Subject to subsection (b) of this section, this title applies to transfers from a State or local retirement or pension system to another State or local retirement or pension system only if: each system is operated on an actuarial basis; and under each system contributions that are computed to be sufficient to provide the reserves needed to cover the benefits payable on account of the system’s members are made during the employment of members. This title does not apply to: a transfer to the Judges’ Retirement System of the State of Maryland; a transfer to or from the Legislative Pension Plan of the State of Maryland except to the extent provided by the Joint Resolution submitted to the General Assembly by the General Assembly Compensation Commission under Article III, § 15 of the Maryland Constitution; a transfer from the Employees’ Retirement System of the State of Maryland to the Employees’ Pension System of the State of Maryland on or before December 31, 2004; a transfer from the Teachers’ Retirement System of the State of Maryland to the Teachers’ Pension System of the State of Maryland on or before December 31, 2004; a transfer between the Employees’ Retirement System of the State of Maryland and the Teachers’ Retirement System of the State of Maryland; a transfer between the Employees’ Pension System of the State of Maryland and the Teachers’ Pension System of the State of Maryland if the member: is subject to the noncontributory pension benefit in both the previous and current system; is subject to the contributory pension benefit under Title 23, Subtitle 2, Part II of this article in both the previous and current system; or is subject to the Alternate Contributory Pension Selection under Title 23, Subtitle 2, Part III of this article in both the previous and current system; or a transfer between the Correctional Officers’ Retirement System or the Employees’ Pension System to the Law Enforcement Officers’ Pension System under §§ 26–203.1(e) and 26–203.3 of this article.

A member of a State or local retirement or pension system may transfer service credit attained as a result of that membership to another State or local retirement or pension system if the member, without incurring a break in employment, accepts employment or an office that: requires or allows the member to participate in the new system; and does not allow the member to continue to accrue benefits in the previous system. A former member of a State or local retirement or pension system may transfer service credit attained as a result of the former membership to another State or local retirement or pension system if: the former member served as an elected or appointed official while a member of the previous system; the former member is serving as an elected or appointed official of the State when the former member requests the transfer of service credit; a break in employment occurred that prevents the former member from transferring service credit under subsection (a) of this section; and the former member’s current office: requires or allows the member to participate in the new system; and does not allow the member to continue to accrue benefits in the previous system.

This section does not apply to a transfer of service credit to or from the State Alternate Contributory Employees’ Pension System, the State Alternate Contributory Teachers’ Pension System, the State Contributory Employees’ Pension System, the State Contributory Law Enforcement Officers’ Pension System, the State Contributory Teachers’ Pension System, the State Reformed Contributory Employees’ Pension System, or the State Reformed Contributory Teachers’ Pension System. An individual may not transfer service credit under this title unless the individual makes a claim for the service credit within 1 year after becoming a member of the new system. An individual may not transfer service credit from one contributory system to another contributory system unless within 1 year after becoming a member of the new system the individual deposits in the annuity savings fund or other corresponding fund of the new system the total accumulated contributions to the individual’s credit in the annuity savings fund or other corresponding fund of the previous system. Except as provided in § 37–204 of this subtitle, an individual who transfers service credit under this title shall receive service credit in the new system in the amount of service credit accumulated under the previous system. On verification of the service credit, the previous system may not provide any benefit for service credit transferred from the previous system to a new system under this title. Except as provided in paragraph (2) of this subsection, if an individual transfers service credit under this title, the previous system shall refund the individual’s accumulated contributions on request. Accumulated contributions applicable to the receipt of service credit or benefits in the new system may not be refunded if: an individual transfers from one noncontributory system to another noncontributory system; or a former member transfers under § 37–202(b) of this subtitle. Except as otherwise provided in this subsection, after an individual transfers service credit to a new system under this title, the individual: shall pay the rate of contribution applicable to a member of the new system; and is eligible for a pension and annuity as provided under the new system, determined by taking into account the transferred service credit. Except as provided in § 37–204 of this subtitle, if an individual transfers from a noncontributory system to a contributory system, on retirement the individual’s retirement allowance shall be reduced by the actuarial equivalent of the member contributions that would have been deducted if the individual had earned the transferred service credit under the new system, including regular interest on those contributions.

An individual may transfer service credit from a contributory system to the State Alternate Contributory Employees’ Pension System, the State Alternate Contributory Teachers’ Pension System, the State Contributory Employees’ Pension System, the State Contributory Law Enforcement Officers’ Pension System, the State Contributory Teachers’ Pension System, the State Reformed Contributory Employees’ Pension System, or the State Reformed Contributory Teachers’ Pension System if, within 1 year after becoming a member of the pension system, the individual: completes a claim for the service credit and files it with the Board of Trustees of the State Retirement and Pension System on a form that the Board of Trustees provides; and deposits in the annuity savings fund of: the Employees’ Pension System or Teachers’ Pension System member contributions at the rate applicable for the period of service if the member had earned the transferred service credit in the new system, including regular interest on the contributions at the rate of 5% per year compounded annually; or the Law Enforcement Officers’ Pension System member contributions at the rate applicable for the period of service if the member had earned the transferred service credit in the new system, including regular interest on the contributions at the rate of 5% per year compounded annually. Subject to § 414(h) of the Internal Revenue Code, the contributory system shall refund the individual’s accumulated contributions in excess of the amount determined under paragraph (1) of this subsection on request. Subject to paragraph (2) of this subsection, an individual may transfer service credit from a noncontributory system to the State Alternate Contributory Employees’ Pension System, the State Alternate Contributory Teachers’ Pension System, the State Contributory Employees’ Pension System, the State Contributory Law Enforcement Officers’ Pension System, the State Contributory Teachers’ Pension System, the State Reformed Contributory Employees’ Pension System, or the State Reformed Contributory Teachers’ Pension System if, within 1 year after becoming a member of the pension system, the individual completes a claim for the service credit and files it with the Board of Trustees for the State Retirement and Pension System on a form that the Board of Trustees provides. The noncontributory system may not refund the individual’s accumulated contributions. This subparagraph applies only to an individual who transferred service credit from a noncontributory system to the State Alternate Contributory Employees’ Pension System, the State Alternate Contributory Teachers’ Pension System, the State Contributory Employees’ Pension System, the State Contributory Teachers’ Pension System, the State Reformed Contributory Employees’ Pension System, or the State Reformed Contributory Teachers’ Pension System and earned any portion of the transferred service credit in a noncontributory system after June 30, 1998. On retirement, the individual’s retirement allowance shall be reduced by the actuarial equivalent of the member contributions that would have been deducted during the period after June 30, 1998, when the individual was a member of the noncontributory system, if the individual had earned the transferred service credit under the new system, including regular interest on those contributions at the rate of 5% per year compounded annually. This subparagraph applies only to an individual who transferred service credit from a noncontributory system to the State Contributory Law Enforcement Officers’ Pension System and earned any portion of the transferred service credit in a noncontributory system after June 30, 2000. Upon retirement the individual’s retirement allowance shall be reduced by the actuarial equivalent of the member contributions that would have been deducted during the period after June 30, 2000, when the individual was a member of the noncontributory system, if the individual had earned the transferred service credit under the State Contributory Law Enforcement Officers’ Pension System, including regular interest on those contributions at the rate of 5% per year compounded annually. An individual may transfer service credit from the State Alternate Contributory Employees’ Pension System, the State Alternate Contributory Teachers’ Pension System, the State Contributory Employees’ Pension System, the State Contributory Law Enforcement Officers’ Pension System, the State Contributory Teachers’ Pension System, the State Reformed Contributory Employees’ Pension System, or the State Reformed Contributory Teachers’ Pension System to a noncontributory system if, within 1 year after becoming a member of the noncontributory system, the individual completes a claim for the service credit and files it with the administrator of the noncontributory system on a form that the administrator provides. Subject to § 414(h) of the Internal Revenue Code, the previous system shall refund the individual’s total accumulated contributions to the individual on request. An individual may transfer service credit from the State Alternate Contributory Employees’ Pension System, the State Alternate Contributory Teachers’ Pension System, the State Contributory Employees’ Pension System, the State Contributory Law Enforcement Officers’ Pension System, the State Contributory Teachers’ Pension System, the State Reformed Contributory Employees’ Pension System, or the State Reformed Contributory Teachers’ Pension System to a contributory system if, within 1 year after becoming a member of the contributory system, the individual: completes a claim for the service credit and files it with the administrator of the contributory system on a form that the administrator provides; and deposits in the annuity savings fund or other corresponding fund of the contributory system the sum of: the total accumulated contributions to the individual’s credit in the annuity savings fund of the previous system; the difference, if any, between the member contributions at the rate provided for in the contributory system, including interest on those contributions, and the total accumulated contributions to the individual’s credit in the annuity savings fund of the previous system; and the accumulated contributions that would have been deducted during the period the individual was a member of the State system while it was a noncontributory system if the individual had earned the transferred service credit under the contributory system, including interest on those contributions. On retirement from the contributory system, the individual’s retirement allowance shall be reduced by the actuarial equivalent of the amounts determined under paragraph (1)(ii)2 and 3 of this subsection if the member elects not to deposit those amounts in the annuity savings fund or other corresponding fund of the contributory system. Except as provided in § 37–204 of this subtitle, an individual who transfers service credit under this title shall receive service credit in the new system in the amount of service credit accumulated under the previous system. On verification of the service credit, the previous system may not provide any benefit for service credit transferred from the previous system to a new system under this title. Except as otherwise provided in this subsection, after an individual transfers service credit to a new system under this title, the individual: shall pay the rate of contribution applicable to a member of the new system; and is eligible for a pension and annuity as provided under the new system, determined by taking into account the transferred service credit.

This subsection applies to an individual who: has accrued service credit in a State or local retirement or pension system; has accepted new employment in a position requiring membership in one of the several systems; and did not make a claim under § 37–203 or § 37–203.1 of this subtitle to transfer the previous service credit within 1 year of transferring into one of the several systems. An individual described under subsection (a) of this section may request the Executive Director to accept the individual’s claim to transfer service credit accrued in the previous system. If the Executive Director denies a request for a waiver, the denial shall be presented to the Board of Trustees for review. The Board of Trustees may overturn the Executive Director’s decision under paragraph (1) of this subsection. On or before October 1 of each year, the Board of Trustees shall submit a report to the Joint Committee on Pensions in accordance with § 2–1257 of the State Government Article, that provides: the number of requests made by individuals to the Executive Director requesting a waiver of the 1–year requirement to claim transferred service credit; the number of requests granted and denied by the Executive Director; and the number of requests granted by the Board of Trustees following a denial by the Executive Director. The Board of Trustees shall adopt regulations to carry out this section.

If a member of a State or local retirement or pension system transfers on or after July 1, 1990, to a State or local retirement or pension system for a police department or fire department, the plans, rules, regulations, guidelines, and policies of the new system govern to determine: the years of service necessary to qualify the member for retirement from the new system; and the years of service and amount of retirement benefits to be credited by the new system for the years of service and retirement benefits earned under the previous system. The determinations made under subsection (a)(2) of this section shall be made by actuarial computations of the new system.

If a member of a State or local retirement or pension system transfers to another State or local retirement or pension system because of an involuntary transfer of the member’s unit to another employer, all the employer contributions on behalf of the member and interest on those contributions shall be transferred to the new system. The amount to be transferred to the new system under subsection (a) of this section shall be determined by actuarial valuation. The cost of the valuation shall be shared equally by the previous system and the new system.

If a member of a State or local retirement or pension system who is employed by the Maryland-National Capital Park and Planning Commission transfers to another retirement or pension system of Prince George’s County as a result of the transfer of a unit of the Maryland-National Capital Park and Planning Commission police force to the Prince George’s County police department: the member’s accumulated contributions, if not previously withdrawn, shall be transferred to the new system; and all the employer contributions on behalf of the member and interest on those contributions shall be transferred to the new system. Unless the administrative board of the previous system or of the new system requests an actuarial valuation, the employer contributions transferred under this subsection shall be equal to the member’s accumulated contributions. If the administrative board of either system requests an actuarial valuation, the cost of that valuation shall be shared equally by the previous system and the new system. If the rate of contribution for an individual who transfers on or after July 1, 1994, to a new system under this section is altered because of the transfer: the previous system shall refund to the individual any excess member contributions; and the individual shall pay to the new system any shortage of member contributions.