A member may retire with a normal service retirement allowance if:
on or before the date of retirement, the member:
has at least 30 years of eligibility service; or
is at least 60 years old; and
the member completes and submits a written application to the Board of Trustees stating the date when the member desires to retire.
Except as provided in paragraph (2) of this subsection, on retirement under this section, a member is entitled to receive a normal service retirement allowance that equals one fifty–fifth of the member’s average final compensation multiplied by the number of years of creditable service.
On retirement under this section, if a member’s annuity is greater than the member’s normal service retirement allowance calculated under paragraph (1) of this subsection, the member’s normal service retirement allowance shall equal the member’s annuity.
A member may retire with an early service retirement allowance if:
on or before the date of retirement, the member:
has at least 25 but less than 30 years of eligibility service; and
is less than 60 years old; and
the member completes and submits a written application to the Board of Trustees stating the date when the member desires to retire.
On retirement under this section, a member is entitled to an early service retirement allowance that equals one fifty-fifth of the member's average final compensation multiplied by the number of years of creditable service reduced by 0.5% for each month by which the member's date of retirement precedes the earlier of:
the date the member will be 60 years old; or
the date the member would have completed 30 years of eligibility service had the member continued employment.
This section applies to a former member who:
was eligible for a retirement allowance under § 22-401 or § 22-402 of this subtitle when the former member's membership terminated;
did not submit a written application under § 22-401 or § 22-402 of this subtitle before membership terminated; and
has not withdrawn accumulated contributions.
A former member described in subsection (a) of this section may retire with a retirement allowance under § 22-401 or § 22-402 of this subtitle on the first day of the month after the Board of Trustees receives a written application for retirement from the former member.
A former member who retires under this section may not receive benefits for the period before the former member submitted a completed application for retirement to the Board of Trustees.
In this section the following words have the meanings indicated.
“Appointed official” means an individual appointed to a public office of the State who meets the legal criteria for an appointed official as determined by the Attorney General.
“Unclassified service of the State” means the unclassified service in the State Personnel Management System or a comparable position in an independent personnel system of a participating employer.
The Board of Trustees shall pay a member of the Employees’ Retirement System who qualifies under subsection (c) of this section a pension equal to an ordinary disability pension, regardless of age, if the member:
has at least 16 years of creditable service; and
elects to have the member’s accumulated contributions paid as an annuity of equivalent actuarial value instead of withdrawing the accumulated contributions.
A member qualifies for a pension under subsection (b) of this section if the member:
is an elected or appointed official of the State at the time of application for retirement; and
was initially an elected or appointed official of the State before July 22, 1981;
is an elected or appointed official of the State when separating from employment;
was initially an elected or appointed official of the State during the period from July 22, 1981, through June 30, 1982, both inclusive; and
separated from employment involuntarily as certified by the Secretary of Budget and Management;
was promoted to a position in the unclassified service of the State on or before June 30, 1982;
has been in the unclassified service or its equivalent in the State continuously from June 30, 1982, until separating from employment; and
separated from employment involuntarily as certified by the Secretary of Budget and Management; or
is a deputy clerk of the court at the time of application for retirement; and
was initially a deputy clerk of the court before July 22, 1981.
This subsection applies to a retiree who:
retires as an elected or appointed official under this section; and
is appointed or elected to an office for which the State pays compensation.
On the appointment or election of a retiree described in paragraph (1) of this subsection:
the retiree's retirement allowance shall stop;
the retiree may rejoin the Employees' Retirement System;
the retiree shall make member contributions at the same rate the retiree paid before retirement; and
the Board of Trustees shall restore any creditable service or eligibility service to the retiree’s credit at the time of retirement.
Subject to paragraph (4) of this subsection, on subsequent retirement of a retiree described in paragraph (1) of this subsection, the Board of Trustees shall credit the retiree with all of the retiree’s creditable service and eligibility service as a member.
The pension, on subsequent retirement, may not exceed the sum of:
the pension the retiree was receiving during the previous retirement; and
the pension that has accrued on account of employment as a member after the previous retirement.
Subject to subsection (d) of this section, if a Governor serves for at least:
one full term, the Governor is entitled to receive a retirement allowance equal to one–third of the annual salary received by the current Governor in office; or
two full terms, the Governor is entitled to receive a retirement allowance equal to one–half of the annual salary received by the current Governor in office.
The Board of Trustees shall suspend a retirement allowance received under this section during any period when the former Governor is employed by a unit of State government.
Except as provided in subsection (d) of this section, a Governor may not receive a retirement allowance under this section until the Governor is at least 62 years old.
A Governor who leaves office because of physical or mental disability, under Article II, Section 6(c) of the Maryland Constitution, shall immediately receive a disability retirement allowance equal to the amount the Governor would have received had the Governor completed the current term and become 62 years old.
If the physical or mental disability ends before the former Governor becomes 62 years old, the Board of Trustees shall stop the disability retirement allowance, but the former Governor shall receive the normal retirement allowance at age 62 if otherwise qualified.
On the death of a former Governor, the surviving spouse of the former Governor shall receive an allowance that is equal to one–half of the former Governor’s retirement allowance.
On the death of a Governor while in office, the deceased Governor’s surviving spouse shall receive one–half of the retirement allowance that the deceased Governor would have been entitled to receive had the deceased Governor completed the current term and become 62 years old.
In this section, “area of critical shortage” means an academic field identified by the State Department of Education in accordance with the provisions of § 18–703(g)(1) of the Education Article as having projected employment vacancies that substantially exceed projected qualified graduates.
Except as provided in subsection (d) of this section, an individual who is receiving a service retirement allowance or vested allowance may accept employment with a participating employer on a permanent, temporary, or contractual basis, if:
the individual immediately notifies the Board of Trustees of the individual’s intention to accept this employment; and
the individual specifies the compensation to be received.
Except as provided in § 22–407 of this subtitle, the Board of Trustees shall reduce the allowance of an individual who accepts employment as provided under subsection (b) of this section if:
the individual’s current employer is a participating employer other than the State and is the same participating employer that employed the individual at the time of the individual’s last separation from employment with a participating employer before the individual commenced receiving a service retirement allowance or vested allowance;
the individual’s current employer is any unit of State government; and
the individual’s employer at the time of the individual’s last separation from employment with the State before the individual commenced receiving a service retirement allowance or vested allowance was also a unit of State government; or
the individual becomes reemployed within 12 months of receiving an early service retirement allowance under § 22–402 of this subtitle.
Except as provided in subparagraph (ii) of this paragraph and subject to subparagraphs (iii) and (iv) of this paragraph, the reduction required under paragraph (1) of this subsection shall equal:
the amount by which the sum of the individual’s initial annual basic allowance and the individual’s annual compensation exceeds the average final compensation used to compute the basic allowance; or
for a retiree who retired under the Workforce Reduction Act (Chapter 353 of the Acts of 1996), the amount by which the sum of the retiree’s annual compensation and the retiree’s annual basic allowance at the time of retirement, including the incentive provided by the Workforce Reduction Act, exceeds the average final compensation used to compute the basic allowance.
This subparagraph applies to a retiree of the Teachers’ Retirement System who as faculty received a 10–month salary and retired directly from:
the University System of Maryland;
Morgan State University;
St. Mary’s College; or
a community college established or operating under Title 16 of the Education Article.
The reduction required under paragraph (1) of this subsection shall equal the amount by which the sum of the retiree’s initial annual basic allowance and the retiree’s annual compensation, as calculated in subsubparagraph 3 of this subparagraph, exceeds the average final compensation of the retiree used to compute the basic allowance.
The calculation of the retiree’s annual compensation in subsubparagraph 2 of this subparagraph does not include any of the following earnings the retiree received during the previous calendar year from the employer with whom the retiree is reemployed:
bonuses;
overtime;
summer school salaries;
adult education salary;
additional temporary payments from special research projects;
honorariums; and
vehicle stipends.
Any reduction taken under this subsection may not reduce the retiree’s allowance to an amount less than the required deduction for:
if the retiree retired from any unit of State government, the retiree’s monthly State–approved medical insurance premiums; or
if the retiree retired from a participating employer other than the State, the approved monthly medical insurance premiums required by the participating employer that employed the retiree at the time of the retiree’s retirement.
The Board of Trustees shall recover from the retiree any difference between the reduction required under subparagraph (i) of this paragraph and the reduction taken under subparagraph (iii) of this paragraph.
A reduction of an early service retirement allowance under paragraph (1)(iii) of this subsection shall be applied only until the individual has received an allowance for 12 months.
Except for an individual whose allowance is subject to a reduction as provided under paragraphs (1)(iii) and (3) of this subsection, the reduction of an allowance under this subsection does not apply to:
an individual who has been retired for 5 years, beginning on January 1 after the date the individual retires;
an individual whose average final compensation was less than the minimum annual salary on the standard State pay scale as of January 1 of the preceding calendar year and who is reemployed on a permanent, temporary, or contractual basis;
an individual who is serving in an elected position as an official of a participating governmental unit or as a constitutional officer for a county that is a participating governmental unit;
a retiree of the Teachers’ Retirement System:
who retired and was reemployed by a participating employer other than the State on or before September 30, 1994; and
whose employment compensation does not derive, in whole or in part, from State funds;
a retiree of the Teachers’ Retirement System who:
is or has been certified to teach in the State;
has verification of satisfactory or better performance in the last assignment prior to retirement;
based on the retired teacher’s qualifications, has been appointed in accordance with § 4–103 of the Education Article; and
receives verification of satisfactory or better performance each year the teacher is employed under paragraph (5) of this subsection;
a retiree of the Teachers’ Retirement System who:
was employed as a principal within 5 years of retirement; or
was employed as a principal not more than 10 years before retirement and was employed in a position supervising principals in the retiree’s last assignment prior to retirement;
has verification of satisfactory performance for each year as a principal and, if applicable, in a position supervising principals prior to retirement;
based on the retiree’s qualifications, has been hired as a principal; and
receives verification of satisfactory performance each year the retiree is employed as a principal under paragraph (6) of this subsection;
a former employee of the Domestic Relations Division of Anne Arundel County Circuit Court who transfers into the State Employees’ Personnel System under § 2–510 of the Courts Article;
a retiree of the Employees’ Retirement System who is reemployed on a contractual basis by the Maryland Department of Health as a health care practitioner, as defined in § 1–301 of the Health Occupations Article, in:
a State residential center as defined in § 7–101 of the Health – General Article;
a chronic disease center subject to Title 19, Subtitle 5 of the Health – General Article;
a State facility as defined in § 10–101 of the Health – General Article; or
a local health department subject to Title 3, Subtitle 2 of the Health – General Article;
a retiree of the Employees’ Retirement System and the Judges’ Retirement System who is temporarily assigned to sit in a court of this State under the authority of Article IV, § 3A of the Maryland Constitution;
a retiree of the Employees’ Retirement System who is reemployed on a contractual basis for not more than 4 years as a parole and probation employee in a position authorized under Title 6, Subtitle 1 of the Correctional Services Article; or
a retiree of the Teachers’ Retirement System who is reemployed by a local school system or the Maryland School for the Deaf and is rehired in accordance with paragraph (8) of this subsection.
An individual who is rehired under paragraph (4)(v) of this subsection shall be employed as a classroom teacher, substitute classroom teacher, or teacher mentor in:
a public school that:
is a school in need of improvement as defined under the federal Elementary and Secondary Education Act and as implemented by the State Department of Education;
is receiving funds under Title 1 of the federal Elementary and Secondary Education Act;
has more than 50% of the students attending that school who are eligible for free and reduced–price meals established by the United States Department of Agriculture; or
provides an alternative education program for adjudicated youths or students who have been expelled, suspended, or identified for suspension or expulsion from a public school; or
the Maryland School for the Deaf.
An individual rehired at a school described under subparagraph (i) of this paragraph shall teach:
in an area of critical shortage;
a special education class for students with special needs; or
a class for students with limited English proficiency.
An individual who is rehired under paragraph (4)(vi) of this subsection shall be employed as a principal at:
a public school that:
is a school in need of improvement as defined under the federal Elementary and Secondary Education Act and as implemented by the State Department of Education;
is receiving funds under Title 1 of the federal Elementary and Secondary Education Act;
has more than 50% of the students attending that school who are eligible for free and reduced–price meals established by the United States Department of Agriculture; or
provides an alternative education program for adjudicated youths or students who have been expelled, suspended, or identified for suspension or expulsion from a public school; or
the Maryland School for the Deaf.
An individual who is reemployed under paragraph (4)(v) or (vi) of this subsection at a school described under paragraph (5) or (6) of this subsection may not continue that reemployment for more than 5 consecutive years.
In addition to any individuals rehired in accordance with paragraph (5) of this subsection, and subject to subparagraph (ii) of this paragraph, each superintendent of a local school system and the superintendent of the Maryland School for the Deaf may rehire a maximum of five individuals who are retirees of the Teachers’ Retirement System in any position in the superintendent’s local school system or the Maryland School for the Deaf.
The number of individuals rehired under subparagraph (i) of this paragraph for each local school system or the Maryland School for the Deaf may not exceed a total of five retirees at any one time when added to the number of individuals rehired under § 23–407(c)(8)(i) of this article for that same local school system or the Maryland School for the Deaf.
The superintendent of the local school system or the superintendent of the Maryland School for the Deaf rehiring an individual under paragraph (4)(v) or (vi) of this subsection shall:
approve the rehiring of that individual; and
determine the school where the individual is to be reemployed.
Within 30 days after rehiring an individual under paragraph (4)(v) or (vi) of this subsection, the superintendent of a local school system or the superintendent of the Maryland School for the Deaf shall complete and file with the Board of Trustees and the State Department of Education a form provided by the Board of Trustees that certifies that the individual rehired by the local school system or the Maryland School for the Deaf under paragraph (4)(v) or (vi) of this subsection:
satisfied the criteria provided in paragraph (4)(v) or (vi) of this subsection;
was reemployed at a school described under paragraph (5)(i) or (6) of this subsection; and
if rehired under paragraph (4)(v) of this subsection, was teaching in an area specified in paragraph (5)(ii) of this subsection.
Within 30 days after rehiring an individual under paragraph (8) of this subsection, the superintendent of a local school system or the superintendent of the Maryland School for the Deaf shall complete and file with the Board of Trustees and the State Department of Education a form provided by the Board of Trustees that certifies that the individual rehired by the local school system or the Maryland School for the Deaf under paragraph (8) of this subsection satisfied the criteria provided in paragraph (8) of this subsection.
On or before April 1 of each year, the Board of Trustees and the State Department of Education shall jointly review any forms filed by a superintendent of a local school system or the superintendent of the Maryland School for the Deaf under subparagraph (ii) of this paragraph during the previous calendar year.
If the Board of Trustees and the State Department of Education agree that a superintendent of a local school system or the Maryland School for the Deaf has rehired an individual that does not satisfy the criteria provided in paragraphs (4)(v) and (5), paragraphs (4)(vi) and (6), or paragraph (8) of this subsection:
on or before July 1 of the year of the finding, the Board of Trustees shall notify the superintendent of the local school system or the Maryland School for the Deaf of this individual; and
the local school system or the Maryland School for the Deaf shall reimburse the Board of Trustees the amount equal to the reduction to the individual’s retirement allowance that would have been made in paragraph (2) of this subsection.
If a superintendent of a local school system or the superintendent of the Maryland School for the Deaf rehires an individual that satisfies the criteria provided in paragraphs (4)(v) or (vi) and (5), (6), or (8) of this subsection and the Board of Trustees and the State Department of Education do not receive certification from the superintendent in the time required under subparagraph (ii) of this paragraph:
on or before July 1 of the year of the finding, the Board of Trustees shall notify the superintendent of the local school system or the superintendent of the Maryland School for the Deaf of this individual; and
the local school system or the Maryland School for the Deaf shall pay the Board of Trustees $50 for each month the superintendent fails to submit the certification under subparagraph (ii) of this paragraph in the time required, not to exceed a total of $1,000 for each individual whose certification is not submitted in the time required.
The local school system or the Maryland School for the Deaf shall make the reimbursement on or before December 31 of the year the local school system or the Maryland School for the Deaf receives notice from the Board of Trustees under subparagraph (iv)2A of this paragraph.
On or before August 1 of each year, the local superintendent and the superintendent of the Maryland School for the Deaf shall report to the State Department of Education for the previous school year:
the number of individuals rehired under paragraph (4)(v) or (vi) or (8) of this subsection;
the school and school system where each individual was rehired; and
whether the school:
was a school in need of improvement as defined under the federal Elementary and Secondary Education Act and as implemented by the State Department of Education;
was receiving funds under Title 1 of the federal Elementary and Secondary Education Act;
has more than 50% of the students attending that school who are eligible for free and reduced–price meals established by the United States Department of Agriculture; or
provided an alternative education program for adjudicated youths or students who have been expelled, suspended, or identified for suspension or expulsion from a public school;
the original date of rehire for each individual;
the subject matter taught by each individual;
if hired under paragraph (8) of this subsection, the position title of each individual;
the annual salary of each individual; and
the percentage of student population composed of children in poverty that is required to be present in a school in that school system in order for that school to qualify as a Title 1 school.
An individual who is receiving a service retirement allowance under this title may not be employed within 45 days of the date the individual retired, on a permanent, temporary, or contractual basis, by:
the State or other participating employer; or
a withdrawn participating governmental unit, if the retiree was an employee of the withdrawn participating governmental unit while the withdrawn governmental unit was a participating employer.
An individual who is receiving a service retirement allowance or a vested allowance and who is reemployed by a participating employer may not receive creditable service or eligibility service during the period of reemployment.
The individual’s compensation during the period of reemployment may not be subject to the employer pickup provisions of § 21–303 of this article or any reduction or deduction as a member contribution for pension or retirement purposes.
The State Retirement Agency shall institute appropriate reporting procedures with the affected payroll systems to ensure compliance with this section.
Immediately on the employment of any individual receiving a service retirement allowance or a vested allowance, a participating employer shall notify the State Retirement Agency of the type of employment and the anticipated earnings of the individual.
At least once each year, in a format specified by the State Retirement Agency, each participating employer shall provide the State Retirement Agency with a list of all employees included on any payroll of the employer, the Social Security numbers of the employees, and their earnings for that year.
The State Department of Education shall adopt regulations to carry out this section.
At the request of the State Retirement Agency:
a participating employer shall certify to the State Retirement Agency that it is not the same participating employer that employed an individual at the time of the individual’s last separation from employment before the individual commenced receiving a service retirement allowance or a vested allowance; or
a unit of State government shall certify to the State Retirement Agency that the individual was not employed by any unit of State government at the time of the individual’s last separation from employment before the individual commenced receiving a service retirement allowance or a vested allowance.
The Maryland Department of Health shall notify the State Retirement Agency of any retirees who qualify under subsection (c)(4)(viii) of this section.
On or before September 1 of each year, the Secretary of Health shall submit a report in accordance with § 2–1257 of the State Government Article to the Joint Committee on Pensions that provides:
the number of rehired retirees under subsection (c)(4)(viii) of this section;
the annual salary of each rehired retiree at the time of retirement and the current annual salary of each rehired retiree;
the number of health care practitioners hired who are not retirees; and
the annual salary of each health care practitioner who is hired.
On or before October 1 of each year, the State Superintendent of Schools shall submit a report for the previous school year, to the Joint Committee on Pensions, in accordance with § 2–1257 of the State Government Article, that provides:
the number of rehired retirees under subsection (c)(4)(v) and (vi) and (8) of this section;
the school and school system where each retiree was rehired; and
whether the school:
was not making adequate yearly progress or was a school in need of improvement as defined under the federal Elementary and Secondary Education Act and as implemented by the State Department of Education;
was receiving funds under Title 1 of the federal Elementary and Secondary Education Act;
has more than 50% of the students attending that school who are eligible for free and reduced–price meals established by the United States Department of Agriculture; or
provided an alternative education program for adjudicated youths or students who have been expelled, suspended, or identified for suspension or expulsion from a public school;
a copy of the annual staffing report generated by the State Superintendent of Schools in accordance with § 18–703(g)(1) of the Education Article certifying areas of critical shortage for the previous school year as evidenced by projected employment vacancies substantially exceeding projected qualified graduates;
the subject matter that each rehired retiree was teaching;
the salary of each rehired retiree;
the total number of years each retiree has been reemployed at the school where the retiree was rehired for the previous school year; and
the percentage of student population composed of children in poverty that is required to be present in a school in that school system in order for that school to qualify as a Title 1 school; and
the number of retirees rehired under subsection (c)(8) of this section.
On or before September 1 of each year, the Secretary of Public Safety and Correctional Services shall submit a report in accordance with § 2–1257 of the State Government Article to the Joint Committee on Pensions that provides:
the number of rehired retirees under subsection (c)(4)(x) of this section;
the annual salary of each rehired retiree at the time of retirement and the current annual salary of each rehired retiree;
the number of parole and probation employees hired who are not retirees; and
the annual salary of each parole and probation employee who is hired.
Notwithstanding § 22-406 of this subtitle and Chapter 703 of the Acts of 1994, if a retiree of the Employees’ Retirement System who had an average final compensation of less than $10,000, retired from an elected position as an official of a participating governmental unit, retired with a service retirement allowance before July 1, 1994, has been reemployed in a permanent position as a State employee and would otherwise have been entitled to be restored to membership in the Employees’ Retirement System except for the enactment of Chapter 703, the Board of Trustees shall, at the option of the retiree:
restore the membership of the reemployed retiree;
stop retirement allowance payments after the last day of the month that membership is restored;
restore previous creditable service and eligibility service to the account of the member; and
on payment of the amounts required under subsection (b) of this section, credit the member with creditable service and eligibility service performed beginning the date of reemployment.
On restoration of membership, the member shall reimburse the employees’ retirement system for the retirement allowance payments made from the date of reemployment and shall pay the amount of member contributions the member would have made from the date of reemployment plus regular interest to the date of payment.
If the member later retires or dies while employed by a participating employer, the Board of Trustees shall reduce the member’s annuity reserve and pension reserve by the amount of payments made to the member during the member’s earlier retirement less any amount that the member reimbursed the Employees’ Retirement System for those payments.
This section applies to an individual who:
is eligible for membership in the Judges’ Retirement System as provided in § 27–201(a) of this article; and
is receiving a service retirement allowance from the Employees’ Retirement System at the time of appointment in item (1) of this subsection; or
has earned a vested allowance from the Employees’ Retirement System; and
begins receiving the vested allowance while serving as a judge described in item (1) of this subsection.
An individual described in subsection (a) of this section may elect to receive service credit in the Judges’ Retirement System.
An individual described in subsection (a) of this section who elects to receive service credit in the Judges’ Retirement System under subsection (b) of this section shall complete and file a form provided by the Board of Trustees directing the Board of Trustees to suspend the individual’s allowance while the individual is receiving service credit in the Judges’ Retirement System.
An individual shall file a form described in paragraph (1) of this subsection with the Board of Trustees:
if the individual is receiving a service retirement allowance from the Employees’ Retirement System prior to serving as a judge, at the time the individual becomes a member of the Judges’ Retirement System; or
if the individual has earned a vested allowance from the Employees’ Retirement System and becomes eligible to receive that allowance after the individual becomes a member of the Judges’ Retirement System, at the time the individual applies to receive the vested allowance.
A temporary suspension under this subsection shall begin on the first day of the month following the month in which the Board of Trustees received the individual’s request to temporarily suspend the allowance.
An individual whose allowance is temporarily suspended under subsection (c) of this section is not subject to a reduction as provided in § 22–406 of this subtitle during the period the individual is serving as a judge.
On receiving satisfactory documentation that the individual is no longer serving as a judge, the Board of Trustees shall reinstate the individual’s allowance with accumulated cost–of–living adjustments from the date the allowance was temporarily suspended.
The individual’s allowance will be reinstated on the first day of the month following the month in which the individual ceased serving as a judge.
If an individual whose allowance is temporarily suspended dies while serving as a judge, the surviving spouse of the individual shall receive:
survivorship benefits as provided in § 27–403 of this article; and
if the surviving spouse is the individual’s designated beneficiary, the survivorship benefits selected by the individual at the time of retirement from the Employees’ Retirement System.
A member may be entitled to benefits under Title 29 of this article other than, or in addition to, the benefits provided under this subtitle.