<section article="gsp" article_name="State Personnel and Pensions" number="32-101" title_number="32" title_name="Optional Defined Contribution System" subtitle_number="1" subtitle_name="Definitions"> <level label="a"> <text>In this title the following words have the meanings indicated.</text> </level> <level label="b"> <level label="1"> <text>“Eligible employee” means a member of the Employees’ Pension System or the Employees’ Retirement System who is subject to Selection C (Combination Formula) as provided in § 22-221 of this article, other than:</text> <level label="i"> <text>an employee of a participating governmental unit or a former participating governmental unit that has withdrawn; or</text> </level> <level label="ii"> <text>a member of the Employees’ Pension System who transferred from the Employees’ Retirement System after April 1, 1998.</text> </level> </level> <level label="2"> <text>“Eligible employee” includes:</text> <level label="i"> <text>a member of the Employees’ Pension System who contributes to a State supplemental plan authorized by an employing institution as defined in § 30-101 of this article; or</text> </level> <level label="ii"> <text>a member of the Employees’ Pension System who is an employee of the Northeast Maryland Waste Disposal Authority.</text> </level> </level> </level> <level label="c"> <text>“Optional Defined Contribution System” means the system established under § 32-201 of this title.</text> </level> <level label="d"> <text>“Participating employee” means an eligible employee who participates in the Optional Defined Contribution System.</text> </level> <level label="e"> <level label="1"> <text>“State supplemental plan” means a plan qualified under the Internal Revenue Code and:</text> <level label="i"> <text>administered by the Supplemental Board; or</text> </level> <level label="ii"> <text>authorized for eligible employees by an employing institution as defined in § 30-101 of this article.</text> </level> </level> <level label="2"> <text>“State supplemental plan” includes:</text> <level label="i"> <text>a salary reduction plan qualified under § 401(k) of the Internal Revenue Code;</text> </level> <level label="ii"> <text>a tax sheltered annuity plan qualified under § 403(b) of the Internal Revenue Code;</text> </level> <level label="iii"> <text>a deferred compensation plan qualified under § 457 of the Internal Revenue Code; or</text> </level> <level label="iv"> <text>a plan qualified under § 401(a) of the Internal Revenue Code.</text> </level> </level> </level> <level label="f"> <text>“Supplemental Board” means the State Board of Trustees of the Maryland State Employees Supplemental Retirement Plans established under § 35–201 of this article.</text> </level> </section> <section article="gsp" article_name="State Personnel and Pensions" number="32-201" title_number="32" title_name="Optional Defined Contribution System" subtitle_number="2" subtitle_name="Optional Defined Contribution System"> <text>There is an Optional Defined Contribution System.</text> </section> <section article="gsp" article_name="State Personnel and Pensions" number="32-202" title_number="32" title_name="Optional Defined Contribution System" subtitle_number="2" subtitle_name="Optional Defined Contribution System"> <text>The Supplemental Board shall administer the Optional Defined Contribution System.</text> </section> <section article="gsp" article_name="State Personnel and Pensions" number="32-203" title_number="32" title_name="Optional Defined Contribution System" subtitle_number="2" subtitle_name="Optional Defined Contribution System"> <level label="a"> <text>Except for the State supplemental plans that are authorized by employing institutions as defined in § 30-101 of this article, the Supplemental Board shall adopt, implement, and maintain the specific qualified plans that are part of the Optional Defined Contribution System.</text> </level> <level label="b"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, the Supplemental Board shall adopt regulations to carry out this title.</text> </level> <level label="2"> <text>The Supplemental Board is not required to adopt regulations to adopt or amend the plans under the Optional Defined Contribution System.</text> </level> </level> <level label="c"> <text>A participating employee’s interest in the plans under the Optional Defined Contribution System:</text> <level label="1"> <text>shall immediately be 100% vested;</text> </level> <level label="2"> <text>shall be held in trust for the exclusive benefit of the participating employee, except as otherwise required under § 403(b) of the Internal Revenue Code for investments held under a plan that qualifies under § 403(b) of the Internal Revenue Code; and</text> </level> <level label="3"> <text>may be distributed only at the times, in the manner, to the extent, and to the individuals that allow the plans to maintain their tax qualified status under the Internal Revenue Code.</text> </level> </level> </section> <section article="gsp" article_name="State Personnel and Pensions" number="32-204" title_number="32" title_name="Optional Defined Contribution System" subtitle_number="2" subtitle_name="Optional Defined Contribution System"> <text>The participating employee contributions shall be made as payrolls are paid by payroll deduction or by a reduction in salary in accordance with the Internal Revenue Code and as provided by the applicable State supplemental plan.</text> </section> <section article="gsp" article_name="State Personnel and Pensions" number="32-205" title_number="32" title_name="Optional Defined Contribution System" subtitle_number="2" subtitle_name="Optional Defined Contribution System"> <level label="a"> <level label="1"> <text>Subject to paragraph (3) of this subsection, for each participating employee who makes contributions under § 32–204 of this subtitle, the State shall contribute to the applicable State supplemental plan employer contributions an amount equal to the lesser of the participating employee’s contributions or $600 per fiscal year.</text> </level> <level label="2"> <text>Subject to paragraph (3) of this subsection, if a participating employee who makes contributions under § 32–204 of this subtitle provides documentation to the State of the amount the employee paid toward the employee’s higher education student loan payments during the current fiscal year, the State shall contribute to the applicable State supplemental plan employer contributions an amount equal to the lesser of the participating employee’s higher education student loan payments or $600 per current fiscal year.</text> </level> <level label="3"> <text>A participating employee may not receive a State contribution under paragraphs (1) and (2) of this subsection during the same fiscal year.</text> </level> </level> <level label="b"> <level label="1"> <text>This subsection applies to participating employees who are paid through the Central Payroll Bureau.</text> </level> <level label="2"> <text>As payrolls are paid, the Central Payroll Bureau shall pay the employer contributions to the applicable State supplemental plan as directed by the Supplemental Board.</text> </level> <level label="3"> <text>The payments shall be charged against the budgets of the units employing the participating employees.</text> </level> <level label="4"> <text>If a participating employee’s salary is paid from special funds or federal funds, or both, the employer contribution for that employee shall be paid from those funds.</text> </level> </level> <level label="c"> <level label="1"> <text>This subsection applies to participating employees who are not paid through the Central Payroll Bureau.</text> </level> <level label="2"> <text>The Supplemental Board shall provide by regulation how employer contributions and participating employee contributions are to be made.</text> </level> <level label="3"> <text>The payments shall be charged against the budgets of the units employing the participating employees who are employed by the State.</text> </level> <level label="4"> <text>If a participating employee’s salary is paid from special funds or federal funds, or both, the employer contribution shall be paid from those funds.</text> </level> </level> </section> <section article="gsp" article_name="State Personnel and Pensions" number="32-205.1" title_number="32" title_name="Optional Defined Contribution System" subtitle_number="2" subtitle_name="Optional Defined Contribution System"> <level label="a"> <text>Employees of the Northeast Maryland Waste Disposal Authority who are members of the Employees’ Pension System shall be eligible for a matching contribution if:</text> <level label="1"> <text>the Supplemental Board determines that employees of the Northeast Maryland Waste Disposal Authority are eligible to participate in and contribute to one or more of the State supplemental plans; and</text> </level> <level label="2"> <text>the Northeast Maryland Waste Disposal Authority makes an irrevocable election to participate in the Optional Defined Contribution System.</text> </level> </level> <level label="b"> <text>If the Northeast Maryland Waste Disposal Authority makes an election under this section, the Northeast Maryland Waste Disposal Authority shall be required to pay for each employee who makes contributions under § 32–204 of this subtitle, a contribution in an amount equal to the lesser of the employee’s contributions or $600 per fiscal year, in the manner directed by the Supplemental Board.</text> </level> </section> <section article="gsp" article_name="State Personnel and Pensions" number="32-206" title_number="32" title_name="Optional Defined Contribution System" subtitle_number="2" subtitle_name="Optional Defined Contribution System"> <text>The Governor shall include in the annual State budget bill an appropriation that is sufficient to pay the employer contributions for participating employees required under § 32-205 of this subtitle.</text> </section> <section article="gsp" article_name="State Personnel and Pensions" number="32-207" title_number="32" title_name="Optional Defined Contribution System" subtitle_number="2" subtitle_name="Optional Defined Contribution System"> <level label="a"> <text>A State supplemental plan that is authorized for eligible employees by an employing institution as defined in § 30–101 of this article may be offered only on the same basis and to the same class of employees as authorized under Chapter 619, § 2 of the Acts of the General Assembly of 1996.</text> </level> <level label="b"> <text>The employing institution, in consultation with the State Retirement Agency, shall determine which employees of its institution are eligible employees.</text> </level> </section> <section article="gsp" article_name="State Personnel and Pensions" number="32-208" title_number="32" title_name="Optional Defined Contribution System" subtitle_number="2" subtitle_name="Optional Defined Contribution System"> <level label="a"> <text>An eligible employee, as defined in § 32–101(b) of this title, of St. Mary’s College of Maryland may not participate in the Optional Defined Contribution System, as provided in this title, if the employee is eligible to participate in a matching supplemental retirement defined contribution plan or a matching feature of a supplemental retirement plan adopted and administered by the Board of Trustees of St. Mary’s College of Maryland.</text> </level> <level label="b"> <text>The Board of Trustees of St. Mary’s College of Maryland may adopt and administer for employees of St. Mary’s College of Maryland:</text> <level label="1"> <text>a matching supplemental retirement defined contribution plan; or</text> </level> <level label="2"> <text>a matching feature to another supplemental retirement plan adopted and administered by the Board of Trustees.</text> </level> </level> <level label="c"> <text>For any fiscal year, any plan established under subsection (b) of this section shall provide to employees described under subsection (a) of this section and who participate in the St. Mary’s College of Maryland supplemental plan or feature, not less than the same level of employer contributions that are available to participating employees under § 32–205 of this subtitle.</text> </level> </section>