# State Personnel and Pensions (GSP)

## Title 31. Participating Governmental Units

### Subtitle 1. Participation in Employees' Systems

#### Section 31-101

(a) In this subtitle the following words have the meanings indicated.

(b) "Agency on aging" means:

  (1) an area agency on aging;

  (2) the Dorchester County Commission on Aging, Inc.;

  (3) the Somerset County Commission on Aging, Inc.;

  (4) the Washington County Commission on Aging, Inc.; and

  (5) the Worcester County Commission on Aging, Inc.

(c) "Effective date" means the date that an eligible governmental unit commenced or commences participation in an employees' system.

(d) "Eligible governmental unit" means a governmental unit that is eligible to participate in the employees' systems under Sec. 31-102 of this subtitle.

(e)

  (1) "Employee" means a regular employee of an eligible governmental unit.

  (2) "Employee" includes an officer of an eligible governmental unit.

  (3) "Employee" does not include a contractual, emergency, or temporary extra employee.

(f) "Employees' system" means the Employees' Retirement System or the Employees' Pension System.

(g)

  (1) "Legislative body" means the entity with legislative authority or control over an eligible governmental unit.

  (2) "Legislative body" includes:

    (i) a board of county commissioners;

    (ii) a county council;

    (iii) the legislative body of a municipal corporation;

    (iv) for a community action agency, a governing body as defined in Sec. 8-101 of the Housing and Community Development Article;

    (v) for an agency on aging:

      (1) the legislative body of the county that the agency on aging represents; or

      (2) for an area agency on aging that represents more than one county, the legislative body of each of the counties included in the jurisdiction of the area agency on aging;

    (vi) for the University of Maryland Medical System Corporation, the Board of Directors of the corporation; and

    (vii) for the Garrett County Office for Children, Youth and Families, the Board of County Commissioners for Garrett County.

(h)

  (1) "Local plan" means a plan or any other arrangement of an eligible governmental unit that is described in Sec. 219(g)(5) of the Internal Revenue Code.

  (2) "Local plan" does not include a plan established under Sec. 457 of the Internal Revenue Code.

#### Section 31-102

Subject to Sec. 22-202(b) of this article and Sec. 31-109 of this subtitle, the governmental units that are eligible to participate in the employees' systems are:

(1) a political subdivision of the State, including:

  (i) a county;

  (ii) a municipal corporation; and

  (iii) a special taxing area; and

(2) the following governmental units:

  (i) an agency on aging, as designated by the legislative body of the agency on aging;

  (ii) the Allegany County Transit Authority;

  (iii) subject to Sec. 31-104 of this subtitle, the Baltimore Metropolitan Council;

  (iv) a board or commission created by an Act of the General Assembly for public purpose and not for the profit of a private person;

  (v) subject to Sec. 31-105 of this subtitle, the Canal Place Preservation and Development Authority;

  (vi) the Chesapeake Bay Commission;

  (vii) a cooperative library commission;

  (viii) subject to Sec. 31-103 of this subtitle, a community action agency, as designated by the legislative body of the community action agency;

  (ix) a fire department that receives any of its funds from or through a county, municipal corporation, special taxing area, or other political subdivision of the State;

  (x) the Health Planning Council of Appalachia;

  (xi) the Howard County Economic Development Authority;

  (xii) the Interstate Commission on the Potomac River Basin;

  (xiii) the Lower Shore Private Industry Council, Inc.;

  (xiv) the Maryland Environmental Service;

  (xv) subject to Sec. 31-106 of this subtitle, the Maryland Stadium Authority;

  (xvi) a public library association or organization;

  (xvii) subject to Sec. 31-106.2 of this subtitle, the St. Mary's Nursing Center, Inc.;

  (xviii) the Tri-County Council for Western Maryland, Inc.;

  (xix) the Tri-County Council for Southern Maryland;

  (xx) subject to Sec. 31-107 of this subtitle, the University of Maryland Medical System Corporation;

  (xxi) the Upper Potomac River Commission;

  (xxii) subject to Sec. 31-106.1 of this subtitle, the Maryland African American Museum Corporation;

  (xxiii) the Garrett County Office for Children, Youth and Families;

  (xxiv) the Somerset County Economic Development Commission; and

  (xxv) the Dorchester County Sanitary Commission.

#### Section 31-103

A legislative body may not designate more than one community action agency as an eligible governmental unit.

#### Section 31-104

The only employees of the Baltimore Metropolitan Council who are eligible to participate in the employees' systems under this subtitle are those employees who were members of the Employees' Retirement System or the Employees' Pension System as employees of the Baltimore Regional Council of Governments on June 30, 1992.

#### Section 31-105

The only employees of the Canal Place Preservation and Development Authority who are eligible to participate in the Employees' Pension System under this subtitle are the Executive Director and the regular full-time employees that are employed by the Canal Place Preservation and Development Authority under Sec. 13-1008(6) of the Financial Institutions Article.

#### Section 31-106

The only employees of the Maryland Stadium Authority who are eligible to participate in the Employees' Pension System under this subtitle are the Executive Director of the Stadium Authority and the regular full-time employees employed by the Maryland Stadium Authority under Sec. 10-610 of the Economic Development Article.

#### Section 31-106.1

The only employees of the Maryland African American Museum Corporation who are eligible to participate in the Employees' Pension System under this subtitle are the Executive Director and the regular full-time employees employed by the Maryland African American Museum Corporation under Sec. 9-2604 of the State Government Article.

#### Section 31-106.2

The only employees of the St. Mary's Nursing Center, Inc. who are eligible to participate in the employees' systems under this subtitle are those employees who were members of the Employees' Retirement System or the Employees' Pension System as employees of the St. Mary's County Nursing Home on January 17, 1996.

#### Section 31-107

The only employees of the University of Maryland Medical System Corporation who are eligible to participate in the employees' systems under this subtitle are employees who were:

(1) members of an employees' system; and

(2)

  (i) employees of the University of Maryland on June 30, 1988, who became Medical System Corporation employees on or before July 1, 1988;

  (ii) employees of the University of Maryland System on June 30, 1990, who voluntarily became Medical System Corporation employees on or before July 1, 1991; or

  (iii) Montebello University employees as defined in Sec. 13-401(g) of the Education Article who were employees of the University of Maryland on June 30, 1992, and who became employees of the University of Maryland Medical System Corporation in accordance with Sec. 13-404 of the Education Article.

#### Section 31-108

An employee of Worcester County is not eligible to participate in the employees' systems under this subtitle if the employee:

(1) is employed by Worcester County on July 1, 1994;

(2) was an employee of the Worcester County Sanitary Commission on October 31, 1993; and

(3) is a member of the Worcester County Sanitary District Pension Plan or its successor.

#### Section 31-109

(a) Subject to subsection (b) of this section, the legislative body of an eligible governmental unit may approve participation by its employees in the Employees' Pension System if:

  (1) the legislative body adopts a resolution in the form prescribed by the Board of Trustees; and

  (2) the eligible governmental unit operates a local plan, only if:

    (i) at least 60% of the members of the local plan petition to become members of the Employees' Pension System;

    (ii) the eligible governmental unit satisfies the requirements in subsection (b) of this section; and

    (iii) the legislative body approves participation of the eligible governmental unit in the Employees' Pension System as though the local plan were not in operation.

(b) An eligible governmental unit that operates a local plan may approve participation by its employees in the Employees' Pension System only if:

  (1) the local plan of the eligible governmental unit requires member contributions at the same rate as the member contribution rate that would be applicable to employees of the eligible governmental unit in the Employees' Pension System; or

  (2) the eligible governmental unit:

    (i) does not provide for the employer pickup of member contributions to the local plan within the meaning of Sec. 414(h)(2) of the Internal Revenue Code; and

    (ii) certifies that it will not become an approved employer under Sec. 21-313 of this article on or after the effective date of participation.

(c)

  (1) If an eligible governmental unit does not satisfy the requirements under subsection (b) of this section, the eligible governmental unit may submit a request to the Board of Trustees to participate in the Employees' Pension System.

  (2) The Board of Trustees shall consider a request made under paragraph (1) of this subsection and determine whether any legislation is necessary to allow the eligible governmental unit to participate in the Employees' Pension System.

  (3) The Board of Trustees shall make recommendations to the Joint Committee on Pensions regarding any legislation that it determines is necessary to allow the eligible governmental unit to participate in the Employees' Pension System.

(d) An eligible governmental unit that satisfies the requirements under subsection (b) of this section is eligible to participate in the Employees' Pension System only if the eligible governmental unit makes enrollment available to all eligible employees of the eligible governmental unit.

#### Section 31-109.1

(a) Except as provided in subsection (b) of this section, the effective date of participation for an eligible governmental unit is July 1 of the year following the fiscal year in which the eligible governmental unit elects to participate in the Employees' Pension System.

(b)

  (1) If an eligible governmental unit does not provide the Board of Trustees with the necessary documentation to join the Employees' Pension System on or before the effective date for the eligible governmental unit, the effective date shall be postponed until July 1 of the second year following the fiscal year in which the eligible governmental unit elects to participate in the Employees' Pension System.

  (2) For any employee of an eligible governmental unit who is eligible to elect to participate in the Employees' Pension System, the necessary documentation under paragraph (1) of this subsection shall include properly completed election forms indicating either that:

    (i) the employee intends to participate in the Employees' Pension System; or

    (ii) the employee intends to opt out of participation in the Employees' Pension System.

  (3)

    (i) An employee that does not complete the necessary documentation indicating whether the employee intends to participate in or opt out of participation in the Employees' Pension System is deemed to have elected to participate in the Employees' Pension System.

    (ii) The appointing authority for the employee of the eligible governmental unit that does not complete the necessary documentation indicating whether the employee intends to participate in or opt out of participation in the Employees' Pension System shall execute and submit an affidavit to the State Retirement Agency stating:

      (1) the name of the employee who did not submit the necessary documentation; and

      (2) the date when the appointing authority provided the employee with the election form to be completed.

    (iii) An affidavit under this paragraph is necessary documentation that an eligible governmental unit is required to submit under this subsection to join the Employees' Pension System.

#### Section 31-110

An employee who is a member of the Employees' Retirement System may:

(1) remain a member of the Employees' Retirement System; or

(2) transfer to the Employees' Pension System.

#### Section 31-111

(a) Except as provided in subsection (b) of this section and Sec.Sec. 31-111.1, 31-111.3, 31-111.4, 31-111.5, 31-111.6, 31-111.7, and 31-111.8 of this subtitle, if an employee of a participating governmental unit joins the Employees' Pension System on the effective date, the employee shall receive 100% service credit for the employee's employment with the participating governmental unit before the effective date.

(b) If an employee of the Baltimore Metropolitan Council elects to become a member of the Employees' Retirement System or the Employees' Pension System, the employee may not receive credit for service from July 1, 1992, to the effective date unless the employee pays to the Board of Trustees the amount of the member contributions the employee would have made during that period, plus regular interest.

#### Section 31-111.1

(a) A supportive service employee of the Board of Education of Kent County shall receive service credit for service prior to the effective date in the amount of the employee's credit, as certified by the Board of Education of Kent County as of the effective date.

(b) If a supportive service employee or former supportive service employee of the Board of Education of Kent County becomes a member of the Employees' Pension System at any time after the effective date, the employee may not receive service credit for employment with the Board of Education for Kent County before the effective date.

#### Section 31-111.2

(a) An employee of the Town of Oakland who was an employee on June 30, 2000, and who remains an employee on June 30, 2003, shall receive additional service credit to equal the total eligibility service and creditable service accrued prior to the effective date that the Town of Oakland began participating in the Employees' Pension System, as certified by the Town of Oakland.

(b) If an employee or a former employee of the Town of Oakland becomes a member of the Employees' Pension System at any time after the effective date that the Town of Oakland began participating in the Employees' Pension System, the employee may not receive service credit for employment with the Town of Oakland before the effective date that the Town of Oakland began participating in the Employees' Pension System.

#### Section 31-111.3

(a) An individual who is an employee of the City of Frostburg on the effective date shall receive eligibility service and creditable service in the Employees' Pension System equal to one-half of the individual's period of employment with the City of Frostburg before the effective date, as certified by the City of Frostburg as of the effective date.

(b) If an employee or former employee of the City of Frostburg becomes a member of the Employees' Pension System at any time after the effective date, the employee may not receive service credit for employment with the City of Frostburg before the effective date.

#### Section 31-111.4

(a) An individual who elects membership in the Employees' Pension System under Sec. 23-204(e) of this article and is an employee of the Town of Berwyn Heights on the effective date shall receive eligibility service and creditable service in the Employees' Pension System equal to one-third of the individual's period of employment with the Town of Berwyn Heights before the effective date, as certified by the Town of Berwyn Heights as of the effective date.

(b) If an employee or former employee of the Town of Berwyn Heights becomes a member of the Employees' Pension System at any time after the effective date, the employee may not receive service credit for employment with the Town of Berwyn Heights before the effective date.

#### Section 31-111.5

(a)

  (1) An individual who is an employee of the Town of Sykesville on the effective date shall receive eligibility service and creditable service in the Employees' Pension System equal to 75% of the individual's period of employment with the Town of Sykesville before the effective date as certified by the Town of Sykesville as of the effective date.

  (2)

    (i) This paragraph applies only to a member of the Employees' Pension System who received eligibility service and creditable service in accordance with paragraph (1) of this subsection.

    (ii) The Town of Sykesville may purchase additional service credit for each member so that the member's eligibility service and creditable service for employment with the Town of Sykesville before the effective date of participation is equal to 100% of the member's period of employment with the Town of Sykesville before the effective date of participation.

    (iii) Additional service credit purchased under this paragraph shall be credited to an employee on July 1 of the fiscal year in which the additional service credit is purchased.

    (iv) The new entrant valuation that is used to determine the employer contribution for the Town of Sykesville shall be adjusted in the fiscal year in which the purchase of service credit is made to reflect any change in liabilities attributable to the Town of Sykesville resulting from a purchase of service credit under this paragraph.

(b) If an employee or former employee of the Town of Sykesville becomes a member of the Employees' Pension System at any time after the effective date, the employee may not receive service credit for employment with the Town of Sykesville before the effective date.

#### Section 31-111.6

(a) An individual who is an employee of the Town of University Park on the effective date shall receive eligibility service and creditable service in the Employees' Pension System equal to 70% of the individual's period of employment with the Town of University Park before the effective date as certified by the Town of University Park as of the effective date.

(b) If an employee or former employee of the Town of University Park becomes a member of the Employees' Pension System at any time after the effective date, the employee may not receive service credit for employment with the Town of University Park before the effective date.

#### Section 31-111.7

(a) Subject to subsection (b) of this section, an employee of the Somerset County Economic Development Commission who was an employee on June 30, 2011, and who remains an employee through the effective date, shall receive additional service credit for eligibility service and creditable service accrued prior to the effective date that the Somerset County Economic Development Commission began participating in the Employees' Pension System, as certified by the Somerset County Economic Development Commission.

(b) Additional service credit under subsection (a) of this section shall be awarded only for time for which employee contributions were made to the Board of Trustees prior to the effective date that the Somerset County Economic Development Commission began participating in the Employees' Pension System.

#### Section 31-111.8

(a) An individual who elects membership in the Employees' Pension System under Sec. 23-204(f) of this article and is an employee of the City of College Park on the effective date shall receive eligibility service and creditable service  in the Employees' Pension System equal to 60% of the individual's period of employment with the City of College Park before the effective date as certified by the City of College Park as of the effective date.

(b) If an employee or a former employee of the City of College Park becomes a member of the Employees' Pension System at any time after the effective date, the employee may not receive service credit for employment with the City of College Park before the effective date.

#### Section 31-112

(a) Subject to subsection (b) of this section, an employee of a participating governmental unit who is a member of one of the employees' systems is entitled to the benefits to which State employees are entitled under that system.

(b)

  (1) An employee of a participating governmental unit that has elected to participate in:

    (i) the contributory pension benefit option under Sec. 31-116 of this subtitle shall be subject to Title 23, Subtitle 2, Part II of this article; or

    (ii) the Alternate Contributory Pension Selection under Sec. 31-116.1 of this subtitle shall be subject to Title 23, Subtitle 2, Part III of this article.

  (2) An employee of a participating governmental unit that has not elected to participate in:

    (i) the contributory pension benefit option under Sec. 31-116 of this subtitle is not subject to Title 23, Subtitle 2, Part II of this article; or

    (ii) the Alternate Contributory Pension Selection under Sec. 31-116.1 of this subtitle is not subject to Title 23, Subtitle 2, Part III of this article.

#### Section 31-113

(a) This section applies only to a local plan that is a qualified plan under Sec. 401(a) of the Internal Revenue Code and provides a defined benefit to its participants.

(b) Except as provided in subsection (c) of this section, the operation of the local plan of an eligible governmental unit terminates on the effective date.

(c)

  (1) An eligible governmental unit may elect to continue to operate a local plan after the effective date of participation in the Employees' Pension System to provide benefits to an individual who:

    (i) is receiving benefits from the local plan;

    (ii) is eligible to receive benefits from the local plan on account of the individual's previous employment by the eligible governmental unit; or

    (iii) did not elect to join the Employees' Pension System under Sec. 23-204(a) of this article.

  (2) An individual may not be enrolled in the local plan of a participating governmental unit electing to continue to operate its local plan under paragraph (1) of this subsection if the individual becomes employed or is rehired by the participating governmental unit on or after the effective date of participation of the participating governmental unit in the Employees' Pension System.

(d) The liability for the continuation of benefits under subsection (c) of this section shall be included in the computation of the special accrued liability as provided by Sec. 21-305.3 of this article.

(e)

  (1) On the effective date:

    (i) the assets to the credit of the local plan of the participating governmental unit that are attributable to the employees of the participating governmental unit who elect to become members of the Employees' Pension System under Sec. 23-204(a) of this article shall be transferred to the Employees' Pension System; and

    (ii) the trustee or other administrative head of the local plan shall certify the proportion of the funds of the local plan that represents the accumulated contributions of the members as of that date.

  (2) The accumulated contributions shall be credited to the respective annuity savings accounts of the members in the Employees' Pension System.

  (3) Any balance of the funds transferred to the Employees' Pension System shall be offset against the special accrued liability to be funded by the participating governmental unit as provided by Sec. 21-305.3 of this article.

#### Section 31-114

The chief fiscal officer of each participating governmental unit shall:

(1) submit to the Board of Trustees the information that the Board of Trustees requires; and

(2) with respect to each employee of the participating governmental unit, cause to be performed the duties that would be performed by the head of a State unit employing members of an employees' system.

#### Section 31-115

(a) A participating governmental unit may establish, by law, a separate additional program of interim or supplemental allowances for a class of employees.

(b) A participating governmental unit shall fund any additional program of allowances separately from the funding for benefits provided under this Division II.

(c)

  (1) On the written request of a participating governmental unit that desires to establish an additional program authorized under this section, the State Retirement Agency may provide benefit-determination data or other technical assistance.

  (2) The State Retirement Agency shall charge the participating governmental unit for the expenses of preparing the data or providing the technical assistance.

#### Section 31-116

(a) On or before December 31, 2002, a participating governmental unit may elect to provide its employees with the contributory pension benefit under Title 23 of this article as provided in this section by submitting its election on a form provided by the State Retirement Agency.

(b)

  (1) If a participating governmental unit elects to provide its employees with the contributory pension benefit under Title 23 of this article, an employee of the participating governmental unit who is a member of the Employees' Pension System shall be entitled to the benefits as provided in Sec. 23-218 of this article, effective on the later of July 1, 1998, or the date the employee became a member of the Employees' Pension System, unless the employee transferred to the Employees' Pension System after April 1, 1998.

  (2) If an employee of a participating governmental unit transferred to the Employees' Pension System after April 1, 1998, the employee is not subject to Title 23, Subtitle 2, Part II of this article and is not entitled to the benefits as provided in Sec. 23-218 of this article.

(c) An election by a participating governmental unit under this section is irrevocable.

#### Section 31-116.1

(a) On or before June 30, 2007, a participating governmental unit may elect to provide its employees with the Alternate Contributory Pension Selection under Title 23, Subtitle 2, Part III of this article by submitting its election on a form provided by the State Retirement Agency.

(b) An election by a participating governmental unit under this section is irrevocable.

(c)

  (1) If a participating governmental unit elects to provide its employees with the Alternate Contributory Pension Selection under Title 23, Subtitle 2, Part III of this article, an employee of the participating governmental unit who is a member of the Employees' Pension System shall be entitled to the benefits as provided in Sec. 23-222 of this article, effective on the later of July 1, 2006, or the date the employee became a member of the Employees' Pension System, unless the employee transferred to the Employees' Pension System from the Employees' Retirement System or Teachers' Retirement System after April 1, 1998.

  (2) If an employee of a participating governmental unit transferred to the Employees' Pension System from the Employees' Retirement System or Teachers' Retirement System after April 1, 1998, the employee is not subject to Title 23, Subtitle 2, Part III of this article and is not entitled to the benefits as provided in Sec. 23-222 of this article.

#### Section 31-116.2

(a)

  (1) Except as provided in paragraph (2) of this subsection, this section applies to an individual who becomes an employee of a participating governmental unit on or after July 1, 2011.

  (2) This section does not apply to an individual who becomes an employee of:

    (i) a participating governmental unit that on July 1, 2011, is participating in the Employees' Pension System and has not elected to participate in the Alternate Contributory Pension Selection under Sec. 31-116.1 of this subtitle; or

    (ii) a former participating governmental unit, other than Frederick County, that has withdrawn from the Employees' Pension System on or before June 30, 2011.

(b) An individual described in subsection (a) of this section is subject to the reformed contributory pension benefit under Title 23, Subtitle 2, Part IV 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 Title 23, Subtitle 2, Part III of this article in the same manner as an individual who was a member of the Employees' Pension System on June 30, 2011.

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