# State Personnel and Pensions (GSP)

## Title 32. Optional Defined Contribution System

### Subtitle 1. Definitions

#### Section 32-101

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

(b)

  (1) "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 Sec. 22-221 of this article, other than:

    (i) an employee of a participating governmental unit or a former participating governmental unit that has withdrawn; or

    (ii) a member of the Employees' Pension System who transferred from the Employees' Retirement System after April 1, 1998.

  (2) "Eligible employee" includes:

    (i) a member of the Employees' Pension System who contributes to a State supplemental plan authorized by an employing institution as defined in Sec. 30-101 of this article; or

    (ii) a member of the Employees' Pension System who is an employee of the Northeast Maryland Waste Disposal Authority.

(c) "Optional Defined Contribution System" means the system established under Sec. 32-201 of this title.

(d) "Participating employee" means an eligible employee who participates in the Optional Defined Contribution System.

(e)

  (1) "State supplemental plan" means a plan qualified under the Internal Revenue Code and:

    (i) administered by the Supplemental Board; or

    (ii) authorized for eligible employees by an employing institution as defined in Sec. 30-101 of this article.

  (2) "State supplemental plan" includes:

    (i) a salary reduction plan qualified under Sec. 401(k) of the Internal Revenue Code;

    (ii) a tax sheltered annuity plan qualified under Sec. 403(b) of the Internal Revenue Code;

    (iii) a deferred compensation plan qualified under Sec. 457 of the Internal Revenue Code; or

    (iv) a plan qualified under Sec. 401(a) of the Internal Revenue Code.

(f) "Supplemental Board" means the State Board of Trustees of the Maryland State Employees Supplemental Retirement Plans established under Sec. 35-201 of this article.

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