(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.

(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.

(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.

(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.

(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.

(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."