This subtitle applies only to an employee of a participating governmental unit who is: a law enforcement officer who is certified by the Maryland Police Training and Standards Commission as a law enforcement officer; or a firefighter who is: a paid firefighter, as determined by the eligible governmental unit; or a paid paramedic, as determined by the eligible governmental unit. This subtitle does not apply to an employee of a participating governmental unit who is a volunteer firefighter or volunteer paramedic.

Except as provided in subsection (b) of this section, an individual described in § 28-201 of this subtitle is a member of the Local Fire and Police System as a condition of employment. Membership in the Local Fire and Police System is optional for an individual who was employed by a participating governmental unit on the date the participating governmental unit begins to participate in the Local Fire and Police System.

Membership continues for a member who is: on a leave of absence approved by the Board of Trustees; or in the military service within the periods specified in Title 38 of this article.

Except as provided in subsection (b) of 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. The contribution rate for a member who has transferred from the Employees’ Retirement System is 7% of the member’s earnable compensation.

Except as provided in subsection (b) of this section, regular interest is payable on member contributions until retirement or withdrawal of accumulated contributions at the rate of: 4% a year, compounded annually, for a member who has transferred from the Employees’ Retirement System; or 5% a year, compounded annually, for each other member. 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.

Membership ends if the member is separated from employment for more than 4 years.