State Personnel and Pensions (GSP) — Title 20. Definitions and General Provisions
Statutes in effect as of October 1, 2026.
Subtitle 1. Definitions
Md. Code Ann., State Pers. & Pens. § 20-101 (2026)
Title 20. Definitions and General Provisions
Subtitle 1. Definitions
§ 20–101LinkCopy Citation
(a)
In this Division II the following words have the meanings indicated.
(b)
(1)
“Accumulated contributions” means the amounts credited to a member’s individual account in the annuity savings fund of the appropriate State system.
(2)
“Accumulated contributions” includes:
(i)
member contributions;
(ii)
additional contributions; and
(iii)
regular interest.
(c)
“Additional contribution” means a contribution that is made voluntarily by a member.
(d)
“Allowance” means a benefit that is payable in equal monthly installments for the life of the recipient, except as otherwise provided for an optional form of an allowance under § 21–403 of this article.
(d–1)
“Alternate Contributory Pension Selection” means the part of the Employees’ Pension System and the Teachers’ Pension System that provides the Alternate Contributory Pension Selection under Title 23, Subtitle 2, Part III of this article.
(e)
“Annuity” means the part of an allowance that is derived from the accumulated contributions of a member.
(f)
“Annuity reserve” means the present value of an annuity computed on the basis of actuarial assumptions adopted by the Board of Trustees.
(g)
“Average final compensation” means the average annual earnable compensation that is computed as provided in § 20–204, § 20–205, or § 20–205.1 of this title.
(h)
“Basic allowance” means an allowance computed without modification under § 21–403 of this article.
(i)
“Beneficiary” means a person, other than a retiree, in receipt of a benefit under this Division II.
(j)
“Board of Trustees” means the Board of Trustees for the State Retirement and Pension System.
(j–1)
“Contributory pension benefit” means the part of the Employees’ Pension System and the Teachers’ Pension System that provides the contributory pension benefit under Title 23, Subtitle 2, Part II of this article.
(k)
“Correctional Officers’ Retirement System” means the Correctional Officers’ Retirement System of the State of Maryland.
(l)
“County” means a county of the State and, unless expressly provided otherwise, Baltimore City.
(m)
“Creditable service” means the service credit of a member that is recognized for computing a benefit under this Division II.
(n)
“Designated beneficiary” means a person named as beneficiary by a member, former member, or a retiree by filing:
(1)
an acknowledged written designation with the State Retirement Agency; or
(2)
a properly completed form submitted through the State Retirement Agency’s secure access participant portal with an electronic signature affixed in the required manner and format.
(o)
(1)
“Earnable compensation” means one–twelfth of the member’s annual salary rate payable for working the normal time in the member’s position, including:
(i)
the employer pickup contribution provided for in § 21–312 of this article; or
(ii)
a contribution made under a salary reduction or supplemental retirement plan in accordance with Title 35 of this article.
(2)
“Earnable compensation” does not include:
(i)
a lump sum payment by a participating employer that represents a retroactive salary increase to one or more classes of employees for periods of employment that took place before the award of the payment; and
(ii)
any other payment that the Board of Trustees determines is not part of a member’s annual salary rate payable for working the normal time in the member’s position.
(p)
“Eligibility service” means the service credit of a member that is recognized for determining eligibility for a benefit under this Division II.
(q)
“Employees’ Pension System” means the Employees’ Pension System of the State of Maryland.
(r)
“Employees’ Retirement System” means the Employees’ Retirement System of the State of Maryland.
(s)
“Employer pickup contribution” means a contribution made through a reduction in a member’s compensation under § 21–313 of this article.
(t)
“Former member” means an individual who:
(1)
has been a member;
(2)
has separated from employment with a participating employer; and
(3)
is not currently a member or retiree.
(u)
“Judges’ Retirement System” means the Judges’ Retirement System of the State of Maryland.
(v)
“Law Enforcement Officers’ Pension System” means the Law Enforcement Officers’ Pension System of the State of Maryland.
(w)
“Legislative Pension Plan” means the Legislative Pension Plan of the State of Maryland as provided by the joint resolution submitted to the General Assembly by the General Assembly Compensation Commission under Article III, § 15 of the Maryland Constitution.
(x)
“Local Fire and Police System” means the Local Fire and Police Pension System of the State of Maryland.
(y)
“Medical board” means a board of physicians provided for in § 21–126 of this article.
(z)
“Member” means, unless a different meaning is plainly required by the context, an individual:
(1)
for whom membership in a State system is a condition of employment; or
(2)
(i)
for whom membership in a State system is optional; and
(ii)
who has elected to become a member of that State system.
(aa)
(1)
“Member contribution” means:
(i)
a contribution that is deducted from a member’s compensation as required by this Division II;
(ii)
a contribution that is designated as a member contribution under § 22–212 or § 22–213 of this article;
(iii)
a contribution that is redeposited as a member contribution;
(iv)
the part attributable to a member contribution of any payment for the purchase of service credit under this Division II; and
(v)
an employer pickup contribution.
(2)
“Member contribution” does not include any additional contribution.
(aa–1)
“Noncontributory pension benefit” means the part of the Employees’ Pension System and the Teachers’ Pension System that does not provide the contributory pension benefit under Title 23, Subtitle 2, Part II of this article, the Alternate Contributory Pension Selection under Title 23, Subtitle 2, Part III of this article, or the Reformed Contributory Pension Benefit under Title 23, Subtitle 2, Part IV of this article.
(bb)
“Normal retirement age” means:
(1)
50 years old, for a member of:
(i)
the State Police Retirement System; or
(ii)
the Law Enforcement Officers’ Pension System;
(2)
60 years old, for a member of:
(i)
the Correctional Officers’ Retirement System, for the purpose of disability retirement only;
(ii)
the Employees’ Retirement System;
(iii)
the Judges’ Retirement System;
(iv)
the Local Fire and Police System, who transferred from the Employees’ Retirement System; or
(v)
the Teachers’ Retirement System;
(3)
62 years old, for a member of:
(i)
the Employees’ Pension System who is a member on or before June 30, 2011;
(ii)
the Local Fire and Police System, who has not transferred from the Employees’ Retirement System; or
(iii)
the Teachers’ Pension System who is a member on or before June 30, 2011; or
(4)
65 years old, for a member of the Employees’ Pension System or Teachers’ Pension System who begins membership on or after July 1, 2011.
(cc)
“Participant” means a beneficiary, designated beneficiary, former member, member, or retiree who is or may become eligible to receive a benefit of any type from the several systems.
(dd)
“Participating employer” means the employer of an individual who, because of the employment relationship, is eligible for membership in a State system.
(ee)
“Participating governmental unit” means a governmental unit that participates in a State system under Title 31 of this article.
(ff)
“Pension” means the part of an allowance that is derived from employer contributions.
(gg)
“Pension reserve” means the present value of a pension, computed on the basis of actuarial assumptions adopted by the Board of Trustees.
(hh)
(1)
“Person” means an individual, receiver, trustee, guardian, personal representative, fiduciary, or representative of any kind and any partnership, firm, association, corporation, or other entity.
(2)
Unless expressly provided otherwise, “person” does not include a governmental entity or a unit or instrumentality of a governmental entity.
(hh–1)
“Reformed contributory pension benefit” means the part of the Employees’ Pension System and the Teachers’ Pension System that provides the reformed contributory pension benefit under Title 23, Subtitle 2, Part IV of this article.
(ii)
“Regular interest” means interest at the rate payable on accumulated contributions as provided under this Division II for each State system.
(jj)
“Retiree” means an individual who:
(1)
has separated from employment with a participating employer; and
(2)
receives a retirement allowance under this Division II.
(kk)
“Retirement” means the grant of a retirement allowance under this Division II after separation from employment with a participating employer.
(ll)
(1)
“Retirement allowance” means an allowance that is payable at the time of separation from employment with a participating employer.
(2)
“Retirement allowance” includes:
(i)
a service retirement allowance; and
(ii)
a disability retirement allowance.
(3)
“Retirement allowance” does not include a vested allowance.
(mm)
“Several systems” means the State systems specified in § 21–102 of this article.
(nn)
“Social Security integration level” means, with respect to the calendar year in which a member retires or otherwise separates from employment, the average yearly amount of earnings for which old age and survivors benefits would be provided under Title II of the federal Social Security Act for an employee who is eligible to receive full old age and survivors benefits provided under Title II of the federal Social Security Act in that calendar year that is:
(1)
computed as though for each previous year yearly earnings are at least equal to the maximum amount of yearly earnings subject to tax under the Federal Insurance Contributions Act; and
(2)
rounded to the next lower multiple of $100.
(oo)
“State Police Retirement System” means the State Police Retirement System of the State of Maryland.
(pp)
“State system” means a retirement or pension system that is included in the State Retirement and Pension System under § 21–102 of this article.
(qq)
“Taxable wage base” means, with respect to each calendar year, the maximum amount of annual earnings for employees subject to tax under the federal Old Age, Survivors, and Disability Insurance Act.
(rr)
“Teachers’ Pension System” means the Teachers’ Pension System of the State of Maryland.
(ss)
“Teachers’ Retirement System” means the Teachers’ Retirement System of the State of Maryland.
(tt)
“Vested allowance” means an allowance that is not payable at the time of separation from employment with a participating employer, but is deferred until the former member becomes eligible for immediate payment.
Subtitle 2. General Provisions
Md. Code Ann., State Pers. & Pens. § 20-201 (2026)
Title 20. Definitions and General Provisions
Subtitle 2. General Provisions
§ 20–201LinkCopy Citation
(a)
Except as provided in subsection (b) of this section, and except as otherwise expressly provided, this title and Titles 21 and 29 of this article apply to each State system.
(b)
Title 21, Subtitle 4 and Titles 22 through 31 of this article do not apply to the Legislative Pension Plan.
Md. Code Ann., State Pers. & Pens. § 20-202 (2026)
Title 20. Definitions and General Provisions
Subtitle 2. General Provisions
§ 20–202LinkCopy Citation
An actuarial equivalent shall be an equivalent amount based on actuarial assumptions adopted by the Board of Trustees.
Md. Code Ann., State Pers. & Pens. § 20-203 (2026)
Title 20. Definitions and General Provisions
Subtitle 2. General Provisions
§ 20–203LinkCopy Citation
On retirement, an Executive Branch official, judge, legislator, or other State employee may not receive benefits as a member of more than one State system for the same period of employment as a member.
Md. Code Ann., State Pers. & Pens. § 20-204 (2026)
Title 20. Definitions and General Provisions
Subtitle 2. General Provisions
§ 20–204LinkCopy Citation
(a)
(1)
This subsection applies only to an individual who is a member of:
(i)
the Employees’ Retirement System; or
(ii)
the Teachers’ Retirement System.
(2)
Except as provided in paragraph (3) of this subsection, the average final compensation of a member equals the average annual earnable compensation of the member for:
(i)
the 3 years of employment as a member during which the member’s earnable compensation was highest, if the member was employed at least 3 years as a member; or
(ii)
the member’s total period of employment, if the member was employed less than 3 years as a member.
(3)
Except as provided in paragraph (4) of this subsection, the member’s average final compensation does not include a salary increase in the last 3 years of employment if it is an extraordinary salary increase according to regulations that the Board of Trustees adopts.
(4)
A salary increase may not be considered an extraordinary salary increase under paragraph (3) of this subsection if the salary increase is:
(i)
because of a member’s promotion; or
(ii)
subject to paragraph (5) of this subsection, related to a review and adjustment to the compensation for a position classification to:
(1)
address inequities in compensation among employees in the same position classification; or
(2)
increase the compensation for the position classification to be more consistent with market compensation for the position.
(5)
(i)
At the time of retirement, a member who has received a salary increase in accordance with paragraph (4)(ii) of this subsection shall file with the State Retirement Agency a form provided by the State Retirement Agency that:
(1)
is completed by the member’s employer; and
(2)
certifies that the member received a salary increase in accordance with paragraph (4)(ii) of this subsection.
(ii)
A member shall submit to the State Retirement Agency the completed form required under subparagraph (i) of this paragraph within 30 days from the date of the State Retirement Agency’s written notice that the member has received an extraordinary salary increase.
(b)
(1)
This subsection applies only to an individual who on or before June 30, 2011, is a member of:
(i)
the Correctional Officers’ Retirement System; or
(ii)
the State Police Retirement System.
(2)
Except as provided in paragraph (3) of this subsection, the average final compensation of a member equals the average annual earnable compensation of the member for:
(i)
the 3 years of employment as a member during which the member’s earnable compensation was highest, if the member was employed at least 3 years as a member; or
(ii)
the member’s total period of employment, if the member was employed less than 3 years as a member.
(3)
(i)
Except as provided in paragraph (4) of this subsection, the member’s average final compensation does not include a salary increase in the last 3 years of employment if it is an extraordinary salary increase according to regulations that the Board of Trustees adopts.
(ii)
(1)
This subparagraph applies only to a member of the State Police Retirement System.
(2)
If a member of the State Police Retirement System who transferred from another actuarial retirement system in the State retires after less than 3 years of employment as a member of the State Police Retirement System, the earnable compensation as a member in the other system shall be used in the determination of average final compensation.
(4)
A salary increase may not be considered an extraordinary salary increase under paragraph (3)(i) of this subsection if the salary increase is:
(i)
because of a member’s promotion; or
(ii)
subject to paragraph (5) of this subsection, related to a review and adjustment to the compensation for a position classification to:
(1)
address inequities in compensation among employees in the same position classification; or
(2)
increase the compensation for the position classification to be more consistent with market compensation for the position.
(5)
(i)
At the time of retirement, a member who has received a salary increase in accordance with paragraph (4)(ii) of this subsection shall file with the State Retirement Agency a form provided by the State Retirement Agency that:
(1)
is completed by the member’s employer; and
(2)
certifies that the member received a salary increase in accordance with paragraph (4)(ii) of this subsection.
(ii)
A member shall submit to the State Retirement Agency the completed form required under subparagraph (i) of this paragraph within 30 days from the date of the State Retirement Agency’s written notice that the member has received an extraordinary salary increase.
(c)
(1)
This subsection applies only to an individual who on or after July 1, 2011, becomes a member of:
(i)
the Correctional Officers’ Retirement System; or
(ii)
the State Police Retirement System.
(2)
Except as provided in paragraph (3) of this subsection, the average final compensation of a member equals the average annual earnable compensation of the member for:
(i)
the 5 years of employment as a member during which the member’s earnable compensation was highest, if the member was employed at least 5 years as a member; or
(ii)
the member’s total period of employment, if the member was employed less than 5 years as a member.
(3)
(i)
Except as provided in paragraph (4) of this subsection, the member’s average final compensation does not include a salary increase in the last 5 years of employment if it is an extraordinary salary increase according to regulations that the Board of Trustees adopts.
(ii)
(1)
This subparagraph applies only to a member of the State Police Retirement System.
(2)
If a member of the State Police Retirement System who transferred from another actuarial retirement system in the State retires after less than 5 years of employment as a member of the State Police Retirement System, the earnable compensation as a member in the other system shall be used in the determination of average final compensation.
(4)
A salary increase may not be considered an extraordinary salary increase under paragraph (3)(i) of this subsection if the salary increase is:
(i)
because of a member’s promotion; or
(ii)
subject to paragraph (5) of this subsection, related to a review and adjustment to the compensation for a position classification to:
(1)
address inequities in compensation among employees in the same position classification; or
(2)
increase the compensation for the position classification to be more consistent with market compensation for the position.
(5)
(i)
At the time of retirement, a member who has received a salary increase in accordance with paragraph (4)(ii) of this subsection shall file with the State Retirement Agency a form provided by the State Retirement Agency that:
(1)
is completed by the member’s employer; and
(2)
certifies that the member received a salary increase in accordance with paragraph (4)(ii) of this subsection.
(ii)
A member shall submit to the State Retirement Agency the completed form required under subparagraph (i) of this paragraph within 30 days from the date of the State Retirement Agency’s written notice that the member has received an extraordinary salary increase.
Md. Code Ann., State Pers. & Pens. § 20-205 (2026)
Title 20. Definitions and General Provisions
Subtitle 2. General Provisions
§ 20–205LinkCopy Citation
(a)
This section applies only to an individual who on or before June 30, 2011, is a member of:
(1)
the Employees’ Pension System;
(2)
the Local Fire and Police System;
(3)
the Law Enforcement Officers’ Pension System; or
(4)
the Teachers’ Pension System.
(b)
(1)
In this subsection, “break in service” means a period of employment in which the member’s employer did not:
(i)
deduct the member contributions from the compensation of the member; or
(ii)
report the hours worked by the member.
(2)
(i)
For the purpose of computing benefits under this Division II, the average final compensation of a member equals the average annual earnable compensation of the member, adjusted as provided in this section, during the 3 consecutive years that provide the highest average earnable compensation.
(ii)
If the member experienced any break in service during the 3 consecutive years that provide the member’s highest average earnable compensation, the Board of Trustees:
(1)
may not include in the computation of average final compensation the period of months of the breaks in service, that otherwise would be included in the computation; and
(2)
in order to generate the highest average earnable compensation for the member, shall extend the 3-year period by an equal number of months immediately preceding or following that period.
(c)
(1)
This subsection applies to a member of the Employees’ Pension System or Teachers’ Pension System who is subject to the noncontributory pension benefit and who was on authorized leave of absence at partial pay or without pay during the last 3 years of employment as a member.
(2)
If the period used to determine average final compensation is the period that immediately precedes the date of retirement or other separation from employment, the Board of Trustees:
(i)
may not include in the computation of average final compensation the period of months of the leave of absence, not exceeding 12, that otherwise would be included in the computation; and
(ii)
shall substitute an equal number of months immediately preceding that period.
(d)
(1)
This subsection applies to a member whose eligibility service has been adjusted under this Division II to compute creditable service, on the basis of the member having completed less than the normal hours of service for the member’s position.
(2)
A member’s earnable compensation shall be adjusted to a full-time basis for any period included in the computation of average final compensation.
(e)
(1)
Except as provided in paragraph (2) of this subsection, the member’s average final compensation does not include a salary increase in the last 3 years of employment if it is an extraordinary salary increase according to regulations that the Board of Trustees adopts.
(2)
A salary increase may not be considered an extraordinary salary increase under paragraph (1) of this subsection if the salary increase is:
(i)
because of a member’s promotion; or
(ii)
subject to paragraph (3) of this subsection, related to a review and adjustment to the compensation for a position classification to:
(1)
address inequities in compensation among employees in the same position classification; or
(2)
increase the compensation for the position classification to be more consistent with market compensation for the position.
(3)
(i)
At the time of retirement, a member who has received a salary increase in accordance with paragraph (2)(ii) of this subsection shall file with the State Retirement Agency a form provided by the State Retirement Agency that:
(1)
is completed by the member’s employer; and
(2)
certifies that the member received a salary increase in accordance with paragraph (2)(ii) of this subsection.
(ii)
A member shall submit to the State Retirement Agency the completed form required under subparagraph (i) of this paragraph within 30 days from the date of the State Retirement Agency’s written notice that the member has received an extraordinary salary increase.
Md. Code Ann., State Pers. & Pens. § 20-205.1 (2026)
Title 20. Definitions and General Provisions
Subtitle 2. General Provisions
§ 20–205.1LinkCopy Citation
(a)
This section applies only to an individual who on or after July 1, 2011, becomes a member of:
(1)
the Employees’ Pension System;
(2)
the Law Enforcement Officers’ Pension System; or
(3)
the Teachers’ Pension System.
(b)
(1)
In this subsection, “break in service” means a period of employment in which the member’s employer did not:
(i)
deduct the member contributions from the compensation of the member; or
(ii)
report the hours worked by the member.
(2)
(i)
For the purpose of computing benefits under this Division II, the average final compensation of a member equals the average annual earnable compensation of the member, adjusted as provided in this section, during the 5 consecutive years that provide the highest average earnable compensation.
(ii)
If the member experienced any break in service during the 5 consecutive years that provide the member’s highest average earnable compensation, the Board of Trustees:
(1)
may not include in the computation of average final compensation the period of months of the breaks in service that otherwise would be included in the computation; and
(2)
in order to generate the highest average earnable compensation for the member, shall extend the 5–year period by an equal number of months immediately preceding or following that period.
(c)
(1)
This subsection applies to a member whose eligibility service has been adjusted under this Division II to compute creditable service, on the basis of the member having completed less than the normal hours of service for the member’s position.
(2)
A member’s earnable compensation shall be adjusted to a full–time basis for any period included in the computation of average final compensation.
(d)
(1)
Except as provided in paragraph (2) of this subsection, the member’s average final compensation does not include a salary increase in the last 5 years of employment if it is an extraordinary salary increase according to regulations that the Board of Trustees adopts.
(2)
A salary increase may not be considered an extraordinary salary increase under paragraph (1) of this subsection if the salary increase is:
(i)
because of a member’s promotion; or
(ii)
subject to paragraph (3) of this subsection, related to a review and adjustment to the compensation for a position classification to:
(1)
address inequities in compensation among employees in the same position classification; or
(2)
increase the compensation for the position classification to be more consistent with market compensation for the position.
(3)
(i)
At the time of retirement, a member who has received a salary increase in accordance with paragraph (2)(ii) of this subsection shall file with the State Retirement Agency a form provided by the State Retirement Agency that:
(1)
is completed by the member’s employer; and
(2)
certifies that the member received a salary increase in accordance with paragraph (2)(ii) of this subsection.
(ii)
A member shall submit to the State Retirement Agency the completed form required under subparagraph (i) of this paragraph within 30 days from the date of the State Retirement Agency’s written notice that the member has received an extraordinary salary increase.
Md. Code Ann., State Pers. & Pens. § 20-206 (2026)
Title 20. Definitions and General Provisions
Subtitle 2. General Provisions
§ 20–206LinkCopy Citation
(a)
In this section, “unused sick leave” means sick leave credit that:
(1)
has not been used before retirement; and
(2)
was available to the member to be used as sick leave during employment.
(b)
This section does not apply to:
(1)
the Judges’ Retirement System; or
(2)
the Legislative Pension Plan.
(c)
Except as provided in subsections (f) and (g) of this section, a member is entitled to receive creditable service for unused sick leave if the member retires on or before 30 days after the member is separated from employment with a participating employer or a participating governmental unit that has withdrawn from one of the several systems under Title 31 of this article.
(d)
(1)
At retirement, a member is entitled to receive creditable service for unused sick leave, on verification of the unused sick leave to the Board of Trustees.
(2)
(i)
This subsection does not apply to the Local Fire and Police System or the Law Enforcement Officers’ Pension System.
(ii)
A member who separates from employment for reasons other than retirement on or before June 30, 1990, is entitled to receive creditable service for unused sick leave that is reported by the member’s employer at the member’s separation from employment if the member was entitled to a vested allowance at the time of separation.
(e)
(1)
Subject to paragraphs (2) and (3) of this subsection, for 22 days of unused sick leave a member is entitled to receive 1 month of creditable service.
(2)
(i)
If a member has at least 11 days but less than 22 days of unused sick leave, the member is entitled to receive 1 month of creditable service.
(ii)
If a member has at least 22 days of unused sick leave, and if fractional days totaling 11 or more result from the application of the formula described in paragraph (1) of this subsection, a member is entitled to receive 1 additional month of creditable service.
(3)
For the purposes of this section:
(i)
a member may not accumulate more than 15 days of sick leave per year;
(ii)
unless sick leave credit is accepted and credited by the current participating employer, a member may not receive credit for unused sick leave granted by a former employer; and
(iii)
in determining the amount of unused sick leave a member is eligible to use as creditable service at retirement, the Board of Trustees shall use the lesser of:
(1)
the member’s number of years of creditable service, not including credit for unused sick leave, multiplied by 15; or
(2)
the member’s cumulative number of unused sick leave days reported by the participating employer.
(f)
(1)
This subsection applies to a member of the Employees’ Pension System who:
(i)
was a member of the Correctional Officers’ Retirement System and was transferred from the Correctional Officers’ Retirement System to the Employees’ Pension System as a result of a change in position with the same employer that rendered the individual ineligible for membership in the Correctional Officers’ Retirement System; and
(ii)
did not transfer service credit from the Correctional Officers’ Retirement System to the Employees’ Pension System.
(2)
Subject to paragraph (3) of this subsection, a member is entitled to receive creditable service for the total amount of unused sick leave accrued by the member at the time of retirement.
(3)
The creditable service for unused sick leave shall be calculated for each of the two State systems by multiplying the total amount of unused sick leave, calculated in accordance with subsection (e) of this section, by a fraction:
(i)
the numerator of which is the creditable service earned in the State system, not including the creditable service for unused sick leave; and
(ii)
the denominator of which is the total creditable service earned in both State systems, not including the creditable service for unused sick leave.
(g)
(1)
This subsection applies to a member of the Correctional Officers’ Retirement System who:
(i)
was a member of the Employees’ Pension System or Employees’ Retirement System and was transferred from the Employees’ Pension System or Employees’ Retirement System to the Correctional Officers’ Retirement System as a result of a change in membership within the several systems that rendered the individual ineligible for membership in the Employees’ Pension System or the Employees’ Retirement System;
(ii)
did not transfer service credit from the Employees’ Pension System or the Employees’ Retirement System to the Correctional Officers’ Retirement System; and
(iii)
(1)
retires under § 25–401 of this article, and receives a vested benefit from the Employees’ Pension System or the Employees’ Retirement System;
(2)
retires under §§ 22–401, 22–402, 23–401, or 23–402 of this article, and receives a vested benefit from the Correctional Officers’ Retirement System for service earned on or after July 1, 2016; or
(3)
retires with a vested benefit from the Employees’ Pension System or Employees’ Retirement System, and earned service in the Correctional Officers’ Retirement System on or after July 1, 2016, for which the individual is not eligible for a benefit.
(2)
Subject to paragraphs (3) and (4) of this subsection, a member is entitled to receive creditable service for the total amount of unused sick leave accrued by the member at the time of retirement.
(3)
(i)
This paragraph applies to an individual described under paragraph (1)(iii)1 or 2 of this subsection.
(ii)
The creditable service for unused sick leave shall be calculated for each of the two State systems by multiplying the total amount of unused sick leave, calculated in accordance with subsection (e) of this section, by a fraction:
(1)
the numerator of which is the creditable service earned in the State system, not including the creditable service for unused sick leave; and
(2)
the denominator of which is the total creditable service earned in both State systems, not including the creditable service for unused sick leave.
(4)
(i)
This paragraph applies to an individual described under paragraph (1)(iii)3 of this subsection.
(ii)
An individual’s retirement benefit from the Employees’ Pension System or Employees’ Retirement System shall be adjusted to include any credit for unused sick leave that the individual accrued in the Employees’ Pension System or Employees’ Retirement System prior to becoming a member of the Correctional Officers’ Retirement System:
(1)
on or after July 1, 2016, in a position included under § 25–201(a)(7) of this article;
(2)
on or after July 1, 2017, in a position included under § 25–201(a)(8) or (9) of this article;
(3)
on or after July 1, 2018, in a position included under § 25–201(a)(10) or (11) of this article;
(4)
on or after July 1, 2022, in a position included under § 25–201(a)(12) of this article;
(5)
on or after July 1, 2024, in a position included under § 25–201(a)(13) of this article;
(6)
on or after July 1, 2025, in a position included under § 25–201(a)(14) of this article; or
(7)
on or after July 1, 2026, in a position included under § 25–201(a)(15) of this article.
(h)
Credit for unused sick leave may not be used under this section:
(1)
to determine years of eligibility service required for a benefit under this Division II; or
(2)
to compute average final compensation.
(i)
A State employee who came into the State system while retaining sick leave and annual leave benefits under a county system and who came under the provisions of Chapter 423 of the Acts of 1971 shall be entitled to the same full credit toward retirement as provided by this section.
Md. Code Ann., State Pers. & Pens. § 20-207 (2026)
Title 20. Definitions and General Provisions
Subtitle 2. General Provisions
§ 20–207LinkCopy Citation
(a)
This section does not apply to an individual who is a member of a State system on or before June 30, 1996.
(b)
Notwithstanding any other provision of law, for plan years beginning on or after July 1, 1996, the annual compensation that may be taken into account when determining the retirement allowance payable to a member of a State system may not exceed the compensation limit under § 401(a)(17)(B) of the Internal Revenue Code and regulations adopted thereunder.
Md. Code Ann., State Pers. & Pens. § 20-208 (2026)
Title 20. Definitions and General Provisions
Subtitle 2. General Provisions
§ 20–208LinkCopy Citation
(a)
Notwithstanding any other provision of law, the Board of Trustees may not pay an allowance that exceeds the limit on benefit accruals established from time to time under § 415 of the Internal Revenue Code.
(b)
Subject to subsections (c) and (d) of this section, the Agency shall reduce:
(1)
an allowance to the extent that it exceeds the dollar limit on an annual benefit established from time to time under § 415(b) of the Internal Revenue Code and the regulations adopted thereunder; and
(2)
the contributions and other additions to any defined contribution plan maintained by the Board of Trustees to the extent that they exceed the limit on annual additions established from time to time under § 415(c) of the Internal Revenue Code and the regulations adopted thereunder.
(c)
(1)
The dollar limit on an annual benefit is the amount set forth in § 415(b) of the Internal Revenue Code, as adjusted by the Commissioner of Internal Revenue under § 415(d) of the Internal Revenue Code as of January 1 of each calendar year.
(2)
The dollar limit for a calendar year applies to a State system’s fiscal year ending within that calendar year.
(d)
(1)
Except as provided in paragraph (2) of this subsection, the Agency shall pay a participant whose allowance was reduced under subsection (b) of this section any postretirement adjustment if payment of the postretirement adjustment does not exceed the dollar limit on benefits.
(2)
The postretirement adjustment may not exceed a participant’s basic allowance as increased by any postretirement adjustments allowable under the applicable State system.
(e)
If an individual participates in any other retirement or pension system that must be aggregated with the State system administered by the Board of Trustees, the individual’s annual benefit accrual or annual addition shall first be reduced by the other retirement or pension system to the extent necessary to comply with the requirements of § 415 of the Internal Revenue Code and the regulations adopted thereunder before any reduction is made by the Board of Trustees.
(f)
(1)
This subsection does not apply to an individual who is a member of a State system on or before June 30, 1999.
(2)
Notwithstanding any other provision of law, the Agency may not allow a member to purchase prior service credit other than in accordance with the limitations and conditions set forth in § 415(n) of the Internal Revenue Code.
(g)
A member may purchase prior service credit using funds from any fund source that is not specifically prohibited by the Internal Revenue Code.
Md. Code Ann., State Pers. & Pens. § 20-209 (2026)
Title 20. Definitions and General Provisions
Subtitle 2. General Provisions
§ 20–209LinkCopy Citation
(a)
In conformity with § 401(a)(8) of the Internal Revenue Code, any forfeiture of benefits by a member or former member of the several systems may not be used by the Board of Trustees to pay benefit increases.
(b)
Any forfeiture of benefits by a member shall be used to reduce employer contributions.