# State Personnel and Pensions (GSP) ## Title 23. Employees' and Teachers' Pension Systems ### Subtitle 1. General Provisions #### Section 23-101 This title applies only to: (1) the Employees' Pension System; and (2) the Teachers' Pension System. ### Subtitle 2. Membership #### Section 23-201 (a) Except as provided in subsection (b) of this section, Sec.Sec. 23-203 through 23-205 of this subtitle apply only to: (1) a regular employee whose compensation is provided by State appropriation or paid from State funds; (2) an appointed or elected official of the State, including: (i) a clerk of the circuit court; (ii) a register of wills; (iii) a State's Attorney; and (iv) a sheriff; (3) an employee or official of a participating governmental unit who is eligible to participate under Title 31, Subtitle 1 of this article; (4) an employee of the Office of the Sheriff of Baltimore City; (5) an additional employee or agent of the State Racing Commission authorized by Sec. 11-207 of the Business Regulation Article; (6) a permanent employee of the board of supervisors of elections of a county; (7) a full-time magistrate in chancery or in juvenile causes who is appointed on or after July 1, 1989, in any county by the circuit court for that county; (8) an employee of the Maryland Environmental Service who is a member of the Employees' Pension System on June 30, 1993, or transfers from the Employees' Retirement System on or after July 1, 1993; (9) a former Baltimore City jail employee who became an employee of the Baltimore City Detention Center and a member of the Employees' Pension System on July 1, 1991; (10) a nonfaculty employee of the Baltimore City Community College who: (i) is a member of the Employees' Pension System on October 1, 2002; (ii) transfers from the Employees' Retirement System on or after October 1, 2002; (iii) transfers from the Teachers' Pension System in accordance with Sec. 23-202.1 of this subtitle; or (iv) becomes an employee of the Baltimore City Community College on or after October 1, 2002; (11) a court reporter for the Circuit Court for Charles County who is a member of the Employees' Pension System on July 1, 1994, or transfers from the Employees' Retirement System on or after July 1, 1994; (12) a staff employee of the University System of Maryland, Morgan State University, or St. Mary's College who is: (i) a member of the Employees' Pension System on January 1, 1998, or transfers from the Employees' Retirement System on or after January 1, 1998; or (ii) a staff employee of the University System of Maryland, Morgan State University, or St. Mary's College who becomes an employee on or after January 1, 1998; (13) an individual who, on and before the effective date of participation as defined under Sec. 31-101(c) of this article, is: (i) a supportive service employee of the Board of Education of Kent County; (ii) an employee of the Town of Oakland; (iii) an employee of the City of Frostburg; (iv) an employee of the Town of Sykesville; or (v) an employee of the Town of University Park; (14) an employee of the Maryland Automobile Insurance Fund on or after the date that the Maryland Automobile Insurance Fund begins participation in the Employees' Pension System; and (15) the Executive Director of the Alcohol, Tobacco, and Cannabis Commission, if the Executive Director is not a sworn police officer with the powers granted to an officer of the Field Enforcement Division under Sec. 1-313 of the Alcoholic Beverages and Cannabis Article. (b) Sections 23-203 through 23-205 of this subtitle do not apply to: (1) an individual who is or is entitled to be a member of any State system other than the Employees' Pension System; (2) a contractual, emergency, or temporary extra employee; (3) an individual who is employed under a federal public service employment program; (4) an assessor who is a member of a retirement or pension system operated by a political subdivision of the State; (5) an employee of a local board of elections who chooses to stay in a local merit system under Sec. 2-207 of the Election Law Article; (6) a nonclerical or nonprofessional employee of the Baltimore City Community College who: (i) was an employee of the New Community College of Baltimore during the 1989-1990 academic year; (ii) was employed by the New Community College of Baltimore on or before December 31, 1990, as a "Class A" member of the Baltimore City Retirement Plan; and (iii) elected to remain a member of the Baltimore City Retirement Plan; (7) an employee who is not a member of a State system and who accepts a position for which the budgeted hours per fiscal year are less than 500 hours in the first fiscal year of employment; (8) an employee of the Domestic Relations Division of the Anne Arundel County Circuit Court who: (i) was transferred on or after July 1, 2002, into the State Personnel Management System as an employee of the Child Support Administration of the Maryland Department of Human Services; (ii) elected, under Sec. 2-510 of the Courts Article, to remain as a participant in the Anne Arundel County Retirement and Pension System; and (iii) remains as an employee of the Child Support Administration of the Maryland Department of Human Services or an attorney employed to represent the Child Support Administration; (9) a nonfaculty employee of the Baltimore City Community College who is eligible to participate and elects to participate in an optional retirement program under Title 30 of this article; (10) an appointed or elected official who on or after July 1, 2007, is a member of any other State or local retirement or pension system as defined under Title 37 of this article; or (11) the Director of the Department of Social Services in Montgomery County who: (i) was transferred into the State Personnel Management System as an employee of the Social Services Administration of the Maryland Department of Human Services; (ii) elected, under Sec. 3-403.1 of the Human Services Article, to remain as a participant in the Montgomery County Employees' Retirement System; and (iii) remains as an employee of the Social Services Administration of the Maryland Department of Human Services. #### Section 23-202.1 A nonfaculty employee of the Baltimore City Community College who is a member of the Teachers' Pension System on October 1, 2002, may transfer membership to the Employees' Pension System on or before December 31, 2002. #### Section 23-203 Except as provided in Sec. 23-204 of this subtitle, an individual described in Sec. 23-201(a) of this subtitle who becomes an employee of a participating employer on or after January 1, 1980, or who transfers membership from the Employees' Retirement System, is a member of the Employees' Pension System as a condition of employment. #### Section 23-204 (a) (1) Membership in the Employees' Pension System is optional for an individual who is: (i) an official, elected or appointed for a fixed term; (ii) an employee of the Governor's office; (iii) an employee of the Senate or House of Delegates; (iv) a member of the Prince George's County Board of License Commissioners; (v) an employee of Dorchester County who is not and has not previously been a member of the county's general pension and retirement program or any other plan sponsored by Dorchester County; or (vi) except as provided in subsection (g) of this section, an employee of a participating governmental unit who is employed by the participating governmental unit before the effective date of participation and who remains an employee of the participating governmental unit through the effective date of participation. (2) An individual described under paragraph (1)(i) through (v) of this subsection who elects to join the Employees' Pension System shall make the election at commencement of employment by filing a written application with the Board of Trustees on a form that the Board of Trustees provides. (3) An individual described under paragraph (1)(vi) of this subsection who elects to join the Employees' Pension System shall make the election prior to the effective date of participation by filing a written application with the Board of Trustees on a form that the Board of Trustees provides. (4) An election to join the Employees' Pension System under this subsection is a one-time, irrevocable election. (5) (i) This paragraph applies to an individual described under paragraph (1)(i) through (v) of this subsection. (ii) If an election to join the Employees' Pension System is not received by the Board of Trustees within the period of time described in paragraph (2) or (3) of this subsection, the individual may not elect to join the Employees' Pension System while employed in that position. (6) (i) This paragraph applies to an individual described under paragraph (1)(vi) of this subsection. (ii) If an election to join the Employees' Pension System is not received by the Board of Trustees within the period of time described in paragraph (3) of this subsection, the individual is deemed to have elected to participate in the Employees' Pension System while employed in that position. (7) The Board of Trustees shall adopt regulations to implement this subsection. (b) (1) Membership in the Employees' Pension System is not optional for individuals who are: (i) supportive service employees of the Board of Education of Kent County; (ii) employees of the Town of Oakland; (iii) employees of the City of Frostburg; (iv) employees of the Town of Sykesville; or (v) employees of the Town of University Park. (2) Membership in the Employees' Pension System is not optional for an individual who was employed in a position on or before June 30, 2015, that required the individual to be a member of the Employees' Pension System, while the individual remains in that position. (c) (1) Subject to paragraph (2) of this subsection, membership in the Employees' Pension System is optional for an individual described in Sec. 23-201(a)(2)(iv) of this subtitle who is elected or appointed as the Baltimore City Sheriff. (2) An individual who is elected or appointed as the Baltimore City Sheriff and who does not elect to join the Employees' Pension System is a member of the Law Enforcement Officers' Pension System under Title 26 of this article as a condition of employment. (3) To elect to be a member of the Employees' Pension System under this subsection, an individual shall make the election at commencement of employment by filing a written application with the Board of Trustees on a form that the Board of Trustees provides. (4) An individual who does not elect membership as of the date the individual begins serving as the Baltimore City Sheriff shall become a member of the Law Enforcement Officers' Pension System. (d) (1) This subsection applies to an individual described in Sec. 23-201(a)(2)(iv) of this subtitle who elects membership in the Employees' Pension System under this section. (2) An individual described in paragraph (1) of this subsection may elect membership in the Law Enforcement Officers' Pension System if the county employing the individual elects to become an eligible governmental unit in the Law Enforcement Officers' Pension System in accordance with Sec.Sec. 31-2A-02 through 31-2A-05 of this article. (3) If an individual transfers to the Law Enforcement Officers' Pension System under this subsection, the eligible governmental unit is responsible for all employer contributions required for the individual under Sec. 21-306.1 of this article. (e) (1) This subsection applies only to an individual who is an employee of the Town of Berwyn Heights on June 30, 2008. (2) Subject to paragraph (3) of this subsection, membership in the Employees' Pension System is optional for an individual described in paragraph (1) of this subsection who elects membership on July 1, 2008. (3) To elect to be a member of the Employees' Pension System, an individual shall file a written application with the Board of Trustees on a form that the Board of Trustees provides. (f) (1) This subsection applies only to an individual who is an employee of the City of College Park on June 30, 2014. (2) Subject to paragraph (3) of this subsection, membership in the Employees' Pension System is optional for an individual described in paragraph (1) of this subsection who elects membership on July 1, 2014. (3) To elect to be a member of the Employees' Pension System, an individual shall file a written application with the Board of Trustees on a form that the Board of Trustees provides. (g) (1) This subsection applies to an individual who is employed by Prince George's County as: (i) the Chief Administrative Officer; (ii) a Deputy Chief Administrative Officer; (iii) a director of a county office or department; (iv) a County Council Administrator; (v) a Deputy Director of a county office or department; or (vi) an Executive Director. (2) (i) Membership in the Employees' Pension System is optional for an individual who: (1) begins serving in a position listed in paragraph (1) of this subsection on or after July 1, 2014; and (2) has not previously been employed by Prince George's County. (ii) An individual described under subparagraph (i) of this paragraph who elects to join the Employees' Pension System shall make the election at commencement of employment by filing a written application with the Board of Trustees on a form that the Board of Trustees provides. (3) Membership in the Employees' Pension System is mandatory for: (i) an individual who: (1) is employed in one of the positions listed under paragraph (1) of this subsection on or before June 30, 2014; and (2) is enrolled as a member of the Employees' Pension System; or (ii) an individual described under paragraph (2)(i) of this subsection who elected to join the Employees' Pension System under paragraph (2)(ii) of this subsection. (4) Membership in the Employees' Pension System is prohibited for an individual who: (i) begins serving in a position listed in paragraph (1) of this subsection on or after July 1, 2004, but before July 1, 2014; (ii) remains in a position listed in paragraph (1) of this subsection on or after July 1, 2014; and (iii) is not enrolled in the Employees' Pension System. (5) (i) An individual's election under paragraph (2)(ii) of this subsection to join the Employees' Pension System or an individual's failure to elect to join the Employees' Pension System within the required time period is a one-time, irrevocable decision. (ii) An individual employed in one of the positions listed under paragraph (1) of this subsection who does not elect to join the Employees' Pension System under paragraph (2)(ii) of this subsection may not join the Employees' Pension System while employed in one of the positions listed under paragraph (1) of this subsection. (iii) An individual described under paragraph (4) of this subsection or subparagraph (ii) of this paragraph who changes employment to a different position under paragraph (1) of this subsection, whether or not a break in employment occurs, may not elect to join the Employees' Pension System. (6) The Board of Trustees shall adopt regulations to implement this section. #### Section 23-205 If eligibility of an individual for membership in the Employees' Pension System is unclear, the Board of Trustees shall determine whether the individual is a member without regard to the method of payment of the individual's compensation. #### Section 23-206 (a) Except as provided in subsection (b) of this section, Sec.Sec. 23-208 through 23-210 of this subtitle apply only to: (1) an employee of a day school in the State under the authority and supervision of a county board of education or the Baltimore City Board of School Commissioners, employed as: (i) a clerk; (ii) a helping teacher; (iii) a principal; (iv) a superintendent; (v) a supervisor; or (vi) a teacher; (2) a faculty employee of an educational institution supported by and under the control of the State; (3) a librarian or clerical employee of a library that is established or operates under the Education Article; (4) a professional or clerical employee of a community college that is established or operates under the Education Article; (5) a staff employee of the University System of Maryland, Morgan State University, or St. Mary's College who is a member of the Teachers' Pension System as of January 1, 1998, or who transfers from the Teachers' Retirement System on or after January 1, 1998; or (6) a nonfaculty employee of the Baltimore City Community College who: (i) is a member of the Teachers' Pension System as of October 1, 2002, and does not transfer to the Employees' Pension System in accordance with Sec. 23-202.1 of this subtitle; or (ii) transfers from the Teachers' Retirement System on or after October 1, 2002. (b) Sections 23-208 and 23-209 of this subtitle do not apply to: (1) an individual who has elected to participate in an optional retirement program under Title 30 of this article; (2) an individual who is employed under a federal public service employment program; (3) a professional or clerical employee of the Department of Public Libraries of Montgomery County who is participating in the Employees' Retirement System of Montgomery County; (4) a staff employee of the University System of Maryland, Morgan State University, or St. Mary's College who becomes employed on or after January 1, 1998, in a position as a staff employee of the educational institution that was eligible for membership in the Teachers' Retirement System or Teachers' Pension System under Chapter 6, Sec. 8, paragraphs 1(a) and 2(a) of the Acts of 1994; (5) an employee who is not a member of a State system and who accepts a position for which the budgeted hours per fiscal year are less than 500 hours in the first fiscal year of employment; or (6) a nonfaculty employee of the Baltimore City Community College who becomes employed on or after October 1, 2002, or who transfers to the Employees' Pension System in accordance with Sec. 23-202.1 of this subtitle. #### Section 23-208 Except as provided in Sec. 23-209 of this subtitle, an individual described in Sec. 23-206(a) of this subtitle who becomes employed by a participating employer on or after January 1, 1980, or who transfers membership from the Teachers' Retirement System, is a member of the Teachers' Pension System as a condition of employment. #### Section 23-209 The Board of Trustees may deny membership in the Teachers' Pension System to, or make membership optional for, any class of individuals described in Sec. 23-206(a) of this subtitle whose: (1) compensation is paid only partly by the State; or (2) employment is temporary or on other than a yearly basis. #### Section 23-210 If eligibility of an individual for membership in the Teachers' Pension System is unclear, the Board of Trustees shall determine whether the individual is a member. #### Section 23-211 Membership continues for a member who is: (1) on leave of absence approved by the Board of Trustees; or (2) in the military service within the periods specified in Title 38 of this article. #### Section 23-212 (a) Except as otherwise provided in this section, a member's contribution rate is 5% of the part of the member's earnable compensation that exceeds the taxable wage base for each year. (b) The contribution rate of a member who is subject to the contributory pension benefit under Part II of this subtitle is 2% of the member's earnable compensation. (c) The contribution rate of a member who is subject to the Alternate Contributory Pension Selection under Part III of this subtitle is: (1) 3% of the member's earnable compensation received from July 1, 2006 to June 30, 2007, both inclusive; (2) 4% of the member's earnable compensation received from July 1, 2007 to June 30, 2008, both inclusive; (3) 5% of the member's earnable compensation received from July 1, 2008 to June 30, 2011, both inclusive; and (4) 7% of the member's earnable compensation received on or after July 1, 2011. (d) The contribution rate of a member who is subject to the reformed contributory pension benefit under Part IV of this subtitle is 7% of the member's earnable compensation. #### Section 23-213 (a) Except as provided in subsection (b) of this section, regular interest is payable on member contributions at the rate of 5% per year compounded annually until retirement or withdrawal of contributions and interest. (b) Except as provided in subsection (c) of this section, no further interest shall be paid on member contributions after membership ends if the former member is not eligible to receive a vested allowance under Title 29, Subtitle 3 of this article. (c) (1) In this subsection, "active member" means a member who is not separated from employment with the State or a participating employer of one of the several systems. (2) This subsection applies only to an individual who: (i) is a former member of the Employees' Pension System or the Teachers' Pension System; (ii) is not eligible to receive a vested allowance from the Employees' Pension System or the Teachers' Pension System under Title 29, Subtitle 3 of this article; (iii) has not withdrawn the individual's member contributions from the Employees' Pension System or the Teachers' Pension System; and (iv) is an active member of one of the several systems. (3) An individual described in paragraph (2) of this subsection shall receive regular interest at the rate described under subsection (a) of this section on the individual's member contributions in a nonvested account in the Employees' Pension System or the Teachers' Pension System while the individual is an active member of one of the several systems. #### Section 23-214 (a) This section applies to an individual who is: (1) a member of the Teachers' Pension System; (2) an employee of the Baltimore City Board of School Commissioners or another county board of education; and (3) hired by a third party contractor to work in a school that is reconstituted by order of the Maryland State Board of Education. (b) An individual who is hired by a third party contractor may withdraw the member's accumulated contributions, within the meaning of Sec. 20-101(b) of this article, at any time while the individual is employed by the third party contractor to work in a school that is reconstituted by order of the Maryland State Board of Education. (c) An individual who is hired by a third party contractor and subsequently becomes employed by the Baltimore City Board of School Commissioners or another county board of education at any time while the order of reconstitution is in effect and on termination of the contract with the third party contractor: (1) is not subject to the provisions of Sec. 23-215 of this subtitle; (2) shall be reinstated as a member of the Teachers' Pension System; (3) shall be entitled to restoration of any service credit to which the individual was entitled before employment by the third party contractor whether or not the individual was vested; and (4) shall redeposit any of the amounts withdrawn under subsection (b) of this section with regular interest to the date of redeposit or, on retirement, the individual's retirement allowance shall be reduced by the actuarial equivalent of the accumulated contributions withdrawn with regular interest to the date of retirement. (d) Except as provided in subsection (e) of this section, at any time before retirement, an individual may purchase service credit for a period of employment by a third party contractor to work in a school that is reconstituted by order of the Maryland State Board of Education if the individual: (1) completes a claim for the service credit and files it with the Board of Trustees on a form that the Board of Trustees provides; and (2) pays to the Board of Trustees in a single payment the member contributions the individual would have made for the period of employment for which service credit is being purchased plus regular interest to the date of payment. (e) An individual may not purchase more than 5 years of service credit for the period of employment by a third party contractor to work in a school that is reconstituted by order of the Maryland State Board of Education. #### Section 23-215 (a) Except as provided in Sec. 23-215.1 of this subtitle, membership ends if the member: (1) is separated from employment for more than 4 years; (2) is separated from employment, and rehired into a position that requires enrollment in a part of the Employees' Pension System or the Teachers' Pension System that is subject to a different rate of member contributions and benefit accrual; (3) withdraws the member's accumulated contributions; (4) becomes a retiree; or (5) dies. (b) Subsection (a)(2) of this section does not apply for purposes of determining eligibility for a disability retirement benefit under Sec. 29-104(a) of this article. #### Section 23-215.1 (a) This section applies to a member who: (1) on or before June 30, 2011, is subject to the Alternate Contributory Pension Selection; (2) (i) is separated from employment for 4 years or less; (ii) (1) is separated from employment for military service that meets the requirements of the federal Uniformed Services Employment and Reemployment Rights Act; and (2) resumes employment within 1 year of leaving military service in a position that is included in the Employees' Pension System or Teachers' Pension System; or (iii) is separated from employment with the minimum eligibility service needed to be eligible for a vested allowance in the Alternate Contributory Pension Selection under Title 29, Subtitle 3 of this article; (3) does not withdraw the member's accumulated contributions; and (4) does not become a retiree. (b) A member described in subsection (a) of this section who resumes employment in a position that is included in the Employees' Pension System or Teachers' Pension System, shall resume participation in the Alternate Contributory Pension Selection if the employer participates in the Alternate Contributory Pension Selection. #### Section 23-215.2 If an individual was a member of any one of the several systems on June 30, 2011, and without incurring a break in employment of more than 30 days, becomes a member of the Employees' Pension System or the Teachers' Pension System on or after July 1, 2011, the individual: (1) shall be considered to be a new member of the Employees' Pension System or the Teachers' Pension System as of the date the individual joins the system; and (2) is subject to the same requirements to which an individual who was a member of the Employees' Pension System or the Teachers' Pension System on June 30, 2011, and remains a member on July 1, 2011, is subject. #### Section 23-217 (a) Except as provided in subsection (b) of this section, this Part II of this subtitle applies to an individual who is: (1) a member of the Employees' Pension System or the Teachers' Pension System; or (2) a member of the Employees' Retirement System or the Teachers' Retirement System subject to Selection C (Combination Formula) as provided in Sec. 22-221 of this article. (b) This Part II of this subtitle does not apply to an individual who is: (1) an employee of: (i) a participating governmental unit that has not elected the contributory pension benefit for its employees under Sec. 31-116 of this article; or (ii) a former participating governmental unit, other than Frederick County, that has withdrawn; (2) a member of the Employees' Pension System or Teachers' Pension System who transferred from the Employees' Retirement System or Teachers' Retirement System after April 1, 1998; or (3) a member who is subject to the Alternate Contributory Pension Selection under Part III of this subtitle. #### Section 23-218 A member who is subject to this Part II of this subtitle shall: (1) receive an allowance for all creditable service as follows: (i) for normal service retirement as provided in Sec. 23-401(c) of this title; (ii) for early service retirement as provided in Sec. 23-402 of this title; (iii) for ordinary disability retirement as provided in Sec. 29-108 of this article; and (iv) for accidental disability retirement as provided in Sec. 29-110 of this article; (2) have the allowance adjusted as provided in Sec.Sec. 29-401, 29-402, 29-406, and 29-408 of this article; and (3) make the member contributions at the rate specified in Sec. 23-212(b) of this subtitle. #### Section 23-221 (a) In this section, "active member" means a member who is not separated from employment with the State or a participating employer of the State. (b) Except as provided in subsection (d) of this section, this part applies to an individual who on or after June 30, 2006, is: (1) an active member of the Employees' Pension System or the Teachers' Pension System; or (2) a member of the Teachers' Retirement System or Employees' Retirement System who is subject to Selection C (Combination Formula) as provided in Sec. 22-221 of this article. (c) (1) This subsection applies to an individual who: (i) was an employee of the Somerset County Economic Development Commission on June 30, 2011, and who remains an employee through the effective date of participation for the Somerset County Economic Development Commission as a participating governmental unit; or (ii) (1) was an employee of the Dorchester County Council working for the Dorchester County Sanitary Commission on June 30, 2011; (2) continues working for the Dorchester County Sanitary Commission without incurring a break in employment of more than 30 days; and (3) becomes an employee of the Dorchester County Sanitary Commission before the effective date of participation for the Dorchester County Sanitary Commission as a participating governmental unit and remains an employee through the effective date of participation. (2) An individual described in paragraph (1) of this subsection shall be considered subject to the alternate contributory pension benefit under Part III of this subtitle in the same manner as an individual who was a member of the Employees' Pension System on June 30, 2011. (d) This Part III does not apply to: (1) an employee of a participating governmental unit participating in the Employees' Pension System that has not elected to participate in the Alternate Contributory Pension Selection under Sec. 31-116.1 of this article or a former participating governmental unit, other than Frederick County, that has withdrawn from the Employees' Pension System; or (2) a member of the Employees' Pension System or the Teachers' Pension System who transferred from the Employees' Retirement System or the Teachers' Retirement System after April 1, 1998. #### Section 23-222 A member who is subject to this part shall: (1) receive an allowance for all creditable service as follows: (i) for normal service retirement as provided in Sec. 23-401(d) of this title; (ii) for early service retirement as provided in Sec. 23-402 of this title; (iii) for ordinary disability retirement as provided in Sec. 29-108 of this article; and (iv) for accidental disability retirement as provided in Sec. 29-110 of this article; (2) have the allowance adjusted as provided in Title 29, Subtitle 4 of this article; and (3) make the member contributions at the rate specified in Sec. 23-212(c) of this subtitle. #### Section 23-225 (a) This Part IV of this subtitle (Reformed Contributory Pension Benefit) applies to: (1) an individual who becomes a member of the Employees' Pension System or the Teachers' Pension System on or after July 1, 2011; and (2) except as provided in Sec. 23-215.1 of this subtitle, a member of the Employees' Pension System or Teachers' Pension System who separated from employment on or before June 30, 2011, and subsequently becomes employed in a position eligible for membership in the Employees' Pension System or the Teachers' Pension System on or after July 1, 2011. (b) This Part IV does not apply to an employee of: (1) a participating governmental unit that was participating in the Employees' Pension System prior to July 1, 2011, and that has not elected to participate in the Alternate Contributory Pension Selection under Sec. 31-116.1 of this article; or (2) a former participating governmental unit, other than Frederick County, that has withdrawn from the Employees' Pension System. #### Section 23-226 (a) Except as provided in subsection (b) of this section, a member who is subject to this Part IV of this subtitle shall: (1) receive an allowance for all creditable service as follows: (i) for normal service retirement as provided in Sec. 23-401(f) of this title; (ii) for early service retirement as provided in Sec. 23-402(c) of this title; (iii) for a vested allowance as provided in Sec. 29-303(b-1) of this article; (iv) for ordinary disability retirement as provided in Sec. 29-108 of this article; and (v) for accidental disability retirement as provided in Sec. 29-110 of this article; (2) have the allowance adjusted as provided in Sec.Sec. 29-401, 29-402, and 29-408 of this article; and (3) make the member contributions at the rate specified in Sec. 23-212(d) of this subtitle. (b) A member described in Sec. 23-225(a)(2) of this subtitle is not subject to this Part IV of this subtitle with respect to the service credit earned in the member's previous membership. ### Subtitle 3. Service Credit #### Section 23-301 A member of the Employees' Pension System or Teachers' Pension System is entitled to: (1) eligibility service as provided in Sec.Sec. 23-302 through 23-308 of this subtitle; and (2) creditable service as provided in Sec. 23-309 of this subtitle. #### Section 23-302 (a) Subject to subsections (b), (c), and (d) of this section, a member is entitled to eligibility service for periods of employment while a member of the Employees' Pension System or the Teachers' Pension System. (b) The Board of Trustees may not allow more than 1 year of service credit for a calendar year. (c) (1) If a member completes at least 500 hours of employment while a member in any fiscal year, the member is entitled to 1 year of eligibility service. (2) Except in the first and last fiscal years or except as provided in subsection (d) of this section, a member may not receive any eligibility service for a fiscal year in which the member completes less than 500 hours of employment while a member. (3) In the first and last fiscal years, if a member completes less than 500 hours of employment while a member, the Board of Trustees shall prorate the eligibility service based on the number of hours worked. (d) If a member who is subject to the contributory pension benefit, the Alternate Contributory Pension Selection, or the Reformed Contributory Pension Benefit completes less than 500 hours of employment while a member, the Board of Trustees shall prorate the member's eligibility service based on the number of hours worked. #### Section 23-303 (a) In this section, "break in service" means a period of separation from employment in a fiscal year after the one in which a member first becomes employed, if during that fiscal year the member does not complete more than 350 hours of employment while a member. (b) (1) This section applies to a member of the Employees' Pension System or the Teachers' Pension System who was a member of one of those State systems. (2) This section does not apply to: (i) a retiree of the Employees' Pension System or the Teachers' Pension System; or (ii) a member of the Employees' Pension System or Teachers' Pension System who is subject to the contributory pension benefit, the Alternate Contributory Pension Selection, or the Reformed Contributory Pension Benefit. (c) A member is entitled to the eligibility service to which the member was entitled before the separation from employment if: (1) the member has not incurred a break in service; (2) the member was entitled to a vested allowance at the time of the separation from employment; or (3) (i) the member has completed 1 year of eligibility service after a break in service; and (ii) the number of consecutive years in which the member incurred a break in service is less than the years of eligibility service as a member before the break in service. (d) To determine if a member is eligible for prior eligibility service under subsection (c)(3)(ii) of this section, the Board of Trustees shall determine the number of years of prior eligibility service: (1) as of the day the member separated from employment; but (2) excluding any eligibility service lost because of a prior break in service. (e) When a member receives credit for eligibility service under subsection (c) of this section from the other system, the member has no further rights in the other system. #### Section 23-303.1 (a) This section applies to a member of the Employees' Pension System or Teachers' Pension System who has prior service in a part of the Employees' Pension System or Teachers' Pension System that is subject to a different rate of benefit accrual. (b) A member who is subject to the contributory pension benefit, Alternate Contributory Pension Selection, or Reformed Contributory Pension Benefit is entitled to combine the member's prior eligibility service with the member's current service if the member: (1) at the time of separation from employment, was entitled to a vested allowance from: (i) the Employees' Pension System; or (ii) the Teachers' Pension System; (2) did not transfer to the Employees' Pension System or the Teachers' Pension System from the Employees' Retirement System or Teachers' Retirement System after April 1, 1998; and (3) has completed 1 year of employment as a member of the pension benefit or selection in which the member is earning service credit as an active member at the time the prior service credit is combined with the current service credit. (c) A member who is subject to the noncontributory pension benefit is entitled to combine the member's prior eligibility service with the member's current service if the member did not transfer to the Employees' Pension System or Teachers' Pension System from the Employees' Retirement System or Teachers' Retirement System after April 1, 1998. (d) (1) A member may combine the member's prior credit for eligibility service with the member's current service under this section if the member: (i) completes a claim for the service credit and files it with the Board of Trustees on the form that the Board of Trustees provides at any time before retirement; and (ii) deposits into the annuity savings fund the amounts required under subsection (f), (g), (h), or (i) of this section. (2) When a member combines credit for eligibility service under this section, the member has no further rights in the prior system. (e) If a member withdrew the member's accumulated contributions after the prior separation from employment, the member shall: (1) redeposit any of the amounts withdrawn with regular interest to the date of redeposit; or (2) on retirement, the individual's retirement allowance shall be reduced by the actuarial equivalent of the accumulated contributions withdrawn with regular interest to the date of retirement. (f) (1) A member subject to the contributory pension benefit may combine prior credit for eligibility service with the member's current service by depositing into the annuity savings fund: (i) for prior eligibility service earned before July 1, 1998, an amount equal to the member contributions that would have been made if the rate of member contributions was the same as the contribution rate in effect for the contributory pension benefit on the date the application to combine prior credit for eligibility service is submitted; (ii) for prior eligibility service earned on or after July 1, 1998, an amount equal to the member contributions that would have been made if the rate of member contributions was the same as the contribution rate in effect for the contributory pension benefit when the prior eligibility service was earned; and (iii) regular interest on the amounts under items (i) and (ii) of this paragraph, at the rate specified under Sec. 23-213 of this title. (2) (i) A member's accumulated contributions attributable to prior credit for eligibility service that is combined under this section shall be credited to the amounts required to be deposited under paragraph (1) of this subsection. (ii) If a member's accumulated contributions attributable to prior credit for eligibility service exceed the amount required to be deposited under paragraph (1) of this subsection, the accumulated contributions in excess of the amount determined under paragraph (1) of this subsection shall be refunded on request, subject to Sec. 414(h)(2) of the Internal Revenue Code. (g) (1) A member subject to the Alternate Contributory Pension Selection may combine prior credit for eligibility service with the member's current service by depositing into the annuity savings fund: (i) for prior eligibility service earned before July 1, 1998, an amount equal to the member contributions that would have been made if the rate of member contributions was the same as the contribution rate in effect for the Alternate Contributory Pension Selection on the date the application to combine prior credit for eligibility service is submitted; (ii) for prior eligibility service earned on or after July 1, 1998, an amount equal to the member contributions that would have been made if the rate of member contributions was the same as the contribution rate in effect for the Alternate Contributory Pension Selection when the prior eligibility service was earned; and (iii) regular interest on the amounts under items (i) and (ii) of this paragraph, at the rate specified under Sec. 23-213 of this title. (2) (i) A member's accumulated contributions attributable to prior credit for eligibility service that is combined under this section shall be credited to the amounts required to be deposited under paragraph (1) of this subsection. (ii) If a member's accumulated contributions attributable to prior credit for eligibility service exceed the amount required to be deposited under paragraph (1) of this subsection, the accumulated contributions in excess of the amount determined under paragraph (1) of this subsection shall be refunded on request, subject to Sec. 414(h)(2) of the Internal Revenue Code. (h) (1) A member subject to the Reformed Contributory Pension Benefit may combine prior credit for eligibility service with the member's current service by depositing into the annuity savings fund: (i) for prior eligibility service earned before July 1, 2011, an amount equal to the member contributions that would have been made if the rate of member contributions was the same as the contribution rate in effect for the Reformed Contributory Pension Benefit on the date the application to combine prior credit for eligibility service is submitted; (ii) for prior eligibility service earned on or after July 1, 2011, an amount equal to the member contributions that would have been made if the rate of member contributions was the same as the contribution rate in effect for the Reformed Contributory Pension Benefit when the prior eligibility service was earned; and (iii) regular interest on the amounts under items (i) and (ii) of this paragraph, at the rate specified under Sec. 23-213 of this title. (2) (i) A member's accumulated contributions attributable to prior credit for eligibility service that is combined under this section shall be credited to the amounts required to be deposited under paragraph (1) of this subsection. (ii) If a member's accumulated contributions attributable to prior credit for eligibility service exceed the amount required to be deposited under paragraph (1) of this subsection, the accumulated contributions in excess of the amount determined under paragraph (1) of this subsection shall be refunded on request, subject to Sec. 414(h)(2) of the Internal Revenue Code. (i) (1) Subject to subsection (c) of this section, a member subject to the noncontributory pension benefit may combine prior credit for eligibility service with the member's current service by depositing into the annuity savings fund: (i) an amount equal to the member contributions that would have been made if the rate of member contributions was the same as the contribution rate in effect for the noncontributory pension benefit when the prior eligibility service was earned; and (ii) regular interest on the amounts under item (i) of this paragraph, at the rate specified under Sec. 23-213 of this title. (2) (i) A member's accumulated contributions attributable to prior credit for eligibility service that is combined under this section shall be credited to the amounts required to be deposited under paragraph (1) of this subsection. (ii) If a member's accumulated contributions attributable to prior credit for eligibility service exceed the amount required to be deposited under paragraph (1) of this subsection, the accumulated contributions in excess of the amount determined under paragraph (1) of this subsection shall be refunded on request, subject to Sec. 414(h)(2) of the Internal Revenue Code. #### Section 23-304 A member is entitled to eligibility service that equals: (1) the member's service credit transferred from a retirement or pension system under Title 37 of this article; (2) for a member who has transferred to the Employees' Pension System from the Employees' Retirement System or to the Teachers' Pension System from the Teachers' Retirement System, the member's creditable service recognized under the previous system through the date before the member became a member of the current system; (3) for a member of the Employees' Pension System, the member's service credit transferred from a retirement or pension system under Title 31, Subtitle 1 of this article; and (4) for a member who has transferred between the Employees' Pension System and the Teachers' Pension System, the member's eligibility service under the previous system through the date before the member became a member of the current system if the member: (i) is not subject to the noncontributory pension benefit in both the current and previous systems; (ii) is subject to the contributory pension benefit in both the current and previous systems; (iii) is subject to the Alternate Contributory Pension Selection in both the current and previous systems; or (iv) is subject to the Reformed Contributory Pension Benefit in both the current and previous systems. #### Section 23-304.1 (a) Except as provided in subsection (b) of this section, a member may not purchase service credit under this title if the member is separated from employment. (b) (1) A member who is separated from employment may purchase service credit under this title for a leave of absence approved by the Board of Trustees under regulations that apply to all members, if the member purchases the service credit within 60 days after the expiration of the leave of absence. (2) For good cause shown, the Executive Director, in the Executive Director's sole discretion, may extend the time period to purchase service credit under paragraph (1) of this subsection if: (i) the purchased service credit would allow the member to meet the eligibility service requirements to apply for an ordinary disability retirement under Sec. 29-105(a) of this article; and (ii) the member completes the purchase of the service credit before the earlier of: (1) 4 years after the expiration of the leave of absence; or (2) the date membership ends. (3) The Board of Trustees shall adopt regulations to carry out this subsection. #### Section 23-305 A member is entitled to eligibility service equal to the military service credit granted under Title 38 of this article. #### Section 23-306 (a) A member is entitled to eligibility service during a leave of absence if the leave of absence: (1) is approved by the Board of Trustees under regulations that apply to all members similarly situated; and (2) is not otherwise recognized as eligibility service under this subtitle. (b) To receive service credit for a leave of absence described under subsection (a) of this section, a member shall pay the member contributions with regular interest, if any, as determined by the Board of Trustees under regulations that apply to all members similarly situated. #### Section 23-306.1 (a) (1) Except as provided in paragraph (2) of this subsection, a member of the Employees' Pension System who is an additional employee or agent of the State Racing Commission authorized by Sec. 11-207 of the Business Regulation Article is entitled to eligibility service for any service on or after January 1, 1986, as an additional employee or agent of the State Racing Commission. (2) For the purpose of computing benefits under this Division II, a member of the Employees' Pension System who is an additional employee or agent of the State Racing Commission authorized by Sec. 11-207 of the Business Regulation Article is entitled to creditable service for service on or after the initial date of employment or July 1, 1991, whichever is later. (b) If the Board of Trustees determines that the eligibility service and creditable service granted in subsection (a) of this section creates an unfunded liability to the Employees' Pension System, the licensees of the State Racing Commission shall pay, over a period of 25 years, an amount sufficient to amortize the unfunded liability. #### Section 23-306.2 (a) A member who is subject to the contributory pension benefit, the Alternate Contributory Pension Selection, or the Reformed Contributory Pension Benefit may purchase service credit as provided in subsection (b) of this section for periods of employment described in subsection (c) of this section for which the member is not otherwise entitled. (b) (1) A member who purchases service credit under this section shall: (i) complete a claim for the service credit and file it with the Board of Trustees on a form that the Board of Trustees provides; and (ii) pay to the Board of Trustees in a single payment the member contributions the member would have made for the period of employment for which service credit is being purchased if the member had earned the prior service in the same part of the Employees' Pension System or Teachers' Pension System in which the member is currently enrolled, plus regular interest to the date of payment. (2) A member may pay for service credit purchased under this section at any time before retirement. (3) Subject to Sec. 414(h)(2) of the Internal Revenue Code, an individual's accumulated contributions in excess of the amount determined under paragraph (1) of this subsection shall be refunded on request. (c) (1) Except as provided in paragraph (2) of this subsection, a member may purchase service credit for a period of employment as a member of the Employees' Pension System or Teachers' Pension System if the member: (i) has withdrawn the member's accumulated contributions after a prior termination of membership; and (ii) was subject to the contributory pension benefit, the Alternate Contributory Pension Selection, or the Reformed Contributory Pension Benefit when the member previously terminated membership in the Employees' Pension System or the Teachers' Pension System. (2) A member may not purchase eligibility service credit that exceeds the member's creditable service credit. #### Section 23-306.3 (a) This section applies to a member of the Employees' Pension System or the Teachers' Pension System who is subject to the contributory pension benefit or the Alternate Contributory Pension Selection. (b) A member who is subject to the contributory pension benefit is entitled to the eligibility service to which the member was entitled before the separation from employment if the member: (1) separated from employment on or before June 30, 1998; (2) was not entitled to a vested allowance from the Employees' Pension System or the Teachers' Pension System at the time of the separation from employment; (3) becomes a member who is subject to the contributory pension benefit on or before June 30, 2003; (4) completes 1 year of employment as a member who is subject to the contributory pension benefit; (5) did not transfer to the Employees' Pension System or the Teachers' Pension System from the Employees' Retirement System or the Teachers' Retirement System after April 1, 1998; and (6) applies for the prior eligibility service credit by completing a claim for the service credit and filing it with the Board of Trustees on the form that the Board of Trustees provides. (c) A member who is subject to the Alternate Contributory Pension Selection is entitled to the eligibility service to which the member was entitled before the separation from employment if the member: (1) was separated from employment for less than 4 years; (2) was not entitled to a vested allowance from the Employees' Pension System or the Teachers' Pension System at the time of separation; (3) becomes a member who is subject to the Alternate Contributory Pension Selection on or before June 30, 2010; (4) completes 1 year of employment as a member who is subject to the Alternate Contributory Pension Selection; (5) did not transfer to the Employees' Pension System or the Teachers' Pension System from the Employees' Retirement System or Teachers' Retirement System after April 1, 1998; (6) applies for the prior eligibility service credit by completing a claim for the service credit and filing it with the Board of Trustees on a form that the Board of Trustees provides; and (7) deposits into the annuity savings fund the member contributions, if any, that would have been due for the period of service if the member had been subject to the Alternate Contributory Pension Selection, plus regular interest on the contributions. (d) (1) A member shall receive eligibility service credit under this section by completing a claim for the service credit and filing it with the Board of Trustees on the form that the Board of Trustees provides at any time before retirement. (2) When a member receives credit for eligibility service under subsection (b) of this section from another system, the member has no further rights in the other system. (e) If a member withdrew the member's accumulated contributions after the prior separation from employment, the member shall: (1) redeposit any of the amounts withdrawn with regular interest to the date of redeposit; or (2) on retirement, the individual's retirement allowance shall be reduced by the actuarial equivalent of the accumulated contributions withdrawn with regular interest to the date of retirement. #### Section 23-307 (a) (1) Except as provided in subsection (b) of this section, in the year of retirement, a member of the Employees' Pension System may purchase credit for eligibility service of up to 10 years for periods of employment described in paragraph (3) of this subsection for which the member is not otherwise entitled to service credit. (2) To purchase service credit under this subsection, a member must: (i) complete a claim for the service credit and file it with the Board of Trustees on the form that the Board of Trustees provides; and (ii) pay to the Board of Trustees an amount equal to the annuity reserve and pension reserve required to fund the additional allowance. (3) A member may only purchase service credit under this subsection for employment with: (i) the State; (ii) a political subdivision in the State; (iii) an out-of-state school as a teacher; (iv) the federal government; (v) an out-of-state political subdivision; (vi) a public or nonpublic school as a teacher; or (vii) a postsecondary school as a teacher. (b) (1) This subsection does not apply to an employee of a participating governmental unit or a former participating governmental unit that has withdrawn. (2) In the year of retirement, a member of the Employees' Pension System may purchase credit for eligibility service for periods of employment with the State for which the member is not otherwise entitled to service credit in a State system. (3) A member who purchases service credit under this subsection may not purchase: (i) more than a total of 10 years of service credit in the Employees' Pension System; (ii) service credit for any period of employment during which the member participated in the optional retirement program; or (iii) more than a total of 5 years of service credit in the Employees' Pension System for employment as a postsecondary school teacher. (4) To purchase service credit under this subsection, a member must: (i) complete a claim for the service credit and file it with the Board of Trustees on the form that the Board of Trustees provides; and (ii) pay to the Board of Trustees an amount equal to one-half of the annuity reserve and one-half of the pension reserve required to fund the additional allowance. (c) (1) A member of the Employees' Pension System may purchase credit for eligibility service for previous service in a position described in Sec. 23-204(a) of this title. (2) To purchase the service credit, the member must pay in a single payment, the contributions, with interest, that the Board of Trustees considers appropriate. (d) (1) A member of the Employees' Pension System who is employed by a member of the State Senate or House of Delegates for at least 130 days per year as a legislative employee before becoming a member is considered to have been a permanent part-time legislative employee. (2) A member described in paragraph (1) of this subsection may purchase credit for eligibility service for that period of legislative employment by paying to the Board of Trustees: (i) for a period of employment on or before December 31, 1979, the sum of: (1) the amount that the member would have been required to contribute for that period of employment; and (2) 5% regular interest on the member's contributions, compounded annually; and (ii) for a period of employment on or after January 1, 1980, the sum of: (1) one-half of the amount that the member would have been required to contribute for that period of employment; (2) one-half of the amount that the State would have been required to contribute for the member for that period of employment; and (3) 5% regular interest on the member's and State's contributions, compounded annually. #### Section 23-307.1 (a) This section applies only to a former member, member, retiree, or surviving beneficiary of the Employees' Pension System who, while a member, was an employee of a participating governmental unit that elected the contributory pension benefit for its employees under Sec. 31-116 of this article. (b) Except as provided in subsection (c) of this section, a member who is subject to the contributory pension benefit under Subtitle 2, Part II of this title may purchase credit for eligibility service for the period of employment from July 1, 1998, through the effective date of election of the member's participating employer, by paying to the Board of Trustees: (1) on or before June 30, 2003, the amount the member would have been required to contribute for that period of employment; or (2) on or after July 1, 2003, the amount the member would have been required to contribute for that period of employment plus regular interest compounded annually. (c) If the member fails to make the payment as provided under subsection (b) of this section, the Board of Trustees shall reduce actuarially the allowance payable to a former member, retiree, or surviving beneficiary of a deceased member, former member, or retiree. #### Section 23-307.2 (a) This section applies only to a former member, member, retiree, or surviving beneficiary of the Employees' Pension System who, while a member, was an employee of Frederick County. (b) Except as provided in subsection (d) of this section, a member who is subject to the contributory pension benefit under Subtitle 2, Part II of this title may purchase credit for eligibility service for the period of employment from July 1, 1998, through July 1, 2000, by paying to the Board of Trustees: (1) on or before June 30, 2001, the amount the member would have been required to contribute for that period of employment; or (2) on or after July 1, 2001, the amount the member would have been required to contribute for that period of employment plus regular interest compounded annually. (c) Except as provided in subsection (d) of this section, a member who is subject to the Alternate Contributory Pension Selection under Subtitle 2, Part III of this title may purchase credit for eligibility service for the period of employment from July 1, 2006, through July 1, 2007, by paying to the Board of Trustees: (1) on or before June 30, 2008, the amount the member would have been required to contribute for that period of employment; or (2) on or after July 1, 2008, the amount the member would have been required to contribute for that period of employment plus regular interest compounded annually. (d) If the member fails to make the payment as provided under subsection (b) or (c) of this section, the Board of Trustees shall reduce actuarially the allowance payable to a former member, retiree, or surviving beneficiary of a deceased member, former member, or retiree. #### Section 23-307.3 (a) (1) A member of the Employees' Pension System who as of July 1, 2001, has been employed by the State for at least 40 years on a full-time or part-time basis may purchase credit for eligibility service of up to 10 years for which the member is not otherwise entitled to service credit. (2) This section does not apply to: (i) an employee of a participating governmental unit or a former participating governmental unit that has withdrawn; or (ii) any period of employment during which an individual participated in the optional retirement program. (b) (1) A member who purchases service credit under this section shall: (i) complete a claim for the service credit and file it with the Board of Trustees on the form that the Board of Trustees provides; and (ii) pay to the Board of Trustees the member contributions the member would have made for the period of employment for which service credit is being purchased plus regular interest to the date of payment. (2) A member may pay the amount required by paragraph (1)(ii) of this subsection on an installment basis by contributing at least 2% of earnable compensation per year with the appropriate final adjustments being made in the year the member retires. (3) A member may pay for service credit purchased under this section at any time before retirement. (c) (1) A member who purchases service credit under this section may not purchase more than a total of 10 years of service credit for periods of employment with the State. (2) For service credit purchased under this section, a year or a part of a year of employment equals 1 year of service credit. #### Section 23-307.4 (a) This section applies only to a member of the Employees' Pension System who: (1) was an employee of the State prior to November 1, 1996; (2) as of November 1, 1996, was employed by a private vendor to provide child support enforcement services in Baltimore City; and (3) resumed employment with the State as of November 1, 2002. (b) A member described in subsection (a) of this section shall receive service credit for the time the member was employed by a private vendor to provide child support enforcement services in Baltimore City prior to July 1, 1998. (c) (1) A member described in subsection (a) of this section is entitled to receive service credit for the time the member was employed by a private vendor to provide child support enforcement services in Baltimore City from July 1, 1998, through October 31, 2002. (2) Prior to retirement, and subject to paragraph (3) of this subsection, a member who receives service credit under this subsection shall deposit in the annuity savings fund or other corresponding fund an amount of money equal to the contribution payments that the member would have paid had the member been a State employee, including regular interest on the contributions at the rate of 5% per year compounded annually. (3) On retirement, the member's retirement allowance shall be reduced by the actuarial equivalent of the amount determined under paragraph (2) of this subsection if the member elects not to deposit this amount in the annuity savings or other corresponding fund. #### Section 23-307.5 (a) This section applies only to a former member, member, retiree, or surviving beneficiary of the Employees' Pension System who, while a member, was an employee of a participating governmental unit that elected the Alternate Contributory Pension Selection for its employees under Sec. 31-116.1 of this article. (b) Except as provided in subsection (c) of this section, a member who is subject to the Alternate Contributory Pension Selection under Subtitle 2, Part III of this title may purchase credit for eligibility service for the period of employment from July 1, 2006, through the effective date of election of the member's participating employer, by paying to the Board of Trustees: (1) on or before June 30, 2007, the amount the member would have been required to contribute for that period of employment; or (2) on or after July 1, 2007, the amount the member would have been required to contribute for that period of employment plus regular interest compounded annually. (c) If the member fails to make the payment as provided under subsection (b) of this section, the Board of Trustees shall reduce actuarially the allowance payable to a former member, retiree, or surviving beneficiary of a deceased member, former member, or retiree. #### Section 23-308 (a) In the year of retirement, a member of the Teachers' Pension System may purchase credit for eligibility service for periods of employment described in subsection (f) of this section for which the member is not otherwise entitled to service credit. (b) Except as provided in Sec. 23-308.2 of this subtitle, to purchase service credit under this section, a member must: (1) complete and file a claim for the service credit with the Board of Trustees on the form that the Board of Trustees provides; and (2) pay to the Board of Trustees an amount equal to the annuity reserve and pension reserve required to fund the additional allowance. (c) A member may pay the amount required by subsection (b) of this section by transferring, on written request to the Board of Trustees, any prior contributions to a voluntary retirement benefit, less any costs of administering that benefit. (d) A member who elects to make payments under subsection (c) of this section and who retires before completing the payments required to purchase this service credit: (1) is entitled to receive the service credit purchased before the date of retirement; or (2) may pay at the time of retirement the amount necessary to receive full credit. (e) The surviving spouse of a member who elects to make payments under subsection (c) of this section may pay for the appropriate final adjustment if: (1) the member dies while actively employed as a member; and (2) the deceased member's service qualifies for a death benefit under Sec. 29-206 of this article. (f) A member may only purchase service credit under this section for employment: (1) with an out-of-state public school; (2) with the federal government; (3) with a nonpublic school; (4) with a political subdivision; (5) as a postsecondary teacher; (6) with the State; (7) with a public school as a teacher; or (8) as a Baltimore City teacher on or before December 31, 1970, on verified leave of absence of not more than 2 years that is similar in all respects to leaves of absence approved by the Board of Trustees. (g) (1) Except as provided in paragraph (2) of this subsection, the total amount of service credit in the Teachers' Retirement System or Teachers' Pension System that a member may purchase under this section and Sec. 23-308.2 of this subtitle may not exceed 10 years. (2) A member who purchases service credit under this subsection may not purchase more than 5 years of service credit in the Teachers' Pension System for employment as a postsecondary school teacher. #### Section 23-308.1 (a) This section applies only to a former member, member, retiree, or surviving beneficiary of the Employees' Retirement System or the Teachers' Retirement System who is subject to the Selection C (Combination Formula) as provided in Sec. 22-221 of this article and to Subtitle 2, Part II of this title. (b) Except as provided in subsection (c) of this section, a member who is subject to the contributory pension benefit under Subtitle 2, Part II of this title may purchase credit for eligibility service for the period of employment from July 1, 1998, through June 30, 1999, or, if an employee of a participating governmental unit, from July 1, 1998, through the effective date of election of the member's participating employer, by paying to the Board of Trustees: (1) on or before June 30, 2000, the amount the member would have been required to contribute for that period of employment; or (2) on or after July 1, 2000, the amount the member would have been required to contribute for that period of employment plus regular interest compounded annually. (c) If the member fails to make the payment as provided under subsection (b) of this section, the Board of Trustees shall reduce actuarially the allowance payable to a former member, retiree, or surviving beneficiary of a deceased member, former member, or retiree. #### Section 23-308.2 (a) For periods of employment as a member of the Teachers' Retirement System or the Teachers' Pension System for which the member is not otherwise entitled to service credit, a member of the Teachers' Pension System may purchase credit for eligibility service as provided in this section. (b) The total amount of service credit in the Teachers' Retirement System or Teachers' Pension System that a member may purchase under this section and Sec. 23-308 of this subtitle may not exceed 10 years. (c) A member who purchases service credit under this section may not purchase service credit for any period of employment during which the member participated in the optional retirement program. (d) To purchase service credit under this section, a member must: (1) complete a claim for the service credit and file it with the Board of Trustees on the form that the Board of Trustees provides; and (2) pay to the Board of Trustees an amount equal to one-half of the annuity reserve and one-half of the pension reserve required to fund the additional allowance. #### Section 23-309 (a) For the purpose of computing benefits under this title, creditable service consists of: (1) eligibility service as adjusted under subsection (b) of this section; and (2) credit for unused sick leave as provided in Sec. 20-206 of this article and Sec. 23-310 of this subtitle. (b) (1) This subsection does not apply to eligibility service that consists of: (i) service credit transferred from another retirement or pension system; (ii) military service credit granted under Title 38 of this article; or (iii) service credit purchased under this subtitle. (2) The Board of Trustees shall adjust a member's eligibility service as provided in this subsection. (3) (i) The Board of Trustees shall adopt regulations to determine for any fiscal year the amount of creditable service that equals the eligibility service for a member who has completed less than the normal hours of employment for the member's position. (ii) The normal hours of employment for a position equals the minimum number of hours to be completed by a full-time employee serving in the member's position. (iii) The creditable service recognized for a fiscal year may not be less than the eligibility service for the member multiplied by a fraction not to exceed 1 that has: (1) as its numerator, the number of hours of employment as a member that the member has completed during that year; and (2) as its denominator, the normal number of hours of employment for the member's position. #### Section 23-310 The Board of Trustees shall treat a member's credit for unused sick leave as creditable service on or after July 1, 1998, if at the time of retirement, the member is: (1) subject to the contributory pension benefit or the Alternate Contributory Pension Selection; and (2) entitled to service credit for unused sick leave under Sec. 20-206 of this article. ### Subtitle 4. Service Retirement Benefits #### Section 23-401 (a) Except as provided in subsection (f) of this section, a member may retire with a normal service retirement allowance if: (1) the member completes and submits a written application to the Board of Trustees stating the date when the member desires to retire; and (2) on or before the date of retirement, the member: (i) has at least 30 years of eligibility service; (ii) has a combined total of at least 30 years of eligibility service from the Employees' Pension System, the Teachers' Pension System, the Employees' Retirement System, or the Teachers' Retirement System; or (iii) has attained the age and the years of eligibility service as follows: Age Years of Eligibility Service 62 with 5 63 with 4 64 with 3 65 or more with 2 (b) Except as provided in subsections (c), (d), (e), (f), and (g) of this section, on retirement under this section, a member is entitled to receive a normal service retirement allowance that equals the number of years of the member's creditable service multiplied by: (1) (0) 8% of the member's average final compensation that is not in excess of the Social Security integration level; and (2) (1) 5% of the member's average final compensation that exceeds the Social Security integration level. (c) Except as provided in subsections (e) and (g) of this section, on retirement under this section, a member who is subject to the contributory pension benefit under Subtitle 2, Part II of this title is entitled to receive a normal service retirement allowance that equals the sum of: (1) the number of years of the member's creditable service on or after July 1, 1998 multiplied by 1.4% of the member's average final compensation; and (2) the greater of: (i) the number of years of the member's creditable service on or before June 30, 1998 multiplied by 1.2% of the member's average final compensation; or (ii) the number of years of the member's creditable service on or before June 30, 1998 multiplied by: (1) (0) 8% of the member's average final compensation that is not in excess of the Social Security integration level; and (2) (1) 5% of the member's average final compensation that exceeds the Social Security integration level. (d) Except as provided in subsections (e) and (g) of this section, a member who is subject to the Alternate Contributory Pension Selection under Subtitle 2, Part III of this title is entitled to receive a normal service retirement allowance that equals the sum of: (1) the greater of: (i) the number of years of the member's creditable service on or before June 30, 1998 multiplied by 1.2% of the member's average final compensation; or (ii) the number of years of the member's creditable service on or before June 30, 1998 multiplied by: (1) (0) 8% of the member's average final compensation that is not in excess of the Social Security integration level; and (2) (1) 5% of the member's average final compensation that exceeds the Social Security integration level; and (2) the number of years of the member's creditable service on or after July 1, 1998 multiplied by 1.8% of the member's average final compensation. (e) (1) This subsection applies only to a member who has a combined total of 30 years of eligibility service as provided in subsection (a)(2)(ii) of this section. (2) A member is entitled to receive a normal service retirement allowance that equals: (i) an allowance based on the creditable service the member earned in the Employees' Pension System; (ii) an allowance based on the creditable service the member earned in the Employees' Retirement System; (iii) an allowance based on the creditable service the member earned in the Teachers' Pension System; plus (iv) an allowance based on the creditable service the member earned in the Teachers' Retirement System. (f) (1) A member who begins membership on or after July 1, 2011, may retire with a normal service retirement allowance if: (i) the member completes and submits a written application to the Board of Trustees stating the date when the member desires to retire; and (ii) on or before the date of retirement, the member: (1) has at least 90 years of combined age and years of eligibility service; or (2) is at least 65 years old and has at least 10 years of eligibility service. (2) Except as provided in subsection (g) of this section, a member who is subject to the reformed contributory pension benefit under Subtitle 2, Part IV of this title is entitled to receive a normal service retirement that equals the number of years of the member's creditable service multiplied by 1.5% of the member's average final compensation. (g) On retirement under this section, if a member's annuity is greater than the member's normal service retirement allowance calculated under this section, the member's normal service retirement allowance shall equal the member's annuity. #### Section 23-402 (a) Except as provided in subsection (b) of this section, a member may retire with an early service retirement allowance if: (1) the member completes and submits a written application to the Board of Trustees stating the date when the member desires to retire; and (2) on or before the date of retirement, the member: (i) has at least 15 years but less than 30 years of eligibility service; and (ii) is at least 55 but less than 62 years old. (b) A member who begins membership on or after July 1, 2011, may retire with an early service retirement allowance if: (1) the member completes and submits a written application to the Board of Trustees stating the date when the member desires to retire; and (2) on or before the date of retirement, the member: (i) has at least 15 years of eligibility service; and (ii) is at least 60 but less than 65 years old. (c) (1) Except as provided in paragraph (2) of this subsection, on retirement under this section, a member is entitled to receive an early service retirement allowance that equals the normal service retirement allowance under Sec. 23-401 of this subtitle, reduced by 0.5% for each month that the member's early retirement date precedes the date the member will be 62 years old. (2) On retirement under this section, a member who begins membership on or after July 1, 2011, is entitled to receive an early service retirement allowance that equals the normal service retirement allowance to which the member would otherwise be entitled under Sec. 23-401 of this subtitle, reduced by 0.5% for each month that the member's early retirement date precedes the date the member will be 65 years old. #### Section 23-403 (a) This section applies to a former member who: (1) was eligible for a retirement allowance under Sec. 23-401 or Sec. 23-402 of this subtitle when the former member's membership terminated; (2) did not submit a written application under Sec. 23-401 or Sec. 23-402 of this subtitle before membership terminated; and (3) has not withdrawn the former member's accumulated contributions, if any. (b) (1) A former member described in subsection (a) of this section may retire with a retirement allowance under Sec. 23-401 or Sec. 23-402 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. (2) 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. #### Section 23-404 (a) (1) In this section the following words have the meanings indicated. (2) "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 Office of the Attorney General. (3) "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. (b) The Board of Trustees shall pay a member of the Employees' Pension System who qualifies under subsection (c) of this section a normal service retirement allowance, regardless of age, if the member: (1) has at least 16 years of creditable service; and (2) elects to have the member's accumulated contributions paid as an annuity of equivalent actuarial value instead of withdrawing the accumulated contributions. (c) A member qualifies for a normal service retirement allowance under subsection (b) of this section if the member: (1) (i) is an elected or appointed official of the State at the time of application for retirement; and (ii) was initially an elected or appointed official of the State before July 22, 1981; (2) (i) is an elected or appointed official of the State when separating from employment; (ii) was initially an elected or appointed official of the State during the period from July 22, 1981, through June 30, 1982, both inclusive; and (iii) separated from employment involuntarily, as certified by the Secretary of Budget and Management; (3) (i) was promoted to a position in the unclassified service of the State on or before June 30, 1982; (ii) has been in the unclassified service or its equivalent in the State continuously from June 30, 1982, until separating from employment; and (iii) separated from employment involuntarily, as certified by the Secretary of Budget and Management; or (4) (i) is a deputy clerk of the court at the time of application for retirement; and (ii) was initially a deputy clerk of the court before July 22, 1981. (d) (1) This subsection applies to a retiree who: (i) retires as an elected or appointed official under this section; and (ii) is appointed or elected to an office for which the State pays the compensation. (2) On the appointment or election of a retiree described in paragraph (1) of this subsection: (i) the retiree's retirement allowance shall stop; (ii) the retiree may rejoin the Employees' Pension System; (iii) the retiree shall make member contributions as provided in this title; and (iv) the Board of Trustees shall restore any creditable service or eligibility service to the retiree's credit at the time of retirement. (3) 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. (4) The allowance, on the subsequent retirement, may not exceed the sum of: (i) the allowance the retiree was receiving during the previous retirement; and (ii) the allowance that has accrued on account of creditable service earned after the previous retirement. #### Section 23-405 (a) When a member of the Employees' Retirement System or the Teachers' Retirement System transfers on or before December 31, 2004, to the Employees' Pension System or the Teachers' Pension System, the Board of Trustees shall allocate any amounts transferred from the Annuity Savings Fund as provided in subsections (b) and (c) of this section. (b) (1) This subsection does not apply to a member's employer pickup contributions. (2) A member who transfers to a pension system under subsection (a) of this section is eligible to receive within 90 days after the date of transfer a refund of the member contributions described in paragraph (3) of this subsection, plus interest computed as provided in paragraph (5) of this subsection, unless the member elects to have any part of the member contributions described in paragraph (3) of this subsection transferred as additional contributions to the annuity savings fund of the pension system to which the member is transferring. (3) The amount to be refunded under this subsection is the amount obtained by multiplying the total of the member contributions attributed to that member by a fraction not exceeding 1, that has: (i) as its numerator, the member's average taxable wage base for the 3 calendar years immediately preceding the calendar year of transfer; and (ii) as its denominator, the average of the member's annual earnable compensation as of the end of the preceding 3 fiscal years. (4) The Board of Trustees shall transfer for the member's benefit the balance, if any, of the member's contributions plus regular interest to the annuity savings fund of the pension system to which the member is transferring. (5) (i) The interest rate to be applied to the member contributions under paragraph (2) of this subsection is the average rate of interest, compounded yearly, for the 5 fiscal years preceding the calendar year of transfer. (ii) The rate of interest for each fiscal year that is used to compute the average rate of interest under subparagraph (i) of this paragraph equals the sum of the investment income and the realized gains and losses divided by the book value of the total investments. (c) (1) If a member transfers to a pension system under subsection (a) of this section, the Board of Trustees shall transfer the member's employer pickup contributions for the member's benefit to the annuity savings fund of the pension system to which the member is transferring. (2) The Board of Trustees shall transfer: (i) as additional contributions, the part of a member's employer pickup contributions obtained by multiplying the member's total employer pickup contributions as of the date of transfer by the fraction specified in subsection (b)(3) of this section, plus interest computed as provided in paragraph (3) of this subsection; and (ii) as member contributions, any balance of the member's employer pickup contributions plus regular interest. (3) (i) The interest rate to be applied to the member contributions under paragraph (2) of this subsection is the average rate of interest, compounded yearly, for the 5 fiscal years preceding the calendar year of transfer. (ii) The rate of interest for each fiscal year that is used to compute the average rate of interest under subparagraph (i) of this paragraph equals the sum of the investment income and the realized gains and losses divided by the book value of the total investments. (d) On retirement or other withdrawal from service on the basis of which an allowance is payable, the member's additional contributions, including any employer pickup contributions transferred as additional contributions, with interest, shall be paid either in cash or as an additional allowance equal to an annuity that is the actuarial equivalent of that amount, in the same manner as the benefit otherwise payable under the Employees' Pension System or Teachers' Pension System. #### Section 23-406 (a) The Board of Trustees shall reduce a member's allowance if the member: (1) received any accumulated contributions, other than additional contributions, in connection with a prior separation from employment; (2) is credited with prior eligibility service; and (3) does not repay, with interest to the date of retirement, the amount received. (b) A reduction under subsection (a) of this section shall equal the actuarial equivalent of the amount, including interest, that is not repaid. #### Section 23-407 (a) In this section, "area of critical shortage" means an academic field identified by the State Department of Education in accordance with the provisions of Sec. 18-703(g)(1) of the Education Article as having projected employment vacancies that substantially exceed projected qualified graduates. (b) Except as provided in subsection (d) of this section, an individual who is receiving a service retirement allowance or a vested allowance may accept employment with a participating employer on a permanent, temporary, or contractual basis, if: (1) the individual immediately notifies the Board of Trustees of the individual's intention to accept this employment; and (2) the individual specifies the compensation to be received. (c) (1) Except as provided in Sec. 23-408 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: (i) 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; (ii) (1) the individual's current employer is any unit of State government; and (2) 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 (iii) the individual becomes reemployed within 12 months of receiving an early service retirement allowance or an early vested allowance computed under Sec. 23-402 of this subtitle. (2) (i) 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: (1) 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 (2) 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. (ii) (1) This subparagraph applies to a retiree of the Teachers' Pension System who as faculty receiving a 10-month salary, retired directly from: (A) the University System of Maryland; (B) Morgan State University; (C) St. Mary's College; or (D) a community college established or operating under Title 16 of the Education Article. (2) 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. (3) 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: (A) bonuses; (B) overtime; (C) summer school salaries; (D) adult education salary; (E) additional temporary payments from special research projects; (F) honorariums; and (G) vehicle stipends. (iii) Any reduction taken under this subsection may not reduce the retiree's allowance to an amount less than the required deduction for: (1) if the retiree retired from any unit of State government, the retiree's monthly State-approved medical insurance premiums; or (2) 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. (iv) 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. (3) A reduction of an early service retirement allowance or an early vested allowance under paragraph (1)(iii) of this subsection shall be applied only until the individual has received an allowance for 12 months. (4) 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: (i) 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; (ii) 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; (iii) an individual who has been retired for 5 years, beginning on January 1 after the date the individual retires; (iv) a retiree of the Teachers' Pension System who: (1) is or has been certified to teach in the State; (2) has verification of satisfactory or better performance in the last assignment prior to retirement; (3) based on the retired teacher's qualifications, has been appointed in accordance with Sec. 4-103 of the Education Article; and (4) receives verification of satisfactory or better performance each year the teacher is employed under paragraph (5) of this subsection; (v) a retiree of the Teachers' Pension System who: (1) (A) was employed as a principal within 5 years of retirement; or (B) 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; (2) has verification of satisfactory performance for each year as a principal and, if applicable, in a position supervising principals prior to retirement; (3) based on the retiree's qualifications, has been hired as a principal; and (4) receives verification of satisfactory performance each year the retiree is employed as a principal under paragraph (6) of this subsection; (vi) a retiree of the Employees' Pension System who is reemployed on a contractual basis by the Maryland Department of Health as a health care practitioner, as defined in Sec. 1-301 of the Health Occupations Article in: (1) a State residential center as defined in Sec. 7-101 of the Health - General Article; (2) a chronic disease center subject to Title 19, Subtitle 5 of the Health - General Article; (3) a State facility as defined in Sec. 10-101 of the Health - General Article; (4) a local health department subject to Title 3, Subtitle 2 of the Health - General Article; or (5) the Office of the Chief Medical Examiner; (vii) a retiree of the Employees' Pension System and the Judges' Retirement System who is temporarily assigned to sit in a court of this State under the authority of Article IV, Sec. 3A of the Maryland Constitution; (viii) a retiree of the Employees' Pension 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 (ix) a retiree of the Teachers' Pension 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. (5) (i) An individual who is rehired under paragraph (4)(iv) of this subsection shall be employed as a classroom teacher, substitute classroom teacher, or teacher mentor in: (1) a public school that: (A) 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; (B) is receiving funds under Title 1 of the federal Elementary and Secondary Education Act; (C) 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 (D) 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 (2) the Maryland School for the Deaf. (ii) An individual rehired at a school described under subparagraph (i) of this paragraph shall teach: (1) in an area of critical shortage; (2) a special education class for students with special needs; or (3) a class for students with limited English proficiency. (6) An individual who is rehired under paragraph (4)(v) of this subsection shall be employed as a principal at: (i) a public school that: (1) 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; (2) is receiving funds under Title 1 of the federal Elementary and Secondary Education Act; (3) 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 (4) 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 (ii) the Maryland School for the Deaf. (7) An individual who is reemployed under paragraph (4)(iv) or (v) 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. (8) (i) 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' Pension System in any position in the superintendent's local school system or the Maryland School for the Deaf. (ii) 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 Sec. 22-406(c)(8)(i) of this article for that same local school system or the Maryland School for the Deaf. (9) (i) The superintendent of the local school system or the superintendent of the Maryland School for the Deaf rehiring an individual under paragraph (4)(iv) or (v) of this subsection shall: (1) approve the rehiring of that individual; and (2) determine the school where the individual is to be reemployed. (ii) Within 30 days after rehiring an individual under paragraph (4)(iv) or (v) 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)(iv) or (v) of this subsection: (1) satisfied the criteria provided in paragraph (4)(iv) or (v) of this subsection; (2) was reemployed at a school described under paragraph (5)(i) or (6) of this subsection; and (3) if rehired under paragraph (4)(iv) of this subsection, was teaching in an area specified in paragraph (5)(ii) of this subsection. (iii) 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. (iv) (1) 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. (2) 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)(iv) and (5), paragraphs (4)(v) and (6), or paragraph (8) of this subsection: (A) 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 (B) 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. (v) 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)(iv) or (v) 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: (1) 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 (2) 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. (vi) 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. (10) 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: (i) the number of individuals rehired under paragraph (4)(iv) or (v) or (8) of this subsection; (ii) (1) the school and school system where each individual was rehired; and (2) whether the school: (A) 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; (B) was receiving funds under Title 1 of the federal Elementary and Secondary Education Act; (C) 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 (D) 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; (iii) the original date of rehire for each individual; (iv) the subject matter taught by each individual; (v) if hired under paragraph (8) of this subsection, the position title of each individual; (vi) the annual salary of each individual; and (vii) 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. (d) 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: (1) the State or other participating employer; or (2) 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. (e) 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. (f) The individual's compensation during the period of reemployment may not be subject to the employer pickup provisions of Sec. 21-303 of this article or any reduction or deduction as a member contribution for pension or retirement purposes. (g) The State Retirement Agency shall institute appropriate reporting procedures with the affected payroll systems to ensure compliance with this section. (h) (1) 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. (2) 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. (i) The State Department of Education shall adopt regulations to carry out this section. (j) At the request of the State Retirement Agency: (1) 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 (2) 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. (k) The Maryland Department of Health shall notify the State Retirement Agency of any retirees who qualify under subsection (c)(4)(vi) of this section. (l) On or before September 1 of each year, the Secretary of Health shall submit a report in accordance with Sec. 2-1257 of the State Government Article to the Joint Committee on Pensions that provides: (1) the number of rehired retirees under subsection (c)(4)(vi) of this section; (2) the annual salary of each rehired retiree at the time of retirement and the current annual salary of each rehired retiree; (3) the number of health care practitioners hired who are not retirees; and (4) the annual salary of each health care practitioner who is hired. (m) 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 Sec. 2-1257 of the State Government Article, that provides: (1) (i) the number of rehired retirees under subsection (c)(4)(iv) and (v) and (8) of this section; (ii) (1) the school and school system where each retiree was rehired; and (2) whether the school: (A) was not making adequate yearly progress or was a school in need of improvement as defined under the federal No Child Left Behind Act of 2001 and as implemented by the State Department of Education; (B) was receiving funds under Title 1 of the federal No Child Left Behind Act of 2001; (C) 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 (D) 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; (iii) a copy of the annual staffing report generated by the State Superintendent of Schools in accordance with Sec. 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; (iv) the subject matter that each rehired retiree was teaching; (v) the salary of each rehired retiree; (vi) the total number of years each retiree has been reemployed at the school where the retiree was rehired for the previous school year; and (vii) 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 (2) the number of retirees rehired under subsection (c)(8) of this section. (n) On or before September 1 of each year, the Secretary of Public Safety and Correctional Services shall submit a report in accordance with Sec. 2-1257 of the State Government Article to the Joint Committee on Pensions that provides: (1) the number of rehired retirees under subsection (c)(4)(viii) of this section; (2) the annual salary of each rehired retiree at the time of retirement and the current annual salary of each rehired retiree; (3) the number of parole and probation employees hired who are not retirees; and (4) the annual salary of each parole and probation employee who is hired. #### Section 23-408 (a) This section applies to an individual who: (1) is eligible for membership in the Judges' Retirement System as provided in Sec. 27-201(a) of this article; and (2) (i) is receiving a service retirement allowance from the Employees' Pension System at the time of appointment in item (1) of this subsection; or (ii) (1) has earned a vested allowance from the Employees' Pension System; and (2) begins receiving the vested allowance while serving as a judge described in item (1) of this subsection. (b) An individual described in subsection (a) of this section may elect to receive service credit in the Judges' Retirement System. (c) (1) 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. (2) (i) An individual shall file a form described in paragraph (1) of this subsection with the Board of Trustees: (1) if the individual is receiving a service retirement allowance from the Employees' Pension System prior to serving as a judge, at the time the individual becomes a member of the Judges' Retirement System; or (2) if the individual has earned a vested allowance from the Employees' Pension 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. (ii) 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. (d) An individual whose allowance is temporarily suspended under subsection (c) of this section is not subject to a reduction as provided in Sec. 23-407 of this subtitle during the period the individual is serving as a judge. (e) (1) 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. (2) 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. (f) If an individual whose allowance is temporarily suspended dies while serving as a judge, the surviving spouse of the individual shall receive: (1) survivorship benefits as provided in Sec. 27-403 of this article; and (2) 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' Pension System. #### Section 23-409 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. ### Subtitle 5. Retirees, Former Vested Members, Deferred Vested Retirees, and Surviving Beneficiaries of the Local Fire and Police System #### Section 23-501 (a) This section applies to an individual who is a former vested member, retiree, or surviving beneficiary of a deceased member, former vested member, or retiree, who, on or after June 30, 2005, is required to become a former vested member, retiree, or surviving beneficiary of a deceased member, former vested member, or retiree of the Employees' Pension System as provided under Sec. 21-306(f) or (g) of this article. (b) An individual described under subsection (a) of this section shall continue to receive benefits in accordance with the provisions of Title 28 of this article. --- Md. Code Ann., State Pers. & Pens. (as displayed at mgaleg.maryland.gov, October 16, 2026)