Title 23. Employees' and Teachers' Pension Systems — Subtitle 3. Service Credit
Statutes in effect as of October 1, 2026.
Md. Code Ann., State Pers. & Pens. § 23-301 (2026)
Title 23. Employees' and Teachers' Pension Systems
Subtitle 3. Service Credit
§ 23–301LinkCopy Citation
A member of the Employees’ Pension System or Teachers’ Pension System is entitled to:
(1)
eligibility service as provided in §§ 23-302 through 23-308 of this subtitle; and
(2)
creditable service as provided in § 23-309 of this subtitle.
Md. Code Ann., State Pers. & Pens. § 23-302 (2026)
Title 23. Employees' and Teachers' Pension Systems
Subtitle 3. Service Credit
§ 23–302LinkCopy Citation
(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.
Md. Code Ann., State Pers. & Pens. § 23-303 (2026)
Title 23. Employees' and Teachers' Pension Systems
Subtitle 3. Service Credit
§ 23–303LinkCopy Citation
(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.
Md. Code Ann., State Pers. & Pens. § 23-303.1 (2026)
Title 23. Employees' and Teachers' Pension Systems
Subtitle 3. Service Credit
§ 23–303.1LinkCopy Citation
(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 § 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 § 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 § 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 § 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 § 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 § 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 § 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 § 414(h)(2) of the Internal Revenue Code.
Md. Code Ann., State Pers. & Pens. § 23-304 (2026)
Title 23. Employees' and Teachers' Pension Systems
Subtitle 3. Service Credit
§ 23–304LinkCopy Citation
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.
Md. Code Ann., State Pers. & Pens. § 23-304.1 (2026)
Title 23. Employees' and Teachers' Pension Systems
Subtitle 3. Service Credit
§ 23–304.1LinkCopy Citation
(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 § 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.
Md. Code Ann., State Pers. & Pens. § 23-305 (2026)
Title 23. Employees' and Teachers' Pension Systems
Subtitle 3. Service Credit
§ 23–305LinkCopy Citation
A member is entitled to eligibility service equal to the military service credit granted under Title 38 of this article.
Md. Code Ann., State Pers. & Pens. § 23-306 (2026)
Title 23. Employees' and Teachers' Pension Systems
Subtitle 3. Service Credit
§ 23–306LinkCopy Citation
(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.
Md. Code Ann., State Pers. & Pens. § 23-306.1 (2026)
Title 23. Employees' and Teachers' Pension Systems
Subtitle 3. Service Credit
§ 23–306.1LinkCopy Citation
(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 § 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 § 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.
Md. Code Ann., State Pers. & Pens. § 23-306.2 (2026)
Title 23. Employees' and Teachers' Pension Systems
Subtitle 3. Service Credit
§ 23–306.2LinkCopy Citation
(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 § 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.
Md. Code Ann., State Pers. & Pens. § 23-306.3 (2026)
Title 23. Employees' and Teachers' Pension Systems
Subtitle 3. Service Credit
§ 23–306.3LinkCopy Citation
(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.
Md. Code Ann., State Pers. & Pens. § 23-307 (2026)
Title 23. Employees' and Teachers' Pension Systems
Subtitle 3. Service Credit
§ 23–307LinkCopy Citation
(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 § 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.
Md. Code Ann., State Pers. & Pens. § 23-307.1 (2026)
Title 23. Employees' and Teachers' Pension Systems
Subtitle 3. Service Credit
§ 23–307.1LinkCopy Citation
(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 § 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.
Md. Code Ann., State Pers. & Pens. § 23-307.2 (2026)
Title 23. Employees' and Teachers' Pension Systems
Subtitle 3. Service Credit
§ 23–307.2LinkCopy Citation
(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.
Md. Code Ann., State Pers. & Pens. § 23-307.3 (2026)
Title 23. Employees' and Teachers' Pension Systems
Subtitle 3. Service Credit
§ 23–307.3LinkCopy Citation
(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.
Md. Code Ann., State Pers. & Pens. § 23-307.4 (2026)
Title 23. Employees' and Teachers' Pension Systems
Subtitle 3. Service Credit
§ 23–307.4LinkCopy Citation
(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.
Md. Code Ann., State Pers. & Pens. § 23-307.5 (2026)
Title 23. Employees' and Teachers' Pension Systems
Subtitle 3. Service Credit
§ 23–307.5LinkCopy Citation
(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 § 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.
Md. Code Ann., State Pers. & Pens. § 23-308 (2026)
Title 23. Employees' and Teachers' Pension Systems
Subtitle 3. Service Credit
§ 23–308LinkCopy Citation
(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 § 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 § 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 § 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.
Md. Code Ann., State Pers. & Pens. § 23-308.1 (2026)
Title 23. Employees' and Teachers' Pension Systems
Subtitle 3. Service Credit
§ 23–308.1LinkCopy Citation
(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 § 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.
Md. Code Ann., State Pers. & Pens. § 23-308.2 (2026)
Title 23. Employees' and Teachers' Pension Systems
Subtitle 3. Service Credit
§ 23–308.2LinkCopy Citation
(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 § 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.
Md. Code Ann., State Pers. & Pens. § 23-309 (2026)
Title 23. Employees' and Teachers' Pension Systems
Subtitle 3. Service Credit
§ 23–309LinkCopy Citation
(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 § 20-206 of this article and § 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.
Md. Code Ann., State Pers. & Pens. § 23-310 (2026)
Title 23. Employees' and Teachers' Pension Systems
Subtitle 3. Service Credit
§ 23–310LinkCopy Citation
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 § 20–206 of this article.