A)
has ended; or
(B)
qualifies as a continued disability.
(d)
Initial service-connected disability benefits. An employee may receive disability benefits for a period of 36 consecutive months, subject to this plan, if the administrator finds that:
(A)
the employee has incurred an initial service-connected disability; and
(B)
for an accidental injury that does not cause mental impairment, the employee:
(i)
reports the claimed accidental injury as soon as practicable, but no later than one year after the applicant knew or should have known that the injury is likely to be disabling; or
(ii)
submits a claim for Workers’ Compensation benefits for the accidental injury that is not dismissed as untimely.
(C)
The time periods for reporting in subparagraphs (i) and (ii) do not begin while the applicant is unable to report because of incapacitating injuries.
(D)
For an accidental injury that occurs after July 1, 2009, the applicant must apply for disability benefits within one year after separation from County service or before July 1, 2010, whichever is later.
(E)
An employee who has committed an offense that would justify termination for misconduct must not receive service-connected disability benefits.
(e)
Continued service-connected disability benefits.
(1)
Before the end of the distribution period for initial service-connected disability benefits, the administrator must re-evaluate the employee to determine if the employee satisfies the requirements for a continued service-connected disability. If the employee does not meet the requirement for a continued service-connected disability, the payment of disability benefits must stop. If the employee meets the requirements for a continued service-connected disability, the payment of disability benefits must continue subject to this plan.
(2)
The Chief Administrative Officer may offer a 5-percent salary increase to an employee who:
(A)
is eligible to receive continued service-connected disability benefits; and
(B)
accepts an alternative position within the County government for which the employee is qualified.
(3)
The employee’s salary in the alternative position must not exceed the maximum salary of the pay grade assigned to the position.
(4)
A member of the Office, Professional and Technical Bargaining Unit or the Service, Labor and Trades Bargaining Unit who accepts an alternative placement incentive is not eligible to receive continued service connected disability benefits based on the disability for which the alternative placement was made.
(5)
If a member applies for continued service-connected disability benefits instead of accepting an alternative placement incentive, the member’s failure to accept the incentive must not:
(A)
be included in the information considered by the Disability Review Panel, Chief Administrative Officer, or Disability Arbitration Board;
(B)
be considered at any time by the Disability Review Panel, Chief Administrative Officer, or Disability Arbitration Board; or
(C)
affect the member’s eligibility for continued service-connected disability benefits or the amount of the continued service-connected disability benefits.
(f)
The Disability Review Panel must recommend a finding of total incapacity if the member’s service-connected disability is severe enough to meet the Social Security Administration’s requirements for disability, meaning that the member is unable to engage in any substantial gainful activity because of a medically determinable physical or mental impairment that can be expected to end in death or has lasted, or can be expected to last, for a continuous period of at least 12 months. The member does not have to qualify for Social Security disability benefits to be eligible for benefits under this subsection.
(1)
The Panel must base its determination of whether an individual is able to engage in any substantial gainful activity on an assessment from an independent vocational expert that considers the member’s age, education, work experience, transferable skills, and residual functional capacity.
(2)
The Panel must determine the member’s residual functional capacity and provide this information to the independent vocational expert.
(3)
A Panel determination that the member’s service-connected disability is severe enough to be considered a disability by the Social Security Administration is not a recommendation that the member is entitled to, or should be granted, a disability benefit by the Social Security Administration.
(4)
If a member has already been granted disability benefits by the Social Security Administration when the member applies for a service-connected disability pension, the County must give the member a total incapacity benefit if the Disability Review Panel finds that the award of disability benefits from the Social Security Administration was based primarily on the same medically determinable physical or mental impairment on which the Disability Review Panel awards the member a service-connected disability benefit.
(g)
The Disability Review Panel must recommend a finding of partial incapacity if:
(1)
the member meets the standards to receive a service-connected disability benefit; and
(2)
the member is not eligible to receive a benefit for total incapacity under subsection (f).
(h)
The County must increase the partial incapacity service-connected disability pension benefit of a member to a total incapacity benefit if:
(1)
the Social Security Administration awards disability benefits to the member;
(2)
the member submits all relevant information about the award of disability benefits from the Social Security Administration to the Disability Review Panel within 60 days after the member receives the award;
(3)
the Disability Review Panel finds that the award of disability benefits from the Social Security Administration was based primarily on the same medically determinable physical or mental impairment on which the Disability Review Panel originally awarded the member a service-connected disability benefit; and
(4)
the member applies for disability benefits with the Social Security Administration within 90 days after the Chief Administrative Officer notified the member that the service-connected disability pension benefit would be calculated as a partial incapacity.
(5)
If a member qualifies for an increased pension benefit under subsection (h), the County must increase the member’s service-connected pension retroactively to the date when the pension began.
(i)
Role of the Disability Review Panel.
(1)
The Disability Review Panel must consider an application for disability benefits to determine if the applicant is eligible for disability benefits under subsection (a), (b), (c), (d), (e), (f), (g), or (h). The Panel may consider any information or material submitted by the applicant, the certified representative, or the County. Within 60 days after the application is filed, the Panel must meet in person, by telephone conference, or by video conference, to review all evidence submitted to the Panel. A Panel must include either 2 or 3 members. At least 2 members must vote in favor of a decision to take any action under this Section.
(2)
Before the Panel meets to review the application, the Panel must advise each party of the deadline date for submitting information to the Panel. The Panel must allow a reasonable amount of time for the parties to submit additional information, and may extend the deadline at the request of the applicant for good cause shown.
(3)
The Panel must not accept or consider information from a certified representative representing an applicant if the information is received after the established deadline date unless the information is related to:
(A)
the applicant’s reinjury that occurred or was diagnosed after the deadline date; or
(B)
a change in the applicant’s medical condition that occurred or was diagnosed after the deadline date.
(4)
Within 30 days after the Panel’s last meeting to consider the application, the Panel must issue a written recommendation to the Administrator on whether the applicant qualifies for disability benefits.
(5)
Before making its recommendation, the Panel must require the applicant to complete a medical examination, including relevant medical tests, by a medical doctor who is not a member of the Disability Review Panel, unless the Panel finds that a medical examination is unnecessary because of the nature and severity of the injury or illness. The County must pay the cost of the examination. The results of the examination must be given to the applicant or the applicant’s representative immediately after the County or the Panel receives it. The panel must issue its written recommendation within 30 days after the medical doctor reports to the Panel.
(6)
Within 20 days after the Administrator receives the Panel’s recommendation, the Administrator must issue a final decision on whether the applicant is eligible for disability benefits under this Section.
Montgomery County, Md., Code § 33-130 (2026)
Sec. 33-130. Application for benefits.LinkCopy Citation
(a)
Notice to employee. The Chief Administrative Officer must notify an employee that an application for disability benefits should be made if the employee:
(1)
becomes ill or injured; and
(2)
is unable to perform at an acceptable level of competence the duties and responsibilities of the position to which the employee is assigned.
(b)
Application by Chief Administrative Officer. If the employee does not apply for disability benefits, the Chief Administrative Officer may apply on behalf of the employee.
(c)
Protection Against Fraud. Any person who knowingly makes any false statement or falsifies or permits to be falsified any record of the disability benefits plan in an attempt to defraud the disability benefits plan is subject to punishment for a class A violation.
Montgomery County, Md., Code § 33-131 (2026)
Sec. 33-131. Amount of benefits.LinkCopy Citation
(a)
Service-connected disability. The annual amount of service-connected disability payments payable for total incapacity equals 70% of the employee's final earnings, less any reductions provided in section 33-134. The annual amount of service-connected disability payments payable for partial incapacity equals 52½% of the employee’s final earnings.
(b)
Non-service-connected disability. The annual amount of the non-service-connected disability benefit payment equals 2 percent of the employee’s final earnings, multiplied by the number of years of credited service earned under Section 33-41 or Section 33-119. However the benefit must be at least 33 1/3 percent of the employee’s final earnings, but no more than 60 percent of the employee’s final earnings, less any reductions provided in Section 33-134.
(c)
Cost-of-living adjustments. The administrator must make a cost-of-living adjustment annually to the disability benefits paid to any public safety employee under this plan. The cost of living adjustment must be equal to 60% of the annual increase in the Consumer Price Index for All Urban Consumers (CPI-U) for the Washington-Arlington- Alexandria Core Based Statistical Area (CBSA), as published by the United States Department of Labor, Bureau of Labor Statistics. However, the disability cost-of-living increase must not increase the disability benefits by more than 3% each 12-month period. A non-public safety employee must not receive a cost-of-living adjustment for any benefit paid under this plan. The cost-of-living adjustment for a disability benefit based upon a disability occurring after June 30, 2011 must not exceed 2.5 percent.
Montgomery County, Md., Code § 33-132 (2026)
Sec. 33-132. Time and form of payment.LinkCopy Citation
(a)
Commencement of benefits. The administrator must begin paying initial disability benefits no earlier than the date that the employee exhausts all accrued sick and compensatory leave in excess of 80 hours. The County Executive must develop a procedure to determine the distribution date for payment of disability benefits by Executive Regulation under method (2).
(b)
Form of Payment. The administrator must pay all disability benefits on a monthly basis. The disability benefits must be paid to the employee directly. All applicable federal and state income taxes must be withheld from the disability benefits paid. To the extent that federal or state employment taxes apply, they must be withheld.
Montgomery County, Md., Code § 33-133 (2026)
Sec. 33-133. Termination of benefits.LinkCopy Citation
(a)
Non-public safety employee. The administrator must terminate initial or continued disability benefits to a non-public safety employee if the employee:
(1)
recovers from the disability, as determined by the administrator;
(2)
does not provide the administrator with information that the administrator requires; or
(3)
attains age 85, or a later age if required under federal law.
(b)
Public safety employee. The administrator must terminate initial or continued disability benefits to a public safety employee if the employee:
(1)
recovers from the disability, as determined by the administrator;
(2)
does not provide the administrator with information that the administrator requires; or
(3)
attains age 85, or a later age if required under federal law, if the benefit is for a non-service connected disability.
Montgomery County, Md., Code § 33-134 (2026)
Sec. 33-134. Reduction of benefits.LinkCopy Citation
(a)
Reduction by payments received. Disability benefits must be reduced by any amount the employee receives from:
(1)
any other government group income maintenance insurance coverage for the disability;
(2)
Social Security disability benefits, including benefits payable to dependents on account of the disability;
(3)
any government disability plan;
(4)
the optional or integrated plan of the employees’ retirement system under Article III; and
(5)
the retirement savings plan under this Division, or amounts the employee is entitled to receive under the retirement savings plan for a public safety employee.
(b)
Amount of reduction. The disability benefits must be reduced by one dollar for every one dollar of other payments under subsection (a).
If the employee receives any payment in subsection (a) as a lump sum or in periodic payments, or elects not to take a benefit available under the retirement savings plan, the amount will be converted to a life annuity for reduction of disability benefits under this Section.
(c)
Workers' compensation benefits. If an employee receives payments under this plan for a disability that also entitles or has entitled the employee to receive workers' compensation benefits under State law, the benefits provided under this plan satisfy the County's obligations under State law to provide workers' compensation benefits. If the benefits paid to an employee under this plan exceed the County's workers' compensation benefits required under State law, the County's obligation to pay benefits under the workers' compensation law is satisfied and any other County workers' compensation payments to the employee must stop. If the benefits paid to an employee under this plan are less than the County's workers' compensation benefits required under State law, the County's workers' compensation payments to the employee must be offset by the benefits paid to the employee under this plan.
Montgomery County, Md., Code § 33-135 (2026)
Sec. 33-135. Medical examination.LinkCopy Citation
(a)
The Administrator must require any employee receiving continued disability payments to undergo annual or less frequent medical examinations, or to submit a medical doctor’s certificate verifying the continuation of the disability, unless the Administrator finds that a physical examination in a specific case is unnecessary because of the nature and severity of the injury or illness. The Administrator must submit the findings of any medical examination to the Disability Review Panel. The Disability Review Panel may require the employee to submit to an additional independent medical examination. The Panel must consider the findings of the physical examination and any other information submitted by the employee or the County and recommend in writing to the Administrator whether the employee still qualifies for disability benefits. The Administrator must issue a final decision within 20 days after receiving the Panel’s recommendation. An employee may appeal the Administrator’s decision to reduce or discontinue disability pension payments to the appropriate Disability Arbitration Board under Section 33-138.
Montgomery County, Md., Code § 33-136 (2026)
Sec. 33-136. Re-employment program.LinkCopy Citation
(a)
Program established. The County Executive may establish a program for re-employment of employees who are receiving disability benefits under this plan by Executive Regulation under method (2).
(b)
Administration. The Chief Administrative Officer must administer any re-employment program.
(c)
Employment level. Any employment offered to an employee under a re-employment program must be commensurate with the training, education, experience, and physical and mental capabilities of the employee.
(d)
Participation required. Unless the Chief Administrative Officer exempts an employee based on medical evidence that the employee could not successfully complete the reemployment program, an employee receiving benefits under this plan must participate in any re-employment program established under this Section.
Montgomery County, Md., Code § 33-137 (2026)
Sec. 33-137. Funding.LinkCopy Citation
The Chief Administrative Officer may fund the benefits under this plan with:
(a)
a self-funding vehicle using County general funds, subject to appropriation and employee contributions;
(b)
disability insurance purchased with County funds, subject to appropriation and employee contributions; or
(c)
a combination of both.
Montgomery County, Md., Code § 33-138 (2026)
Sec. 33-138. Appeals of decisions.LinkCopy Citation
(a)
The applicant, or the certified representative on behalf of the applicant, may appeal the written decision of the Administrator on eligibility for disability benefits within 20 days after the applicant receives the Administrator’s decision.
(b)
The Disability Arbitration Board must convene to consider an appeal within a reasonable time after the appeal is filed. The appeal and judicial review proceedings are governed by Sections 3-201 through 3-234 of the Maryland Arbitration Act.
(c)
The Disability Arbitration Board must issue the decision quickly. The Board should issue the decision within 30 days after the hearing or receiving any post-hearing brief, whichever is later.
(d)
The County must pay all reasonable fees and expenses of the arbitrator, as determined by the Chief Administrative Officer, except that a certified representative must pay any fee resulting from the cancellation of a scheduled hearing if the certified representative:
(1)
causes a hearing to be canceled and the application remanded to the Disability Review Panel; or
(2)
causes a hearing to be canceled and rescheduled on a later date.
Division 3. Severance Pay Plan.
Montgomery County, Md., Code § 33-139 (2026)
Sec. 33-139. Severance pay.LinkCopy Citation
The County or the applicable agency must pay any participant in the retirement savings plan or the guaranteed retirement income plan severance pay when the participant is separated from service by an affirmative administrative action other than dismissal for cause. An agency may adopt this severance pay plan under an adoption agreement approved by the Chief Administrative Officer.
Montgomery County, Md., Code § 33-140 (2026)
Sec. 33-140. Plan administration.LinkCopy Citation
(a)
The County Executive must establish a severance pay plan in Executive Regulations under method (2). The plan must:
(1)
prohibit severance pay for an employee who admits to or is found to have violated the Ethics Law in the 12 months prior to separation from County employment; and
(2)
qualify as a severance pay plan under Section 457 of the Internal Revenue Code.
(b)
The Chief Administrative Officer must administer the severance pay plan. Any employee denied severance pay due under this Section may appeal to the Merit System Protection Board. The Merit System Protection Board may overturn a denial of severance pay only if the denial was arbitrary and capricious.
“Sec. 3. Transition.
(a)
The initial plan year for the retirement savings plan is from October 1, 1994 to December 31, 1994.
(b)
The Chief Administrative Officer’s first annual report on the status of the retirement savings plan under Section 33-122(h) must be submitted by March 1, 1995.''
Article IX. Deferred Compensation Plan.
Montgomery County, Md., Code § 33-141 (2026)
Sec. 33-141. Definitions.LinkCopy Citation
In this Article, the following words and phrases have the following meanings:
(a)
Board or Board of Investment Trustees means the Board of Investment Trustees established under Article III.
(b)
Collectively Bargained Plan means a plan established under Section 33-146B.
(c)
County means the Montgomery County Government, and when applicable, any participating agency.
(d)
Employee means any eligible elected or appointed County official and any full-time or career part-time County employee.
(e)
Deferred compensation plan or plan means the Deferred Compensation Plan of Montgomery County, Maryland.
(f)
Participant means an employee who is participating in the plan.
(g)
Trust means the trust established to hold all assets and income of the plan for the benefit of plan participants and their beneficiaries.
Montgomery County, Md., Code § 33-142 (2026)
Sec. 33-142. Establishment; participation.LinkCopy Citation
(a)
Establishment. The Deferred Compensation Plan is established under Section 457(b) of the Internal Revenue Code.
(b)
Plan document. The terms of the plan must be contained in a plan document. The Chief Administrative Officer may amend the plan document at any time after consulting the Board.
(c)
Participation. Any employee may participate in the plan.
(d)
Participating agencies.
(1)
Any agency that participates in the Employees' Retirement System under Article III or the Retirement Savings Plan under Article VIII may also participate in the deferred compensation plan.
(2)
A participating agency must:
(A)
execute an adoption agreement in a form satisfactory to the Chief Administrative Officer; and
(B)
submit any information and execute any form or document that the Chief Administrative Officer deems prudent for purposes of maintaining the status of the deferred compensation plan as an eligible deferred compensation plan under the Internal Revenue Code.
(3)
The Chief Administrative Officer may treat a participating agency as having withdrawn from the deferred compensation plan if the participating agency does not:
(A)
submit information or execute documents necessary to administer and maintain the plan as requested by the Chief Administrative Officer;
(B)
qualify as a governmental entity; or
(C)
adhere to the terms of the plan.
(4)
No liability will accrue to the County Government by the inclusion of participating agency employees in the plan. Each participating agency must be fully responsible for the cost of coverage for its employees and any necessary costs for administrative services or investment services provided.
Montgomery County, Md., Code § 33-143 (2026)
Sec. 33-143. Powers and duties of the chief administrative officer.LinkCopy Citation
(a)
Administration. Except for the powers reserved to the Board, the Chief Administrative Officer must take all actions and make all decisions to administer the deferred compensation plan, including:
(1)
deciding the eligibility of any employee or person employed by an agency and the rights of any participant or beneficiary to receive benefits;
(2)
computing the amount of benefits payable to any participant or beneficiary;
(3)
authorizing benefits, including the determination of hardship withdrawal requests;
(4)
keeping records;
(5)
consulting with the Board regarding the selection of a recordkeeper for the plan;
(6)
determining the source of funding, under other laws and consistent with appropriations, for payment of expenses to administer the plan;
(7)
incurring and paying expenses to administer the plan;
(8)
preparing and filing reports required by law;
(9)
providing to each participant, former participant, or designated beneficiary eligible to receive benefits under the plan a report of the person’s account at least quarterly;
(10)
transferring deferred amounts to the trust within a reasonable period of time and in a reasonable manner to be determined after consulting the Board; and
(11)
delegating any power or duty under this Section.
(b)
Procurement. Chapter 11B does not apply to the procurement of goods and services for the deferred compensation plan by the Chief Administrative Officer.
(c)
Interpretation. The Chief Administrative Officer must decide questions arising under the plan and this Article. Any participant, former participant, or designated beneficiary eligible to receive benefits from the deferred compensation plan may make a written request for a decision on questions arising under the plan and this Article. The Chief Administrative Officer must decide the question and respond in writing to the request:
(1)
within 60 days; or
(2)
within 150 days if the written consent of the person requesting the decision is obtained within 60 days.
A decision by the Chief Administrative Officer is final and binding on all interested parties and may not be appealed.
Montgomery County, Md., Code § 33-144 (2026)
Sec. 33-144. Trust fund.LinkCopy Citation
(a)
Establishment of trust. A trust is established as part of the deferred compensation plan for the benefit of participants in the plan.
(b)
Trust fund. All of the money and property, all investments made with that money and property, and all earnings, profits, increments, and other additions, less payments previously made by the Board are the deferred compensation plan trust fund.
(c)
Trust fund management and legal title. The Board is responsible for managing the trust fund according to this Article. The Board has legal title to all cash and other property of the deferred compensation plan, but may transfer some incidents of ownership to the Board’s agents as provided in this Article.
(d)
Exclusive benefit. The deferred compensation plan trust fund must be held for the exclusive benefit of participants and their beneficiaries, and used only to provide benefits and defray the reasonable expenses of administering the plan. Trust fund assets must not revert to the County, unless allowed under Section 457 of the Internal Revenue Code.
Montgomery County, Md., Code § 33-145 (2026)
Sec. 33-145. Powers and duties of the board.LinkCopy Citation
(a)
General.
(1)
The Board has the exclusive authority to manage the assets of the deferred compensation plan. All powers and duties required for the management of the plan trust fund are vested in the Board of Investment Trustees.
(2)
Sections 33-61A (Indemnification of trustees), 33-61C (Standard of care), and 33-61D (Ethics and conflict of interest) apply to the Board’s responsibilities under the deferred compensation plan.
(3)
Chapter 11B does not apply to the procurement of goods and services for the deferred compensation plan by the Board.
(b)
Duties. The Board must:
(1)
develop record keeping procedures to maintain and report on participant account balances;
(2)
designate appropriate investment options to be offered to participants;
(3)
designate a method of accounting for investments;
(4)
designate methods of making distributions of participant account balances;
(5)
make distributions to participants, former participants, or their designated beneficiaries after the Chief Administrative Officer authorizes the benefits; and
(6)
incur and pay expenses to carry out the Board's responsibilities under the plan.
(c)
Agents for transfer of property.
(1)
The Board may register any assets in its own name or in the name of a nominee. The Board may hold any assets in bearer form. The Board or its agent must keep records that show that the investments are part of the trust fund.
(2)
The Board may form a partnership under State law to hold or transfer assets as the nominee of the Board.
(3)
The Board may designate in writing a trustee or trustees to hold or transfer assets as a nominee of the Board.
(4)
The Board must provide that trustees or a partnership that the Board designates must act only as agents of the Board. The Board may set other conditions that the Board considers prudent.
(5)
The trustees or a partnership that the Board designates may retain the services of a bank or other financial institution to conduct required business.
(d)
Authorized investments.
(1)
The Board must invest each participant's account in one or more of the Board-designated investment options in the manner directed by the participant.
(2)
The Board may select or remove any investment options for the deferred compensation plan that the Board finds prudent under the policies set by the Board.
(3)
If an investment through any combined, common, or commingled trust fund exists, the declaration of trust of that fund is a part of the deferred compensation plan trust.
(e)
Trustee powers. Except as otherwise provided in this Article, the Board may:
(1)
with any cash, purchase or subscribe for any investment, at a premium or discount, and retain the investment;
(2)
sell, exchange, convey, transfer, lease for any period, pledge, mortgage, grant options, contract with respect to, or otherwise encumber or dispose, at public or private sale, for cash or credit or both, any part of the deferred compensation plan;
(3)
subject to Section 33-61A(h)(2), sue, defend, compromise, arbitrate, compound and settle any debt, obligation, claim, suit, or legal proceeding involving the deferred compensation plan, and reduce the rate of interest on, extent or otherwise modify, foreclose upon default or otherwise enforce any debt, obligation, or claim;
(4)
retain uninvested a part of the deferred compensation plan trust assets in preparation for initial investment of deferred compensation amounts or for the payment of distributions;
(5)
exercise any option on any investment for conversion into another investment, exercise any rights to subscribe for additional investments, and make all necessary payments;
(6)
join in, consent to, dissent from, oppose, or deposit in connection with the reorganization, recapitalization, consolidation, sale, merger, foreclosure, or readjustment of the finances of any corporation or property in which the assets of the deferred compensation plan are invested, or the sale, mortgage, pledge or lease of that property or the property of any such corporation upon such terms and conditions that the Board considers prudent; exercise any options, make any agreements or subscriptions, pay any expenses, assessments, or subscriptions, and take any other action in connection with these transactions that the Board considers prudent; and accept and hold any investment that may be issued in or as a result of any such proceeding;
(7)
vote, in person or by any proxy, at any election of any corporation in whose stock the assets of the deferred compensation plan are invested, and exercise, personally or by any power of attorney, any right appurtenant to any investment held in the deferred compensation plan; and give general or specific proxies or powers of attorney with or without power of substitution;
(8)
sell at a public or private sale, enter into an option to sell, mortgage, lease, partition, or exchange any real property at prices and for terms that the Board considers prudent. The Board may execute and deliver deeds of conveyance and all assignments, transfers, and other legal instruments for passing the ownership to the purchaser, free and discharge of all liens;
(9)
renew or extend any mortgage, upon such terms that the Board considers prudent, and increase or reduce the rate of interest on any mortgage or modify the terms of any mortgage or of any guarantee as the Board considers prudent to protect the deferred compensation plan or preserve the value of the investment; waive any default or enforce any default in a manner that the Board considers prudent; exercise and enforce any right of foreclosure, bid on property in foreclosure, take a deed in lieu of foreclosure with or without paying a consideration, and release the obligation on the bond secured by the mortgage; and exercise and enforce in any action, suit or proceeding at law or in equity any rights or remedies in respect to any mortgages or guarantee;
(10)
incur and pay expenses for agents, financial advisors, actuaries, accountants and counsel, if those expenses are incurred solely to perform the Board's duties under the deferred compensation plan;
(11)
borrow, raise or lend moneys, for the purpose of the deferred compensation plan, in such amounts and upon such terms and conditions as the Board in its discretion considers prudent; for any money borrowed, issue a promissory note and secure the repayment of this note by pledging or mortgaging all or any part of the deferred compensation plan;
(12)
hold, buy, transfer, surrender, and exercise all other incidents of ownership of any annuity contract;
(13)
if payments to a participant or beneficiary are to be made in the form of an annuity based on one or more lives or life expectancies, buy from any legal reserve life insurance company a single premium, nontransferable annuity contract providing for the payment of the benefits;
(14)
pool all or any of the assets of the deferred compensation plan trust with assets belonging to any other retirement plan trust or retiree health benefit trust created by the County, including any subtrust thereof. The Board may commingle the assets and make joint or common investments and carry joint accounts on behalf of the deferred compensation plan trust and one or more other trusts, or subtrusts, allocating undivided shares or interests in the investments or accounts, or in any pooled assets, to the trusts or subtrusts, according to the trusts’ respective interests. Any such trusts or subtrusts may be unitized for investment purposes. The Board may, subject to its fiduciary duties, offer units of such pooled trust or subtrust as an investment option. Consistent with its investment authority in this Article, the Board, or its delegate, also may buy or sell any assets or undivided interests in any trust where the assets of the deferred compensation plan trust are pooled at the prices or valuations that the Board or its delegate may determine in reasonable good faith. For the avoidance of doubt, the Board must determine that it is consistent with its fiduciary duties to participate in a pooled investment that permits the purchase or sale of its units as an investment option under another retirement plan or retiree health benefit trust created by the County; and
(15)
do all acts that the Board considers necessary and exercise the powers of this Article to manage the deferred compensation plan trust. The Board may exercise all powers to manage the assets that an individual could exercise to manage property owned by the individual, except for making an individual investment selection.
(f)
Prohibited transactions. The Board must not engage in any direct or indirect transaction between the trust and the County, or any entity controlled by the County, that would violate the prudent person rule (Section 33-61C) or result in the diversion of trust income or corpus in violation of the exclusive benefit rule (Section 33-144(d)). For avoidance of doubt, such a transaction does not include a transfer conducted on the terms described in Section 33-170(i) between employee benefit plan trusts or a subtrust.
(g)
The Board must monitor the performance of each investment option. Monitoring may include any tests or analyses that the Board finds prudent.
(h)
Payments. The Board must pay all benefits and expenses of the deferred compensation plan as directed by the Chief Administrative Officer. The Board may pay expenses incurred under paragraph (e)(10) without direction by the CAO.
(i)
Benefit recipients. The Board may rely on the decision of the Chief Administrative Officer to identify the proper recipient of benefit payments.
(j)
Delegation of duties. The Board may delegate its duties to the Executive Director or a similarly situated County employee as it deems appropriate and consistent with its fiduciary duties in a written policy and procedure. If the Board has prudently delegated its duties and monitored the delegation, the trustees must not be liable for an act or omission made by its delegate.
Montgomery County, Md., Code § 33-146 (2026)
Sec. 33-146. Amendment and termination.LinkCopy Citation
(a)
Right to amend. The County reserves the right to amend the deferred compensation plan at any time for any reason.
(b)
Qualification amendments. The deferred compensation plan and any related trust agreement, investment advisory agreement, custodial agreement, annuity contract, or similar agreement may be amended at any time, either prospectively or retroactively, to conform to the Internal Revenue Code.
(c)
Termination of the deferred compensation plan. The County has established the deferred compensation plan expecting to continue the plan indefinitely, but the County may terminate the plan. Any transfer of assets resulting from the termination must comply with the Internal Revenue Code.
(d)
Termination of participation by a participating agency. If a participating agency decides to stop participating in the deferred compensation plan, the agency must notify the Chief Administrative Officer in writing. The Chief Administrative Officer and the agency must agree on a date for ending the agency’s participation. Any transfer of assets resulting from the termination must comply with the Internal Revenue Code.
Montgomery County, Md., Code § 33-146A (2026)
Sec. 33-146A. Miscellaneous.LinkCopy Citation
(a)
Exemption from execution, garnishment, or attachment. The right of a participant in that participant’s account balances or any other right or benefit under this Article are not subject to execution, garnishment, attachment, or any other process, and are not assignable, except under an order that qualifies as a domestic relations order under the Internal Revenue Code and meets plan requirements. The Chief Administrative Officer must establish procedures to determine whether the domestic relations order is qualified and must determine the manner and timing of distributions required under the order.
(b)
Protection against fraud. A person must not knowingly make a false statement or falsify or allow another to falsify a record of the deferred compensation plan to defraud the plan. A violation of this subsection is a class A violation.
(c)
Error in records, repayment, and waiver.
(1)
If a change or error in the records results in any participant or beneficiary receiving from the deferred compensation plan more or less than the participant or beneficiary is entitled to receive, the error must be corrected. The payment must be adjusted to pay the correct amount. The Chief Administrative Officer must establish by regulation under method (1) reasonable procedures to correct an error, consistent with plan requirements.
(2)
The plan must pay the participant or beneficiary for any underpayment. Except as provided in paragraph (3), a participant or beneficiary who receives excess payments must repay the plan.
(3)
The Chief Administrative Officer must establish by regulation under method (1) procedures to waive repayment by a participant or beneficiary who the Chief Administrative Officer determines is without fault when repayment would be against equity and good conscience. The procedure must require the participant or beneficiary to apply for a waiver within 30 days after receiving actual notice of the overpayment and demand for repayment. The notice must inform the recipient about the waiver procedure. The Chief Administrative Officer must waive repayment of an overpayment that the plan made more than 3 years before notifying the participant or beneficiary about the overpayment. If the Chief Administrative Officer waives repayment, the CAO must repay the plan for the overpayment from a source that does not reduce the assets held in trust for other participants and beneficiaries.
(d)
Payment of expenses. The County may contribute to the trust to cover operating expenses of the deferred compensation plan. The Board must pay operating expenses of the plan from plan assets or from County assets, as directed by the Chief Administrative Officer. A participating agency must pay the agency’s share of the operating expenses attributable to the participation of the agency’s employees.
Montgomery County, Md., Code § 33-146B (2026)
Sec. 33-146B. Collectively Bargained Plans.LinkCopy Citation
The County may establish and maintain one or more additional deferred compensation plans for employees covered by a collective bargaining agreement. In the case of any collectively bargained plan:
(a)
The certified representative must assume the duties and responsibilities of the Board, except for the requirements of Section 33-61(a), and the certified representative must assume the duties and responsibilities of the Chief Administrative Officer and the County under this Article.
(b)
The Board, Chief Administrative Officer, and County have no fiduciary or other responsibility for a collectively bargained plan except as required by federal law, including any regulation, ruling, or other guidance issued under that law.
(c)
The certified representative must indemnify the County and provide fiduciary liability insurance protecting itself and the County in an amount agreed to by the County and certified representative through collective bargaining.
(d)
The officers of the certified representative who have direct responsibility for plan administration, and the trustees of any trust established under this Section, must:
(1)
provide financial disclosure to the participants of the plan in a form and manner at least as stringent as that required of the Board; and
(2)
establish and conform to a code of ethical conduct, approved by participants in the plan, at least as stringent as that required of the Board.
(e)
The collectively bargained plan, and its separate trust, custodial account or annuity contract, must meet, in form and operation, all applicable requirements of the Internal Revenue Code and any regulation, ruling, or other guidance issued under that law.
(f)
Any trustee or fiduciary of a collectively bargained plan must not accept any direct or indirect compensation from any person who does business with that plan.
Montgomery County, Md., Code § 33-146C (2026)
Sec. 33-146C. Independent audit.LinkCopy Citation
To comply with Section 315 of the County Charter, a firm of certified public accountants, under contract with the Council, must complete an annual independent audit of the County Plan and each Collectively Bargained Plan established and maintained by the County. The complete audit must be filed with the Council, and copies made available for public inspection.
Article X. Fire and Rescue Collective Bargaining.
Montgomery County, Md., Code § 33-147 (2026)
Sec. 33-147. Declaration of policy.LinkCopy Citation
The public policy of Montgomery County is to promote a harmonious, peaceful, and cooperative relationship between the County government and its fire and rescue employees and to protect the public by assuring, at all times, the responsive, orderly, and efficient operation of the Department of Fire and Rescue Services. Since unresolved disputes in the fire and rescue service harm the public and fire and rescue employees, adequate means should be available to prevent disputes and resolve them when they occur. To that end, it is in the public interest that fire and rescue employees have the opportunity to bargain collectively over wages, hours, and other terms and conditions of employment, as authorized by Charter Section 510A, through a representative of their choice, or to refrain from collective bargaining. It is also in the public interest that the County government and a representative of fire and rescue employees bargain collectively in good faith without interference with the orderly process of government, and that they implement any agreement reached through collective bargaining.
Fire and rescue employee organizations and the County government each possess substantial means for initiating actions on wages, hours, and working conditions of employees. Therefore, in order to preserve an appropriate balance between labor and management in the fire and rescue service, once the employees voluntarily select a representative collective bargaining must be used in place of, and not in addition to, existing means to initiate government action on subjects that are appropriate for collective bargaining under this Article.
Montgomery County, Md., Code § 33-148 (2026)
Sec. 33-148. Definitions.LinkCopy Citation
The following terms have the meaning indicated when used in this Article:
(1)
Agency shop means a provision in a collective bargaining agreement requiring, as a condition of continued employment, that bargaining unit employees pay a service fee not greater than the monthly membership dues uniformly and regularly required by the employee organization of all of its members. An agency shop agreement must not require an employee to pay initiation fees, assessments, fines, or any similar collections as a condition of continued employment. A collective bargaining agreement must not require payment of a service fee by any employee who opposes joining or financially supporting an employee organization on religious grounds. However, the collective bargaining agreement may require that employee to pay an amount equal to the service fee to a nonreligious, nonunion charity, or to any other charitable organization, agreed to by the employee and the certified representative, with provision for dispute resolution if there is not agreement, and to give to the employer and the certified representative written proof of this payment. The certified representative must adhere at all times to all federal constitutional requirements in its administration of any agency shop system maintained by it.
(2)
Certified representative means an employee organization chosen to represent the unit as the exclusive bargaining agent under this Article or Article VII.
(3)
Collective bargaining means meeting at reasonable times and places and negotiating in good faith on appropriate subjects as defined under this Article. This Article does not compel either party to agree to a proposal or make a concession.
(4)
Employee means a fire and rescue employee in the classification of Fire/Rescue Captain, Fire/Rescue Lieutenant, Master Firefighter/Rescuer, Firefighter/Rescuer III, Firefighter/Rescuer II, and Firefighter/Rescuer I, but not:
(A)
an employee in a probationary status;
(B)
an employee in the classification of District Chief or an equivalent or higher classification; or
(C)
a Fire/Rescue Lieutenant or Captain whose primary assignment is in:
(i)
budget;
(ii)
internal affairs;
(iii)
labor relations;
(iv)
human resources;
(v)
public information; or
(vi)
quality assurance.
(5)
Employee organization means any organization that admits employees to membership and that has as a primary purpose the representation of employees in collective bargaining.
(6)
Employer means the County Executive and the Executive's designee.
(7)
Lockout means any action that the employer takes to interrupt or prevent the continuity of work properly and usually performed by the employees for the purpose and with the intent of either coercing the employees into relinquishing rights guaranteed by this Article or of bringing economic pressure on employees for the purpose of securing the agreement of their certified representative to certain collective bargaining terms.
(8)
Mediation means an effort by an impasse neutral chosen under this Article to assist confidentially in resolving, through interpretation, suggestion, and advice, a dispute arising out of collective bargaining between the employer and the certified representative.
(9)
Strike means a concerted failure to report for duty, absence, stoppage of work, or abstinence in whole or in part from the full and faithful performance of the duties of employment with the employer, or deviation from normal or proper work duties or activities, where any of these acts are done in a concerted manner for the purpose of inducing, influencing, or coercing the employer in the determination, implementation, interpretation, or administration of terms or conditions of employment or of the rights, privileges, or obligations of employment or of the status, recognition, or authority of the employee or an employee organization.
(10)
Unit means all employees, as defined in this section, who are associated with fire suppression, fire protection, fire communications, fire service training, rescue, and emergency medical services, and whose duties include the rescue and safety of individuals and the preservation of structures and physical property.
Montgomery County, Md., Code § 33-149 (2026)
Sec. 33-149. Labor Relations Administrator.LinkCopy Citation
(a)
A Labor Relations Administrator must be appointed to effectively administer this Article as it governs selection, certification and decertification procedures and prohibited practices. The Administrator must:
(1)
periodically adopt, amend, and repeal, under method (1), regulations and procedures to carry out the Administrator's duties under this Article;
(2)
request from the employer or employee organization, and the employer or employee organization may at its discretion provide, any relevant assistance, service, and data that will enable the Administrator to properly carry out duties under this Article;
(3)
hold hearings and make inquiries, administer oaths and affirmations, examine witnesses and documents, take testimony and receive evidence, and compel by issuance of subpoenas the attendance of witnesses and the production of relevant documents;
(4)
conduct elections to certify or decertify an employee organization under this Article, and issue the certification or decertification;
(5)
investigate and attempt to resolve or settle, as provided in this Article, charges of engaging in prohibited practices, but the Administrator must defer to the parties' grievance procedure if:
(A)
the employer and the certified representative have negotiated a valid grievance procedure to resolve disputes, and
(B)
deferral to the grievance procedure would not result in the application of principles repugnant to this Article;
(6)
determine whether a person is properly included in or excluded from the unit;
(7)
obtain any necessary support services and make necessary expenditures in the performance of duties to the extent the County has appropriated funds for these purposes; and
(8)
exercise any other powers and perform any other duties and functions specified in this Article.
(b)
The Administrator must be a person with experience as a neutral in labor relations, and must not be a person who, because of vocation, employment, or affiliation, can be categorized as a representative of the interest of the employer or any employee organization.
(c)
The County Executive must appoint the Administrator, subject to confirmation by the County Council, from a list of 5 nominees agreed on by the certified representative and the Chief Administrative Officer. If there is no certified representative, the Executive must appoint an Administrator, subject to confirmation by the Council. If the Council does not confirm an appointment, the Executive must appoint another person from a new agreed list of 5 nominees and submit that appointee to the Council for confirmation. The Administrator serves a term of 5 years. An incumbent Administrator is automatically reappointed for another 5-year term, subject to Council confirmation, unless, during the period between 60 and 30 days before the term expires, the certified representative notifies the Chief Administrative Officer or the employer notifies the certified representative that either objects to the reappointment.
(d)
If the Administrator dies, resigns, becomes disabled, or otherwise becomes unable or ineligible to continue to serve, the Executive must appoint a new Administrator, subject to Council confirmation, to serve the remainder of the previous Administrator's term. The Administrator appointed under this subsection may be reappointed as provided in subjection (c).
(e)
The Administrator must be paid a daily fee as specified in a contract with the County, and must be reimbursed for necessary expenses incurred in performing the duties of Administrator.
Montgomery County, Md., Code § 33-150 (2026)
Sec. 33-150. Employee rights.LinkCopy Citation
(a)
Employees have the right to:
(1)
form, join, support, contribute to, or participate in, or refrain from forming, joining, supporting, contributing to, or participating in, any employee organization or its lawful activities; and
(2)
be represented fairly by their certified representative, if any.
(b)
The employer must extend to the certified representative the exclusive right to represent the employees for the purposes of collective bargaining, including the orderly processing and settlement of grievances as agreed by the parties under this Article.
(c)
Except as provided in subsections (e) and (f), a certified representative serves as the exclusive bargaining agent for all employees in the unit and must represent fairly and without discrimination all employees in the unit without regard to whether the employees are members of the employee organization, pay dues or other contributions to it, or participate in its affairs.
(d)
The right of a certified representative to receive voluntary dues or service fee deductions must be determined through negotiations, unless the authority to negotiate these provisions has been suspended under this Article. A collective bargaining agreement must not require membership in, participation in the affairs of, or contributions to an employee organization.
(e)
A certified representative may require an employee who does not pay membership dues or equivalent fees to pay:
(1)
the reasonable costs and fees, including expenses for staff time and materials, arbitrator fees, and related attorney’s fees, for filing a grievance or arbitrating a matter that arises under a collective bargaining agreement brought by the certified representative at the request of the employee; and
(2)
any anticipated proportional costs and fees before a grievance is filed or arbitration is pursued.
(f)
If an employee fails to pay the reasonable costs to file a grievance or pursue arbitration imposed under subsection (e), the certified representative may refuse to file the grievance or pursue arbitration on behalf of the employee. A dispute concerning the reasonableness of the fees imposed by the certified representative under subsection (e) may be submitted to the labor relations administrator as a prohibited practice under Section 33-154.
Montgomery County, Md., Code § 33-151 (2026)
Sec. 33-151. Selection, certification, and decertification procedures.LinkCopy Citation
(a)
Any employee organization seeking certification as representative of the unit must file a petition with the Labor Relations Administrator stating its name, address, and its desire to be certified. The employee organization must also send a copy of the petition, including a copy of the signatures of the supporting employees on the petition, to the employer. The petition must contain the uncoerced signatures of 30 percent of the employees in the unit, signifying the employees' desire to be represented by the employee organization for purposes of collective bargaining.
(b)
If an employee organization has been certified, an employee in the unit may file a petition with the Administrator to decertify the certified representative. The employee must also send a copy of the petition to the employer and the certified representative, not including the names of the supporting employees. The petition must contain the uncoerced signatures of 30 percent of the employees in the unit, alleging that the certified employee organization is no longer the choice of the majority of the employees in the unit.
(c)
If a lawful collective bargaining agreement is not in effect, a petition may be filed under this section in September of any year, but not sooner than 22 months after an election held under this section.
(d)
If a lawful collective bargaining agreement is in effect, a petition filed under this section must not be entertained unless it is filed during September of the final year of the agreement.
(e)
If the Administrator finds that a petition is properly supported and timely filed, the Administrator must hold an election of all eligible employees within a reasonable time, but no later than the next October 20, to determine if and by whom the employees wish to be represented.
(1)
The election must be supervised by the Administrator and must be conducted by secret ballot at the time and place that the Administrator directs. The Administrator may retain the services of a State agency responsible for conducting labor elections, or a similarly neutral body, to assist in conducting the election.
(2)
The election ballots must contain, as choices to be made by the voter, the name of each petitioning or certified employee organization, the name of any other employee organization showing written proof at least 10 days before the election of at least 10 percent representation of the employees in the unit in the same manner as described in paragraph (a), and a choice that the employee does not desire to be represented by any of the named employee organizations.
(3)
The employer and each party to the election may be represented by observers selected under conditions that the Administrator prescribes.
(4)
Observers selected under paragraph (3) may challenge for good cause the eligibility of any person to vote in the election. All challenged ballots must be impounded until either the parties agree on the validity of each challenge or the Administrator decides the validity of each challenge. However, if the number of challenges will not determine the outcome of the election, the challenged ballots must be destroyed.
(5)
After the polls have been closed, the Administrator must count all valid ballots cast in the presence of the observers.
(6)
The Administrator must immediately prepare and serve on the employer and each party a report certifying the results of the election. If an employee organization receives the votes of a majority of the employees who voted, the Administrator must certify that organization as the exclusive agent.
(7)
If no employee organization receives the votes of a majority of the employees who voted, the Administrator must not certify a representative. Unless a majority of the employees who vote choose "no representative," a runoff election must be conducted. The runoff election must contain the 2 choices that received the largest and second largest number of votes in the original election.
(f)
The Administrator's certification of results is final unless, within 7 days after service of the report and the certification, any party serves on all other parties and files with the Administrator objections to the election. All objections must be verified and contain a concise statement of facts constituting the grounds for each objection. The Administrator must investigate all objections and, if substantial factual issues exist, must hold a hearing. Otherwise, the Administrator may decide the matter without a hearing. The Administrator may invite, either by rule or by invitation, written or oral argument to assist in deciding the merits of the objections. If the Administrator finds that the election was conducted in substantial conformity with this Article, the Administrator must confirm the certification initially issued. If the Administrator finds that the election was not held in substantial conformity with this Article, then the Administrator must hold another election under this section.
(g)
The County must pay the cost of conducting each election.
Montgomery County, Md., Code § 33-152 (2026)
Sec. 33-152. Collective bargaining.LinkCopy Citation
(a)
Duty to bargain; matters subject to bargaining. When an employee organization is certified, the employer and the certified representative must bargain collectively with respect to:
(1)
salary and wages, including the percentage of the increase in the salary and wages budget that is devoted to merit increments and cash awards, but salaries and wages must be uniform for all employees in the same classification;
(2)
pension and other retirement benefits for active employees only;
(3)
employee benefits such as, but not limited to, insurance, leave, holidays, and vacations;
(4)
hours and working conditions;
(5)
procedures for the orderly processing and settlement of grievances concerning the interpretation and implementation of any collective bargaining agreement, which may include:
(A)
binding third party arbitration, but the arbitrator has no authority to amend, add to, or subtract from any provision of the collective bargaining agreement; and
(B)
provisions for exclusivity of forum;
(6)
matters affecting the health and safety of employees; and
(7)
amelioration of the effect on employees when the exercise of employer rights listed in subsection (b) causes a loss of existing jobs in the unit.
(b)
Employer rights. This Article and any collective bargaining agreement made under it must not impair the right and responsibility of the employer to:
(1)
determine the overall budget and mission of the employer and any agency of County government;
(2)
maintain and improve the efficiency and effectiveness of operations;
(3)
determine the services to be rendered and the operations to be performed;
(4)
determine the overall organizational structure, methods, processes, means, job classifications, and personnel by which operations are conducted, and the location of facilities;
(5)
direct and supervise employees;
(6)
hire, select, and establish the standards governing promotion of employees, and classify positions;
(7)
relieve employees from duties because of lack of work or funds, or when the employer determines continued work would be inefficient or nonproductive;
(8)
take actions to carry out the mission of government in emergency situations;
(9)
transfer, assign, and schedule employees;
(10)
determine the size, grades, and composition of the work force;
(11)
set standards of productivity and technology;
(12)
establish employee performance standards and evaluate employees, but evaluation procedures are subject to bargaining;
(13)
make and implement systems for awarding outstanding service increments, extraordinary performance awards, and other merit awards;
(14)
introduce new or improved technology, research, development, and services;
(15)
control and regulate the use of machinery, equipment, and other property and facilities of the employer, subject to subsection (a)(6);
(16)
maintain internal security standards;
(17)
create, alter, combine, contract out, or abolish any job classification, department, operation, unit, or other division or service, but the employer must not contract work which will displace employees unless it gives written notice to the certified representative 90 days before signing the contract or other notice agreed by the parties;
(18)
suspend, discharge, or otherwise discipline employees for cause, except that, subject to Charter Section 404, any such action may be subject to a grievance procedure included in a collective bargaining agreement; and
(19)
issue and enforce rules, policies, and regulations necessary to carry out these and all other managerial functions which are not inconsistent with this Article, federal or State law, or the terms of a collective bargaining agreement.
(c)
Exemption. This Article does not limit the discretion of the employer voluntarily to discuss with the representatives of its employees any matter concerning the employer's exercise of any right specified in this section. However, any matter so discussed is not subject to bargaining.
(d)
The public employer rights specified in this section must be incorporated by reference in every agreement reached between the employer and the employee organization.
Montgomery County, Md., Code § 33-153 (2026)
Sec. 33-153. Bargaining, impasse, and legislative procedures.LinkCopy Citation
(a)
Collective bargaining must begin no later than the November 1 before the beginning of a fiscal year for which there is no agreement between the employer and the certified representative, and must be completed on or before January 15. The resolution of a bargaining impasse must be completed by February 1. These time limits may be waived or extended by written agreement of the parties.
(b)
Any provision for automatic renewal or extension of a collective bargaining agreement is void. An agreement is void if it extends for less than 1 year or more than 3 years. Each collective bargaining agreement must take effect July 1 and end June 30.
(c)
A collective bargaining agreement takes effect only after ratification by the employer and the certified representative. The certified representative may adopt its own ratification procedures.
(d)
Before September 10 of any year in which the employer and the certified representative bargain collectively, they must choose an impasse neutral, either by agreement or through the processes of the American Arbitration Association. The impasse neutral must be available from January 15 to February 1. The impasse neutral's fees and expenses must be shared equally by the employer and the certified representative.
(e)
During the course of collective bargaining, either party may declare an impasse and request the services of the impasse neutral, or the parties may jointly request those services before declaring an impasse. If the parties have not agreed on a collective bargaining agreement by January 15, an impasse exists by operation of law.
(f)
When an impasse is reached, the parties must submit the dispute to the impasse neutral. The impasse neutral must attempt mediation by bringing the parties together voluntarily under conditions that will tend to bring about a settlement of the dispute.
(g)
If the impasse neutral, in the impasse neutral's sole discretion, finds that the parties are at a bona fide impasse, the impasse neutral must require the parties to jointly submit all items previously agreed on, and each party to submit a final offer consisting of proposals not agreed upon. Neither party may change any proposal after it is submitted to the impasse neutral as a final offer, except to withdraw a proposal on which the parties have agreed.
(h)
The impasse neutral may require the parties to submit evidence or present oral or written arguments in support of their proposals. The impasse neutral may hold a hearing at a time, date, and place selected by the impasse neutral. The hearing must not be open to the public.
(i)
On or before February 1, unless that date is extended by written agreement of the parties, the impasse neutral must select the final offer that, as a whole, the impasse neutral judges to be the more reasonable.
(1)
In determining which final offer is the more reasonable, the impasse neutral must first evaluate and give the highest priority to the ability of the County to pay for additional short-term and long-term expenditures by considering:
(A)
the limits on the County’s ability to raise taxes under State law and the County Charter;
(B)
the added burden on County taxpayers, if any, resulting from increases in revenues needed to fund a final offer; and
(C)
the County’s ability to continue to provide the current standard of all public services.
(2)
After evaluating the ability of the County to pay under paragraph (1), the impasse neutral may only consider:
(A)
the interest and welfare of County taxpayers and service recipients;
(B)
past collective bargaining agreements between the parties, including the past bargaining history that led to each agreement;
(C)
wages, hours, benefits and conditions of employment of similar employees of other public employers in the Washington Metropolitan Area and in Maryland;
(D)
wages, hours, benefits, and conditions of employment of other Montgomery County employees; and
(E)
wages, benefits, hours, and other working conditions of similar employees of private employers in Montgomery County.
(j)
The impasse neutral must base the selection of the most reasonable offer on the contents of the offer and the integration of any previously agreed-on items with the disputed items. In making a decision, the impasse neutral must not consider or receive any evidence or argument concerning offers of settlement not contained in the offers submitted to the impasse neutral, or any other information concerning the collective bargaining leading to impasse. The impasse neutral must neither compromise nor alter the final offer that he or she selects.
(k)
The final offer selected by the impasse neutral, integrated with any items previously agreed on, is the final agreement between the parties, need not be ratified by any party, and has the force and effect of an agreement voluntarily entered into and ratified under subsection (c). The parties must execute that agreement.
(l)
In each proposed annual operating budget, the County Executive must describe any collective bargaining agreement or amendment to an agreement that is scheduled to take effect in the next fiscal year and estimate the cost of implementing that agreement. The annual operating budget must include sufficient funds to pay for the items in the parties' final agreement. The employer must expressly identify to the Council by April 1, unless extenuating circumstances require a later date, all terms and conditions in the agreement that:
(1)
require an appropriation of funds, or
(2)
are inconsistent with any County law or regulation, or
(3)
require the enactment or adoption of any County law or regulation, or
(4)
which have or may have a present or future fiscal impact.
If a later submission is necessary, the employer must specify the submission date and the reasons for delay to the Council President by April 1. The employer must make a good faith effort to have the Council take action to implement all terms and conditions in the parties' final agreement.
(m)
Each agreement submitted to the Council must include:
(1)
all proposed legislation and regulations necessary to implement the agreement;
(2)
all changes from the previous collective bargaining agreement, indicated by brackets and underlines or a similar notation system; and
(3)
all side letters or other extraneous documents that are binding on the parties.
(n)
The Council may hold a public hearing to enable the parties and the public to testify on the agreement.
(o)
The Council may accept or reject all or part of any term or condition in the agreement which:
(1)
requires an appropriation of funds, or
(2)
is inconsistent with any County law or regulation, or
(3)
requires the enactment or adoption of any County law or regulation, or
(4)
which has or may have a present or future fiscal impact.
On or before May 1, the Council must indicate by resolution its intention to appropriate funds for or otherwise implement the agreement or its intention not to do so, and must state its reasons for any intention to reject any part of the parties' final agreement. The Council, by majority vote taken on or before May 1, may defer the May 1 deadline to any date not later than May 15.
(p)
If the Council indicates its intention to reject any part of the parties' final agreement, it must select a representative to meet with the parties and present the Council's views in the parties' further negotiation on matters that the Council has indicated its intention to reject. This representative must also participate fully in stating the Council's position in any ensuing impasse procedure. The parties must meet as promptly as possible and attempt to negotiate an agreement acceptable to the Council. Either party may at this time initiate impasse procedures under this section. The parties must submit the results of the negotiation, whether a complete or a partial agreement, to the Council on or before May 10. If the Council has deferred the May 1 deadline, that action automatically postpones the May 10 deadline by the same number of days. The Council then must consider the agreement as renegotiated by the parties and indicate by resolution its intention to appropriate funds for or otherwise implement the agreement or its intention not to do so.
(q)
Any agreement must provide for automatic reduction or elimination of wage or benefits adjustments if:
(1)
the Council does not take action necessary to implement the agreement or a part of it; or
(2)
sufficient funds are not appropriated for any fiscal year when the agreement is in effect.
(r)
Later years. The process and timetable in subsections (o) and (p) apply to Council review of wage or benefits adjustments after the first year or any multi-year agreement.
(s)
Out-of-cycle amendments. The process in subsections (o) and (p) applies to Council review of any amendment to a collective bargaining agreement that the Council receives after May 15 of any year, but the deadlines in those subsections do not apply. The Council President must set action deadlines which result, to the extent feasible, in a similar timetable relative to the date the Council received the amendment.
Montgomery County, Md., Code § 33-154 (2026)
Sec. 33-154. Prohibited practices.LinkCopy Citation
(a)
The employer and its agents or representatives must not:
(1)
interfere with, restrain, or coerce employees in the exercise of any rights granted to them under this Article;
(2)
dominate or interfere with the formation or administration of any employee organization or contribute financial or other support to it, under an agreement or otherwise, but the employer and certified representative may agree to and apply an agency shop provision under this Article and a voluntary dues or service fee deduction provision, and may agree to reasonable use of County facilities to communicate with employees.
(3)
encourage or discourage membership in any employee organization by discriminating in hiring, tenure, wages, hours, or conditions of employment, but this Article does not preclude an agreement from containing an agency shop provision;
(4)
discharge or discriminate against a public employee because the employee files charges, gives testimony, or otherwise lawfully aids in administering this Article;
(5)
refuse to bargain collectively with the certified representative;
(6)
refuse to reduce to writing or sign a collective bargaining agreement that has been agreed to in all respects;
(7)
refuse to process or arbitrate a grievance if required under a grievance procedure contained in a collective bargaining agreement;
(8)
directly or indirectly oppose the appropriation of funds or the enactment of legislation by the County Council to implement an agreement reached under this Article; or
(9)
engage in a lockout of employees.
(b)
Employee organizations and their agents, representatives, and persons who work for them, must not:
(1)
interfere with, restrain, or coerce the employer or any employee in the exercise of any rights granted under this Article;
(2)
restrain, coerce, or interfere with the employer in the selection of its representative for collective bargaining or the adjustment of grievances;
(3)
refuse to bargain collectively with the employer if the employee organization is the certified representative;
(4)
refuse to reduce to writing or sign a collective bargaining agreement which has been agreed to in all respects;
(5)
hinder or prevent, by threats of violence, intimidation, force, or coercion of any kind, the pursuit of any lawful work or employment by any person, public or private, or obstruct or otherwise unlawfully interfere with the entrance to or exit from any place of employment, or obstruct or unlawfully interfere with any person's free and uninterrupted use of any road, railway, airport, or other mode of travel;
(6)
hinder or prevent by threats, intimidation, force, coercion, or sabotage, the obtaining, use, or disposition of materials, supplies, equipment, or services by the employer;
(7)
take or retain unauthorized possession of property of the employer, or refuse to do work or use certain goods or materials as lawfully required by the employer; or
(8)
cause or attempt to cause the employer to pay or deliver or agree to pay or deliver any money or other thing of value, in the nature of an exaction, for services which are neither performed nor to be performed.
(c)
A charge of prohibited practice may be filed by the employer, an employee organization, or any individual employee. Each charge must be filed with the Labor Relations Administrator, and a copy must be sent to any person who allegedly committed a prohibited practice. Each charge must state facts sufficient to allow the Administrator to investigate the charge. The Administrator may request withdrawal of and, if necessary, summarily dismiss any charge which is insufficiently supported in fact or law to warrant a hearing.
(d)
The Administrator may independently investigate any charge and may adopt rules for an independent investigation. If, after investigating, the Administrator finds that a charge is sufficiently supported to raise an issue of fact or law and is unable to settle or resolve the matter, the Administrator must hold a hearing on the charge after notifying the parties. In any hearing, the charging party must present evidence in support of the charges; and the party or parties charged may file an answer, appear in person or otherwise, and present evidence in defense against the charges.
(e)
If the Administrator finds that the person charged has committed a prohibited practice, the Administrator must file findings of fact and conclusions of law, may order the person charged to cease and desist from the prohibited practice, and may take affirmative actions to remedy any violation of this Article. Remedies available under this subsection include reinstating employees with or without back pay, making employees whole for any loss relating to County employment suffered as a result of any prohibited practice, or withdrawing or suspending an employee organization's authority to negotiate or continue an agency shop provision or a voluntary dues or service fee deduction provision. If the Administrator finds that the party charged has not committed a prohibited practice, the Administrator must file findings of fact and conclusions of law and dismiss the charges.
(f)
The Administrator must summarily dismiss any charge based on an alleged prohibited practice which occurred more than 6 months before the charge was filed.
(g)
Any party aggrieved by a final decision of the Administrator under this section may appeal the decision to the Circuit Court for Montgomery County in accordance with the court rules governing administrative appeals. The court may affirm, reverse, or modify the decision, or remand the case for further proceedings. The filing of an appeal does not stay the Administrator's order. Any party to the proceeding in the Circuit Court may appeal the Court's decision under applicable provisions of State law and court rules.
Montgomery County, Md., Code § 33-155 (2026)
Sec. 33-155. Expression of views.LinkCopy Citation
(a)
Expressing or disseminating any views, argument, or opinion, orally, in writing, or otherwise:
(1)
is not a prohibited practice or evidence of a prohibited practice under this Article; and
(2)
is not grounds to invalidate any election conducted under this Article; unless the expression or dissemination contains a threat of reprisal or promise of benefit.
(b)
Recognizing an employee organization does not preclude the County from dealing with religious, social, fraternal, professional, or other lawful associations with respect to matters or policies that involve individual members of those associations or particularly apply to those associations or their members.
Montgomery County, Md., Code § 33-156 (2026)
Sec. 33-156. Strikes and lockouts.LinkCopy Citation
(a)
An employee or employee organization must not either directly or indirectly cause, instigate, encourage, condone, or engage in any strike, nor the employer any lockout. An employee or employee organization must not obstruct, impede, or restrict, either directly or indirectly, any attempt to terminate a strike.
(b)
The employer must not pay, reimburse, make whole, or otherwise compensate any employee for or during the period when that employee is directly or indirectly engaged in a strike. The employer must not compensate an employee who struck for wages or benefits lost during a strike.
(c)
If an employee or employee organization violates this section, and after adequate notice and a fair hearing the Labor Relations Administrator finds that the violations have occurred and that any or all of the following sanctions are necessary in the public interest, the employer may:
(1)
discipline, or dismiss from employment, any employee who engaged in the conduct;
(2)
terminate or suspend an employee organization's dues deduction privilege, if any; or
(3)
revoke the certification of and disqualify the employee organization from participation in representation elections for a period up to a maximum of 2 years.
(d)
This Article does not prohibit an employer or a certified employee organization from seeking any remedy available in a court with jurisdiction.
Montgomery County, Md., Code § 33-157 (2026)
Sec. 33-157. Effect of prior laws and regulations.LinkCopy Citation
(a)
This Article supersedes any law, executive order, rule, or regulation adopted by the County or any County department or agency which is inconsistent with this Article.
(b)
Any executive order, rule, or regulation of the County or any County department or agency which regulates any subject that is bargainable under this Article is not superseded or modified by a collective bargaining agreement negotiated under this Article, except to the extent that the application of the order, rule, or regulation is inconsistent with the collective bargaining agreement.
(c)
However, if the inconsistent order, rule, or regulation is subject to and has received County Council approval, a collective bargaining agreement does not supersede or modify it unless:
(1)
the order, rule, or regulation was expressly identified to the Council by the parties before the Council reviewed the collective bargaining agreement, as required by Section 33-153(l), and the Council did not reject the inconsistent term or condition of the collective bargaining agreement under Section 33-153(n); or
(2)
the Council repeals or modifies the order, rule, or regulation.
Article Xi. Other Post Employment Benefits Trust.
Montgomery County, Md., Code § 33-158 (2026)
Sec. 33-158. Definitions.LinkCopy Citation
In this Article, the following words and phrases have the following meanings:
Board: The Consolidated Retiree Health Benefits Trust Board established under Section 33-160.
Contribution: payment made to the Trust Fund by the County to pay benefits for County retiree benefit plans or a County-funded agency retiree benefit plan.
County: Montgomery County Government.
County-funded agency: Montgomery College and Montgomery County Public Schools.
Custodian: The County Director of Finance.
Investment manager: a person or entity who exercises discretion to manage all or part of the assets of an institutional investor.
Participating Agency: an agency eligible to participate in County benefit plans under Section 20-37(b) which elects to participate in any County retiree benefit plan.
Retiree benefit plan: any retiree medical plan, dental plan, vision plan, or life insurance plan maintained by the County and administered by the Chief Administrative Officer. Depending on the context, retiree benefit plan may also refer to a retiree medical plan, prescription drug plan, dental plan, vision plan, or life insurance plan established and maintained by a County-funded agency.
Trust Fund: the Consolidated Retiree Health Benefits (RHB) Trust Fund established to pay all or part of the benefits provided under any retiree benefit plan, including a County-funded agency retiree benefit plan.
Montgomery County, Md., Code § 33-159 (2026)
Sec. 33-159. Establishment of Trust.LinkCopy Citation
(a)
County Retiree Benefit Plans. The Chief Administrative Officer must include the terms of any County retiree benefit plan, including eligibility and benefits, including those benefits collectively bargained, in a plan document. All benefits must meet any applicable Federal or State requirement. Subject to the County’s obligations under collective bargaining agreements and the collective bargaining laws, to the extent applicable, the Chief Administrative Officer may amend a plan document at any time. Subject to the County’s obligations under collective bargaining agreements and the collective bargaining laws, to the extent applicable, any retiree benefit plan may be terminated at any time for any reason. No retiree benefit is guaranteed, except as expressly provided by a contract entered into by the County.
(b)
Establishment of Trust. An Other Post Employment Benefits Trust, known as the Consolidated Retiree Health Benefits (RHB) Trust, is established to fund all or a portion of benefits provided under the County retiree benefit plans or a County-funded agency retiree benefit plan. The Trust is intended solely as a funding mechanism to pay for County or County-funded agency retiree benefits provided under the terms of any applicable retiree benefit plan, and does not create any obligation by the County to provide any benefit listed in any County or County-funded agency retiree benefit plan. Any participant in a retiree benefit plan, any current or former County or a County- funded agency employee, or any current or former participating agency employee, has no right to any asset in the Trust fund. The Trust Fund may be, but is not required to be, the sole source of funding for any County or County-funded agency retiree benefit plan.
(c)
Type of Trust. The County intends that the Trust Fund:
(1)
be used to perform its essential government function of providing benefits, including health and life insurance benefits, to participants and eligible dependents; and
(2)
qualify as a tax exempt trust under Internal Revenue Code Section 115.
(d)
Assets of Trust Fund. All contributions and all earnings and other additions, less payments, constitute the assets of the Trust Fund.
(e)
County-funded agency Participation. A County-funded agency may participate in the Trust Fund as a funding mechanism for its retiree benefit plans. A participant in any County-funded agency retiree benefit plan, or any current or former employee of a County-funded agency, has no right to the assets in the Trust Fund. The County is not responsible for establishing, maintaining, or providing any benefit for any County- funded agency retiree benefit plan.
(f)
Exclusive Benefit. The Trust Fund must be held for the exclusive benefit of participants in retiree benefit plans and eligible dependents, and used only to provide benefits and defray reasonable expenses of administering retiree benefit plans. Trust Fund assets must not revert to the County or a County-funded agency unless the County or the County-funded agency terminates all retiree benefit plans. Some funds may partially revert to the County if at least one benefit plan is terminated under Section 33-166.
Montgomery County, Md., Code § 33-160 (2026)
Sec. 33-160. Board of Trustees.LinkCopy Citation
(a)
Establishment. The Consolidated Retiree Health Trust Board of Trustees is established to manage the Trust. The Board has 19 members.
(b)
Membership.
(1)
Each member of the Board of Investment Trustees established under Section 33-59 is also a member of the Board.
(2)
The County Executive must appoint, subject to County Council confirmation, 3 voting members nominated by the Montgomery County Board of Education, who must serve indefinitely while remaining the designee of the Montgomery County Board of Education. The members must include:
(A)
a designee of the Superintendent;
(B)
an active employee of the Montgomery County Public Schools who is a member of a bargaining unit; and
(C)
a retiree of the Montgomery County Public Schools.
(3)
The County Executive must appoint, subject to County Council confirmation, 3 voting members nominated by the Board of Trustees of Montgomery College, who must serve indefinitely while remaining the designee of Montgomery College. The members must include:
(A)
a designee of the President;
(B)
an active employee of Montgomery College who is a member of a bargaining unit; and
(C)
a retiree of Montgomery College.
(c)
Vacancies.
(1)
A trustee may be automatically removed for missing meetings as described in Section 2-148(b).
(2)
A vacancy on the Board must be filled for the unexpired term in the same manner as the previous trustee was appointed.
(d)
Compensation. The trustees must serve without compensation from any source for service rendered to the Board, except that an active employee trustee may receive administrative leave to serve on the Board. The Board must reimburse a trustee for any expense approved by the Board. A trustee must not receive reimbursement for expenses from any other source.
(e)
Written policies. The Board must establish written policies to administer and invest the funds created by this Article and to transact the business of the Trust Fund. Any delegation of duties by the Board under Section 33-162 must be specified in written policies and procedures.
(f)
Officers. The Board must select a chair, vice chair, and secretary from the Board’s members.
(1)
The chair must preside at meetings of the Board and may take administrative action on behalf of the Board.
(2)
The vice chair must perform the duties and exercise the powers of the chair when the chair is unavailable, or the Board determines is otherwise unable to perform the duties of the chair.
(3)
The secretary must record the proceedings and actions of the Board and may certify a document or action of the Board. A person may rely in good faith on the secretary’s certification as proof of the document or action.
(g)
Meetings and actions.
(1)
The Board must meet at least once during each calendar quarter. The chair, or 10 members of the Board, may call a meeting of the Board, in the manner and at times and places provided under the policies of the Board. The Board is a public body under the State Open Meetings Act.
(2)
A. Ten trustees constitute a quorum.
B. Each trustee has one vote.
C. Ten trustees must agree for the Board to act.
(3)
The Board may act without a meeting. All of the trustees must concur in writing for the Board to approve any action the Board takes without a meeting.
(4)
The Board may adopt procedures consistent with this Section.
(5)
In its written policies and procedures, the Board may authorize a trustee, the Executive Director, or a similarly situated County employee, to execute instruments on behalf of the Board.
(h)
Records.
(1)
The Board must keep investment accounts and records necessary to calculate the value of each retiree health benefit trust fund and evaluate the experience and performance of the Trust Fund.
(2)
The Board may designate a person to maintain the records.
(3)
Accounts and records are subject to State law on public records.
(i)
Removal of trustee. With the Council’s approval, the County Executive may remove a trustee for violating this Article or other good cause.
(j)
Legal adviser. The County Attorney is the legal adviser to the Board.
(k)
Management. The Board must hold legal title to all assets of the Trust Fund, but may transfer some incidents of ownership to the Board’s agents as provided in this Article. The powers and duties of the Board under this Article are not effective until the Board members have accepted the Trust Fund in writing. Within 10 days after the Council confirms a Board member, the member must certify in writing to the Chief Administrative Officer that the member accepts the Trust Fund and will administer its affairs with care, skill, prudence, and diligence.
Montgomery County, Md., Code § 33-161 (2026)
Sec. 33-161. Contributions and payments.LinkCopy Citation
(a)
County Contributions. The County may contribute to the Trust Fund those amounts that the Council appropriates. The County is not required to make any contribution to the Trust Fund unless a written contract with one or more beneficiaries so requires.
(b)
County-funded Agency Contributions. The County may contribute to the Trust Fund, on behalf of a County-funded agency, those amounts that the County Council appropriates. A County-funded agency may also make contributions to the Trust Fund in its discretion. Notwithstanding the preceding sentence, the County must make any contribution necessary to pay a County-funded agency’s pro rata cost of the expenses of the Trust Fund. Contributions to the Trust Fund made on behalf of a County-funded agency or by a County-funded agency must be attributed to the County-funded agency for actuarial valuation and financial reporting.
(c)
Acceptance of Contributions. The Board must accept all contributions deposited in the Trust Fund and held by the custodian as Trust Fund property. The Board is not responsible for calculating or collecting any contribution, but is only responsible for contributions deposited to the Trust Fund and amounts held in the Trust Fund. The Board must separately account for any contribution made on behalf of a County-funded agency and earnings and expenses attributable to that contribution.
(d)
Payments.
(1)
Payments for County Retiree Benefit Plans. Payments may be made from the Trust Fund attributable to the County in those amounts directed by the Chief Administrative Officer only to pay for all or part of the benefits provided by any County retiree benefit plan, administrative expenses relating to a retiree benefit plan and expenses of the Trust Fund. The Board is not liable for any payment directed by the Chief Administrative Officer and is not required to confirm compliance with any retiree benefit plan.
(2)
Payments for a County-funded Agency Retiree Benefit Plan. The Chief Administrative Officer may direct that payments be made from the Trust Fund attributable to a County-funded agency as authorized by a County Council appropriation resolution. Payments from the Trust Fund must be used to pay for all or part of the benefits provided by a County-funded agency retiree benefit plan and expenses of any County-funded agency retiree benefit plan. The Board is not liable for any payment made under the direction of the Chief Administrative Officer and has no responsibility to confirm compliance with any retiree benefit plan.
(e)
Expenses. The Board must be reimbursed for expenses solely incurred in the administration of the Trust Fund and must pay from the Trust Fund expenses reasonably incurred by the Chief Administrative Officer to administer any County retiree benefit plan to the extent that those expenses have not been paid by the County. The Board may pay expenses incurred under Section 33-162(h)(11) without direction of the Chief Administrative Officer. The Chief Administrative Officer may direct the Board to pay expenses reasonably incurred by a County-funded agency to administer its retiree benefit plans.
Montgomery County, Md., Code § 33-162 (2026)
Sec. 33-162. Trust Fund management.LinkCopy Citation
(a)
General.
(1)
Except as otherwise provided in this chapter, the Board has the exclusive authority to manage and administer the investments of the Trust Fund’s assets.
(2)
Except as otherwise provided in this chapter, the Chief Administrative Officer has the exclusive authority to manage and administer the eligibility for benefits, mandatory financial reporting, and calculation and distribution of benefits for the Trust Fund.
(b)
Procurement. Chapter 11B does not apply to the procurement of goods and services by the Board for the Trust Fund.
(c)
Transfer agents.
(1)
The Board may register any assets in its own name or in the name of a nominee. The Board or its agent must keep records that show that the investments are part of the Trust Fund.
(2)
The Board may form a partnership under State law to hold or transfer assets as the Board’s nominee.
(3)
The Board may designate in writing a trustee to hold or transfer assets as the Board’s nominee.
(4)
The Board must provide that any trustee or partnership that the Board designates must act only as agent of the Board. The Board may set other conditions that the Board finds prudent.
(5)
Any trustee or partnership that the Board designates may retain the services of a bank or other financial institution to conduct business.
(d)
Authorized investments.
(1)
The Board may invest or permit an investment manager to invest the assets of the Trust Fund in any investment it considers prudent within the Board’s policies, except as otherwise prohibited in this Section. The Board must use an investment manager except when making an investment in any type of pooled investment vehicle, including any combined, common, or commingled trust fund, retirement or annuity contract, mutual fund, investment company, association or business trust. The Board also may authorize the Board staff to make investments in pooled investment vehicles and transition assets from one investment manager to another investment manager.
(2)
If an investment through any combined, common, or commingled trust fund exists, the declaration of trust of that fund is a part of the Trust Fund.
(e)
Written Policies. The Board must establish an investment policy and guidelines appropriate for the Trust Fund, and may review and change the policy and guidelines as necessary. The Board must establish such other written policies to administer and invest funds under this Article and transact the Trust’s business.
(f)
Investment Manager.
(1)
Except as provided in subsection (d)(1), the Board must appoint one or more investment managers to invest all or part of the RHB trust fund assets consistent with applicable guidelines. If the Board has properly appointed an investment manager, the Board is not liable for any act or omission of the manager and is not otherwise responsible for the investment of funds allocated to the investment manager.
(2)
Any investment management contract must provide that when the investment manager is making individual investment selections, the investment manager must make individual investment selections subject to applicable Board policies. In any contract, the Board may limit the investment of a specified portion of the Trust Fund to a certain type of property. In any contract, the Board may delegate to the investment manager any power or discretion conferred on the Board under this Article and may assign to the investment manager custody and control of certain Trust Fund assets. The fees charged by any manager are expenses of the Trust Fund.
(3)
The Board must monitor the performance of each investment manager and may terminate any appointment. Monitoring may include any tests or analyses that the Board finds prudent in the circumstances to assure the Trust Fund’s stability and growth.
(g)
Available Cash. The Board may keep cash available in an amount it finds prudent to pay benefits and expenses. The Board may keep cash on deposit in one or more banks or trust companies organized under the laws of any state or the United States, but the amount on deposit in any bank or trust company must not exceed 25% of the paid-in capital and surplus of that bank or trust company.
(h)
Board Powers. Except as otherwise provided in this Article, the Board may:
(1)
buy or subscribe for any investment with any cash, at a premium or discount, and retain the investment;
(2)
sell, exchange, convey, transfer, lease for any period, pledge, mortgage, grant options, contract with respect to, or otherwise encumber or dispose, at public or private sale, for cash or credit or both, any part of the Trust Fund;
(3)
subject to Section 33-165(h)(2), sue, defend, compromise, arbitrate, compound, and settle any debt, obligation, claim, suit, or legal proceeding involving the Trust Fund, and reduce the rate of interest on, extend or otherwise modify, foreclose upon default, or otherwise enforce any debt, obligation, or claim;
(4)
retain a part of the Trust Fund assets uninvested in preparation for distributions;
(5)
exercise any option on any investment for conversion into another investment, exercise any right to subscribe for additional investments, and make all necessary payments;
(6)
join in, consent to, dissent from, oppose, or deposit in connection with the reorganization, recapitalization, consolidation, sale, merger, foreclosure, or readjustment of the finances of any corporation or property in which the assets of the Trust Fund are invested, or the sale, mortgage, pledge or lease of that property or the property of any such corporation on any terms that the Board finds prudent; exercise any options, make any agreements or subscriptions, pay any expenses, assessments, or subscriptions, and take any other action in connection with these transactions that the Board finds prudent; and accept and hold any investment issued in or as a result of any such proceedings;
(7)
vote, in person or by proxy, at any election of any corporation in whose stock the assets of the Trust Fund are invested, and exercise, personally or by any power of attorney, any right appurtenant to any investment held in the Trust Fund, and give general or specific proxies or powers of attorney with or without power of substitution.
(8)
sell at a public or private sale, enter into an option to sell, mortgage, lease, partition, or exchange any real property at prices and for terms that the Board finds prudent. The Board may execute and deliver deeds of conveyance and all assignments, transfers, and other legal instruments to pass ownership to a buyer, free and discharged of all liens;
(9)
renew or extend any mortgage, on any terms that the Board finds prudent, and increase or reduce the rate of interest on any mortgage or modify the terms of any mortgage or of any guarantee as the Board finds prudent to protect the Trust Fund or preserve the value of the investment; waive any default or enforce any default in a manner that the Board finds prudent; exercise and enforce any right of foreclosure, bid on property in foreclosure, take a deed in lieu of foreclosure with or without paying a consideration, and release the obligation on the bond secured by the mortgage; and exercise and enforce in any legal action any right or remedy regarding any mortgage or guarantee;
(10)
form a corporation or partnership under the laws of any jurisdiction, or acquire an interest in or otherwise make use of any corporation or partnership already formed to invest in and hold title to any property;
(11)
incur and pay expenses for agents, financial advisors, actuaries, accountants, and legal counsel, if those expenses are incurred solely to perform the Board’s duties under the Trust;
(12)
borrow, raise or lend money for the purpose of the Trust Fund, in any amounts and on any terms and conditions as the Board in its discretion finds prudent; for any money borrowed, issue a promissory note and secure the repayment of this note by pledging or mortgaging all or part of the Trust Fund;
(13)
hold, buy, transfer, surrender, and exercise all other incidents of ownership of any insurance or annuity contract;
(14)
pool all or any of the assets of the trust, from time to time, with assets belonging to any retirement plan trust or other retiree health benefit trust created by the County, including any subtrust thereof, and commingle such assets and make joint or common investments and carry joint accounts on behalf of this trust and such other trust, trusts, or subtrusts, allocating undivided shares or interests in such investments or accounts or in any pooled assets to the two or more trusts or subtrusts in accordance with their respective interests. Any such trusts or subtrusts may be unitized for investment purposes. Consistent with the authority granted in this Article, the Board may also buy or sell any assets or undivided interests in this trust or in any other trust or subtrust with which the assets of this trust may be pooled, to or from this trust or such other trusts or subtrusts at such prices or valuations as the Board may determine in reasonable good faith; and
(15)
do any act that the Board finds necessary and exercise the power of this Article to manage the Trust Fund. The Board may exercise all powers to manage the assets that an individual could exercise to manage property owned by that individual.
(i)
Prohibited Transactions. The Board must not engage in any transaction between the Trust and the County or any entity controlled by the County, including a County-funded agency, or a participating agency in which the Board:
(1)
lends any part of its income or corpus without receiving adequate security and a reasonable rate of interest;
(2)
pays any compensation more than a reasonable allowance for salaries or other compensation or services actually rendered;
(3)
makes any service available on a preferential basis;
(4)
makes any substantial purchase of securities or other property for more than adequate consideration which, for avoidance of doubt, does not include a transfer conducted on the terms described in Section 33-170(i) between employee benefit plan trusts or a subtrust;
(5)
sells any substantial part of its securities or other property for less than adequate consideration which, for avoidance of doubt, does not include a transfer conducted on the terms described in Section 33-170(i) between employee benefit plan trusts or a subtrust; or
(6)
engages in any transaction which results in a substantial diversion of its income or corpus.
(j)
To comply with Section 315 of the County Charter, a firm of certified public accountants, under contract with the Council, must complete an annual independent audit of the Trust Fund. The complete audit must be filed with the Council and each County- funded agency, and copies made available for public inspection.
(k)
Actuary; actuarial assumptions.
(1)
The Board has the power to determine the assumed rate of investment return to be used in actuarial and other computations for the Trust Fund.
(2)
The County and each County-funded agency or participating agency may:
(A)
select and retain an actuary for its portion of the Trust Fund; and
(B)
except as provided under paragraph (1) of this subsection, determine the actuarial cost method, and the mortality, turnover, and other assumptions to be used in actuarial and other computations for the agency’s portion of the Trust Fund.
(l)
Delegation of Duties. The Board may delegate its duties to the Executive Director or a similarly situated County employee as it deems appropriate and consistent with its fiduciary duties in a written policy and procedure. If the Board has prudently delegated its duties and monitored the delegation, the trustees must not be liable for an act or omission made by its delegate.
Montgomery County, Md., Code § 33-162A (2026)
Sec. 33-162A. Emerging Investment Managers.LinkCopy Citation
(a)
Legislative findings.
(1)
Emerging investment managers, including businesses owned by women, minorities and disabled individuals, should receive an equal opportunity to provide investment management services to the Consolidated Retiree Health Benefits Trust Board.
(2)
The Board has adopted a policy requiring its staff to identify qualified emerging investment managers to participate in an investment manager search, including regular monitoring of investment managers.
(3)
Expanding opportunities for emerging investment managers will increase competition.
(b)
Definitions.
As used in this Section:
Assets means total client assets managed by an investment manager.
Emerging investment manager means:
(1)
an investment manager with assets or product assets below the 75th percentile of their respective peer group; or
(2)
a new or developing investment manager.
New or developing investment manager means an investment manager:
(1)
raising its first or second private institutional investment fund; or
(2)
creating its first institutional product.
Product Assets means client assets managed by an investment manager in a single strategy.
(c)
Consistent with the fiduciary duties established in Section 33-163, the Board must make a good faith effort to remove any barriers that limit participation by qualified emerging investment managers to manage funds for the Consolidated Retiree Health Benefits Trust Fund.
(d)
The Board must adopt guidelines to identify and evaluate qualified emerging investment managers. The guidelines must include procedures for:
(i)
identifying possible firms;
(ii)
reviewing, evaluating and interviewing emerging investment managers on an ongoing basis; and
(iii)
maintaining research files on emerging investment managers.
(e)
The Board must report annually to the Council and the Executive on compliance with this Section on or before September 1 for the prior fiscal year. The report must:
(1)
identify each emerging investment manager used during the fiscal year;
(2)
list the percentage and dollar value of the assets of the trust fund, by investment sector, managed by each emerging investment manager; and
(3)
describe the good faith effort made to include qualified emerging investment managers in the procurement process during the fiscal year.
Montgomery County, Md., Code § 33-163 (2026)
Sec. 33-163. Board duties and responsibilities.LinkCopy Citation
(a)
Duty of Care. The Board must discharge its duties with respect to the Trust Fund:
(1)
only in the interest of the participants in retiree benefit plans and eligible dependents;
(2)
only to provide benefits to participants in retiree benefits plans and to defray reasonable expenses of administering and operating the Trust Fund;
(3)
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;
(4)
by diversifying the investments of the Trust Fund to minimize the risk of large losses, unless it is clearly not prudent to diversity under the circumstances; and
(5)
in accordance with the laws, policies, and instruments governing the Trust.
(b)
Records. The Board must maintain accurate and detailed accounts of each investment, receipt, disbursement, and other transaction, including any specific record required by law, separate accounting for participating agencies and any additional record it finds necessary. All accounts, books and records are subject to applicable State laws governing maintenance and disclosure of public records.
(c)
Annual Accounting. The Trust Fund fiscal year is the same as the County fiscal year. On or before January 1 of each year, the Board must file with the Chief Administrative Officer a written account, listing each investment, receipt, disbursement, and other transaction during the preceding fiscal year or during the period from the close of the last preceding fiscal year to any interim date that the Board selects. The account must include a list of the Trust Fund assets and the current fair market value of each asset at the end of that period. The account must include the separate accounts of the participating agencies. If a current fair market value is not available for or does not apply to a particular investment, the Board must assign a value to that investment. The Board must apply the investment valuation method on a consistent basis. If the Board changes the investment valuation method, the Board must notify the Executive and Council of the change.
(d)
Ethics. The Board is subject to Chapter 19A. A Board member must not:
(1)
be a party to any transaction engaged in by the Board or an investment manager involving the assets of the Trust Fund.
(2)
use the gains or profits of the Trust Fund for any purpose except to make investments or payments authorized by the Board;
(3)
deal with the assets of the Trust Fund for the member’s own interest or account;
(4)
act in any transaction involving the Trust Fund on behalf of a party whose interests are adverse to the interests of the Trust Fund or the interests of participants or beneficiaries of the Trust Fund; or
(5)
become an endorser or surety, or in any manner an obligor, for money loaned to or borrowed from the Board.
Montgomery County, Md., Code § 33-164 (2026)
Sec. 33-164. Custodian.LinkCopy Citation
(a)
General. The Director of Finance is the custodian of the Trust Fund assets. The Director must give bond with a surety and for a period and in an amount as the Board determines. Each payment from the Trust Fund must be made by the Director, the Director’s designee, or 2 persons designated by the Board acting jointly. The Board must file a copy of its resolution designating the 2 persons, with specimen signatures of those persons, with the Director to confirm their authority to make payments.
(b)
Contracts. If the Board approves, the Director of Finance may make written contracts with banks, trust companies, insurance companies or investment companies authorized to do business in any state for the safe custody of investments, banking services, the payment of benefits and expenses, and any other function necessary to manage and safeguard the assets of the Trust Fund.
(c)
Procurement. Chapter 11B does not apply to the procurement of goods and services for the Trust Fund by the Director of Finance.
Montgomery County, Md., Code § 33-165 (2026)
Sec. 33-165. Indemnification of Board Members.LinkCopy Citation
(a)
General. The County must indemnify each member of the Board who is or may become a party to any legal action, including any administrative or investigative proceeding, because of service as a Board member, subject to the conditions in this Section.
(b)
Standards; payments.
(1)
The County must indemnify a Board member:
(A)
with respect to civil matters, if the member acted in good faith and in a manner that the member reasonably believed to be in the best interest of the Trust Fund; and
(B)
with respect to criminal matters, if the member had no reasonable cause to believe that the member’s conduct was unlawful.
(2)
If the County indemnifies a Board member under this Section, the County must indemnify the member for any expense when the member incurs the expense, including:
(A)
reasonable attorney fees;
(B)
judgments;
(C)
damages;
(D)
fines; and
(E)
settlements.
(c)
Effect of Terminating any legal action. The termination of any legal action does not, by itself, create a presumption that a Board member did not act in good faith and in a manner reasonably believed to be in the best interest of the Trust Fund. The termination of a criminal proceeding does not, by itself, create a presumption that a Board member had reasonable cause to believe that any conduct was unlawful.
(d)
Exceptions. The County must not indemnify a Board member if:
(1)
the member is found by a court or other tribunal to be liable for gross negligence or willful and wanton misconduct in the performance of a duty to the Trust Fund; or
(2)
liability arises from an action that occurred before the date when all Board members accepted the Trust Fund in writing.
(e)
Recovery of Payments. If the County Attorney finds that any indemnification payment was made that was outside the scope of the indemnification allowed under this Section, the County Attorney must take appropriate action on behalf of the County to recover that payment.
(f)
Insurance Provided. The County must provide insurance for each Board member against any liability asserted against or incurred by the member with respect to service on the Board. Assets of the Trust Fund must not be used to pay any premium. The County may self-insure, wholly or partly, for this purpose. If the County does not provide adequate insurance coverage or indemnification under this Section, a Board member need not pay any amount attributable to liability incurred by serving on the Board and the County must pay any amount due.
(g)
Defenses. The County may assert the defenses of governmental immunity, and any other available defense, in any legal action arising out of the actions of the Board.
(h)
County Attorney.
(1)
The County Attorney must determine whether a Board member is eligible for indemnification with respect to any matter and the reasonableness of any fee, expense, or settlement.
(2)
Unless the County Attorney approves the settlement, a Board member cannot settle a claim against another Board member using:
(A)
County funds;
(B)
funds of a Participating agency;
(C)
County-funded agency funds;
(D)
funds provided by a self-insurance program of the County; or
(E)
funds provided under a policy the County has with an insurance company.
Montgomery County, Md., Code § 33-166 (2026)
Sec. 33-166. Amendment and Termination.LinkCopy Citation
(a)
Termination. Except on termination, no part of the Trust Fund may revert to the County or a participating agency or be used for any purpose other than the exclusive benefit of participants of a retiree benefit plan. If all County retiree benefit plans are terminated and all benefit claims and expenses are paid, any remaining assets in the Trust Fund relating to contributions made by the County and participating agencies must revert to the County and the participating agencies. The Trust Fund must terminate in its entirety on the earlier of the termination of all County retiree benefit plans or the depletion of the Trust Fund. Funds may partially revert to the County or participating agencies if one or more retiree benefit plans is terminated. When a County or a County-funded agency retiree benefit plan is terminated, the assets in the Trust Fund attributable to that plan after expenses and benefits have been paid must revert to the County and the participating agencies as provided in the adoption agreement. If the County terminates all of its retiree benefit plans and a County-funded agency continues to maintain at least one retiree benefit plan, the assets attributable to each County-funded agency retiree benefit plan must be transferred to a trust which meets the requirements of Internal Revenue Code Section 115.
(b)
Amendments. Any provision of this Article may be amended at any time. No amendment may:
(1)
authorize any part of the Trust Fund to be used for any purpose other than the exclusive benefit of participants of retiree benefit plans and eligible dependents; or
(2)
cause or allow any part of the Trust Fund to revert to or become the property of the County or a County-funded agency, except as provided in Sections 33-166(a), 33-167 or 33-169.
(c)
Compliance with Applicable Law. The Council may amend the Trust at any time, retroactively if required, if found necessary to conform to any requirement of State law, the Internal Revenue Code or any similar act or any amendments or corresponding regulations or applicable guidance.
Montgomery County, Md., Code § 33-167 (2026)
Sec. 33-167. Participating Agencies.LinkCopy Citation
(a)
Participating Agencies. An agency permitted to participate in County benefit plans under Section 20-37(b) which chooses to participate in a retiree benefit plan must participate in the Trust Fund. However, a participating agency must be eligible to participate under Internal Revenue Code Section 115. Each participating agency in the Trust Fund must execute an adoption agreement in a form satisfactory to the Chief Administrative Officer and must submit any information the Chief Administrative Officer requires. Except for any obligation to refund assets under subsection (b), legal liability must not accrue to the County by including any participating agency in the Trust Fund. Each participating agency must be fully responsible for its pro rata cost of coverage, including any required annual contribution to the County and its share of administrative expenses.
(b)
Termination of Participating Agency. If a participating agency decides to terminate participation in a retiree benefit plan and the Trust Fund, the agency must notify the Chief Administrative Officer in writing. The Chief Administrative Officer and the participating agency must agree on a date to end the agency’s participation. Any tranfer of assets from the Trust Fund resulting from the termination of an agency’s participation must comply with the Internal Revenue Code and the adoption agreement between the County and the participating agency.
Montgomery County, Md., Code § 33-168 (2026)
Sec. 33-168. Protection from Creditors.LinkCopy Citation
Any asset held by the Trust Fund is not subject to any creditor of the County or a County-funded agency and is exempt from execution, attachment, prior assignment, or any other judicial relief or order for the benefit of any creditor or third person.
Montgomery County, Md., Code § 33-169 (2026)
Sec. 33-169. County-funded Agency Participation.LinkCopy Citation
(a)
County Liability. Except for any obligation to refund or transfer assets under subsection (b) or (c), no legal liability for benefits must accrue to the County by including a County- funded agency in the Trust Fund.
(b)
Termination of Participation by a County-funded Agency. Any Trust Fund assets must not revert to a County-funded agency. Assets may partially revert to the County if a County-funded agency terminates at least one retiree benefit plan. Only funds attributable to the terminated retiree benefit plan, after benefits and expenses have been paid, may revert to the County.
(c)
Transfer of Trust Fund: If the County decides to terminate a County-funded agency’s participation in the Trust Fund, the County must notify the County-funded agency in writing. If the County-funded agency continues to maintain a retiree benefit plan, assets must be transferred to a trust which meets the requirements of Internal Revenue Code Section 115. Any transfer of assets from the Trust Fund resulting from the termination of participation in the Trust Fund must comply with the Internal Revenue Code.
Article Xii. Montgomery County Group Trust.
Montgomery County, Md., Code § 33-170 (2026)
Sec. 33-170. Montgomery County Group Trust.LinkCopy Citation
(a)
Creation of Group Trust. The Board of Investment Trustees established under Article III and the Consolidated Retiree Health Benefits Trust Board of Trustees established under Article XI may create a combined, common or commingled trust fund known as the Montgomery County Group Trust for the commingling of assets of any retirement plan and any retiree health benefit trust created by the County under this Chapter.
(b)
Purpose. The Montgomery County Group Trust is established solely for the purpose of creating a collective investment vehicle intended to create investment opportunities and efficiencies for the investment of Montgomery County’s employee benefit plan trusts. The interests of each investing trust must be accounted for separately and the assets attributable to an investing trust must be held for the benefit of that trust only within the general holdings of the Montgomery County Group Trust. No employee benefit plan trust must be deemed to have an individual ownership interest in any asset held by the Montgomery County Group Trust. Instead, each employee benefit plan trust must have an undivided ownership interest in the Montgomery County Group Trust, with each trust owning an undivided ownership interest in the respective subtrust or subtrusts in which it invests within the Montgomery County Group Trust, and must share proportionately with all other employee benefit plan trusts participating in the subtrust within Montgomery County Group Trust in the net income, profits, and losses thereof.
(c)
Participation in Group Trust. The Board of Investment Trustees may elect to invest all or any assets of the Employees’ Retirement System, Retirement Savings Plan, and/or Deferred Compensation Plan through the Montgomery County Group Trust, including any one or more subtrusts, and the Consolidated Retiree Health Benefits Trust Board of Trustees may elect to invest all or any assets of the Consolidated Retiree Health Benefits Trust through the Montgomery County Group Trust, including any one or more subtrusts. Each board described above must discharge its duties with respect to its respective employee benefit plan trust in accordance with the provisions of Sections 33-61 or 33-163, as applicable, and this Section 33-170.
(d)
Implementation and Administration Authority. The Board of Investment Trustees established under Article III and the Consolidated Retiree Health Benefits Trust Board of Trustees established under Article XI must have the authority to:
(1)
implement the Montgomery County Group Trust, as authorized by subsection (a), after consulting any other participating retirement plan trust or retiree health benefits trust with a separate Board of Trustees;
(2)
develop and maintain the Montgomery County Group Trust;
(3)
modify or amend the terms of the Montgomery County Group Trust; and
(4)
retain any service providers it deems appropriate to carry out these actions.
The terms of the Montgomery County Group Trust must be contained in a written document.
(e)
Custodian. The Director of Finance must serve as the custodian of the Montgomery County Group Trust and must give bond with a surety and for a period and in an amount as the Boards determine. If the Boards approve, the Director of Finance may make written contracts with banks, trust companies, insurance companies, or investment companies authorized to do business in any state for the safe custody of investments, banking services, the payment of benefits and expenses, and any other function necessary to manage and safeguard the assets of the Group Trust.
(f)
Trustees. The Chair of the Board of Investment Trustees and the Chair of the Consolidated Retiree Health Trust Board of Trustees must be the Trustees of the Montgomery County Group Trust. The Trustees may take administrative action by joint action taken at a meeting, by unanimous written consent, or by any other method as set forth in the Montgomery County Group Trust Declaration of Trust approved in writing by both Trustees. The Trustees may appoint a directed Trustee.
(g)
Investment Authority. The Board of Investment Trustees and the Consolidated Retiree Health Benefits Trust Board of Trustees have the authority to select the investments of the Montgomery County Group Trust consistent with the authority granted under Articles III, Article VIII, Article IX and Article XI.
(h)
Delegation of Signature Authority. In its written policies and procedures, the Board of Investment Trustees and the Consolidated Retiree Health Benefits Trust Board of Trustees may authorize a Trustee, the Executive Director or a similarly situated Montgomery County employee to execute instruments on behalf of the Montgomery County Group Trust.
(i)
Partial or Full Withdrawal of an Employee Benefit Plan Trust. An employee benefit plan trust may withdraw, in whole or in part, from the Montgomery County Group Trust, including a subtrust, at any time upon action by its board or its authorized delegate. The amount distributed to the employee benefit plan trust upon the withdrawal in whole or in part will be equal to the value of the employee benefit plan trust, or part thereof, on the date as of the effective date of the withdrawal. If an employee benefit plan trust desires to withdraw an interest in the Montgomery County Group Trust, or any subtrust thereunder, the Trustees or their delegate may facilitate a transfer of that interest to another employee benefit plan trust or subtrust thereunder at the market value established by the custodian bank, or another entity authorized to establish such market values, if:
(1)
such other employee benefit plan trust or subtrust thereunder has the capacity to engage in the transfer;
(2)
the transfer results in such employee benefit plan trust or subtrust thereunder having its allocation brought closer to the strategic target as set in the employee benefit plan trust or subtrust’s investment policy statement; and
(3)
the employee benefit plan or subtrust thereunder receives the market value established by the custodian bank, or another entity authorized to establish such market value.
(j)
Termination of Group Trust. Termination of an employee benefit plan trust’s participation in the Montgomery County Group Trust or an employee benefit plan trust’s interest in the Montgomery County Group Trust must have no effect on the continuance of the Montgomery County Group Trust with respect to any other employee benefit plan trust whose participation or interest is not so terminated. Notwithstanding this Section, the County Council may terminate the Montgomery County Group Trust at any time. If the Montgomery County Group Trust is terminated, the assets of the Montgomery County Group Trust must be returned to the board of the respective employee benefit plan trusts participating in the Montgomery County Group Trust. Assets of the Montgomery County Group Trust may only be used for the exclusive purpose of providing benefits to members and beneficiaries and defraying reasonable expenses of administering each respective employee benefit plan trust and the Montgomery County Group Trust.
(k)
Procurement. Chapter 11B does not apply to the procurement of goods and services for the Montgomery County Group Trust.