<section article="gsp" article_name="State Personnel and Pensions" number="20-101" title_number="20" title_name="Definitions and General Provisions" subtitle_number="1" subtitle_name="Definitions"> <level label="a"> <text>In this Division II the following words have the meanings indicated.</text> </level> <level label="b"> <level label="1"> <text>“Accumulated contributions” means the amounts credited to a member’s individual account in the annuity savings fund of the appropriate State system.</text> </level> <level label="2"> <text>“Accumulated contributions” includes:</text> <level label="i"> <text>member contributions;</text> </level> <level label="ii"> <text>additional contributions; and</text> </level> <level label="iii"> <text>regular interest.</text> </level> </level> </level> <level label="c"> <text>“Additional contribution” means a contribution that is made voluntarily by a member.</text> </level> <level label="d"> <text>“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.</text> </level> <level label="d–1"> <text>“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.</text> </level> <level label="e"> <text>“Annuity” means the part of an allowance that is derived from the accumulated contributions of a member.</text> </level> <level label="f"> <text>“Annuity reserve” means the present value of an annuity computed on the basis of actuarial assumptions adopted by the Board of Trustees.</text> </level> <level label="g"> <text>“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.</text> </level> <level label="h"> <text>“Basic allowance” means an allowance computed without modification under § 21–403 of this article.</text> </level> <level label="i"> <text>“Beneficiary” means a person, other than a retiree, in receipt of a benefit under this Division II.</text> </level> <level label="j"> <text>“Board of Trustees” means the Board of Trustees for the State Retirement and Pension System.</text> </level> <level label="j–1"> <text>“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.</text> </level> <level label="k"> <text>“Correctional Officers’ Retirement System” means the Correctional Officers’ Retirement System of the State of Maryland.</text> </level> <level label="l"> <text>“County” means a county of the State and, unless expressly provided otherwise, Baltimore City.</text> </level> <level label="m"> <text>“Creditable service” means the service credit of a member that is recognized for computing a benefit under this Division II.</text> </level> <level label="n"> <text>“Designated beneficiary” means a person named as beneficiary by a member, former member, or a retiree by filing:</text> <level label="1"> <text>an acknowledged written designation with the State Retirement Agency; or</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="o"> <level label="1"> <text>“Earnable compensation” means one–twelfth of the member’s annual salary rate payable for working the normal time in the member’s position, including:</text> <level label="i"> <text>the employer pickup contribution provided for in § 21–312 of this article; or</text> </level> <level label="ii"> <text>a contribution made under a salary reduction or supplemental retirement plan in accordance with Title 35 of this article.</text> </level> </level> <level label="2"> <text>“Earnable compensation” does not include:</text> <level label="i"> <text>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</text> </level> <level label="ii"> <text>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.</text> </level> </level> </level> <level label="p"> <text>“Eligibility service” means the service credit of a member that is recognized for determining eligibility for a benefit under this Division II.</text> </level> <level label="q"> <text>“Employees’ Pension System” means the Employees’ Pension System of the State of Maryland.</text> </level> <level label="r"> <text>“Employees’ Retirement System” means the Employees’ Retirement System of the State of Maryland.</text> </level> <level label="s"> <text>“Employer pickup contribution” means a contribution made through a reduction in a member’s compensation under § 21–313 of this article.</text> </level> <level label="t"> <text>“Former member” means an individual who:</text> <level label="1"> <text>has been a member;</text> </level> <level label="2"> <text>has separated from employment with a participating employer; and</text> </level> <level label="3"> <text>is not currently a member or retiree.</text> </level> </level> <level label="u"> <text>“Judges’ Retirement System” means the Judges’ Retirement System of the State of Maryland.</text> </level> <level label="v"> <text>“Law Enforcement Officers’ Pension System” means the Law Enforcement Officers’ Pension System of the State of Maryland.</text> </level> <level label="w"> <text>“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.</text> </level> <level label="x"> <text>“Local Fire and Police System” means the Local Fire and Police Pension System of the State of Maryland.</text> </level> <level label="y"> <text>“Medical board” means a board of physicians provided for in § 21–126 of this article.</text> </level> <level label="z"> <text>“Member” means, unless a different meaning is plainly required by the context, an individual:</text> <level label="1"> <text>for whom membership in a State system is a condition of employment; or</text> </level> <level label="2"> <level label="i"> <text>for whom membership in a State system is optional; and</text> </level> <level label="ii"> <text>who has elected to become a member of that State system.</text> </level> </level> </level> <level label="aa"> <level label="1"> <text>“Member contribution” means:</text> <level label="i"> <text>a contribution that is deducted from a member’s compensation as required by this Division II;</text> </level> <level label="ii"> <text>a contribution that is designated as a member contribution under § 22–212 or § 22–213 of this article;</text> </level> <level label="iii"> <text>a contribution that is redeposited as a member contribution;</text> </level> <level label="iv"> <text>the part attributable to a member contribution of any payment for the purchase of service credit under this Division II; and</text> </level> <level label="v"> <text>an employer pickup contribution.</text> </level> </level> <level label="2"> <text>“Member contribution” does not include any additional contribution.</text> </level> </level> <level label="aa–1"> <text>“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.</text> </level> <level label="bb"> <text>“Normal retirement age” means:</text> <level label="1"> <text>50 years old, for a member of:</text> <level label="i"> <text>the State Police Retirement System; or</text> </level> <level label="ii"> <text>the Law Enforcement Officers’ Pension System;</text> </level> </level> <level label="2"> <text>60 years old, for a member of:</text> <level label="i"> <text>the Correctional Officers’ Retirement System, for the purpose of disability retirement only;</text> </level> <level label="ii"> <text>the Employees’ Retirement System;</text> </level> <level label="iii"> <text>the Judges’ Retirement System;</text> </level> <level label="iv"> <text>the Local Fire and Police System, who transferred from the Employees’ Retirement System; or</text> </level> <level label="v"> <text>the Teachers’ Retirement System;</text> </level> </level> <level label="3"> <text>62 years old, for a member of:</text> <level label="i"> <text>the Employees’ Pension System who is a member on or before June 30, 2011;</text> </level> <level label="ii"> <text>the Local Fire and Police System, who has not transferred from the Employees’ Retirement System; or</text> </level> <level label="iii"> <text>the Teachers’ Pension System who is a member on or before June 30, 2011; or</text> </level> </level> <level label="4"> <text>65 years old, for a member of the Employees’ Pension System or Teachers’ Pension System who begins membership on or after July 1, 2011.</text> </level> </level> <level label="cc"> <text>“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.</text> </level> <level label="dd"> <text>“Participating employer” means the employer of an individual who, because of the employment relationship, is eligible for membership in a State system.</text> </level> <level label="ee"> <text>“Participating governmental unit” means a governmental unit that participates in a State system under Title 31 of this article.</text> </level> <level label="ff"> <text>“Pension” means the part of an allowance that is derived from employer contributions.</text> </level> <level label="gg"> <text>“Pension reserve” means the present value of a pension, computed on the basis of actuarial assumptions adopted by the Board of Trustees.</text> </level> <level label="hh"> <level label="1"> <text>“Person” means an individual, receiver, trustee, guardian, personal representative, fiduciary, or representative of any kind and any partnership, firm, association, corporation, or other entity.</text> </level> <level label="2"> <text>Unless expressly provided otherwise, “person” does not include a governmental entity or a unit or instrumentality of a governmental entity.</text> </level> </level> <level label="hh–1"> <text>“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.</text> </level> <level label="ii"> <text>“Regular interest” means interest at the rate payable on accumulated contributions as provided under this Division II for each State system.</text> </level> <level label="jj"> <text>“Retiree” means an individual who:</text> <level label="1"> <text>has separated from employment with a participating employer; and</text> </level> <level label="2"> <text>receives a retirement allowance under this Division II.</text> </level> </level> <level label="kk"> <text>“Retirement” means the grant of a retirement allowance under this Division II after separation from employment with a participating employer.</text> </level> <level label="ll"> <level label="1"> <text>“Retirement allowance” means an allowance that is payable at the time of separation from employment with a participating employer.</text> </level> <level label="2"> <text>“Retirement allowance” includes:</text> <level label="i"> <text>a service retirement allowance; and</text> </level> <level label="ii"> <text>a disability retirement allowance.</text> </level> </level> <level label="3"> <text>“Retirement allowance” does not include a vested allowance.</text> </level> </level> <level label="mm"> <text>“Several systems” means the State systems specified in § 21–102 of this article.</text> </level> <level label="nn"> <text>“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:</text> <level label="1"> <text>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</text> </level> <level label="2"> <text>rounded to the next lower multiple of $100.</text> </level> </level> <level label="oo"> <text>“State Police Retirement System” means the State Police Retirement System of the State of Maryland.</text> </level> <level label="pp"> <text>“State system” means a retirement or pension system that is included in the State Retirement and Pension System under § 21–102 of this article.</text> </level> <level label="qq"> <text>“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.</text> </level> <level label="rr"> <text>“Teachers’ Pension System” means the Teachers’ Pension System of the State of Maryland.</text> </level> <level label="ss"> <text>“Teachers’ Retirement System” means the Teachers’ Retirement System of the State of Maryland.</text> </level> <level label="tt"> <text>“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.</text> </level> </section> <section article="gsp" article_name="State Personnel and Pensions" number="20-201" title_number="20" title_name="Definitions and General Provisions" subtitle_number="2" subtitle_name="General Provisions"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>Title 21, Subtitle 4 and Titles 22 through 31 of this article do not apply to the Legislative Pension Plan.</text> </level> </section> <section article="gsp" article_name="State Personnel and Pensions" number="20-202" title_number="20" title_name="Definitions and General Provisions" subtitle_number="2" subtitle_name="General Provisions"> <text>An actuarial equivalent shall be an equivalent amount based on actuarial assumptions adopted by the Board of Trustees.</text> </section> <section article="gsp" article_name="State Personnel and Pensions" number="20-203" title_number="20" title_name="Definitions and General Provisions" subtitle_number="2" subtitle_name="General Provisions"> <text>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.</text> </section> <section article="gsp" article_name="State Personnel and Pensions" number="20-204" title_number="20" title_name="Definitions and General Provisions" subtitle_number="2" subtitle_name="General Provisions"> <level label="a"> <level label="1"> <text>This subsection applies only to an individual who is a member of:</text> <level label="i"> <text>the Employees’ Retirement System; or</text> </level> <level label="ii"> <text>the Teachers’ Retirement System.</text> </level> </level> <level label="2"> <text>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:</text> <level label="i"> <text>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</text> </level> <level label="ii"> <text>the member’s total period of employment, if the member was employed less than 3 years as a member.</text> </level> </level> <level label="3"> <text>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.</text> </level> <level label="4"> <text>A salary increase may not be considered an extraordinary salary increase under paragraph (3) of this subsection if the salary increase is:</text> <level label="i"> <text>because of a member’s promotion; or</text> </level> <level label="ii"> <text>subject to paragraph (5) of this subsection, related to a review and adjustment to the compensation for a position classification to:</text> <level label="1"> <text>address inequities in compensation among employees in the same position classification; or</text> </level> <level label="2"> <text>increase the compensation for the position classification to be more consistent with market compensation for the position.</text> </level> </level> </level> <level label="5"> <level label="i"> <text>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:</text> <level label="1"> <text>is completed by the member’s employer; and</text> </level> <level label="2"> <text>certifies that the member received a salary increase in accordance with paragraph (4)(ii) of this subsection.</text> </level> </level> <level label="ii"> <text>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.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>This subsection applies only to an individual who on or before June 30, 2011, is a member of:</text> <level label="i"> <text>the Correctional Officers’ Retirement System; or</text> </level> <level label="ii"> <text>the State Police Retirement System.</text> </level> </level> <level label="2"> <text>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:</text> <level label="i"> <text>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</text> </level> <level label="ii"> <text>the member’s total period of employment, if the member was employed less than 3 years as a member.</text> </level> </level> <level label="3"> <level label="i"> <text>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.</text> </level> <level label="ii"> <level label="1"> <text>This subparagraph applies only to a member of the State Police Retirement System.</text> </level> <level label="2"> <text>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.</text> </level> </level> </level> <level label="4"> <text>A salary increase may not be considered an extraordinary salary increase under paragraph (3)(i) of this subsection if the salary increase is:</text> <level label="i"> <text>because of a member’s promotion; or</text> </level> <level label="ii"> <text>subject to paragraph (5) of this subsection, related to a review and adjustment to the compensation for a position classification to:</text> <level label="1"> <text>address inequities in compensation among employees in the same position classification; or</text> </level> <level label="2"> <text>increase the compensation for the position classification to be more consistent with market compensation for the position.</text> </level> </level> </level> <level label="5"> <level label="i"> <text>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:</text> <level label="1"> <text>is completed by the member’s employer; and</text> </level> <level label="2"> <text>certifies that the member received a salary increase in accordance with paragraph (4)(ii) of this subsection.</text> </level> </level> <level label="ii"> <text>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.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>This subsection applies only to an individual who on or after July 1, 2011, becomes a member of:</text> <level label="i"> <text>the Correctional Officers’ Retirement System; or</text> </level> <level label="ii"> <text>the State Police Retirement System.</text> </level> </level> <level label="2"> <text>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:</text> <level label="i"> <text>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</text> </level> <level label="ii"> <text>the member’s total period of employment, if the member was employed less than 5 years as a member.</text> </level> </level> <level label="3"> <level label="i"> <text>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.</text> </level> <level label="ii"> <level label="1"> <text>This subparagraph applies only to a member of the State Police Retirement System.</text> </level> <level label="2"> <text>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.</text> </level> </level> </level> <level label="4"> <text>A salary increase may not be considered an extraordinary salary increase under paragraph (3)(i) of this subsection if the salary increase is:</text> <level label="i"> <text>because of a member’s promotion; or</text> </level> <level label="ii"> <text>subject to paragraph (5) of this subsection, related to a review and adjustment to the compensation for a position classification to:</text> <level label="1"> <text>address inequities in compensation among employees in the same position classification; or</text> </level> <level label="2"> <text>increase the compensation for the position classification to be more consistent with market compensation for the position.</text> </level> </level> </level> <level label="5"> <level label="i"> <text>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:</text> <level label="1"> <text>is completed by the member’s employer; and</text> </level> <level label="2"> <text>certifies that the member received a salary increase in accordance with paragraph (4)(ii) of this subsection.</text> </level> </level> <level label="ii"> <text>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.</text> </level> </level> </level> </section> <section article="gsp" article_name="State Personnel and Pensions" number="20-205" title_number="20" title_name="Definitions and General Provisions" subtitle_number="2" subtitle_name="General Provisions"> <level label="a"> <text>This section applies only to an individual who on or before June 30, 2011, is a member of:</text> <level label="1"> <text>the Employees’ Pension System;</text> </level> <level label="2"> <text>the Local Fire and Police System;</text> </level> <level label="3"> <text>the Law Enforcement Officers’ Pension System; or</text> </level> <level label="4"> <text>the Teachers’ Pension System.</text> </level> </level> <level label="b"> <level label="1"> <text>In this subsection, “break in service” means a period of employment in which the member’s employer did not:</text> <level label="i"> <text>deduct the member contributions from the compensation of the member; or</text> </level> <level label="ii"> <text>report the hours worked by the member.</text> </level> </level> <level label="2"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>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:</text> <level label="1"> <text>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</text> </level> <level label="2"> <text>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.</text> </level> </level> </level> </level> <level label="c"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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:</text> <level label="i"> <text>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</text> </level> <level label="ii"> <text>shall substitute an equal number of months immediately preceding that period.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>A member’s earnable compensation shall be adjusted to a full-time basis for any period included in the computation of average final compensation.</text> </level> </level> <level label="e"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>A salary increase may not be considered an extraordinary salary increase under paragraph (1) of this subsection if the salary increase is:</text> <level label="i"> <text>because of a member’s promotion; or</text> </level> <level label="ii"> <text>subject to paragraph (3) of this subsection, related to a review and adjustment to the compensation for a position classification to:</text> <level label="1"> <text>address inequities in compensation among employees in the same position classification; or</text> </level> <level label="2"> <text>increase the compensation for the position classification to be more consistent with market compensation for the position.</text> </level> </level> </level> <level label="3"> <level label="i"> <text>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:</text> <level label="1"> <text>is completed by the member’s employer; and</text> </level> <level label="2"> <text>certifies that the member received a salary increase in accordance with paragraph (2)(ii) of this subsection.</text> </level> </level> <level label="ii"> <text>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.</text> </level> </level> </level> </section> <section article="gsp" article_name="State Personnel and Pensions" number="20-205.1" title_number="20" title_name="Definitions and General Provisions" subtitle_number="2" subtitle_name="General Provisions"> <level label="a"> <text>This section applies only to an individual who on or after July 1, 2011, becomes a member of:</text> <level label="1"> <text>the Employees’ Pension System;</text> </level> <level label="2"> <text>the Law Enforcement Officers’ Pension System; or</text> </level> <level label="3"> <text>the Teachers’ Pension System.</text> </level> </level> <level label="b"> <level label="1"> <text>In this subsection, “break in service” means a period of employment in which the member’s employer did not:</text> <level label="i"> <text>deduct the member contributions from the compensation of the member; or</text> </level> <level label="ii"> <text>report the hours worked by the member.</text> </level> </level> <level label="2"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>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:</text> <level label="1"> <text>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</text> </level> <level label="2"> <text>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.</text> </level> </level> </level> </level> <level label="c"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>A member’s earnable compensation shall be adjusted to a full–time basis for any period included in the computation of average final compensation.</text> </level> </level> <level label="d"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>A salary increase may not be considered an extraordinary salary increase under paragraph (1) of this subsection if the salary increase is:</text> <level label="i"> <text>because of a member’s promotion; or</text> </level> <level label="ii"> <text>subject to paragraph (3) of this subsection, related to a review and adjustment to the compensation for a position classification to:</text> <level label="1"> <text>address inequities in compensation among employees in the same position classification; or</text> </level> <level label="2"> <text>increase the compensation for the position classification to be more consistent with market compensation for the position.</text> </level> </level> </level> <level label="3"> <level label="i"> <text>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:</text> <level label="1"> <text>is completed by the member’s employer; and</text> </level> <level label="2"> <text>certifies that the member received a salary increase in accordance with paragraph (2)(ii) of this subsection.</text> </level> </level> <level label="ii"> <text>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.</text> </level> </level> </level> </section> <section article="gsp" article_name="State Personnel and Pensions" number="20-206" title_number="20" title_name="Definitions and General Provisions" subtitle_number="2" subtitle_name="General Provisions"> <level label="a"> <text>In this section, “unused sick leave” means sick leave credit that:</text> <level label="1"> <text>has not been used before retirement; and</text> </level> <level label="2"> <text>was available to the member to be used as sick leave during employment.</text> </level> </level> <level label="b"> <text>This section does not apply to:</text> <level label="1"> <text>the Judges’ Retirement System; or</text> </level> <level label="2"> <text>the Legislative Pension Plan.</text> </level> </level> <level label="c"> <text>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.</text> </level> <level label="d"> <level label="1"> <text>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.</text> </level> <level label="2"> <level label="i"> <text>This subsection does not apply to the Local Fire and Police System or the Law Enforcement Officers’ Pension System.</text> </level> <level label="ii"> <text>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.</text> </level> </level> </level> <level label="e"> <level label="1"> <text>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.</text> </level> <level label="2"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>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.</text> </level> </level> <level label="3"> <text>For the purposes of this section:</text> <level label="i"> <text>a member may not accumulate more than 15 days of sick leave per year;</text> </level> <level label="ii"> <text>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</text> </level> <level label="iii"> <text>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:</text> <level label="1"> <text>the member’s number of years of creditable service, not including credit for unused sick leave, multiplied by 15; or</text> </level> <level label="2"> <text>the member’s cumulative number of unused sick leave days reported by the participating employer.</text> </level> </level> </level> </level> <level label="f"> <level label="1"> <text>This subsection applies to a member of the Employees’ Pension System who:</text> <level label="i"> <text>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</text> </level> <level label="ii"> <text>did not transfer service credit from the Correctional Officers’ Retirement System to the Employees’ Pension System.</text> </level> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>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:</text> <level label="i"> <text>the numerator of which is the creditable service earned in the State system, not including the creditable service for unused sick leave; and</text> </level> <level label="ii"> <text>the denominator of which is the total creditable service earned in both State systems, not including the creditable service for unused sick leave.</text> </level> </level> </level> <level label="g"> <level label="1"> <text>This subsection applies to a member of the Correctional Officers’ Retirement System who:</text> <level label="i"> <text>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;</text> </level> <level label="ii"> <text>did not transfer service credit from the Employees’ Pension System or the Employees’ Retirement System to the Correctional Officers’ Retirement System; and</text> </level> <level label="iii"> <level label="1"> <text>retires under § 25–401 of this article, and receives a vested benefit from the Employees’ Pension System or the Employees’ Retirement System;</text> </level> <level label="2"> <text>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</text> </level> <level label="3"> <text>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.</text> </level> </level> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <level label="i"> <text>This paragraph applies to an individual described under paragraph (1)(iii)1 or 2 of this subsection.</text> </level> <level label="ii"> <text>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:</text> <level label="1"> <text>the numerator of which is the creditable service earned in the State system, not including the creditable service for unused sick leave; and</text> </level> <level label="2"> <text>the denominator of which is the total creditable service earned in both State systems, not including the creditable service for unused sick leave.</text> </level> </level> </level> <level label="4"> <level label="i"> <text>This paragraph applies to an individual described under paragraph (1)(iii)3 of this subsection.</text> </level> <level label="ii"> <text>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:</text> <level label="1"> <text>on or after July 1, 2016, in a position included under § 25–201(a)(7) of this article;</text> </level> <level label="2"> <text>on or after July 1, 2017, in a position included under § 25–201(a)(8) or (9) of this article;</text> </level> <level label="3"> <text>on or after July 1, 2018, in a position included under § 25–201(a)(10) or (11) of this article;</text> </level> <level label="4"> <text>on or after July 1, 2022, in a position included under § 25–201(a)(12) of this article;</text> </level> <level label="5"> <text>on or after July 1, 2024, in a position included under § 25–201(a)(13) of this article;</text> </level> <level label="6"> <text>on or after July 1, 2025, in a position included under § 25–201(a)(14) of this article; or</text> </level> <level label="7"> <text>on or after July 1, 2026, in a position included under § 25–201(a)(15) of this article.</text> </level> </level> </level> </level> <level label="h"> <text>Credit for unused sick leave may not be used under this section:</text> <level label="1"> <text>to determine years of eligibility service required for a benefit under this Division II; or</text> </level> <level label="2"> <text>to compute average final compensation.</text> </level> </level> <level label="i"> <text>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.</text> </level> </section> <section article="gsp" article_name="State Personnel and Pensions" number="20-207" title_number="20" title_name="Definitions and General Provisions" subtitle_number="2" subtitle_name="General Provisions"> <level label="a"> <text>This section does not apply to an individual who is a member of a State system on or before June 30, 1996.</text> </level> <level label="b"> <text>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.</text> </level> </section> <section article="gsp" article_name="State Personnel and Pensions" number="20-208" title_number="20" title_name="Definitions and General Provisions" subtitle_number="2" subtitle_name="General Provisions"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>Subject to subsections (c) and (d) of this section, the Agency shall reduce:</text> <level label="1"> <text>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</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="c"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>The dollar limit for a calendar year applies to a State system’s fiscal year ending within that calendar year.</text> </level> </level> <level label="d"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>The postretirement adjustment may not exceed a participant’s basic allowance as increased by any postretirement adjustments allowable under the applicable State system.</text> </level> </level> <level label="e"> <text>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.</text> </level> <level label="f"> <level label="1"> <text>This subsection does not apply to an individual who is a member of a State system on or before June 30, 1999.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="g"> <text>A member may purchase prior service credit using funds from any fund source that is not specifically prohibited by the Internal Revenue Code.</text> </level> </section> <section article="gsp" article_name="State Personnel and Pensions" number="20-209" title_number="20" title_name="Definitions and General Provisions" subtitle_number="2" subtitle_name="General Provisions"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>Any forfeiture of benefits by a member shall be used to reduce employer contributions.</text> </level> </section>