Division 1. Retirement Savings Plan.
Montgomery County, Md., Code § 33-113 (2026)
Sec. 33-113. Definitions.LinkCopy Citation
In this Division the following words and phrases have the following meanings:
Account balances means the balance credited to the retirement account of a participant under the retirement savings plan as of the valuation date preceding the date of distribution determined without regard to vesting, including:
(1)
any participant contributions (including contributions picked up by the County);
(2)
County contributions; and
(3)
rollover contributions.
Board or Board of Investment Trustees means the Board of Investment Trustees established under Article III.
County means the Montgomery County Government and, when applicable, any participating agency.
County service means any period of County employment during which a participant is:
(1)
in pay status, or
(2)
on an approved leave of absence without pay on or after January 1, 2002.
Domestic partner means a person who was registered as the domestic partner of a participant with the Office of Human Resources on or before June 27, 2016 in a domestic partenrship that did not end before the participant’s death.
Employee means any eligible elected or appointed County official and any full-time or career part-time County employee.
Employee organization means any organization that:
(1)
admits employees to membership;
(2)
has as a primary purpose the representation of employees in collective bargaining; and
(3)
is certified as an employee organization under applicable law.
Former participant means any individual with an account balance in the retirement savings plan who has ceased to be a participant.
Investment manager means a person or entity who exercises discretion to manage all or part of the assets of an institutional investor. The investment manager is a fiduciary as defined in Section 33-35.
Merit System Protection Board means the Merit System Protection Board established in the Charter.
Non-public safety employee means any employee who is not a public safety employee.
Normal retirement date means the first day of the month after the month in which the participant reaches age 62.
Participant means an employee who is participating in the retirement savings plan.
Participant’s contribution account means the portion of a participant’s account balances in the retirement savings plan that is attributable to participant contributions, including contributions picked up by the County, and any gains or losses attributable to those contributions.
Plan year means the 12-month period beginning January 1 and ending on December 31 each year.
Public safety employee means any employee who is a:
(1)
sworn officer of the Police Department;
(2)
paid firefighter, paid fire officer, or paid rescue service worker of the Montgomery County Fire and Rescue Service;
(3)
sworn deputy sheriff;
(4)
correctional officer; or
(5)
County employee who provides services to a correctional facility and designated as a public safety employee by the Chief Administrative Officer.
Regular earnings means gross pay for actual hours worked, including paid leave, but not including overtime, without reduction for participant contributions that are picked up under Section 33-116(a), or contributions to any County deferred compensation plan or statutory fringe benefit program. If a participant is required to take any furlough, as defined in personnel regulations under Section 33-7(b) or a collective bargaining agreement, regular earnings must include any amount the participant would have received if the participant had not been required to take any furlough.
Retirement accounts means the required participant contributions account, a County contributions account, and any rollover contributions account.
Rollover contributions means that portion of a participant's account balances in the retirement savings plan that is attributable to any assets transferred or rolled over to the retirement savings plan from another eligible retirement plan as defined in the Internal Revenue Code Section 402(c). No after-tax contributions may be transferred or rolled over into the retirement savings plan.
Valuation date means the last business day of March, June, September, and December of each plan year, and any other date the Board establishes in a uniform and nondiscriminatory manner for determining the fair market value of the assets of the retirement savings plan.
Montgomery County, Md., Code § 33-114 (2026)
Sec. 33-114. Establishment.LinkCopy Citation
(a)
Purpose. The retirement savings plan is established to provide a defined contribution retirement plan for County employees.
(b)
Participating agencies.
(1)
Any agency that participates in the retirement system under Article III must also participate in the retirement savings plan.
(2)
A participating agency must:
(A)
execute an adoption agreement in a form satisfactory to the Chief Administrative Officer;
(B)
submit any information and execute any form or document that the Chief Administrative Officer deems prudent for purposes of maintaining the governmental or qualified plan status of the retirement savings plan within the meaning of the Internal Revenue Code; and
(C)
notify the Chief Administrative Officer, in writing, of its intent to adopt an employee benefit plan before adopting any benefit plan which has an impact on the computation of any benefit or any benefit limitation in the retirement savings plan.
(3)
The Chief Administrative Officer may treat a participating agency as having withdrawn from the retirement savings plan if the participating agency does not:
(A)
submit information or execute documents necessary to administer and maintain the plan as requested by the Chief Administrative Officer;
(B)
qualify as a participating agency; or
(C)
adhere to the terms of the plan.
(4)
No liability will accrue to the County Government by the inclusion of participating agency employees. Each participating agency must be fully responsible for the cost of coverage for its employees and any necessary costs for administrative services provided.
(c)
Uniformed Services Employment and Reemployment Rights Act. Notwithstanding any provision of a plan, the County must provide rights, contributions, benefits and service credit for qualified military service according to Section 414(u) of the Internal Revenue Code, including subsection 414(u)(12).
Montgomery County, Md., Code § 33-115 (2026)
Sec. 33-115. Participant requirements and participant groups.LinkCopy Citation
(a)
Participant requirements.
(1)
Full-time employees.
(A)
Except as provided in paragraphs (3) and (4), and the last sentence of Section 33-37(e)(2), a full-time employee eligible for membership in Group I or Group II must participate in the Retirement Savings Plan or the Guaranteed Retirement Income Plan when the full-time employee meets the applicable eligibility requirements or forfeit employment, unless the Chief Administrative Officer exempts the employee from participation.
(B)
A part-time employee who becomes a full-time employee and is not an active member of any retirement plan for County employees, must become a member of:
(i)
the integrated retirement plan, if the employee is eligible for membership in the integrated plan;
(ii)
the Retirement Savings Plan, if the employee qualifies for Group I or II, even if the employee did not begin or return to County service on or after October 1, 1994; or
(iii)
the guaranteed retirement income plan if the employee is eligible for membership in accordance with subsection (7).
(C)
A temporary employee who becomes a full-time employee must become an active member of:
(i)
the integrated plan, if the employee is eligible for membership in the integrated plan;
(ii)
the Retirement Savings Plan, if the employee satisfies the requirements for membership in Group I or II, even if the employee did not begin or return to County service on or after October 1, 1994; or
(iii)
the guaranteed retirement income plan if the employee is eligible for membership in the guaranteed retirement income plan.
(2)
Part-time employees.
(A)
A part-time employee eligible for membership in Group I or Group II may elect to participate in the plan. An employee who becomes a member of the Retirement Savings Plan must remain an active member until the employee becomes ineligible for membership in Group I or II.
(B)
A part-time employee who is not an active member of a retirement plan may become a member of:
(i)
the integrated plan, if the employee is eligible for membership in the integrated plan;
(ii)
the Retirement Savings Plan if the employee satisfies the requirements for membership in Group I or II, even if the employee did not begin or return to County service on or after October 1, 1994; or
(iii)
the guaranteed retirement income plan if the employee is eligible for membership and makes an election under subsection (7).
(C)
A full-time employee who becomes a part-time employee may withdraw from active membership in the Retirement Savings Plan and stop making employee contributions, but may not become an active member again unless the employee becomes a full-time employee or an elected official.
(3)
A person employed by the County Department of Social Services on July 1, 1996, with fewer than 3 years of eligibility service as of October 1, 1996, under the State of Maryland Retirement or Pension Systems must transfer the service to the retirement savings plan and participate in the retirement savings plan, or forfeit employment by the County. If the employee is a part-time employee of the County upon transferring from State to County employment, the employee may, but is not required to, participate in the retirement savings plan.
(4)
A person employed by the County Department of Social Services on July 1, 1996, who earned at least 3 years of eligibility service as of October 1, 1996, under the State of Maryland Retirement or Pension Systems may participate in the retirement savings plan only if the person notifies the Chief Administrative Officer in writing by April 1, 1997. An employee who elects under this paragraph to participate becomes a member of the plan at the beginning of the first pay period after the Chief Administrative Officer receives the employee's written notice.
(5)
If a person transfers under paragraphs (3) or (4) to the retirement savings plan, all funds in the State of Maryland Retirement or Pension Systems attributable to the participation of the person must be transferred directly from the Board of Trustees of the State Retirement or Pension Systems to the Board.
(6)
An employee who is not an active member of a County retirement plan but is eligible for membership in the integrated retirement plan may become a member of the Retirement Savings Plan or the guaranteed retirement income plan. The employee must remain a member of the Retirement Savings Plan or the guaranteed retirement plan until the employee becomes ineligible for membership.
(7)
Participation in the guaranteed retirement income plan.
(A)
A participant who changes employment from the County directly to a participating agency or from a participating agency directly to the County must continue to participate in his or her retirement plan and is not eligible to make an election. A member of the Office, Professional and Technical (OPT) or the Service, Labor and Trades (SLT) collective bargaining unit of the County government must participate in the Guaranteed Retirement Income Plan, unless the employee makes a one-time irrevocable election to participate in the Retirement Savings Plan during the first 150 days of employment, if the employee:
(i)
is hired as a full-time employee on or after July 1, 2015;
(ii)
is a part time employee who does not participate in the Retirement Savings Plan and becomes a full-time employee on or after July 1, 2015; or
(iii)
is hired as a part time employee on or after July 1, 2023, and does not elect to forego participation in either the guaranteed retirement income plan or the retirement savings plan.
Participation must begin on the first pay period after an employee has completed 180 days of full time employment.
(B)
Except as provided in subparagraph (A), an eligible employee must participate in the Retirement Savings Plan unless the employee makes a one-time irrevocable election to participate in the Guaranteed Retirement Income Plan during the first 150 days of full-time employment. Participation must begin on the first pay period after an employee has completed 180 days of full-time employment. A part-time employee who participates in either the Retirement Savings Plan or the Guaranteed Retirement Income Plan when the employee becomes a full-time employee must continue to participate in the same retirement plan.
(C)
A part time employee who is not a participant in the retirement savings plan may make a one time irrevocable election to participate in the guaranteed retirement income plan any time after the employee has completed 150 days of employment.
(b)
Participants groups and eligibility.
(1)
Group I. Except as provided in the last sentence of Section 33-37(e)(2), any full- time or career part-time employee meeting the criteria in paragraphs (A) or (B) must participate in the retirement savings plan if the employee begins, or returns to, County service on or after October 1, 1994. An employee hired on or after July 1, 2009 must be employed on a full time or part time basis with the County for 180 days before participating in the retirement savings plan. An individual who changes employment from the County government directly to a participating agency or from a participating agency directly to the County government must continue to participate in the same retirement plan. Participation in the Retirement Savings Plan must begin on the first payroll after an employee has completed 180 days of employment if the employee:
(A)
(i)
is not represented by a County government employee organization;
(ii)
does not occupy a County government bargaining unit position;
(iii)
is not a public safety employee; and
(iv)
does not elect to participate in the guaranteed retirement income plan; or
(B)
(i)
is not a public safety employee; and
(ii)
is subject to the terms of a collective bargaining agreement between the County and an employee organization which requires the employee to participate in the Guaranteed Retirement Income Plan if the employee does not elect to participate in the Retirement Savings Plan; and
(iii)
elects to participate in the Retirement Savings Plan.
(2)
Group II.
(A)
Except as provided in the last sentence of Section 33-37(e)(2), a full-time or career part-time employee must participate in the retirement savings plan if the employee begins, or returns to, County service on or after October 1, 1994; and
(i)
is a public safety employee; and
(ii)
is subject to the terms of a collective bargaining agreement between the County and an employee organization which requires the employee to participate in the retirement savings plan.
(B)
A member of the Police Bargaining Unit may transfer to Group II of the retirement savings plan if the employee has accumulated enough credited service to obtain the maximum retirement benefit under the optional or integrated plan.
(C)
Except as provided in the last sentence of Section 33-37(e)(2), a full-time or career part-time employee must participate in the retirement savings plan or the guaranteed retirement income plan if the employee begins, or returns to, County service on or after October 1, 1994; and
(i)
is not represented by an employee organization;
(ii)
does not occupy a bargaining unit position; and
(iii)
is a public safety employee.
(c)
Transfers.
(1)
Transfers from the retirement savings plan are only permitted as described in paragraph (4). After an employee enrolls in the retirement savings plan, the employee must continue in the retirement savings plan until the employee is no longer eligible for membership in either Group I or Group II. If an employee is no longer eligible for membership in Group I or Group II, the employee may participate in the plan of the retirement system in which the member qualifies for participation under Article III.
(A)
A former participant who is no longer eligible to participate in the retirement savings plan retains the right to the vested account balances and any distribution under the retirement savings plan, unless the participant elected to participate in the guaranteed retirement income plan under paragraph (4) and the participant’s account balance was transferred to the guaranteed retirement income plan.
(B)
The former participant's participation under the optional retirement plan or the integrated retirement plan, or the guaranteed retirement income plan is governed by Article III.
(2)
Any employee enrolled in the optional retirement plan or the integrated retirement plan under Article III may transfer to the retirement savings plan.
(A)
An employee electing to transfer into the retirement savings plan must transfer into the membership group for which the employee qualifies for participation, excluding the requirement that the employee begin County service on or after October 1, 1994.
(B)
The employee's credited service for purposes of determining the employee's vested benefits in the retirement savings plan must be determined based upon the employee's total number of years of credited service earned under the retirement savings plan, the optional retirement plan, and the integrated retirement plan.
(C)
The employee's benefit calculations under the plan from which the employee transferred is governed by Article III.
(D)
No transfers will be permitted before April 1, 1995. Any transfer takes effect at the beginning of the first pay period following the employee's written election to transfer.
(3)
Transfers between Group I and Group II. If a participant no longer satisfies the requirements for the group in which the participant is enrolled, the participant must transfer to the group in which the participant satisfies the membership requirements.
(4)
Transfer to the guaranteed retirement income plan.
(A)
A full time or part time employee hired on or after October 1, 1994 and before January 1, 2009 who participates in the retirement savings plan, and who is not a public safety employee, may make a one time irrevocable election to terminate participation in the retirement savings plan and participate in the guaranteed retirement income plan effective the first full pay period after July 1, 2009. An employee must make this election between December 31, 2008 and June 1, 2009. An employee who elects to terminate participation in the retirement savings plan must have his or her account balances transferred to the guaranteed retirement income plan. An employee who does not make this election must continue to participate in the retirement savings plan.
(B)
A full time or part time employee hired between December 31, 2008 and July 1, 2009 who participates in the retirement savings plan, and who is not a public safety employee, may make a one time irrevocable election to terminate participation in the retirement savings plan and participate in the guaranteed retirement income plan. An employee has 150 days after the employee was hired to make this election. An employee who makes this election must have his or her account balance transferred to the guaranteed income plan. An employee who does not make this election must continue to participate in the retirement savings plan.
(C)
A full-time or part-time employee hired on or after October 1, 1994 and before January 1, 2009 who participates in the retirement savings plan, and who is a public safety employee not represented by an employee organization and does not occupy a bargaining unit position, may make a one-time irrevocable election to terminate participation in the retirement savings plan and participate in the guaranteed retirement income plan effective the first full pay period after December 31, 2009. An employee must make this election between October 1, 2009 and December 1, 2009. An employee who elects to terminate participation in the retirement savings plan must have his or her account balances transferred to the guaranteed retirement income plan. An employee who does not make this election must continue to participate in the retirement savings plan.
Montgomery County, Md., Code § 33-116 (2026)
Sec. 33-116. Participant contributions.LinkCopy Citation
(a)
Percent of participant contributions.
(1)
(A)
Group I. Each participant in Group I must contribute, through regular payroll deductions, 4 percent of regular earnings less than or equal to the Social Security wage base and 8 percent of regular earnings that exceed the Social Security wage base.
(B)
Group II. Each participant in Group II must contribute, through regular payroll deductions, 3 percent of regular earnings less than or equal to the Social Security wage base and 6 percent of regular earnings that exceed the Social Security wage base.
(C)
For service beginning on the first pay period after June 30, 2011 and before the first pay period beginning after July 1, 2012, a participant may contribute an additional 2 percent of regular earnings on an after-tax basis by making an irrevocable election in writing on or before September 1, 2011.
(2)
To the extent allowed by the Internal Revenue Code, the County must “pick up” (as described in the Internal Revenue Code) mandatory member contributions to the Retirement Savings Plan for pay periods beginning on or after October 1, 1994. A participating agency must execute an adoption agreement before its employees can participate in the pickup plan.
(3)
The Chief Administrative Officer may allow an agency that is not an “employing unit” (as described in Section 414(h)(2) of the Internal Revenue Code) to participate in the Retirement Savings Plan. The County must not “pick up” (as described in the Internal Revenue Code) mandatory contributions of members employed by a participating agency that is not an “employing unit.”
(4)
The County must contribute on behalf of a participant who rejoins County service after military service that qualified under Section 33-119(b) as credited service an amount equal to the amount that the participant could have contributed if the participant had worked for the County during the period of military service.
(A)
Contributions for the period of military service must be based on the regular earnings the participant would have earned during the period of military service. If this amount of regular earnings is not reasonably ascertainable, the contribution must be based on the participant’s average regular earnings during a period immediately preceding military service. The averaging period is 12 months, or the full length of the participant’s County service, whichever is shorter.
(B)
Contributions under this paragraph count toward the maximum annual contribution limits under the Internal Revenue Code for the year for which the contributions relate.
(C)
The participant is not entitled to any retroactive allocation of forfeitures or any retroactive crediting of earnings because of contributions under this subparagraph.
(D)
The County must not credit a participant with a discretionary after-tax contribution under subsection (a)(1)(C) unless the participant elects to make up the contribution under Internal Revenue Code Section 414(u), as amended.
(b)
Treatment of participant contributions.
(1)
Required participant contributions must be allocated to the participant contributions account established for each participant. In addition, amounts allocated to the participant contributions account must be further allocated to sub-accounts to reflect the proportionate amount of each account invested in each of the applicable investment funds by the participant. As of each valuation date, the Board must value the assets of each participant contributions account on a current market value basis.
(2)
A participant is always fully vested in the amount of the participant contributions account.
(c)
Participant rollover contributions. With the Chief Administrative Officer's written consent, a participant may transfer or rollover to the retirement savings plan any interest in any other eligible retirement plan as defined in Internal Revenue Code Section 402(c).
(d)
Treatment of rollover contributions.
(1)
The County must allocate the rollover contributions made on behalf of each participant to a rollover contributions account the Board establishes for that participant. In addition, amounts allocated to each rollover contributions account must be further allocated to sub-accounts to reflect the proportionate amount of each account invested in each of the applicable investment funds by the participant.
(2)
A participant is always fully vested in the amount of the rollover contributions account.
(e)
Treatment of certain transfers.
(1)
For each employee who transfers under Sections 33-115(a)(2) or (3) to the retirement savings plan, the Board must establish a separate employee transfer contributions account, or otherwise separately account, for employee contributions and interest transferred from the State of Maryland Retirement or Pension Systems to the Board under Section 33-115(a)(4). The Board must establish a subaccount of the account for each investment fund selected by the participant.
(2)
A participant is fully vested in the amount transferred under paragraph (1).
(3)
The Chief Administrative Officer may direct the Board to merge the amount transferred under paragraph (1) with the participant's regular account.
Montgomery County, Md., Code § 33-117 (2026)
Sec. 33-117. Employer contributions.LinkCopy Citation
(a)
Amount of employer contributions.
(1)
Group I participants. The County must contribute to the retirement savings plan in quarterly installments, on behalf of each Group I participant, an amount equal to 6 percent for service beginning on the first pay period after June 30, 2011 and 8 percent for service beginning on the first pay period after June 30, 2012 of that participant's regular earnings while a Group I participant during a plan year.
(2)
Group II participants. The County must contribute to the retirement savings plan in quarterly installments, on behalf of each Group II participant, an amount equal to 8 percent for service beginning on the first pay period after June 30, 2011 and 10 percent for service beginning on the first pay period after June 30, 2012 of that participant's regular earnings while a Group II participant during a plan year.
(3)
Group I and Group II. If during a plan year, the participant is a member of Group I for part of the plan year and a member of Group II for the remaining part of the plan year, the participant must receive a prorated employer contribution based on the number of months the participant qualified for each group.
(4)
When a participant rejoins County service after military service that qualified under Section 33-119(b) as credited service, the County must contribute on behalf of the participant the amount that the County would have contributed if the participant had worked for the County during the period of military service.
(A)
The County contributions must be based on the gross pay the participant would have earned during the period of military service. If this amount of gross pay is not reasonably ascertainable, the County contributions must be based on the participant’s average gross pay during a period immediately preceding military service. The averaging period is 12 months, or the full length of the participant’s County service, whichever is shorter.
(B)
County contributions under this paragraph count toward the maximum annual contribution limits under the Internal Revenue Code for the year for which the contributions are made.
(C)
The participant is not entitled to any retroactive allocation of forfeitures or any retroactive crediting of earnings because of employer contributions under this subparagraph.
(b)
Treatment of employer contributions.
(1)
The County must allocate the County contributions made on behalf of each participant to a County contributions account the Board establishes for that participant. In addition, amounts allocated to the County contributions account must be further allocated to sub-accounts to reflect the proportionate amount of each account invested in each of the applicable investment funds.
(2)
As of each valuation date, the Board must value the County contributions account of each participant on a current market value basis by the participant.
(3)
A participant who ends employment with the County and who is not vested in the County contributions account must forfeit the full account balance in the County contributions account. The Chief Administrative Officer must consider all forfeitures arising during the plan year under the retirement savings plan in determining the County contributions and must use the forfeitures as provided in Section 33-120(d)(3).
(c)
Treatment of transferred employer contributions.
(1)
For each employee who elects under Section 33-115(a)(2) or (3) to participate in the retirement savings plan, the Board must establish a separate employer transfer contributions account, or otherwise separately account, for employer contributions and interest transferred from the State of Maryland Retirement or Pension Systems to the Board under Section 33-115(a)(4). The Board must establish a subaccount of the account for each investment fund selected by the participant.
(2)
The Chief Administrative Officer may direct the Board to merge the amount transferred under paragraph (1) with the participant's regular account.
Montgomery County, Md., Code § 33-117A (2026)
Sec. 33-117A. County contributions to State retirement and pension systems on behalf of certain former State employees.LinkCopy Citation
(a)
This section applies to a person who was eligible to transfer to the County retirement savings plan under Section 33-115(a)(2) or (3) but remained a participant in the State of Maryland Retirement and Pensions Systems.
(b)
The County must pay any mandatory employee contributions directly to the State of Maryland Retirement and Pension Systems by deducting the amount from the person's compensation. The County must treat the contributions as if they were paid by the County. A person may not choose to receive the contributions directly.
(c)
The direct payments required by subsection (b) are intended to satisfy the requirements of State law and the Internal Revenue Code for the County to adopt the pick-up plan available under the State of Maryland Retirement and Pension Systems.
(d)
The Chief Administrative Officer, on behalf of the County, may sign documents necessary to implement the pick-up plan under this section.
Montgomery County, Md., Code § 33-118 (2026)
Sec. 33-118. Maximum annual contribution.LinkCopy Citation
(a)
Contribution limitations.
(1)
Notwithstanding any other provision in this Division, to the extent required under the Internal Revenue Code, the annual additions described in this Section that are allocated in any limitation year to the retirement accounts of any participant must not exceed the lesser of:
(A)
$30,000, effective January 1, 1995, or $40,000, effective January 1, 2002 (the “dollar limitation”); as adjusted by the Internal Revenue Service from time to time to reflect cost of living increases; or
(B)
25 percent of the participant's compensation as defined below, or 100 percent of the participant's compensation, effective January 1, 2002, (the "percentage limitation").
(2)
For purposes of this Section, the annual addition must be:
(A)
County contributions;
(B)
required participant contributions;
(C)
forfeitures, but only if the retirement savings plan permits forfeitures to be added to the participant's account; and
(D)
after-tax contributions.
(3)
In this Section, for purposes of applying Section 415 of the Internal Revenue Code, “compensation” has the same meaning as provided in Treasury Regulation Section 1.415-2(d)(1), including amounts contributed at the election of the participant that are not includible in the gross income of the participant, under Sections 402(g)(3), 125, 457, and (effective January 1, 2001) 132(f)(4) of the Internal Revenue Code. Effective for limitation years after December 31, 2008, compensation must include amounts required to be included by Section 414(u)(12) of the Internal Revenue Code.
(4)
For purposes of this Section, the maximum dollar limitation of $30,000 in subsection (a)(1)(A), or $40,000 effective January 1, 2002 and the maximum dollar limitation of $150,000 in subsection (b), or $200,000, effective January 1, 2002, must be automatically increased as permitted by United States Treasury Regulations to reflect cost-of-living adjustments.
(5)
Amounts transferred from the State of Maryland Retirement or Pension Systems to the Board under Section 33-115(a)(4) do not constitute an annual addition under paragraph (2).
(b)
Compensation limitation. For purposes of this retirement savings plan, for plan years beginning on or after January 1, 2002, only the first $200,000 of a participant's regular earnings, or any other amount permitted under Internal Revenue Code Section 401(a)(17), must be taken into account.
(c)
Effective July 1, 2007, all contributions made to a participant’s account within 2 ½ months after termination of employment or within the limitation year that contains the termination from employment must be considered compensation for purposes of Internal Revenue Code Section 415, as amended.
(d)
For purposes of this Section, limitation year means calendar year.
(e)
For purposes of applying this Section, all defined contribution plans maintained by the County must be aggregated.
Montgomery County, Md., Code § 33-119 (2026)
Sec. 33-119. Credited service.LinkCopy Citation
(a)
A participant's credited service is the total years and months of County service the participant rendered under the Retirement Savings Plan, the optional retirement plan, the integrated plan, and the guaranteed retirement income plan. A participant must receive credited service for any period when the participant was a part-time employee contributing to an employer-supported savings program provided by a participating agency. An employee hired before July 1, 2009 must receive 1 year of credited service for each year of County service. Each year of County service ends on the anniversary of the date the participant started working for the County. A participant must also receive one month of credited service for each month during which the participant worked at least one hour for the County. An employee hired on or after July 1, 2009 must receive one year of credited service for each year of participation in a County retirement plan and one month of credited service for each month during which the employee participated in a County retirement plan. A person who transferred to the Retirement Savings Plan under Section 115(a)(3) or (4) must receive credit for County service for creditable State service earned as a State employee of the County Department of Social Services. A person who does not transfer to the Retirement Savings Plan under Section 115(a)(3) or (4) must not receive credit for County service for this State service.
(b)
County service includes any period of compulsory or voluntary service in the armed forces of the United States, a state militia, or other military service covered under the Uniformed Services Employment and Reemployment Rights Act, if the participant:
(1)
was a member of the Retirement Savings Plan, the optional retirement plan, the guaranteed retirement income plan, or the integrated plan when the military service began;
(2)
applied for reemployment or returned to County service within:
(A)
1 year after discharge from the military service, and the participant does not take other employment;
(B)
2 years after completing military service if the member was hospitalized or convalescing from an illness or injury incurred or aggravated during military service, and the participant does not take other employment; or
(C)
more than 2 years if circumstances beyond the control of the participant make it impossible or unreasonable for the participant to apply for reemployment within 2 years, and the participant does not take other employment; and
(3)
the total period of military service did not exceed 5 years, not including any period of military service described under Section 4312(c)(1) - (4) of Title 38, United States Code.
(c)
An employee who did not become a member of the retirement savings plan solely because the employee was called to active duty before completing 180 days of County employment must be eligible to receive contributions under Sections 33-115 and 33-116 if the employee becomes a participant in the retirement savings plan upon re-employment.
Montgomery County, Md., Code § 33-120 (2026)
Sec. 33-120. Distribution of Benefit.LinkCopy Citation
(a)
Normal Retirement Benefits.
(1)
Normal Retirement Benefit. A participant who retires on or after the participant's normal retirement date may receive the participant's total account balances in the retirement savings plan. The Chief Administrative Officer must distribute the value of the participant's account balances to the participant under this Section.
(2)
Vesting. If a participant's normal retirement date occurs before the participant's separation from County service, all amounts credited to the participant's County contributions account are 100% vested regardless of the participant's years of credited service.
(3)
Deferred Retirement. If a participant's employment continues after the participant's normal retirement date, the participant must continue to participate in the retirement savings plan and the distribution of the participant's benefits must begin in accordance with subsection (i).
(b)
Disability Benefits.
(1)
Public Safety Employees. If a participant who is a public safety employee incurs a disability before retirement or other separation from service which, in the opinion of a physician selected or approved by the Chief Administrative Officer, renders the participant unable to perform duties satisfactorily for the employment the participant held with the County before the disability, the participant's employment and participation in the retirement savings plan must be terminated and deemed a disability retirement under the following rules:
(A)
All amounts credited to the participant’s retirement savings plan account, including County contributions, are 100% vested regardless of the participant's years of credited service.
(B)
The Chief Administrative Officer must determine the date on which a disability retirement is effective. After the participant submits a properly completed distribution form, the Chief Administrative Officer must distribute the value of the former participant's account balances to the former participant under this Section.
(2)
Non-public safety employees. If a participant who is a non-public safety employee incurs a disability before retirement or other separation from service which makes the participant unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months, the disabled participant must remain a participant in the retirement savings plan under the following rules:
(A)
All amounts credited to the participant’s retirement savings account, including County contributions, are 100% vested regardless of the participant's years of credited service.
(B)
The participant must remain a participant in the retirement savings plan under this Section until the participant dies, reaches his or her normal retirement date, or recovers from the disability.
(C)
In determining the amount of the County contribution under Section 33-117, the participant's regular earnings means the regular earnings the participant would have received for the year if the participant was paid for the full year at the rate of compensation paid in the pay period immediately before the participant became disabled.
(D)
The participant must not receive a distribution during any period in which the participant receives a County contribution.
(E)
The participant must not make participant contributions under Section 33-116 during the period of disability participation in the retirement savings plan.
(c)
Death benefits.
(1)
Death Benefit. If a participant dies before receiving the participant's total account balances in the retirement savings plan, the Chief Administrative Officer must distribute the value of the participant's account balances to the participant's beneficiary under this Section.
(2)
Vesting. If a participant dies before the participant’s separation from County service, all amounts credited to the participant’s County contributions account are 100% vested regardless of the participant’s years of credited service. For purposes of this subsection, vesting must be in accordance with Section 401(a)(37) of the Internal Revenue Code. Effective January 1, 2007, the beneficiary of a participant on a leave of absence to perform military service with reemployment rights described in Section 414(u) of the Internal Revenue Code, where the participant cannot return to employment on account of his or her death, must be entitled to any additional benefits that would be provided under the retirement savings plan had the participant died as an active employee, in accordance with Section 401(a)(37) of the Internal Revenue Code.
(3)
A participant may name a primary beneficiary or beneficiaries and contingent beneficiary or beneficiaries on a designation of beneficiary form filed with the Office of Human Resources, or designee of the Chief Administrative Officer, including a third party service provider. If a participant names 2 or more persons as beneficiaries, the persons are considered co-beneficiaries and share the benefit equally unless the participant specifies otherwise on the designation of beneficiary form. A participant may change any named beneficiary by completing a new designation of beneficiary form. The consent of the beneficiary or beneficiaries is not required to name or change a beneficiary. The designation is effective if received by the Office or the designee of the Chief Administrative Officer, including a third party service provider, during a participant’s lifetime.
(4)
If a participant dies without designating a surviving beneficiary or the designation is not enforceable under subsection (5), the surviving spouse or domestic partner (or if there is no surviving spouse or domestic partner, each surviving child, sharing equally with any other surviving child) is the designated beneficiary. If no spouse, domestic partner, or child survives a participant who left no enforceable beneficiary designation, the participant’s estate is the designated beneficiary.
(5)
For purposes of this Section, a beneficiary designation is not enforceable if:
(A)
the designated beneficiary:
(i)
predeceases the member;
(ii)
disclaims the benefit; or
(iii)
is not an identifiable person; or
(B)
the designation is legally void for any reason.
(d)
Separation from service before normal retirement, death or disability retirement.
(1)
Distribution of account balances. If a participant separates from County service for any reason other than normal retirement, disability retirement, or death, the Chief Administrative Officer must distribute to the participant the vested portion of the participant's account balances under this Section.
(2)
Vesting Schedule. A participant is 100% vested in all participant contributions accounts and rollover contributions accounts at all times. The vested interest in a participant's County contributions account must be a percentage of the account, determined on the basis of the participant's years of credited service as follows:
Vested Percentage | Years of Credited Service
0% | less than 3
100% | 3 or more
(3)
Forfeitures.
(A)
If a participant has no vested interest in the County contributions account at the time of the participant's separation from service, the participant must forfeit the entire County contributions account as of the date of separation from service.
(B)
The Chief Administrative Officer must allow a one-time reinstatement of the forfeited County contributions to an employee who is reemployed by the County within 12 months of separation and again becomes a member of the Retirement Savings Plan. The amount reinstated by the Chief Administrative Officer must be equal to the value of the County contributions account, including investment gains and losses, as of the date of the employee's separation. This provision applies, regardless of the member's separation or reemployment date, if the member requests the reinstatement in writing while the member is an active County employee.
(C)
The Chief Administrative Officer must use the forfeitures to pay the operating expenses of the retirement savings plan or to reduce the amount of county contributions.
(e)
In service withdrawals. If a participant is employed by the County, no distribution is permitted. Distributions must be made only upon a participant's death, retirement, disability retirement, or separation from County service.
(f)
Distribution methods. The Chief Administrative Officer must pay, at the request of the participant or the designated beneficiary, a participant's account balances in the retirement savings plan upon retirement, disability retirement, death, or separation from County service.
(1)
Normal method of distribution. Unless the participant elects an optional method, the normal method of distribution must be a lump sum distribution.
(2)
Optional method of distribution - Annuity.
(A)
A participant may elect, subject to the conditions of this paragraph, to have the entire account balances used to buy an annuity payable in one of the following actuarially equivalent methods:
(i)
A joint and survivor annuity payable for the life of the participant, with a survivor's annuity payable for the life of the participant's spouse or domestic partner in an amount at least equal to one-half of the amount of the annuity payable during the joint lives of the participant and the participant's spouse or domestic partner.
(ii)
A single life annuity payable for the lifetime of the participant.
(iii)
A period certain annuity in which a certain number of payments are guaranteed regardless of when the participant dies.
(B)
If benefits under the retirement savings plan are payable as an annuity, the Board must use the account balances of the participant to buy an annuity contract from an insurance company authorized to do business in the State. The contract must provide for payment in the method chosen by the participant.
(3)
Optional method of distribution - Installments. A participant may elect to have the entire account balances paid in installments on a monthly or annual basis over a period selected by the participant, subject to applicable restrictions in the Internal Revenue Code and its corresponding regulations.
(4)
Optional method of distribution - Transfer to Employees' Retirement System, Annuity Option. A participant may elect to have the participant's entire account balance transferred to the employees' retirement system and have the account balance paid in one of the annuity options available under Section 33-44(g)(2).
(g)
Direct rollover distributions. Notwithstanding any provision of this Division that would otherwise limit a participant's election under this Section, a participant or beneficiary may elect in any manner prescribed by the Chief Administrative Officer at any time to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the participant in a direct rollover. As used in this subsection:
(1)
direct rollover means a payment from the retirement savings plan to the eligible retirement plan specified by the participant.
(2)
eligible retirement plan means:
(A)
an individual retirement account described in Internal Revenue Code Section 408(a), as amended;
(B)
an individual retirement annuity described in Internal Revenue Code Section 408(b), as amended, (other than an endowment contract);
(C)
a qualified trust;
(D)
an annuity plan described in Internal Revenue Code Section 403(a), as amended;
(E)
an eligible deferred compensation plan described in Internal Revenue Code Section 457(b), as amended, which is maintained by an eligible employer described in Internal Revenue Code Section 457(e)(1)(A), as amended; and
(F)
an annuity contract described in Internal Revenue Code Section 403(b), as amended.
(3)
eligible rollover distribution means any distribution to a participant of all or any portion of the participant’s account balance; except:
(A)
any distribution which is one of a series of substantially equal periodic payments (not less frequently than annually) made:
(i)
for the life (or life expectancy) of the employee or the joint lives (or joint life expectancies) of the employee and the employee’s designated beneficiary; or
(ii)
for a specified period of 10 years or more; or
(B)
any distribution to the extent such distribution is required under Internal Revenue Code Section 401(a)(9), as amended.
(4)
For purposes of this subsection, beneficiary includes a non-spouse beneficiary. A non-spouse beneficiary may make a direct rollover only to an inherited individual retirement account or annuity described in Sections 408(a) or 408(b) of the Internal Revenue Code that is established on behalf of the non-spouse beneficiary. Such rollover shall be made in a manner consistent with Section 402(c)(11) of the Internal Revenue Code and any other applicable guidance.
(h)
Benefit distribution date.
(1)
The Chief Administrative Officer must pay a participant who retires by reason of normal, deferred, or disability retirement the participant’s account balances in the retirement savings plan. The distribution must begin as soon as administratively feasible after the participant’s retirement and after the date elected by the participant, but no later than April 1 following the later of the calendar year in which the participant attains age 72, or the calendar year in which the participant’s County employment ends.
(2)
A participant who has a 100% vested interest in the County contributions account, and whose County employment ends before the participant's death, disability retirement, or normal retirement date, may receive the account balances in the County contribution accounts and the participant contribution accounts before reaching the normal retirement date only upon filing written consent for the distribution with the Chief Administrative Officer. The distribution must be made as soon as administratively feasible after the Chief Administrative Officer receives the written consent for the distribution.
(3)
(A)
If a participant's County employment ends before the participant has a vested interest in the County contributions and the participant properly completes and submits an application for distribution of the participant’s contribution account, the County must distribute the participant's contribution account as soon as administratively feasible.
(B)
If a participant does not properly complete and submit an application for a distribution, the County must distribute the participant’s contribution account under the time limits described in this Section.
(4)
Notwithstanding any other provision of this subsection, a participant’s account balance of $1000 or less must be automatically distributed in a lump sum as soon as administratively feasible after termination of employment without a request from the participant.
(i)
Required commencement of benefit payments.
(1)
The distribution of a participant's or former participant's retirement benefits must begin no later than April 1 following the later of:
(A)
the calendar year in which the participant attains age 72; or
(B)
the calendar year in which the participant separates from County service.
(2)
The distribution may be made as provided in subsection (f).
(j)
Notwithstanding the preceding subsections, a participant or beneficiary who would have been required to receive minimum required distributions for 2020 but for the enactment of Internal Revenue Code Section 401(a)(9)(I), must receive those distributions for 2020 unless the participant or beneficiary elects not to receive such distributions.
(k)
Period for distribution of death benefits of a participant who was not receiving benefits or did not receive the entire benefit. If a participant dies before payment of all benefits, the benefits must be distributed before the end of the calendar year containing the fifth anniversary of the participant’s death unless:
(1)
any portion of the participant’s benefit is payable to, or for the benefit of, an individual designated by the participant as a beneficiary. In such case, the benefits must be distributed by the end of the calendar year containing the tenth anniversary of the participant’s death;
(2)
any portion of the participant’s benefit payable to, or for the benefit of, an eligible designated beneficiary as defined in Internal Revenue Code Section 401(a)(9)(E)(ii). In such a case:
(A)
the portion of the benefit to which the eligible designated beneficiary is entitled will be distributed over the life of the eligible designated beneficiary or over a period not extending beyond the life expectancy of the eligible designated beneficiary; and
(B)
the distributions begin before the end of the calendar year following the calendar year in which the participant’s death occurred; or
(3)
(A)
if the eligible designated beneficiary is a surviving spouse, the portion of the participant’s benefit to which the surviving spouse is entitled will be distributed over the life of the surviving spouse, or over a period not extending beyond the life expectancy of the surviving spouse; and
(B)
the distributions begin before the later of the end of the calendar year following the calendar year in which the participant died or the end of the calendar year in which the participant would have reached age 72.
(4)
If the eligible designated beneficiary is a child who has not reached majority, the benefit must be paid within 10 years of the child reaching the age of majority or other designated event permitted under federal regulation.
(l)
Limitations of Internal Revenue Code Section 401(a)(9). Distributions under a plan must be subject to the limitations of Section 401(a)(9) of the Internal Revenue Code, including the incidental death benefit rules in Section 401(a)(9)(G) of the Internal Revenue Code, in accordance with any proposed or final regulations under Section 401(a)(9) of the Internal Revenue Code.
(a)
the amendments in Section 1 to §§ 33-44 and 33-120 increasing the required distribution age from 70 ½ to 72 must take effect for individuals attaining age 70 ½ after December 31, 2019; and
(b)
the amendments in Section 1 to §§ 33-44 and 33-120 requiring distributions to beneficiaries upon a participant’s death must take effect for deaths occurring after December 31, 2021.
Montgomery County, Md., Code § 33-121 (2026)
Sec. 33-121. Investment of contributions to the retirement savings plan.LinkCopy Citation
(a)
Investment options.
(1)
A participant must direct that contributions allocated to the participant's retirement accounts be invested in one or more of the investment options selected by the Board. The investment options selected by the Board must conform to all applicable requirements of the Internal Revenue Code.
(2)
A participant must allocate contributions among the investment options only in percentages of the value of the account balances of the participant, as determined by the Board.
(3)
A participant's direction of investment must remain in effect until the participant changes the direction. If a participant does not provide a valid direction of investment, the account balances of the participant, to the extent they are not governed by a valid direction of investment, must be invested in an appropriate investment option selected by the Board.
(b)
Change of allocation.
(1)
A participant or former participant may change the allocation of the participant's account balances among the investment options in accordance with procedures set by the Board. The changes must take effect on the date or dates set by the Board.
(2)
A participant or former participant may designate that the change of the allocation among investment options is effective as to one or both of:
(A)
the participant's or former participant's account balances on the effective date of the change; and
(B)
the participant's contributions and County contributions made after the effective date of the change.
(c)
Gains and losses. The Board must maintain separate and distinct accounts for each participant. The Board must determine the value of an individual account solely with respect to the activity within each participant's account and unrealized gains to a participant's account.
Montgomery County, Md., Code § 33-122 (2026)
Sec. 33-122. Administration.LinkCopy Citation
(a)
Regulations for administration. The County Executive must issue regulations under method (2) to administer the retirement savings plan.
(b)
Responsibility for administration. The Chief Administrative Officer must administer the retirement savings plan. Except for the powers of the Board, the Chief Administrative Officer must take all actions and make all decisions to administer the retirement savings plan, including, but not limited, to:
(1)
interpret the provisions of the retirement savings plan;
(2)
decide the eligibility of any employee and the rights of any participant or beneficiary to receive benefits;
(3)
compute the amount of benefits payable to any participant or beneficiary;
(4)
authorize disbursements of benefits;
(5)
keep records;
(6)
consult with the Board regarding the selection of a record keeper for the retirement savings plan;
(7)
incur expenses as necessary to administer the retirement savings plan, subject to appropriation;
(8)
disclose the reports prepared under this Section;
(9)
prepare and file reports that are required by law; and
(10)
delegate any power or duty under this Section.
The Chief Administrative Officer's determination on any matter within the Chief Administrative Officer's authority under this plan is final and binding on all interested parties.
(c)
Payment of expenses and contributions. The County Government must make contributions to the retirement savings plan, subject to appropriation. The County Government may make additional contributions to the trust to cover operating expenses of the retirement savings plan. The Board must pay operating expenses of the savings plan from savings plan assets or from County Government assets, at the direction of the Chief Administrative Officer. A participating agency must pay any amounts necessary to cover the agency's respective contributions and operating expenses of the retirement savings plan.
(d)
Procurement. Chapter 11B does not apply to procurement of goods and services for the retirement savings plan by the Chief Administrative Officer.
(e)
Records. The Chief Administrative Officer must prescribe the form, scope, maintenance, and disclosure of records for the retirement savings plan under State law.
(f)
Interpretations. The Chief Administrative Officer must decide questions arising under this Division. Any participant, former participant, or designated beneficiary eligible to receive benefits from the retirement savings plan may request, in writing, a decision on questions arising under this Division. The Chief Administrative Officer must respond in writing to the request within 60 days. The response must include a statement of appeal rights. A decision by the Chief Administrative Officer may be appealed within 15 days to the Merit System Protection Board. The decision of the Merit System Protection Board is final.
(g)
Independent audit. The retirement savings plan must be included in the annual audit performed by a certified public accountant under contract to the County Council as required by Section 315 of the Charter.
(h)
Annual reports. By March 1 of each year, the Chief Administrative Officer must submit to the County Council and County Executive an annual report on the status of the retirement savings plan for the preceding plan year, including the extent and content of counseling made available to participants. The Chief Administrative Officer must make the report available to all County officials, each participant of the retirement savings plan, and the public. The County Council may ask the Chief Administrative Officer or the Board to provide additional information in the annual report or in additional reports. The Chief Administrative Officer and the Board must provide the additional information promptly.
(i)
Participant statements. The Chief Administrative Officer must supply to each participant for each plan year a report stating the amount of the participant's account balances and the participant's vested interest. The report must be distributed as soon as administratively feasible after the close of each plan year. The Chief Administrative Officer is not required to provide more than one report during any plan year.
(j)
Investment information. The Board must supply the Chief Administrative Officer with sufficient participant investment information so that the Chief Administrative Officer may prepare the required participant statements.
Montgomery County, Md., Code § 33-123 (2026)
Sec. 33-123. Qualification contingency.LinkCopy Citation
(a)
Qualified plan. If it is determined that the retirement savings plan is not a qualified plan under the Internal Revenue Code, this Article is ineffective as of the date of the determination.
(b)
Return of County contributions. Any account balance with respect to County contributions must be returned to the County as soon as administratively possible after this Division becomes ineffective.
(c)
Return of participant contributions. Any account balances with respect to required participant contributions, including any amount picked up by the County, must be returned to the participant who made them as soon as administratively possible after this Division becomes ineffective.
(d)
Participation.
(1)
After a determination under this Section, a participant must become a member of the retirement system under Article III in which that employee would have been eligible to participate if the retirement savings plan had never existed.
(2)
An employee's credited service earned while a participant in the retirement savings plan must be counted in determining benefits and vesting under a plan in which the employee becomes a member after the retirement savings plan becomes ineffective.
(3)
An employee must contribute to the new plan, in a single lump-sum cash payment, the total nonvoluntary employee contributions that the employee would have been required to make under the plan for the period during which the employee was a participant in the retirement savings plan as if the employee had participated in the plan instead of the retirement savings plan.
(4)
The County must make, on behalf of the employee, contributions to the new plan in the amount the County would have made on behalf of that employee for the period during which the employee was a participant in the retirement savings plan as if the employee had participated in the plan instead of the retirement savings plan, except as restricted by the Internal Revenue Code.
Montgomery County, Md., Code § 33-124 (2026)
Sec. 33-124. Trust fund.LinkCopy Citation
A trust is established as part of the retirement savings plan for the benefit of the participants in the retirement savings plan. The trust consists of the money and property of the retirement savings plan and any earnings, profits, increments, appreciation, and other additions that accrue. All of the money and property, all investments made with that money and property, and all earnings, profits, increments and other additions, less the payments previously made by the Board, are the retirement savings plan trust fund.
Montgomery County, Md., Code § 33-125 (2026)
Sec. 33-125. Powers and duties of the Board.LinkCopy Citation
(a)
General.
(1)
Except as otherwise provided in this Division, the powers and duties with respect to investments of the retirement savings plan are vested in the Board of Investment Trustees. The Board has legal title to all cash and other property of the retirement savings plan, but may delegate some or all of the incidents of ownership as provided in this Division. Sections 33-61A, 33-61C, and 33-61D apply to the Board with respect to its powers and duties under the retirement savings plan.
(2)
The Board must invest and reinvest, or cause to be invested or reinvested, the principal and income of the retirement savings plan and keep the same invested without distinction between principal and income. The Board has the exclusive authority to manage the assets of the retirement savings plan, but must, to the extent directed by participants, invest each participant’s accounts in the manner directed by the participant. The Board may select mutual funds, commingled funds, unitized investments in the Montgomery County Group Trust, or any combination of other investments as investment options for the retirement savings plan.
(3)
Chapter 11B does not apply to procurement of goods and services for the retirement savings plan by the Board.
(4)
After consulting the Chief Administrative Officer, the Board must:
(A)
develop record keeping functions for the purpose of maintaining and reporting on participant account balances;
(B)
designate appropriate investment options to be offered to plan participants;
(C)
designate methods of accounting for investments; and
(D)
designate methods of selecting annuity contracts for distribution of participant account balances.
(5)
The Board must make counseling available to each participant during each plan year to advise the participant regarding investment selections for participant and County contributions.
(b)
Agents for transfer of property.
(1)
The Board may register any securities or other property in its own name or in the name of a nominee. The Board may hold any security in bearer form. However, the Board or its agent must keep records that show that the investments are part of the trust fund.
(2)
The Board may form a partnership under State law to hold or transfer securities as the nominee of the Board.
(3)
The Board may designate in writing a trustee to hold or transfer securities as nominee of the Board.
(4)
The Board must provide that trustees or a partnership that the Board designates must act only as agents of the Board. The Board may set other conditions that the Board considers prudent.
(5)
The trustees or a partnership the Board designates may agree with a bank or other financial institution to:
(A)
guarantee the signatures made as nominee of the Board; and
(B)
conduct settlements and transfers through participation in central security depositories.
(c)
Authorized investments.
(1)
The Board may select or remove any investment option for the retirement savings plan that the Board finds prudent under the policies set by the Board.
(2)
If an investment through any combined, common, or commingled trust fund exists, the declaration of trust of that fund is a part of the retirement savings plan trust.
(d)
Trustee powers. Except as otherwise provided in this Division, the Board may:
(1)
with any cash, purchase or subscribe for any investment, at a premium or discount, and retain the investment;
(2)
sell, exchange, convey, transfer, lease for any period, pledge, mortgage, grant options, contract with respect to, or otherwise encumber or dispose, at public or private sale, for cash or credit or both, any part of the retirement savings plan;
(3)
subject to Section 33-61A(h)(2), sue, defend, compromise, arbitrate, compound and settle any debt, obligation, claim, suit, or legal proceeding involving the retirement savings plan, and reduce the rate of interest on, extent or otherwise modify, foreclose upon default, or otherwise enforce any debt, obligation, or claim;
(4)
retain uninvested a part of the retirement savings plan fund in preparation for the payment of distributions;
(5)
exercise any option on any investment for conversion into another investment, exercise any rights to subscribe for additional investments, and make all necessary payments;
(6)
join in, consent to, dissent from, oppose, or deposit in connection with the reorganization, recapitalization, consolidation, sale, merger, foreclosure, or readjustment of the finances of any corporation or property in which the assets of the retirement savings plan are invested, or the sale, mortgage, pledge or lease of that property or the property of any such corporation upon such terms and conditions that the Board considers prudent; exercise any options, make any agreements or subscriptions, pay any expenses, assessments, or subscriptions, and take any other action in connection with these transactions that the Board considers prudent; and accept and hold any investment that may be issued in or as a result of any such proceeding;
(7)
vote, in person or by any proxy, at any election of any corporation in whose stock the assets of the retirement savings plan are invested, and exercise, personally or by any power of attorney, any right appurtenant to any investment held in the retirement savings plan; and give general or specific proxies or powers of attorney with or without power of substitution;
(8)
sell, either at public or private sale, option to sell, mortgage, lease for a term of years less than or continuing beyond the possible date of the termination of the trust, partition or exchange any real property for such prices and upon such terms as the Board considers prudent, and execute and deliver deeds of conveyance and all assignments, transfers, and other legal instruments for passing the ownership to the purchaser, free and discharge of all liens;
(9)
renew or extend any mortgage, upon such terms that the Board considers prudent, and increase or reduce the rate of interest on any mortgage or modify the terms of any mortgage or of any guarantee as the Board considers prudent to protect the retirement savings plan or preserve the value of the investment; waive any default or enforce any default in a manner that the Board considers prudent; exercise and enforce any right of foreclosure, bid on property in foreclosure, take a deed in lieu of foreclosure with or without paying a consideration, and release the obligation on the bond secured by the mortgage; and exercise and enforce in any action, suit, or proceeding at law or in equity any rights or remedies in respect to any mortgages or guarantee;
(10)
form a corporation or corporations under the laws of any jurisdiction or acquire an interest in or otherwise make use of any corporation already formed to invest in and hold title to any property;
(11)
for the purpose of investing in and holding title to real or personal property or part interests in property, including equipment pertaining to property, leaseholds, and mortgages;
(12)
incur and pay expenses for agents, financial advisors, actuaries, accountants and counsel, if those expenses are incurred solely to perform the Board's duties under this retirement savings plan;
(13)
borrow, raise or lend moneys, for the purpose of the retirement savings plan, in such amounts and upon such terms and conditions as the Board in its discretion considers prudent; for any money borrowed, issue a promissory note and secure the repayment of this note by pledging or mortgaging all or any part of the retirement savings plan;
(14)
hold, buy, transfer, surrender, and exercise all other incidents of ownership of any annuity contract;
(15)
if payments to a participant or beneficiary are to be made in the form of an annuity based on one or more lives or life expectancies, buy from any legal reserve life insurance company a single premium, nontransferable annuity contract providing for the payment of the benefits;
(16)
pool all or any of the assets of the trust, from time to time, with assets belonging to any other retirement plan trust or retiree health benefit trust created by the County, including any subtrust thereof, and commingle such assets and make joint or common investments and carry joint accounts on behalf of this trust, such other trust or trusts, or subtrusts, allocating undivided shares or interests in such investments or accounts or in any pooled assets to the two or more trusts or subtrusts in accordance with their respective interests. Any such trusts or subtrusts may be unitized for investment purposes. The Board may, subject to its fiduciary duties, offer units of such pooled trust or subtrust as an investment option under the Retirement Savings Plan. Consistent with its investment authority, the Board or its delegate may also buy or sell any assets or undivided interests in this trust or in any other trust with which the assets of this trust may be pooled, to or from this trust or such other trusts at such prices or valuations as the Board may determine in reasonable good faith; and
(17)
do all acts which the Board considers necessary and exercise any and all powers of this Division with respect to the management of the retirement savings plan, and in general, exercise all powers in the management of the assets which an individual could exercise in the management of property owned in the individual's own right except for making an individual investment selection.
(e)
Prohibited transactions. The Board must not engage in any transaction between the trust and the County, or any entity controlled by the County, in which the Board:
(1)
lends any part of its income or corpus, without receiving adequate security and a reasonable rate of interest;
(2)
pays any compensation, more than a reasonable allowance for salaries or other compensation or personal services actually rendered;
(3)
makes any service available on a preferential basis;
(4)
makes any substantial purchase of securities or other property for more than adequate consideration which, for avoidance of doubt, does not include a transfer conducted on the terms described in Section 33-170(i) between employee benefit plan trusts or a subtrust;
(5)
sells any substantial part of its securities or other property for less than adequate consideration which, for avoidance of doubt, does not include a transfer conducted on the terms described in Section 33-170(i) between employee benefit plan trusts or a subtrust; or
(6)
engages in any transaction which results in a substantial diversion of its income or corpus.
(f)
The Board must monitor the performance of investment options. Monitoring may include any tests or analyses that the Board finds prudent.
(g)
Except for expenses incurred under paragraph (d)(12), the Board must pay all benefits and expenses of the retirement savings plan as directed by the Chief Administrative Officer.
(h)
The Board may rely on the decision of the Chief Administrative Officer as to the proper recipient of benefit payments.
(i)
Delegation of duties. The Board may delegate its duties to the Executive Director or a similarly situated County employee as it deems appropriate and consistent with its fiduciary duties in a written policy and procedure. If the Board has prudently delegated its duties and monitored the delegation, the trustees must not be liable for an act or omission made by its delegate.
Montgomery County, Md., Code § 33-126 (2026)
Sec. 33-126. Amendment and termination.LinkCopy Citation
(a)
Right to Amend. The County Government expects to continue the retirement savings plan, but it assumes no contractual obligation to continue the plan and reserves the right at any time for any reason to amend the retirement savings plan.
(b)
Qualification amendments. The retirement savings plan and any related trust agreement, investment advisory agreement, custodial agreement, annuity contract, or similar agreement may be amended by the County Government at any time, either prospectively or retroactively, to conform to the Internal Revenue Code.
(c)
Termination of the retirement savings plan. The County Government has established the retirement savings plan with the expectation that the County Government will be able to make contributions indefinitely, but the County Government is not under any obligation to continue contributions, or maintain the retirement savings plan for any length of time, and may terminate the retirement savings plan. In the event of a termination of the retirement savings plan, a participant will become 100% vested in the County contributions account on the effective date of a termination of the retirement savings plan.
(d)
Termination of participation by a participating agency. If a participating agency decides to withdraw or otherwise terminate its participation in the retirement savings plan, the agency must notify the Chief Administrative Officer in writing. The Chief Administrative Officer and the appropriate officer of the withdrawing agency must agree on a date for withdrawal. Any transfer of assets pursuant to the withdrawal must satisfy the requirements of the Internal Revenue Code.
Montgomery County, Md., Code § 33-127 (2026)
Sec. 33-127. Miscellaneous.LinkCopy Citation
(a)
Exemption from Execution, Garnishment, or Attachment.
(1)
The right of a participant in that participant's account balances or any other right or benefit under this Division are not subject to execution, garnishment, attachment, or any other process, and are not assignable.
(2)
Notwithstanding the foregoing, a portion or all of a participant's account balances may be paid to an alternate payee pursuant to a qualified domestic relations order under the Internal Revenue Code. The Chief Administrative Officer must establish forms and procedures to determine the qualified status of domestic relations orders and must determine the form and timing of distributions permissible under such qualified orders.
(b)
Protection Against Fraud. Any person who knowingly makes any false statement or falsifies or permits to be falsified any record of the retirement savings plan in any attempt to defraud the retirement savings plan is subject to punishment for a class A violation.
(c)
Error in records. If any change or error in the records results in any participant or beneficiary receiving from the retirement savings plan more or less than the participant or beneficiary is entitled to receive had the records been correct, the error must be corrected, and as far as practicable, the payment must be adjusted in such manner that the amount of the benefit to which that participant or beneficiary was correctly entitled will be paid. If any participant or beneficiary has received any payment from the retirement savings plan to which the participant or beneficiary is not entitled, the participant or beneficiary must refund that amount to the retirement savings plan.
(d)
Lost Participants. The Chief Administrative Officer must use all reasonable resources to locate or communicate with a former participant or beneficiary, in order to make and process required minimum distributions as required by Internal Revenue Code Section 401(a)(9). If such efforts fail, the Chief Administrative Officer or a third party holding these amounts, must distribute the former participant’s or beneficiary’s unprocessed required minimum distributions to the State under the unclaimed property laws. No amounts must be due to a former participant or beneficiary once paid to the State. The former participant or beneficiary must claim the distributed amounts directly from the State.
(e)
Transfer of assets between trust funds of the retirement system. To the extent permitted by the Internal Revenue Code and applicable guidance under the Internal Revenue Code, the County may transfer assets of the retirement system relating to an account or accrued benefit of a participant in trust-to-trust transfers between the trusts of the Employees' Retirement System and the Retirement Savings Plan to correct operational failures relating to such accounts or accrued benefits.
(f)
Exclusive Benefit. The Retirement Savings Plan Trust Fund must be held for the exclusive purpose of providing benefits to participants and beneficiaries and defraying reasonable expenses of administering the plan, and except as otherwise provided under the Internal Revenue Code, no part of the trust fund shall ever enure to the benefit of the County.