# State Personnel and Pensions (GSP)

## Title 21. State Retirement and Pension System

### Subtitle 4. Optional Forms of Allowance

#### Section 21-402

(a) Each optional form of allowance shall be the actuarial equivalent of the basic allowance under the State system of a member.

(b)

  (1) Subject to paragraph (2) of this subsection, for an optional form of allowance providing for payment to a designated beneficiary for life, the designated beneficiary must be an individual.

  (2) If the designated beneficiary is a minor or an individual with a disability, the allowance may be paid into a trust for the benefit of the individual.

  (3) A member who elects to receive a reduced optional allowance under Sec. 21-403 of this subtitle may designate an individual other than the member's child as the member's designated beneficiary.

(c)

  (1) This subsection applies to a member who selects an optional form of allowance as provided in Sec. 21-403(b) or (e) of this subtitle.

  (2) If a member designates a beneficiary other than the member's spouse or disabled child as defined under Sec. 72(m)(7) of the Internal Revenue Code, a member may not designate a beneficiary who is more than 10 years younger than the member.

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Md. Code Ann., State Pers. & Pens. (as displayed at mgaleg.maryland.gov, October 16, 2026)