# COMAR Title 22 — State Retirement and Pension System ## Subtitle 01 — General Regulations ### Chapter 01 — Definitions and General Provisions **Authority:** State Personnel and Pensions Article, §§21-108 and 21-110, Annotated Code of Maryland **Administrative History:** Effective date: January 1, 1996 (22:26 Md. R. 2031) **Administrative History:** Effective January 1, 1996, all of Title 22 was repealed and completely new regulations adopted. Codification and organization of the title were also completely changed. Consequently, the administrative histories of the revised Title 22 do not reflect regulatory activity before January 1, 1996. Refer to the old version of Title 22 or contact the Maryland State Archives for assistance. **Administrative History:** Regulation .01B amended effective November 30, 1998 (25:24 Md. R. 1774); September 6, 1999 (26:18 Md. R. 1377); December 10, 2001 (28:24 Md. R. 2130) **Administrative History:** Regulation .01 amended effective February 11, 2019 (46:3 Md. R. 108) **Administrative History:** Regulation .02 repealed and new Regulation .02 adopted effective February 11, 2019 (46:3 Md. R. 108) #### Regulation .01 Definitions. *COMAR 22.01.01.01* A. In this title, the following terms have the meanings indicated. B. Terms Defined. (1) “Allowance” means a benefit that is payable in equal monthly installments for the life of the recipient, except as otherwise provided for an optional form of an allowance under State Personnel and Pensions Article, §21-403, Annotated Code of Maryland. (2) “Beneficiary” means a person other than a retiree, in receipt of a benefit under State Personnel and Pensions Article, Division II, Annotated Code of Maryland. (3) “Board of Trustees” means the Board of Trustees for the State Retirement and Pension System. (4) “Creditable Service” means the service credit of a member that is recognized for computing a benefit under State Personnel and Pensions Article, Division II, Annotated Code of Maryland. (5) Earnable Compensation. (a) “Earnable compensation” means 1/12 of a member's annual salary rate payable for working the normal time in the member's position, including: (i) The employer pickup contribution provided for in State Personnel and Pensions Article, §21-313, Annotated Code of Maryland; (ii) A contribution made under a salary reduction or supplemental retirement plan in accordance with State Personnel and Pensions Article, Title 35, Annotated Code of Maryland; (iii) Longevity pay; (iv) For a member of the State Police Retirement System, flight pay; and (v) For a member of the Teachers' Retirement System or the Teachers' Pension System, the compensation paid to the member for performing the member's regular job responsibilities during the period of the member's mandatory assignment that extends beyond the member's 10-month assignment in accordance with the standards and guidelines adopted by the State Superintendent of Schools. (b) “Earnable compensation” does not include: (i) Bonuses; (ii) Overtime; (iii) Summer school salaries; (iv) Adult education salary; (v) Additional temporary payments from special research projects; (vi) Honorariums; (vii) Vehicle stipends; and (viii) Other payments that the Board of Trustees determines are not part of the normal salary for working the normal time in the member's position. (6) “Electronic signature” has the meaning stated in Commercial Law Article, §21-101, Annotated Code of Maryland. (7) “Eligibility service” means the service credit of a member that is recognized for determining eligibility for a benefit under State Personnel and Pensions Article, Division II, Annotated Code of Maryland. (8) “Executive Director” means the Executive Director of the Retirement Agency. (9) “Fiscal year” means the year beginning July 1 and ending June 30. (10) “Participant” means a beneficiary, designated beneficiary, former member, member, or retiree who is or may become eligible to receive a benefit of any type from the several systems. (11) “Participating employer” means the employer of an individual who, because of the employment relationship, is eligible for membership in a State system. (12) “Retirement Agency” means the State Retirement Agency established under State Personnel and Pensions Article, §21-117, Annotated Code of Maryland. (13) “Secure access participant portal” means the Retirement Agency’s internet website that participants may access only after completing the registration and authentication requirements specified by the Retirement Agency. (14) “Service credit” means the basic unit of eligibility service or creditable service, or both. (15) “Several systems” means the State systems specified in State Personnel and Pensions Article, §21-102, Annotated Code of Maryland. (16) “State system” means a retirement or pension system that is included in the State Retirement and Pension System under State Personnel and Pensions Article, §21-102, Annotated Code of Maryland. #### Regulation .02 Submission of Forms through the Secure Access Participant Portal. *COMAR 22.01.01.02* A. Scope. This regulation applies only to forms that the Retirement Agency permits a participant to submit in an electronic format to the Retirement Agency through the secure access participant portal. B. The Retirement Agency may establish a secure access participant portal and specify the registration and authentication requirements that participants must satisfy in order to access and use the secure access participant portal. C. A participant may submit a form through the secure access participant portal by properly completing submission and affixing an electronic signature in the manner and format required by the Retirement Agency. D. Except when Division II of the State Personnel and Pensions Article requires notarization, and notwithstanding any other provision of this title, a participant who submits a form through the secure access participant portal and satisfies its authentication requirements is not required to have the form acknowledged by a notary public. ### Chapter 02 — Public Information Act Requests **Authority:** General Provisions Article, §§4-101—4-601; State Personnel and Pensions Article, §§21-110, 21-123, 21-128, 21-504, and 30-208; Annotated Code of Maryland **Administrative History:** Effective date: January 1, 1996 (22:26 Md. R. 2031) **Administrative History:** Effective January 1, 1996, all of Title 22 was repealed and completely new regulations adopted. Codification and organization of the title were also completely changed. Consequently, the administrative histories of the revised Title 22 do not reflect regulatory activity before January 1, 1996. Refer to the old version of Title 22 or contact the Maryland State Archives for assistance. **Administrative History:** Regulation .05G amended effective April 26, 2004 (31:8 Md. R. 647) **Administrative History:** Regulations .01—.16 repealed and new Regulations .01—.12 adopted effective February 11, 2019 (46:3 Md. R. 108) #### Regulation .01 Scope. *COMAR 22.01.02.01* This chapter sets out the procedures for filing and processing requests to the Retirement Agency for the inspection and copying of public records of the Board of Trustees or the Retirement Agency under the Public Information Act, General Provisions Article, Title 4, Annotated Code of Maryland. It is the policy of the Board of Trustees to facilitate public access to the public records of the Board of Trustees and the Retirement Agency, when this access is allowed by law, by minimizing costs and time delays to applicants. It is also the policy of the Board of Trustees to safeguard the privacy of participants in any of the several systems by restricting access to records when access is denied or restricted by law. Further, it is the policy of the Board of Trustees to restrict access to certain investment records when access is denied or restricted by law. #### Regulation .02 Definitions. *COMAR 22.01.02.02* A. In this chapter, the following terms have the meanings indicated. B. Terms Defined. (1) “Act” means the Public Information Act, General Provisions Article, Title 4, Annotated Code of Maryland. (2) “Agency custodian” has the meaning stated in General Provisions Article, §4-101(d), Annotated Code of Maryland. (3) “Alternate payee” means a former spouse named in an eligible domestic relations order that the Retirement Agency has accepted for administration pursuant to a notice of administration issued in accordance with State Personnel and Pensions Article, §21-502, Annotated Code of Maryland, and COMAR 22.01.03.04. (4) “Applicant” has the meaning stated in General Provisions Article, §4-101(b), Annotated Code of Maryland. (5) “Compliance Board” has the meaning stated in General Provisions Article, §4-101(c), Annotated Code of Maryland. (6) “Copy” means any form of reproduction using a photocopying machine or other reproduction technology, including a paper copy, an electronic copy, a printout, or an image. (7) “Executive Director” means the Executive Director of the Retirement Agency or the Executive Director’s designated representative. (8) “Indigent” has the meaning stated in General Provisions Article, §4-206(a)(2), Annotated Code of Maryland. (9) Investment Record. (a) “Investment record” means any record, regardless of physical form or characteristic, with information about: (i) A proposed purchase or program of purchases leading to a cumulative position in a security; (ii) An existing position in a security; (iii) The making, sale, or prepayment of a loan; (iv) Any proposed sale or program of sales leading to the elimination of a position in a security; or (v) The sale or purchase of real property or any interest therein. (b) “Investment record” includes: (i) Analyses, forecasts, and negotiations pertinent to the transactions described in §B(9)(a) of this regulation; and (ii) Information compiled by the Board of Trustees for conducting the review of the performance, form, and contents of the annuity contracts offered under the Optional Retirement Program established under State Personnel and Pensions Article, §30-201, Annotated Code of Maryland. (10) “Metadata” has the meaning stated in General Provisions Article, §4-205(a), Annotated Code of Maryland. (11) Person in Interest. (a) "Person in interest” means: (i) An individual who is the subject of a record; (ii) The individual’s representative who has been designated in writing by the individual who is the subject of a record; or (iii) If the subject of the record has a legal disability, the parent or legal representative of the individual. (b) “Person in interest” includes an alternate payee, to the extent a public record pertains to the benefits payable under an eligible domestic relations order as defined in COMAR 22.01.03.02B. (12) “Public Access Ombudsman” means the official appointed under General Provisions Article, Title 4, Subtitle 1B, Annotated Code of Maryland, to resolve disputes under the Act. (13) “Public record” has the meaning stated in General Provisions Article, §4-101(j), Annotated Code of Maryland. (14) “Reasonable fee” has the meaning stated in General Provisions Article, §4-206(a)(3), Annotated Code of Maryland. (15) “Retirement record” means any record, regardless of physical form or characteristics, indexed by a participant’s name, participant’s home address, Social Security number, or other identification number. (16) “Working day” means a day other than Saturday, Sunday, a State holiday, or a day or partial day when the Retirement Agency is closed to the public. #### Regulation .03 Availability of Requested Public Records. *COMAR 22.01.02.03* A. The public records of, or in the custody of, the Board of Trustees or Retirement Agency are available for inspection and copying only to the extent provided under the Act and in this regulation. B. Except for any portion of a retirement record that is exempt from disclosure under the Act or this regulation, a retirement record is available for inspection and copying: (1) By the person in interest; (2) By the appointing authority of the person in interest; (3) After the death of the person in interest, by: (a) The person in interest’s designated beneficiary; (b) The personal representative of the person in interest’s estate; or (c) Any person who demonstrates to the satisfaction of the Executive Director that the person has a valid claim to the benefits of the person in interest; (4) By a law enforcement agency in order to obtain the home address of a retired employee of the law enforcement agency when contact with a retired employee is documented to be necessary for official agency business; or (5) By the employees of a county unit that, by county law, is required to audit the retirement records for current or former employees of the county, if the county unit and the employees of the county unit agree to protect the confidentiality of the records in accordance with Regulation .10 of this chapter. C. Medical records contained in an individual’s retirement record are available for inspection and copying by the person in interest, other than an alternate payee, but if the medical record relates to a psychiatric or psychological problem then the request shall be subject to the requirements of the Health-General Article, §4-304(a), Annotated Code of Maryland. D. Elected or Appointed Officials. (1) In this section, “appointed official” means an individual appointed to a public office in the State or political subdivision of the State who meets the legal criteria for an appointed official as determined by the Office of the Attorney General. (2) The Agency custodian shall disclose to an applicant the amount of that part of a retirement allowance that is derived from employer contributions and that is granted to: (a) A retired elected or appointed official of the State; or (b) A retired elected official of a political subdivision. (3) The Agency custodian shall disclose to an applicant the benefit formula and the variables for calculating the retirement allowance of: (a) A current elected or appointed official of the State; or (b) A current elected official of a political subdivision. E. Investment Records. (1) Except for any portion of an investment record that is exempt from disclosure under the Act or this regulation, and except as provided in §E(2) of this regulation, investment records are available for inspection and copying by an applicant when the: (a) Chief Investment Officer of the Retirement Agency determines that the release of information would not adversely affect the negotiation for, or market price of, a security or real property; and (b) Retirement Agency completes: (i) A proposed purchase or program of purchases leading to a cumulative position in a security; (ii) The making, sale, or prepayment of a loan; (iii) Any proposed sale or program of sales leading to the elimination of a position in a security; or (iv) The sale or purchase of real property. (2) The Agency custodian shall make available for inspection and copying that portion of an investment record that contains information compiled by the Board of Trustees for conducting the review of the performance, form, and contents of the annuity contracts offered under the Optional Retirement Program established under State Personnel and Pensions Article, §30-201, Annotated Code of Maryland. (3) With respect to the disclosure of records concerning an alternative investment, the Retirement Agency shall follow the Board of Trustees’ policies set forth in the Investment Policy Manual pursuant to State Personnel and Pensions Article, §§21-116(c) and 21-123(c), Annotated Code of Maryland. F. Except as provided in §G of this regulation, the home address or telephone number of an employee of a unit or instrumentality of the State or of a political subdivision may not be available for inspection and copying by an applicant unless the: (1) Employee consents to inspection of the record; or (2) Unit or instrumentality that employs the employee determines that inspection is needed to protect the public interest. G. Access to Public Employee Organizations. (1) This section applies only to the: (a) Employees’ Pension System; (b) Employees’ Retirement System; (c) Teachers’ Pension System; and (d) Teachers’ Retirement System. (2) Except as provided in §G(4) of this regulation, each year, the Retirement Agency shall release the information set forth in §G(3) of this regulation to a public employee organization if the public employee organization: (a) Submits a written request for the information; (b) Pays the applicable fee; and (c) Agrees to maintain the confidentiality of the records as provided in Regulation .10 of this chapter. (3) The Retirement Agency may release the following information to a public employee organization at no fee: (a) The name and last known address of each individual who became a retiree or began receiving a vested allowance in the last year; (b) The name and last known address of each retiree or former member receiving a vested allowance who died in the last year; and (c) Any change in address in the last year of a retiree or former member receiving a vested allowance. (4) If the public employee organization requests the information set forth in §G(3) of this regulation in such a manner and format that it cannot be obtained from a standard report that is regularly run by the Retirement Agency, the Retirement Agency may impose a reasonable fee for the information based upon the actual expense to the Retirement Agency for any special software programming and testing required. (5) At any time, a retiree, or former member who is receiving a vested allowance, may submit written instructions to the Retirement Agency to cease providing the information set forth in §G(3) of this regulation to a public employee organization. (6) On receipt of written instructions pursuant to §G(5) of this regulation, the Retirement Agency may not release information about the retiree, or former member who is receiving a vested allowance, to a public employee organization. H. Notwithstanding §G(5) of this regulation, on request of a retiree organization that complies with State Personnel and Pensions Article, §21-128, Annotated Code of Maryland, the Board of Trustees shall provide retiree data to a mail processing center for the purpose of providing a direct mailing to a retiree of the several systems who is a member or eligible to become a member of the retiree organization. #### Regulation .04 Application to Inspect, Copy, or Receive Information from Records. *COMAR 22.01.02.04* A. Except as provided in §B of this regulation, a person or governmental unit wishing to inspect a public record in the custody and control of the Retirement Agency shall submit a written application to the Agency custodian. B. A person or governmental unit need not submit a written application to the Agency custodian if: (1) The requested public record is of a type that the Retirement Agency has designated and listed as being available to any applicant immediately on request; or (2) The Agency custodian waives the requirement for a written application. C. The written request shall: (1) Contain the applicant’s contact information; and (2) Reasonably identify, by brief description, the public record sought. D. The applicant shall address a written request for a record in the custody and control of the Retirement Agency or the Board of Trustees to the Agency’s designated representative for public records requests pursuant to General Provisions Article, §4-503, Annotated Code of Maryland. The name and contact information of the designated representative shall be posted on the Retirement Agency’s website. E. An individual who calls the Retirement Agency for basic information from the individual’s retirement record may receive the requested information over the telephone if the individual provides the identifying information that the Retirement Agency requires. F. On request, the Agency custodian shall state whether an individual is receiving a retirement or pension allowance. G. An applicant’s identity, affiliation, and purpose for making the public record request are not required information for granting the request, except as necessary to assist in determining whether: (1) The applicant is a person in interest; (2) Denial of part of the requested record is appropriate under General Provisions Article, Title 4, Subtitle 3 Part IV, Annotated Code of Maryland; or (3) A requested fee waiver is appropriate. #### Regulation .05 Response Granting Applicant’s Request. *COMAR 22.01.02.05* A. If the Agency custodian decides to grant a request for inspection in its entirety, the custodian shall produce the public record for inspection: (1) Immediately; or (2) Within a reasonable period, not to exceed 30 days after the date of the request, if that period is needed to retrieve the public record and conduct any necessary review. B. If the Agency custodian reasonably believes that producing the public record will take more than 10 working days, the custodian shall state in writing within 10 working days after receiving the request: (1) The amount of time the custodian anticipates will be necessary to produce the public record; (2) The reason for that delay; and (3) An estimated range of fees that the Retirement Agency may charge to comply with the request. C. Any time limit imposed under this regulation: (1) May be extended by not more than 30 days with the consent of the applicant; and (2) Shall be extended pending resolution of any dispute that the applicant has referred to the Public Access Ombudsman. #### Regulation .06 Response Denying All or Part of Applicant’s Request. *COMAR 22.01.02.06* A. If the Agency custodian determines that a requested record no longer exists, then the Agency shall notify the applicant of that determination: (1) Immediately, if the custodian reached that determination on initial review of the application; or (2) Promptly after completing a search for potentially responsive public records and not more than 30 days after receiving the application. B. If the Agency custodian decides to deny all or part of an applicant’s request on any basis other than the requested public record’s non-existence, the custodian shall within 10 working days give the applicant a written statement that provides: (1) The reasons, including the legal authority, for the denial; (2) For applications denied as contrary to the public interest under General Provisions Article, §4-343, Annotated Code of Maryland: (a) A brief explanation of why the denial is necessary; and (b) An explanation of why redacting information would not address the reasons for the denial; (3) For applications denied as misdirected to an individual who is not the custodian: (a) The name of the public record’s custodian, if known; and (b) The public record’s actual or possible location, if known; (4) A brief description of any undisclosed public record or category of public records that will not disclose the protected information but will enable the applicant to assess the applicability of the legal authority for the denial; and (5) Notice of the remedies under the Act for review of the denial. C. If the Agency custodian denies an applicant’s request in part, the custodian shall allow inspection of any part of the record that is subject to inspection. D. Any time limit imposed under this regulation: (1) May be extended by not more than 30 days with the consent of the applicant; and (2) Shall be extended pending resolution of any dispute that the applicant has referred to the Public Access Ombudsman. E. A custodian may not ignore an application to inspect public records on the ground that the application was intended for purposes of harassment. #### Regulation .07 Format of Public Records. *COMAR 22.01.02.07* A. Except as otherwise provided in this section, if an applicant who is authorized to inspect a public record requests a copy, printout, or photograph of the public record, the Agency custodian shall provide the applicant with: (1) A copy, printout, or photograph of the public record; or (2) If the custodian does not have facilities to reproduce the public record, access to the public record to make the copy, printout, or photograph. B. The Agency custodian shall provide an applicant with a copy of the public record in a searchable and analyzable electronic format if: (1) The public record already exists in a searchable and analyzable electronic format; (2) The applicant requests a copy of the public record in a searchable and analyzable electronic format; and (3) The custodian can provide a copy of the public record, in whole or in part, in a searchable and analyzable electronic format that does not disclose confidential or protected information for which the custodian must or may deny inspection in accordance with the Act or this regulation. C. The Agency custodian may have metadata removed from an electronic document before providing the electronic document to an applicant by: (1) Using a software program or function; or (2) Converting the electronic document into a different searchable and analyzable format. D. This regulation may not be construed to: (1) Require the custodian to reconstruct a public record in an electronic format if the custodian no longer has the public record available in an electronic format; (2) Allow a custodian to make a public record available only in an electronic format; (3) Require a custodian to create, compile, or program a new public record; or (4) Require a custodian to release an electronic record in a format that would jeopardize or compromise the security or integrity of the original record or of any proprietary software in which the record is maintained. E. If a public record exists in a searchable and analyzable electronic format, the act of a custodian providing a portion of the public record in a searchable and analyzable electronic format does not constitute creating a new public record. F. The copy, printout, or photograph shall be made: (1) While the public record is in the custody of the custodian; (2) Whenever practicable, where the public record is kept; and (3) Within any reasonable time schedule that the Agency custodian may choose to set. #### Regulation .08 Fees. *COMAR 22.01.02.08* A. Fee Schedule for Certifying and Copying a Public Record. (1) If the public records are susceptible to photocopying, the charge for each copy of a document is: (a) 25 cents per page for copies made on a photocopying machine within the Retirement Agency offices; or (b) Based on actual costs of reproduction if the copies could not be made on a photocopying machine within the Retirement Agency offices. (2) If the public records are not susceptible to photocopying, for example, diskettes, magnetic cartridges, magnetic tapes, drawings, maps, blueprints, microfilm, or photographs, the fee for copies will be based on the actual costs of reproduction. (3) If the public record requested to be reproduced is more than 25 pages, the Agency custodian shall charge a $3.50 per hour photocopying processing fee in addition to the per page fee. (4) If an applicant requests that a copy of a public record be certified as a true copy, the Agency custodian shall charge an additional fee of $1 per record. (5) If the Agency custodian is required to provide a computer printout, the charge for the printout shall include all related expenses associated with the time expended to produce the computer printout. (6) Search, Review, and Preparation Fees. (a) Except as provided in §B(6)(b) of this regulation, the Agency custodian may charge reasonable fees for the time that an official or employee of the Agency, or an employee of the Office of the Attorney General on behalf of the Agency, spends to search for public records and review and prepare them for inspection and copying, in addition to the cost for reproduction. (b) The Agency custodian may not charge a fee for the first 2 hours that are needed to search for a public record and prepare it for inspection. (c) The Agency custodian shall determine the search, review, and preparation fees by multiplying the employee’s salary, prorated to an hourly basis, by the actual time attributable to the search for, review of, and preparation of public records for inspection and copying. B. Payment of Fees. (1) The Agency custodian shall: (a) Estimate the cost of reproduction, including any search fee; and (b) Advise the applicant of the estimated costs. (2) Before reproducing a public record, the Agency custodian shall: (a) Obtain the written agreement of the applicant that the cost shall be paid; or (b) Request prepayment of the estimated fee before reproducing the public record. (3) Subject to §C of this regulation, the Agency custodian shall provide the requested and completed copies and printouts only on: (a) Payment of all applicable fees by the applicant; and (b) If an applicant requests transmittal of the copies by mail or delivery to the applicant, payment of or written agreement to pay the cost of postage or delivery. C. The Executive Director may waive or reduce any fee charged under this regulation, on request, if the Executive Director determines that the: (1) Item requested is promotional in nature, is routinely distributed to the public, or may be reproduced free of charge; (2) Applicant is indigent and files an affidavit verifying facts that support a claim of indigency; or (3) Waiver or reduction is in the public interest based upon relevant factors including the applicant’s ability to pay the fee. #### Regulation .09 Time and Place of Inspection. *COMAR 22.01.02.09* A. An applicant may inspect a public record during the normal working hours of any working day of the Retirement Agency. B. The place of inspection shall be the place where the document is located unless the Agency custodian determines that another place of inspection is more suitable and convenient after taking into account any expressed wish of the applicant. #### Regulation .10 Protection of Privacy and Confidentiality. *COMAR 22.01.02.10* A person entitled by law to inspect or obtain copies of any records set forth in Regulation .03B(4) and (5), F, and G of this chapter shall, before inspection, in writing: A. Specify the basis for the request; B. Agree not to release any information derived from the inspection to a third party without the express prior agreement, in writing, of the Agency custodian; and C. Agree to the entry of an appropriate protective order in a court of competent jurisdiction ensuring that information may not be disclosed generally. #### Regulation .11 Maintenance of Records; Relevance of Material. *COMAR 22.01.02.11* A. The Agency shall maintain records which are not subject to public inspection under this chapter in a manner which assures the right to privacy of the individual who is the subject of the record. B. The Retirement Agency may retain in its records only information which is relevant and necessary to accomplish the purpose of the Board of Trustees and the Retirement Agency. #### Regulation .12 Referral and Review of Disputes. *COMAR 22.01.02.12* A. If the Retirement Agency’s fee for responding to an applicant’s public record request exceeds $350 and the applicant considers it unreasonable, the applicant may file a complaint with the Public Information Act Compliance Board, and appeal from a decision of that Board, as stated in General Provisions Article, Title 4, Subtitle 1A, and §4-362, Annotated Code of Maryland. B. The applicant may refer to the Public Access Ombudsman, as stated in General Provisions Article, Title 4, Subtitle 1A, a dispute concerning any of the following issues: (1) The custodian’s application of an exemption from disclosure; (2) Redactions of information in the public record; (3) The failure of the custodian to produce a public record in a timely manner or to disclose all records relevant to the request; (4) Overly broad requests for public records; (5) The amount of time a custodian needs, given available staff and resources, to produce public records; (6) A request for or denial of a fee waiver; and (7) Repetitive or redundant requests from an applicant. C. An applicant who is denied a requested public record or a requested copy, printout, or photograph of a public record may file a complaint with the circuit court for the county where: (1) The complainant resides or has a principal place of business; or (2) The public record is located. ### Chapter 03 — Domestic Relations Orders **Authority:** State Personnel and Pensions Article, §§21-110, 21-502, and 21-603, Annotated Code of Maryland **Administrative History:** Effective date: January 1, 1996 (22:26 Md. R. 2031) **Administrative History:** Effective January 1, 1996, all of Title 22 was repealed and completely new regulations adopted. Codification and organization of the title were also completely changed. Consequently, the administrative histories of the revised Title 22 do not reflect regulatory activity before January 1, 1996. Refer to the old version of Title 22 or contact the Maryland State Archives for assistance. **Administrative History:** Chapter revised effective October 11, 2004 (31:20 Md. R. 1486) **Administrative History:** Regulation .02B amended effective August 4, 2014 (41:15 Md. R. 892); February 11, 2019 (46:3 Md. R. 108) **Administrative History:** Regulation .03 amended effective August 4, 2014 (41:15 Md. R. 892) **Administrative History:** Regulation .03B amended effective November 23, 2015 (42:23 Md. R. 1434); February 11, 2019 (46:3 Md. R. 108) **Administrative History:** Regulation .03E amended effective February 11, 2019 (46:3 Md. R. 108) **Administrative History:** Regulation .04C amended effective August 4, 2014 (41:15 Md. R. 892) **Administrative History:** Regulation .05A amended effective February 11, 2019 (46:3 Md. R. 108) **Administrative History:** Regulation .05C adopted effective August 4, 2014 (41:15 Md. R. 892) **Administrative History:** Regulation .06A amended effective August 4, 2014 (41:15 Md. R. 892) **Administrative History:** Regulation .07A amended effective February 11, 2019 (46:3 Md. R. 108) **Administrative History:** Regulation .07D adopted effective February 11, 2019 (46:3 Md. R. 108) **Administrative History:** Regulation .08 amended effective August 4, 2014 (41:15 Md. R. 892) **Administrative History:** Regulation .09A amended effective August 4, 2014 (41:15 Md. R. 892) **Administrative History:** Regulation .10 adopted effective March 23, 2009 (36:6 Md. R. 492) #### Regulation .01 Scope. *COMAR 22.01.03.01* This chapter establishes procedures for review and administration by the Agency of an eligible domestic relations order which assigns to an alternate payee all or a portion of the plan benefit payable to a participant. This chapter also sets forth the circumstances that will result in rejection of a domestic relations order by the Agency. #### Regulation .02 Definitions. *COMAR 22.01.03.02* A. In this chapter, the following terms have the meanings indicated. B. Terms Defined. (1) “Agency” means the State Retirement Agency established under State Personnel and Pensions Article, §21-117, Annotated Code of Maryland. (2) Allowance. (a) “Allowance” has the meaning stated in State Personnel and Pensions Article, §20-101, Annotated Code of Maryland. (b) “Allowance” includes, but is not limited to: (i) A service retirement allowance; (ii) A disability retirement allowance; (iii) A vested allowance; (iv) Cost of living adjustments provided in accordance with State Personnel and Pensions Article, Title 29, Subtitle 4, Annotated Code of Maryland; and (v) Except as provided in §B(10)(c) of this regulation, a lump sum payment of the amount accrued in the Deferred Retirement Option Program on termination of participation. (3) “Alternate payee” means a former spouse who is named in a domestic relations order as entitled to receive all or a portion of the plan benefit of a participant in accordance with State Personnel and Pensions Article, §21-502, Annotated Code of Maryland. (4) “Consent agreement” means a written statement that: (a) Is signed by both parties to an eligible domestic relations order; (b) Sets forth the agreed upon method for administering the parties' domestic relations order; and (c) Does not contravene the parties' domestic relations order. (5) “Cost-of-living adjustment” has the meaning set forth in State Personnel and Pensions Article, §29-401, Annotated Code of Maryland. (6) “Court” means a court of competent jurisdiction. (7) Domestic Relations Order. (a) “Domestic relations order” means an assignment of plan benefits in a court decree or order of divorce, or in a court-approved property settlement incident to a court decree or order in accordance with State Personnel and Pensions Article, §21-502, Annotated Code of Maryland. (b) “Domestic relations order” does not include a qualified domestic relations order as defined in the Employees' Retirement Income Security Act of 1974 and the Internal Revenue Code of 1986. (8) “Eligible domestic relations order” means a domestic relations order that conforms to the requirements of Regulation .03 of this chapter. (9) “Marital share fraction” means a formula in which the numerator represents the participant’s numerically specified or unspecified number of total months of service credit received or accrued during the parties’ marriage or other relevant period, and the denominator represents the participant’s total number of months of service credit. (10) “Military service credit” means service credit for military service that a participant receives in accordance with State Personnel and Pensions Article, Title 38, Annotated Code of Maryland. (11) “Notice of administration” means the written notice issued by the Agency under Regulation .04 of this chapter. (12) “Participant” means a member, former member, or retiree, as defined in State Personnel and Pensions Article, §20-101, Annotated Code of Maryland. (13) Plan Benefit. (a) “Plan benefit” means, unless otherwise stated by an eligible domestic relations order, an amount payable by the Board of Trustees to a participant, including: (i) An allowance, as defined in §B(2) of this regulation; (ii) A participant's accumulated contributions; (iii) A refund payable to a participant under State Personnel and Pensions Article, §22-212 or 22-213, Annotated Code of Maryland; and (iv) Except as provided in §B(10)(c) of this regulation, a preretirement death benefit. (b) Except as provided in §B(10)(c) of this regulation, “plan benefit” may include, if specified in an eligible domestic relations order, a postretirement survivor benefit. (c) “Plan benefit” does not include: (i) A preretirement death benefit or postretirement survivor benefit for which payment is restricted to a surviving spouse, parent, or minor child under State Personnel and Pensions Article, Division II, Annotated Code of Maryland; or (ii) Payment of the amount accrued in the Deferred Retirement Option Program for which payment is restricted to a surviving spouse or minor child in accordance with State Personnel and Pensions Article, §24-401.1(i) or 26-401.1(i), Annotated Code of Maryland. (14) “Postretirement survivor benefit” means an optional survivor benefit payable to a designated beneficiary or a participant's estate in accordance with State Personnel and Pensions Article, Title 21, Subtitle 4, Annotated Code of Maryland. (15) “Preretirement death benefit” means a death benefit payable on behalf of a member or former member to a designated beneficiary or a participant's estate, including a benefit payable under State Personnel and Pensions Article, §29-202 or 29-207, Annotated Code of Maryland. (16) “Projected service credit” means service credit that a participant receives in connection with an ordinary disability retirement allowance in accordance with State Personnel and Pensions Article, §29-106(d) or 29-108(b), Annotated Code of Maryland. (17) Purchased Service Credit. (a) “Purchased service credit” means service credit that a participant purchases in accordance with provisions of State Personnel and Pensions Article, Division II, Annotated Code of Maryland. (b) “Purchased service credit” includes, but is not limited to, service credit a participant receives by paying or redepositing accumulated member contributions. (18) “Unused sick leave credit” means service credit for unused sick leave that a participant receives in accordance with State Personnel and Pensions Article, §20-206, Annotated Code of Maryland. #### Regulation .03 Eligible Domestic Relations Orders. *COMAR 22.01.03.03* A. Domestic relations orders shall be submitted to the Agency and shall be directed to the attention of Eligible Domestic Relations Orders. B. A domestic relations order shall constitute an eligible domestic relations order only if it satisfies all of the following requirements: (1) Contains the: (a) Name of the State system or State systems to which the order applies; (b) Name and last known mailing address of the participant; (c) Name and last known mailing address of the alternate payee; and (d) Date of the parties' marriage, and the date of the parties' divorce; (2) Creates or recognizes the right of the alternate payee to receive all or a portion of the participant's plan benefit if, when, and as paid by the Board of Trustees; (3) Constitutes a method of division of a participant's plan benefit which conforms to the provisions of State Personnel and Pensions Article, Division II, Annotated Code of Maryland, including State Personnel and Pensions Article, Title 21, Subtitle 4, Annotated Code of Maryland; (4) Does not require the payment of any type or form of benefit, or any option, not otherwise provided by State Personnel and Pensions Article, Division II, Annotated Code of Maryland; (5) Does not affect the rights of a different alternate payee who was named by the participant in an eligible domestic relations order on file at the Agency; (6) Provides for payment of an amount that does not exceed the participant's plan benefit; (7) Directs the Board of Trustees to pay all or a portion of the participant's plan benefit to the alternate payee directly at a time and in a form that is available to the participant; (8) Describes each type of plan benefit set forth in Regulation .02B(10) that is assigned to the alternate payee, using terms that are sufficient to precisely identify each type of plan benefit; (9) Provides for payment of the alternate payee's share of the plan benefit in one of the following ways: (a) A fixed dollar amount; (b) A fixed percentage of the participant's plan benefit; or (c) A fixed formula that satisfies the criteria specified in Regulation .07 of this chapter; (10) If the alternate payee has been assigned a portion of an allowance and will receive payment of: (a) A fixed dollar amount, states that the alternate payee shall receive a pro rata share of any cost-of-living adjustments payable after the date of administration of the order by the Agency; or (b) A fixed percentage or fixed formula, states the alternate payee shall receive a pro rata share of all cost-of-living adjustments; (11) Subject to §D of this regulation, if a participant is eligible to elect an optional form of allowance that provides a postretirement survivor benefit: (a) States whether the participant is permitted or required to elect the basic allowance or an optional form of allowance; (b) If the participant is permitted or required to elect an optional form of allowance, states whether the participant is required to select a specific optional form of allowance under State Personnel and Pensions Article, §21-403, Annotated Code of Maryland; (c) States whether the participant is required to designate the alternate payee as the beneficiary of a postretirement survivor benefit; and (d) If the participant is permitted to designate a beneficiary other than the alternate payee, states whether and what share, if any, of the beneficiary's postretirement survivor benefit is payable to the alternate payee; (12) Is titled “Eligible Domestic Relations Order”; (13) Does not reference Qualified Domestic Relations Orders or the Employee Retirement Income Security Act of 1974; (14) States that it is the obligation of the alternate payee to promptly: (a) Provide the Agency a certified or true-test copy of the domestic relations order and any modifications or amendments to the order; (b) Provide the following information to the Agency in writing contemporaneously with the submission of a domestic relations order: (i) The Social Security numbers and dates of birth of the participant and alternate payee; and (ii) The current address and current telephone number of the alternate payee; (c) Submit documentation to verify the alternate payee’s date of birth; (d) When an alternate payee becomes eligible to receive a monthly allowance, submit the required forms to commence receipt of the allowance by electronic fund transfer; (e) Notify the Agency in writing of: (i) The death of the participant; or (ii) Any change of the alternate payee’s name, address, or telephone number; and (f) Comply with all reasonable requests from the Agency for information and documentation necessary for administering the domestic relations order; (15) States that it is the obligation of the participant to promptly: (a) Submit any applications or forms required by the Agency to effectuate any provision of the domestic relations order; (b) Notify the Agency in writing of: (i) The death of the alternate payee; or (ii) Any change of the participant’s name, address, or telephone number; and (c) Comply with all reasonable requests from the Agency for information and documentation necessary for administering the domestic relations order; (16) States that if the participant fails to act as required by the domestic relations order, or takes any action in contravention of the domestic relations order, the participant, and not the Agency, shall bear the sole and exclusive liability for the action; (17) States that the Agency is not liable to make further payments to the alternate payee if the participant transfers to another retirement or pension system that is not administered by the Agency; (18) States that: (a) All payments to the alternate payee shall be includable in the taxable income of and taxable to the alternate payee in accordance with the applicable provisions of the Internal Revenue Code, Treasury regulations, and other guidance; and (b) After-tax contributions shall be allocated to the parties in the same proportion as the total amount of the alternate payee’s share bears to the participant’s total plan benefit; and (19) Is: (a) Signed and dated by a judge of a court of competent jurisdiction; (b) A certified or true-test copy by the clerk of the court; and (c) In the case of an out-of-State domestic relations order, filed in a Circuit Court in the State in accordance with the Uniform Enforcement of Foreign Judgments Act, Courts and Judicial Proceedings Article, Title 11, Subtitle 8, Annotated Code of Maryland. C. The Social Security numbers and dates of birth of the participant and alternate payee shall be provided to the Agency in written correspondence accompanying a domestic relations order. D. If the participant is required to designate the alternate payee as the beneficiary of a postretirement survivor benefit that provides for payments for life, an eligible domestic relations order may not permit the designation of more than one individual as the beneficiary. E. If the Agency determines that the domestic relations order satisfies the requirements set forth in §§B through D of this regulation, the domestic relations order shall be administered as an eligible domestic relations order in accordance with Regulation .04 of this chapter. F. If the Agency determines that the domestic relations order or written correspondence accompanying the domestic relations order does not satisfy the requirements set forth in §B, C, or D of this regulation, the domestic relations order shall be rejected according to the procedure in Regulation .05 of this chapter. #### Regulation .04 Administration of an Eligible Domestic Relations Order. *COMAR 22.01.03.04* A. The Agency shall issue a notice of administration to each party to an eligible domestic relations order which specifies how the Agency shall administer the division of the participant's plan benefits under the order. B. Subject to §C of this regulation, the Agency shall pay plan benefits to a participant and an alternate payee in accordance with the notice of administration issued under §A of this regulation. C. Notice of Disagreement. (1) Within 45 days of the date that a notice of administration is sent to the parties, a party shall advise the Agency and the other party to the order, in writing, if the party disagrees with the Agency’s proposed method of distribution set forth in the notice of administration and the basis for the party’s disagreement. (2) On receipt of a notice of disagreement from a party, if the Agency determines that a genuine dispute exists regarding the proper interpretation of the order, the Agency shall: (a) Refrain from making payment of plan benefits to the participant and the alternate payee as soon as practical; (b) Request the parties to the order to: (i) Obtain and submit an amended order in accordance with Regulation .06 of this chapter; or (ii) Promptly file a consent agreement with the Agency; and (c) Notify the parties that payment of plan benefits shall begin not earlier than the last day of the month following the month of receipt of the amended order or consent agreement. (3) The Agency shall begin making payments of plan benefits to the participant and the alternate payee as provided in the consent agreement as soon as is practicable. Unless otherwise provided in the consent agreement, the payments shall be retroactive to the date the Agency ceased making payments to the participant and the alternate payee. Interest is not payable by the Agency with respect to any plan benefits that were not paid when due. (4) If the Agency does not receive a consent agreement or an amended eligible domestic relations order within 3 months following receipt of a notice of disagreement from a party, the Agency shall administer the domestic relations order in accordance with the notice of administration. D. The System, the Agency, and the Board of Trustees are not liable for any payment made to a party under an eligible domestic relations order in accordance with the Agency's notice of administration or the parties' consent agreement. #### Regulation .05 Rejection of Domestic Relations Order. *COMAR 22.01.03.05* A. The Agency shall reject a domestic relations order that is not an eligible domestic relations order. B. If the Agency rejects a domestic relations order, the Agency shall notify the participant and the alternate payee, in writing, that it has rejected the order and specify the reason or reasons for rejection of the order. The Agency shall provide a copy of this chapter with the rejection notice to the parties to the domestic relations order. C. The System, the Agency, and the Board of Trustees are not liable for payment of benefits to a person pursuant to a domestic relations order if the order is not an eligible domestic relations order. #### Regulation .06 Amendment or Modification of Order. *COMAR 22.01.03.06* A. The Agency does not have an obligation to determine if a domestic relations order has been amended or modified. If a court amends a domestic relations order, the participant or alternate payee shall submit the amended or modified order to the Agency. B. On receipt of the amended or modified order, the Agency shall: (1) Determine whether the amended or modified order is an eligible domestic relations order; and (2) Issue a notice of administration or reject the amended or modified domestic relations order as provided in Regulations .04 and .05 of this chapter. #### Regulation .07 Formula for Computation of Plan Benefit. *COMAR 22.01.03.07* A. Parties to a domestic relations order may use a formula, including a marital share fraction, to determine the amount or percentage of a participant's plan benefit which is payable to an alternate payee if: (1) The formula is expressed in a format that the Agency understands; (2) The information necessary to compute the amount or percentage of the plan benefit payable to the alternate payee under the formula is: (a) Expressly provided in the domestic relations order; or (b) Readily ascertainable from data in the Agency's records at the time the plan benefit becomes payable; (3) Where the plan benefit is payable in regular installments, the formula does not require the Agency to recompute the amount or percentage of the plan benefit that is payable to the alternate payee after the first payment is made; and (4) Where the formula refers to an amount of time, the formula is expressed in terms of months, and not years or days. B. The Agency shall recalculate a plan benefit payable under an eligible domestic relations order to the extent required each fiscal year under State Personnel and Pensions Article, Division II, Annotated Code of Maryland. C. In computing the number of months for purposes of a formula under this regulation, the Agency may not consider partial months in the total number of months. D. Domestic Relations Orders Which Contain Marital Share Fractions. (1) If a domestic relations order contains a marital share fraction with a numerically specified numerator, and does not otherwise state how to divide the participant’s military service credit, projected service credit, purchased service credit, or unused sick leave credit, then the Agency shall: (a) Include the participant’s military service credit and purchased service credit only in the marital share fraction’s denominator; and (b) Exclude the participant’s projected service credit and unused sick leave credit from both the numerator and denominator of the marital share fraction. (2) If a domestic relations order contains a marital share fraction with a numerically unspecified numerator, and does not otherwise state how to divide the participant’s military service credit, projected service credit, purchased service credit, or unused sick leave credit, then the Agency shall: (a) Include in the marital share fraction’s numerator only those months of the participant’s military service credit and purchased service credit based on the participant’s military service or employment that took place during the marital or other relevant time period; (b) Include in the marital share fraction’s denominator the participant’s total months of military service credit and purchased service credit; and (c) Exclude the participant’s projected service credit and unused sick leave credit from both the numerator and denominator of the marital share fraction. #### Regulation .08 Alternate Payee Responsibilities. *COMAR 22.01.03.08* An alternate payee shall promptly: A. Submit a certified or true-test copy of a domestic relations order and any modifications or amendments to the order to the Agency; B. Provide the following information to the Agency in writing contemporaneously with the submission of a domestic relations order: (1) The Social Security numbers and dates of birth of the participant and the alternate payee; and (2) The current address and current telephone number of the alternate payee; C. Submit documentation to verify the alternate payee’s date of birth in accordance with COMAR 22.01.05; D. When an alternate payee becomes eligible to receive a monthly allowance, properly complete an electronic fund transfer sign-up form and file it with the Agency in accordance with COMAR 22.01.06; E. Notify the Agency in writing of: (1) Any change of the alternate payee’s name, address, or telephone number; or (2) The death of the participant; and F. Comply with all reasonable requests from the Agency for information and documentation necessary for processing payment of all or any portion of a participant's plan benefit to the alternate payee. #### Regulation .09 Participant Responsibilities. *COMAR 22.01.03.09* A. A participant shall promptly: (1) Notify the Agency in writing of: (a) Any change of the participant’s name, address, or telephone number; or (b) The death of the alternate payee; (2) Comply with all reasonable requests from the Agency for information and documentation necessary for processing payment of all or any portion of a participant's plan benefit to the alternate payee; and (3) Submit any applications or forms required by the Agency to effectuate any provision of the domestic relations order. B. If the participant takes any action in contravention of an eligible domestic relations order, the participant, and not the Agency, shall bear the sole and exclusive liability for the action. #### Regulation .10 Compliance with 26 U.S.C. §414(p) for Eligible Domestic Relations Orders. *COMAR 22.01.03.10* A. An eligible domestic relations order does not include a qualified domestic relations order as defined in the Employees' Retirement Income Security Act of 1974, and the Internal Revenue Code of 1986. B. Nothing in §A of this regulation modifies the definition of eligible domestic relations order or the requirements of Regulation .03B of this chapter. C. For the limited purpose of minimum distributions, taxation, and rollovers, benefits payable pursuant to an eligible domestic relations order shall be subject to and shall comply with 26 U.S.C. §414(p). ### Chapter 04 — Average Final Compensation **Authority:** State Personnel and Pensions Article, §§20-204, 20-205, 20-205.1, and 21-110, Annotated Code of Maryland **Administrative History:** Effective date: January 1, 1996 (22:26 Md. R. 2031) **Administrative History:** Effective January 1, 1996, all of Title 22 was repealed and completely new regulations adopted. Codification and organization of the title were also completely changed. Consequently, the administrative histories of the revised Title 22 do not reflect regulatory activity before January 1, 1996. Refer to the old version of Title 22 or contact the Maryland State Archives for assistance. **Administrative History:** Regulation .02 amended effective February 11, 2019 (46:3 Md. R. 108) **Administrative History:** Regulation .03 amended effective February 11, 2019 (46:3 Md. R. 108) **Administrative History:** Regulation .04 amended effective February 11, 2019 (46:3 Md. R. 108) **Administrative History:** Regulation .05 amended effective February 11, 2019 (46:3 Md. R. 108) #### Regulation .01 Scope. *COMAR 22.01.04.01* This chapter does not apply to the Judges' Retirement System or the Legislative Pension Plan. #### Regulation .02 Average Final Compensation — Retirement Systems. *COMAR 22.01.04.02* A. This regulation applies only to the Correctional Officers' Retirement System, the Employees' Retirement System, the State Police Retirement System, and the Teachers' Retirement System. B. Except as provided in §§D and E of this regulation, the average final compensation of a member who became a member before July 1, 2011 equals the average annual earnable compensation of the member, adjusted as provided in Regulation .04 of this chapter, for the: (1) 3 years of employment as a member during which the member's earnable compensation was highest, if the member was employed at least 3 years as a member; or (2) Member's total period of employment, if the member was employed less than 3 years as a member. C. Except as provided in §§D and F of this regulation, the average final (1) 5 years of employment as a member during which the member’s earnable compensation was highest, if the member was employed at least 5 years as a member; or (2) Member’s total period of employment, if the member was employed less than 5 years as a member. D. An increase of more than 20 percent to a member’s average annual earnable compensation in any one of the last 3 years of employment for a member who became a member before July 1, 2011, or in any one of the last 5 years of employment for a member who became a member on or after July 1, 2011, is an extraordinary salary increase that is not included in determining the member’s average final compensation unless: (1) The increase is the result of the member’s: (a) Promotion by the member’s employer; or (b) Appointment or election to a public office; (2) Including the increase when determining the member’s average final compensation would increase the member’s allowance by $25 or less per month; or (3) The Board of Trustees determines that the increase is not an extraordinary salary increase in accordance with Regulation .05 of this chapter. E. If a member of the State Police Retirement System who became a member before July 1, 2011 and who transferred from another actuarial retirement system in the State retires after less than 3 years of employment as a member of the State Police Retirement System, the member’s earnable compensation in the other system shall be used to determine the member’s average final compensation. F. If a member of the State Police Retirement System who became a member on or after July 1, 2011 and who transferred from another actuarial retirement system in the State retires after less than 5 years of employment as a member of the State Police Retirement System, the member’s earnable compensation in the other system shall be used to determine the member’s average final compensation. #### Regulation .03 Average Final Compensation — Pension Systems. *COMAR 22.01.04.03* A. This regulation applies only to the Employees’ Pension System, the Local Fire and Police System, the Law Enforcement Officers’ Pension System, and the Teachers’ Pension System. B. Except as provided in §D of this regulation, for the purpose of computing benefits under State Personnel and Pensions Article, Division II, Annotated Code of Maryland, the average final compensation of a member who became a member before July 1, 2011 equals the average annual earnable compensation of the member, adjusted as provided in Regulation .04 of this chapter, for the: (1) 3 consecutive years that provide the highest average earnable compensation; or (2) Member's total period of employment, if the member was employed less than 3 years as a member. C. Except as provided in §D of this regulation, for the purpose of computing benefits under State Personnel and Pensions Article, Division II, Annotated Code Maryland, the average final compensation of a member who became a member on or after July 1, 2011 equals the average annual earnable compensation of the member, adjusted as provided in Regulation .04 of this chapter, for the: (1) 5 consecutive years that provide the highest average earnable compensation; or (2) Member’s total period of employment, if the member was employed less than 5 years as a member. D. An increase of more than 20 percent to a member’s average annual earnable compensation in any one of the last 3 years of employment for a member who became a member before July 1, 2011, or (1) The increase is the result of the member’s: (a) Promotion by the member’s employer; or (b) Appointment or election to a public office; (2) Including the increase when determining the member’s average final compensation would increase the member’s allowance by $25 or less per month; or (3) The Board of Trustees determines that the increase is not an extraordinary salary increase in accordance with Regulation .05 of this chapter. #### Regulation .04 Adjustment to Earnable Compensation. *COMAR 22.01.04.04* A. The Board of Trustees shall adjust the member’s annual earnable compensation if, during the time period included in the computation of average final compensation, the member: (1) Was on a qualifying leave of absence; and (2) Received eligibility service credit as provided in COMAR 22.05.01. B. Part-time Employment. (1) This section applies only to a member of the Employees’ Pension System, the Local Fire and Police System, the Law Enforcement Officers’ Pension System, or the Teachers’ Pension System whose eligibility service has been adjusted under State Personnel and Pensions Article, Division II, Annotated Code of Maryland to compute creditable service on the basis of the member having completed less than the normal hours of service for the member’s position. (2) The Board of Trustees shall adjust the member’s annual earnable compensation to a full-time basis for any time period included in the computation of average final compensation. #### Regulation .05 Extraordinary Salary Increase — Board of Trustees' Determination. *COMAR 22.01.04.05* A. Retirement Agency’s Report and Notice. (1) The Retirement Agency shall issue a preliminary report that includes the following information: (a) The name of each member that the Retirement Agency has preliminarily determined to have received an extraordinary salary increase; (b) The name of the member’s employer; (c) The amount of the increase in the member’s average annual earnable compensation; (d) The reason or reasons for the increase; and (e) A comparison of the member’s allowance calculated with and without inclusion of the extraordinary salary increase in the member’s annual final compensation. (2) The Retirement Agency shall send to each member listed in the report written notice of: (a) The Agency’s determination that the member has received an extraordinary salary increase; (b) A comparison of the member’s average final compensation and resulting allowance amount calculated with and without inclusion of the extraordinary salary increase; (c) The employer’s stated reason or reasons for the increase; and (d) A statement of the member’s right to file with the Executive Director a written statement of the reasons why the member believes the determination that the member received an extraordinary salary increase is incorrect. B. Board of Trustees Determination. (1) The Executive Director shall submit to the Board of Trustees: (a) Each report issued pursuant to §A(1) of this regulation; and (b) A copy of a written statement filed by a member pursuant to §A(2)(d) of this regulation. (2) Following review of the Retirement Agency’s report and any written statement filed by a member, a majority of the Board of Trustees shall determine whether each member received an extraordinary salary increase. (3) As soon as practicable after the meeting of the Board of Trustees, the Secretary to the Board of Trustees shall send each member listed on the Retirement Agency’s report written notice of the Board of Trustees’ decision and, if the decision is adverse to the member, of the member’s right to submit a petition for a hearing under COMAR 22.03.04. ### Chapter 05 — Proof of Date of Birth **Authority:** State Personnel and Pensions Article, § 21-110, Annotated Code of Maryland **Administrative History:** Effective date: January 1, 1996 (22:26 Md. R. 2031) **Administrative History:** Effective January 1, 1996, all of Title 22 was repealed and completely new regulations adopted. Codification and organization of the title were also completely changed. Consequently, the administrative histories of the revised Title 22 do not reflect regulatory activity before January 1, 1996. Refer to the old version of Title 22 or contact the Maryland State Archives for assistance. **Administrative History:** Effective January 1, 1996, all of Title 22 was repealed and completely new regulations adopted. Codification and organization of the title were also completely changed. Consequently, the Administrative Histories of the revised Title 22 do not reflect regulatory activity before January 1, 1996. Refer to the old version of Title 22 or contact the Maryland State Archives for assistance. **Administrative History:** Regulation .01 repealed and new Regulation .01 adopted effective February 11, 2019 (46:3 Md. R. 109) **Administrative History:** Regulation .02 amended effective February 11, 2019 (46:3 Md. R. 109); July 21, 2025 (52:14 Md. R. 713) #### Regulation .01 Definition. *COMAR 22.01.05.01* In this chapter, “alternate payee” means a former spouse named in an eligible domestic relations order that the Retirement Agency has accepted for administration pursuant to a notice of administration issued in accordance with State Personnel and Pensions Article, §21-502, Annotated Code of Maryland, and COMAR 22.01.03.04. #### Regulation .02 Proof of Birth. *COMAR 22.01.05.02* A. Individuals Required to Submit Proof of Birth. (1) When an individual enrolls as a member of a State system, the individual shall submit documentation to verify the individual's date of birth to the Retirement Agency. (2) On the request of the Retirement Agency, an individual who applies for an allowance shall submit documentation to verify the individual’s date of birth and the date of birth of any designated beneficiaries. (3) On the request of the Retirement Agency, a participant or alternate payee who is or may become eligible to receive a benefit of any type under State Personnel and Pensions Article, Division II, Annotated Code of Maryland, shall submit documentation to the Retirement Agency to verify the individual’s date of birth. B. An individual who is a United States citizen shall submit any one of the following documents to verify the individual’s date of birth: (1) Birth certificate; (2) Adoption record; (3) Statement of age card from the county health department or United States Bureau of Vital Statistics; (4) United States passport; (5) Naturalization records; (6) Census record from the United States Bureau of the Census; (7) Military documentation from any branch of the United States Armed Forces; (8) Hospital birth record, certified by the custodian of the record; (9) Unexpired driver's license; or (10) Unexpired Maryland Identification Card issued by the Maryland State Motor Vehicle Administration. C. An individual who is not a United State citizen shall submit a permanent resident card to verify the individual’s date of birth. D. The Retirement Agency shall accept a photostatic or electronically imaged copy of any one of the documents listed in §B or C of this regulation, but reserves the right to require the individual to submit the original document from which the copy was made. E. If an individual cannot obtain any of the documents listed in §B or C of this regulation, the Retirement Agency may determine an alternate form of documentation to verify the individual’s date of birth. ### Chapter 06 — Payment of Benefits **Authority:** State Personnel and Pensions Article, §§21-110 and 21-501, Annotated Code of Maryland **Administrative History:** Effective date: January 1, 1996 (22:26 Md. R. 2031) **Administrative History:** Effective January 1, 1996, all of Title 22 was repealed and completely new regulations adopted. Codification and organization of the title were also completely changed. Consequently, the Administrative Histories of the revised Title 22 do not reflect regulatory activity before January 1, 1996. Refer to the old version of Title 22 or contact the Maryland State Archives for assistance. **Administrative History:** Regulation .01 repealed effective August 4, 2003 (30:15 Md. R. 993) **Administrative History:** Regulation .03B amended effective October 15, 2012 (39:20 Md. R. 1309) **Administrative History:** Regulation .04 amended effective March 10, 1997 (24:5 Md. R. 413) **Administrative History:** Regulation .04C amended effective October 15, 2012 (39:20 Md. R. 1309) **Administrative History:** Regulation .04C, D amended effective December 11, 2003 (30:24 Md. R. 1745) **Administrative History:** Chapter revised effective November 23, 2015 (42:23 Md. R. 1435) **Administrative History:** Chapter revised effective October 7, 2019 (46:20 Md. R. 847) #### Regulation .01 Definitions. *COMAR 22.01.06.01* A. In this chapter, the following words have the meanings indicated. B. Terms Defined. (1) “Alternate payee” means a former spouse named in an eligible domestic relations order that the Retirement Agency has accepted for administration pursuant to a notice of administration issued in accordance with State Personnel and Pensions Article, §21-502, Annotated Code of Maryland, and COMAR 22.01.03.04. (2) “Participant” has the meaning set forth in COMAR 22.01.01.01B. (3) “Payee” means a participant or alternate payee. #### Regulation .02 Electronic Fund Transfer. *COMAR 22.01.06.02* A. Except as provided in Regulation .04 of this chapter, the Retirement Agency shall pay the allowance of a payee by electronic fund transfer to the institution designated by the payee as provided in this regulation. B. A payee shall properly complete the electronic fund transfer sign-up form provided by the Retirement Agency and file it with the Retirement Agency. C. The Retirement Agency shall accept the electronic fund transfer sign-up form filed by a payee if: (1) The form has been properly completed in accordance with the form’s instructions; (2) The institution named by the payee on the form participates in the Automated Clearing House Network; (3) Not more than five payees share the same account number at the institution; and (4) The Retirement Agency deems the form acceptable. D. The Executive Director, or the Executive Director’s designee, may waive the requirement of §C(3) of this regulation upon written request by a payee and for good cause shown. Determination of a waiver request is not a contested case under State Government Article, §10-202, Annotated Code of Maryland, for which a hearing is required under COMAR 22.03.04. E. At any time while receiving an allowance, a payee may change the designated institution by properly completing a new electronic fund transfer sign-up form and submitting the form to the Retirement Agency. F. The last electronic fund transfer sign-up form filed by a payee and accepted by the Retirement Agency shall control the electronic fund transfer of the payee’s monthly allowance. #### Regulation .03 Electronic Fund Transfer Procedures. *COMAR 22.01.06.03* A. The Retirement Agency shall transmit a payee’s monthly allowance to the institution designated by the payee as set forth in Regulation .02 of this chapter. B. The Retirement Agency shall give each payee who receives an allowance through electronic fund transfer an advice statement at least once per calendar year. The advice statement shall reflect the following: (1) The total amount of the monthly allowance; (2) Any amounts deducted from the monthly allowance; and (3) The portion of the monthly allowance electronically transferred. #### Regulation .04 Payment of Allowance by Check. *COMAR 22.01.06.04* A. A payee may request payment of an allowance by check instead of an electronic fund transfer. B. The request shall be in writing to the Executive Director and describe the hardship created by the electronic fund transfer of the payee’s monthly allowance. The payee may submit documentation to support the hardship with the request to the Executive Director. C. The Executive Director or the Executive Director’s designee may grant the request on a temporary or indefinite basis and allow payment of the monthly allowance by check if the payee: (1) Lives outside the United States; (2) Maintains a bank account with a financial institution that is not a member of the Automated Clearing House Network; (3) Receives less than a $250 net monthly allowance; (4) Is of an advanced age, has a disability, or both, affecting the payee’s ability to maintain or access a bank account, or both; (5) Resides in a remote geographic location lacking the infrastructure to support electronic fund transfer; (6) Has been denied the opportunity to open or maintain a banking account; or (7) Demonstrates that circumstances exist that would create a hardship if the payee is required to receive an allowance by electronic funds transfer. D. If the Executive Director or the Executive Director’s designee grants the request for payment by check, the Retirement Agency may require the payee to periodically submit documentation demonstrating the continued necessity for payment by check. If the Executive Director or Executive Director’s designee determines that a hardship no longer exists, the Retirement Agency may require the payee to complete and submit an electronic fund transfer sign-up form, in accordance with Regulation .02 of this chapter. E. If the Executive Director or the Executive Director’s designee denies the request for payment by check, and the payee fails to complete the electronic fund transfer sign-up form, the Retirement Agency may suspend payment of the payee’s allowance in accordance with Regulation .05 of this chapter. #### Regulation .05 Suspension of Payment. *COMAR 22.01.06.05* A. The Retirement Agency may suspend payment of a payee’s benefit of any type for reasons including, but not limited to, the following: (1) The payee fails to submit a properly completed electronic fund transfer sign-up form required for a monthly allowance; (2) The payee fails to provide a current mailing address; (3) The payee fails to return a properly completed verification form required to confirm receipt of a monthly allowance; (4) The Retirement Agency receives conflicting payment instructions; (5) The Retirement Agency has reason to believe the payee is a “vulnerable adult” being subject to “exploitation”, as those terms are defined by Family Law Article, §14-101, Annotated Code of Maryland; (6) The Retirement Agency has reason to believe the payee is no longer living; or (7) The Retirement Agency has reason to believe that it has received false or fraudulent information. B. The Retirement Agency shall notify the payee at the last address on file of a suspension of payment and provide instructions on actions required to resume payment. All properly due benefits held in suspension are payable to the payee upon reinstatement of the benefits. #### Regulation .06 Deductions from Allowance. *COMAR 22.01.06.06* A. A retiree may elect to have the Retirement Agency deduct from the retiree’s allowance and pay for the retiree: (1) Dues for a retiree or employee organization that the Executive Director has approved to receive deductions; (2) To the extent approved by the Executive Director, payments to the State Employees’ Credit Union of Maryland, Inc.; (3) To the extent approved by the Executive Director, all or part of a premium for: (a) Insurance offered through an employee organization; or (b) State-approved or locally approved insurance for retirees; or (4) If approved by the Executive Director, charitable contributions in connection with the Maryland Charity Campaign conducted by the Secretary of State. B. Information Sharing with Entities Receiving Deductions. (1) In connection with any deductions authorized under §A of this regulation, the Retirement Agency will exchange with an entity receiving deductions information, which in the Executive Director’s sole discretion is reasonably necessary, in order to conduct and reconcile the deductions, including the retiree’s name, the retiree’s Social Security number or other identification number, and the deduction amounts. (2) On request by the Retirement Agency, an entity that receives retiree deductions shall enter into a nondisclosure agreement in the format required by the Retirement Agency requiring the entity to maintain specified security procedures and practices with respect to the information it receives in connection with the deductions. ### Chapter 07 — Designation of Beneficiary **Authority:** State Personnel and Pensions Article, §21-110; Title 21, Subtitle 4;and Title 29, Subtitle 2; Annotated Code of Maryland **Administrative History:** Effective date: January 1, 1996 (22:26 Md. R. 2031) **Administrative History:** Effective January 1, 1996, all of Title 22 was repealed and completely new regulations adopted. Codification and organization of the title were also completely changed. Consequently, the administrative histories of the revised Title 22 do not reflect regulatory activity before January 1, 1996. Refer to the old version of Title 22 or contact the Maryland State Archives for assistance. **Administrative History:** Chapter revised effective June 13, 2011 (38:12 Md. R. 707) **Administrative History:** Regulation .02A amended effective February 11, 2019 (46:3 Md. R. 109) **Administrative History:** Regulation .03 amended effective February 11, 2019 (46:3 Md. R. 109) #### Regulation .01 Definition. *COMAR 22.01.07.01* “Survivor benefit” means a benefit payable under State Personnel and Pensions Article, Division II, Annotated Code of Maryland, on the death of a member, former member, or retiree. #### Regulation .02 Designation of Beneficiary Form. *COMAR 22.01.07.02* A. Completion and Filing of Designation of Beneficiary Form. (1) A member, former member, or retiree may designate a beneficiary to receive a survivor benefit by properly completing the appropriate form that the Retirement Agency provides and filing it with the Retirement Agency. (2) A designation of beneficiary form is properly completed if it is completed in accordance with the form’s instructions, dated, signed by the member, former member, or retiree, and properly acknowledged by a notary public. (3) Filing a Designation of Beneficiary Form. (a) A designation of beneficiary form is filed on the date that it is received by the Retirement Agency. (b) A designation of beneficiary form is not considered filed if it is submitted to the employing agency of a member, former member, or retiree. B. Designation of Multiple Beneficiaries. (1) Except as provided in §B(2) of this regulation, a member, former member, or retiree may designate multiple beneficiaries on the designation of beneficiary form to receive the survivor benefit in equal shares. (2) Subject to State Personnel and Pensions Article, §21-402(b)(2), Annotated Code of Maryland, for an optional form of allowance providing for payment to a designated beneficiary for life, a retiree may designate only one individual. C. On the death of a member, former member, or retiree, the Retirement Agency shall use the last designation of beneficiary form properly completed and filed with the Retirement Agency by the member, former member, or retiree on or before the date of death to ascertain who is entitled to receive the survivor benefit. D. The Board of Trustees is not liable for an improper payment if the Board of Trustees pays the survivor benefit in accordance with the last designation of beneficiary form filed on or before the date of death of the member, former member, or retiree. E. Change of Designation of Beneficiary Form. (1) Except as provided in §E(2) of this regulation, a member, former member, or retiree may change the designation of beneficiary at any time before the death of the member, former member, or retiree. (2) Change of Designation of Beneficiary by Retiree Under Optional Forms of Allowance 2, 3, 5, or 6. (a) This subsection applies only to a retiree who elected an optional form of allowance providing for payment to a designated beneficiary for life. (b) Before a retiree may change the retiree’s designated beneficiary, the retiree shall first request a recalculation of the amount of the retiree’s allowance based on the new proposed beneficiary. (c) The submission of a request for recalculation pursuant to §E(2)(b) of this regulation does not change the retiree’s designation of beneficiary. (d) Upon receipt of a request for recalculation pursuant to §E(2)(b) of this regulation, the Retirement Agency will provide the retiree with the following: (i) A written estimate of the retiree’s recalculated allowance based on the new proposed beneficiary; and (ii) A form that may be used by the retiree to change the retiree’s designation of beneficiary to the new proposed beneficiary. (e) A retiree may not change the retiree’s designated beneficiary until after receipt of the items specified in §E(2)(d) of this regulation. #### Regulation .03 Designation of Minor Beneficiary. *COMAR 22.01.07.03* A. This regulation applies only if a designated beneficiary is not 18 years old or older at the time of payment of the survivor benefit. B. The Retirement Agency shall pay the survivor benefit for the benefit of the designated beneficiary to the guardian of the property of the minor beneficiary who is appointed by a court in accordance with Estates and Trusts Article, Title 13, Subtitle 2, Annotated Code of Maryland. C. If a guardian of the property has not been appointed by a court in accordance with the Estates and Trusts Article, Title 13, Subtitle 2, Annotated Code of Maryland, the Retirement Agency shall pay the survivor benefit for the benefit of the designated beneficiary in the following order: (1) If the individual named a custodian under the Maryland Uniform Transfers to Minors Act, Estates and Trusts Article, Title 13, Subtitle 3, Annotated Code of Maryland, to receive the survivor benefit for each minor beneficiary on the designation of beneficiary form, to the named custodian for the designated minor; (2) If the individual named a custodian or trustee to hold property for the benefit of the minor beneficiary under a will or trust on the designation of beneficiary form, to the named custodian or trustee; (3) If the individual did not name a custodian or trustee as provided in §C(1) or (2) of this regulation, to an adult as custodian for the benefit of the minor beneficiary under the Maryland Uniform Transfers to Minors Act, Estates and Trusts Article, Title 13, Subtitle 3, Annotated Code of Maryland, if the: (a) Survivor benefit payable to the minor beneficiary is less than $10,000; and (b) Executive Director considers a transfer to an adult as custodian for the benefit of the minor beneficiary under the Maryland Uniform Transfers to Minors Act to be in the best interest of the minor; or (4) If the criteria specified in §C(3)(a) or (b) of this regulation are not satisfied, the Retirement Agency shall pay the survivor benefit only to a guardian of the property of the minor beneficiary who is appointed by a court in accordance with the Estates and Trusts Article, Title 13, Subtitle 2, Annotated Code of Maryland. #### Regulation .04 No Designated Beneficiary. *COMAR 22.01.07.04* Upon the death of a member, former member, or retiree, the Board of Trustees shall pay any survivor benefit to the estate of the member, former member or retiree if: A. The member, former member, or retiree did not properly complete and file a designation of beneficiary form; or B. Each designated beneficiary has predeceased the member, former member, or retiree. ### Chapter 08 — Refund of Accumulated Contributions **Authority:** State Personnel and Pensions Article, §§21-110, 21-603, 29-501, and 29-502, Annotated Code of Maryland **Administrative History:** Effective date: January 1, 1996 (22:26 Md. R. 2031) **Administrative History:** Effective January 1, 1996, all of Title 22 was repealed and completely new regulations adopted. Codification and organization of the title were also completely changed. Consequently, the administrative histories of the revised Title 22 do not reflect regulatory activity before January 1, 1996. Refer to the old version of Title 22 or contact the Maryland State Archives for assistance. **Administrative History:** Regulation .01 amended effective February 11, 2019 (46:3 Md. R. 109) **Administrative History:** Regulation .02 amended effective February 11, 2019 (46:3 Md. R. 109) **Administrative History:** Regulation .03 amended effective February 11, 2019 (46:3 Md. R. 109) #### Regulation .01 Scope. *COMAR 22.01.08.01* This chapter establishes procedures for the refund of the accumulated contributions of each member or former member of a State system who separated from employment for a reason other than death or retirement. #### Regulation .02 Application for Withdrawal of Accumulated Contributions. *COMAR 22.01.08.02* A. A member or former member who has separated from employment with a participating employer for a reason other than death or retirement and is not employed by any other participating employer may request a refund of accumulated contributions by properly completing the appropriate form that the Retirement Agency provides and filing it with the Retirement Agency. B. A form to request a refund of accumulated contributions is properly completed if it is completed in accordance with the form’s instructions and signed and dated by the member or former member. #### Regulation .03 Refund of Accumulated Contributions. *COMAR 22.01.08.03* A. The Retirement Agency shall pay an applicant the accumulated contributions of the applicant within a reasonable time after receipt by the Retirement Agency of a properly completed application for refund form. B. If an applicant files a photocopy, electronically transmitted copy, or facsimile copy of the application for refund form with the Retirement Agency, the applicant shall retain any original to provide to the Retirement Agency at the request of the Retirement Agency. C. When requesting a refund of accumulated contributions, an applicant may request to have all or a portion of the refund that constitutes an eligible rollover distribution paid to an eligible retirement plan in a direct rollover in accordance with State Personnel and Pensions Article, Title 21, Subtitle 6, Annotated Code of Maryland and COMAR 22.07.02.05. ### Chapter 09 — Interest — Annuity Savings Fund **Authority:** State Personnel and Pensions Article, §§21-110, 21-311, 22-215, 23-213, 24-206, 25-204, 26-205, 27-203, and 28-205, Annotated Code of Maryland **Administrative History:** Effective date: January 1, 1996 (22:26 Md. R. 2031) **Administrative History:** Effective January 1, 1996, all of Title 22 was repealed and completely new regulations adopted. Codification and organization of the title were also completely changed. Consequently, the Administrative Histories of the revised Title 22 do not reflect regulatory activity before January 1, 1996. Refer to the old version of Title 22 or contact the Maryland State Archives for assistance. **Administrative History:** Regulation .01B amended effective November 18, 2019 (46:23 Md. R. 1067) **Administrative History:** Regulation .02 amended effective November 18, 2019 (46:23 Md. R. 1067) **Administrative History:** Regulation .03 repealed effective November 18, 2019 (46:23 Md. R. 1067) #### Regulation .01 Definitions. *COMAR 22.01.09.01* A. In this chapter, the following terms have the meanings indicated. B. Terms Defined. (1) “Member” means a member or vested former member of a State system. (2) “Regular interest” means interest at the rate payable on accumulated contributions as provided under State Personnel and Pensions Article, Division II, Annotated Code of Maryland, for each State system. (3) Retirement. (a) “Retirement” means the grant of a retirement allowance under State Personnel and Pensions Article, Division II, Annotated Code of Maryland, after separation from employment with a participating employer. (b) “Retirement” includes the grant of a vested allowance under State Personnel and Pensions Article, Title 29, Subtitle 3, Annotated Code of Maryland. #### Regulation .02 Crediting Interest. *COMAR 22.01.09.02* A. Except as provided in §B or C of this regulation, the Retirement Agency shall credit regular interest to each member’s individual account in the annuity savings fund of the appropriate State system on June 30 of each fiscal year in an amount equal to the sum of: (1) 1/2 of the regular interest multiplied by the balance of the member's individual account at the beginning of the fiscal year; and (2) 1/2 of the regular interest multiplied by the balance of the member’s individual account at the earlier of the end of the fiscal year or the last day of the month in which membership ends. B. Regular Interest on Retirement or Refund of Member’s Accumulated Contributions. (1) In the fiscal year of a member’s retirement, the Retirement Agency shall credit regular interest on the balance of the member’s individual account in the annuity savings fund during the period: (a) Beginning on July 1 of the fiscal year in which the member retires; and (b) Ending on the day preceding the member’s date of retirement. (2) For a refund of a member’s accumulated contributions to a member, the Retirement Agency shall credit regular interest on the balance of the member’s individual account in the annuity savings fund during the period: (a) Beginning on July 1 of the fiscal year in which the member retires; and (b) Ending on the date of payment. C. Regular Interest on the Death of a Member. (1) Scope. This section applies only to the regular interest payable on a deceased member's accumulated contributions held by the Retirement Agency in the deceased member's individual account in the annuity savings fund. Interest does not accrue on any other amounts payable by the Retirement Agency on the death of a member. (2) On the death of a member, the Retirement Agency shall credit regular interest on the balance of the deceased member’s individual account in the annuity savings fund during the period: (a) Beginning on July 1 of the fiscal year; and (b) Ending on the date of death. D. Regular Interest on Member Contributions. (1) Except as provided in §D(2) of this regulation, interest shall be paid on member contributions after membership ends only if a former member is eligible to receive a vested allowance under State Personnel and Pensions Article, Title 29, Subtitle 3, Annotated Code of Maryland. (2) Regular Interest on Reenrollment of Certain Nonvested Former Members. (a) This subsection applies to a former member who is not eligible to receive a vested allowance but is eligible to resume receipt of regular interest under provisions of the State Personnel and Pensions Article, §23-213(c), Annotated Code of Maryland, or a similar provision. (b) The Retirement Agency shall credit regular interest to the nonvested former member’s account in the annuity savings fund of the appropriate State system on June 30 of each fiscal year in an amount equal to the sum of: (i) 1/2 of the regular interest multiplied by the balance of the nonvested former member’s individual account at the date of reenrollment; and (ii) 1/2 of the regular interest multiplied by the balance of the nonvested former member’s individual account at the earlier of the end of the fiscal year, or the last day of the calendar month in which employment ends. ### Chapter 10 — Transfer of Membership to the Pension System *Repealed* **Administrative History:** Effective date: January 1, 1996 (22:26 Md. R. 2031) **Administrative History:** Effective January 1, 1996, all of Title 22 was repealed and completely new regulations adopted. Codification and organization of the title were also completely changed. Consequently, the Administrative Histories of the revised Title 22 do not reflect regulatory activity before January 1, 1996. Refer to the old version of Title 22 or contact the Maryland State Archives for assistance. **Administrative History:** Chapter repealed effective October 7, 2019 (46:20 Md. R. 847) ### Chapter 11 — Employment of a Retiree by a Participating Employer **Authority:** State Personnel and Pensions Article, §§21-110, 21-113, 22-406, 23-407, 25-403, 26-403, 27-406, 28-402, 29-115, and 29-116, Annotated Code of Maryland **Administrative History:** Effective date: January 1, 1996 (22:26 Md. R. 2031) **Administrative History:** Effective January 1, 1996, all of Title 22 was repealed and completely new regulations adopted. Codification and organization of the title were also completely changed. Consequently, the Administrative Histories of the revised Title 22 do not reflect regulatory activity before January 1, 1996. Refer to the old version of Title 22 or contact the Maryland State Archives for assistance. **Administrative History:** Regulation .01B amended effective October 20, 1997 (24:21 Md. R. 1452) **Administrative History:** Regulation .06 adopted effective October 20, 1997 (24:21 Md. R. 1452) **Administrative History:** Chapter revised effective April 28, 2003 (30:8 Md. R. 543) **Administrative History:** Regulations .01—.07 repealed and new Regulations .01—.07 adopted effective January 24, 2022 (49:2 Md. R. 78) #### Regulation .01 Definitions. *COMAR 22.01.11.01* A. In this chapter, the following terms have the meanings indicated. B. Terms Defined. (1) “Allowance” means a disability retirement allowance, service retirement allowance, or vested allowance. (2) “Earnable compensation” has the meaning stated in COMAR 22.01.01.01B(5). (3) “Earnings” means the earnable compensation received by a retiree in a calendar year. (4) “Earnings limitation” means the annual amount that a retiree may earn in certain types of re-employment during certain periods of time after retirement, as specified by law, before the retiree’s allowance is subject to a reduction. (5) Effective Date of Retirement. (a) “Effective date of retirement”, except as provided in §B(5)(b) of this regulation, means the first day of the month in which a retiree commences receipt of an allowance. (b) “Effective date of retirement”, for the Judges’ Retirement System, means the first day in which a retiree commences receipt of an allowance. (6) “Gross annual compensation” means the total compensation paid in a calendar year, before any deductions are taken. (7) “Retiree” means an individual who has separated from employment with a participating employer and receives an allowance. (8) Retirement. (a) “Retirement” means the commencement of an allowance after separation from employment with a participating employer. (b) “Retirement” includes the commencement of a vested allowance that is deferred after separation from employment until the former member is eligible for immediate payment. #### Regulation .02 Required Break in Service. *COMAR 22.01.11.02* A. Separation from Service Required. (1) This section does not apply to the Legislative Pension Plan. (2) Except as provided by law, an individual shall be separated from all employment with a participating employer at the time of retirement, and may not retire if the individual is employed by the State or other participating employer on any basis, including but not limited to employment on a temporary, permanent, or contractual basis, on the effective date of retirement. B. 45-Day Rule. (1) This section does not apply to: (a) The Legislative Pension Plan; (b) The temporary assignment of a retiree of the Judges’ Retirement System to sit in a court of this State under the authority of Article IV, §3A, of the Maryland Constitution; or (c) A vested allowance. (2) An individual who is receiving a service retirement allowance or disability retirement allowance may not be employed within 45 days of the date the individual retired, on a permanent, temporary, or contractual basis, by: (a) The State or other participating employer; or (b) A withdrawn participating governmental unit, if the retiree was an employee of the withdrawn participating governmental unit while it was a participating employer. #### Regulation .03 Statutory Reduction if Earnings Exceed Earnings Limitation. *COMAR 22.01.11.03* A. This regulation applies to a retiree who is subject to an earnings limitation on employment with a participating employer as set forth in State Personnel and Pensions Article, Division II, Annotated Code of Maryland. B. On or before January 31 of each year, a participating employer shall submit to the Retirement Agency the following information for the preceding calendar year: (1) On request, the participating employer’s tax identification number; (2) The name and Social Security number of all employees on any payroll of the employer at any time during the preceding calendar year; and (3) The actual gross annual compensation paid to each employee during the preceding calendar year. C. The participating employer shall submit the information to the Retirement Agency in a manner and format acceptable to the Retirement Agency. D. On or before May 31 of each year, the Retirement Agency shall review the information received from each participating employer, the Retirement Agency’s records, and any other relevant information to determine whether a retiree has received earnings from a participating employer that exceed the retiree’s earnings limitation. E. If the records referenced in §D of this regulation reflect that a retiree has received earnings that exceed the earnings limitation, the Retirement Agency shall send written notice to the retiree that shall: (1) Reflect the: (a) Earnings reported by the participating employer for the retiree; and (b) Earnings limitation applicable to the retiree; (2) Advise the retiree of the amount of the reduction in the retiree’s allowance to recover the portion of the retiree’s allowance paid during the preceding calendar year that exceeded the earnings limitation; (3) Advise the retiree of the option to pay all or a portion of the excess earnings to the Retirement Agency in a lump sum on or before July 1 in order to reduce or eliminate the reduction in the retiree’s allowance; (4) State that, to the extent the retiree does not pay the excess earnings in a lump sum, the reduction in the retiree’s allowance will begin on July 1 and shall continue until the overpayment is recovered to the extent permitted by law; and (5) Notify the retiree of the procedures under Regulation .05 of this chapter for obtaining relief from the offset provisions. F. Reduction of a Service Retirement Allowance or Vested Allowance. (1) This section applies to the reduction of a service retirement allowance or vested allowance for a participant who is subject to an earnings limitation. (2) Earnings Limitation. (a) Except as provided in §F(2)(b) of this regulation, or as otherwise required by law, the earnings limitation equals an amount determined by subtracting the retiree’s initial annual basic allowance from the retiree’s average final compensation used to compute the individual’s basic allowance. (b) For a retiree of the Judges’ Retirement System, the earnings limitation equals an amount determined by subtracting the retiree’s annual retirement allowance from the compensation on which the retirement allowance is based. (3) Except as provided in §G of this regulation or as permitted under Regulation .05 of this chapter, on July 1 of each fiscal year, the Retirement Agency shall reduce the service retirement allowance or vested allowance of each retiree who has received earnings during the preceding calendar year that exceed the applicable earnings limitation, in order to recover the full amount of the overpayment. (4) Reduction if Earnings Exceed the Earnings Limitation. (a) Except as provided in §F(4)(b) of this regulation or as otherwise required by law, the reduction required to enforce the earnings limitation equals the amount by which the sum of the retiree’s initial annual basic allowance and the retiree’s earnings exceeds the average final compensation used to compute the individual’s basic allowance. (b) For a retiree of the Judges’ Retirement System, the reduction required to enforce the earnings limitation equals the amount by which the sum of the retiree’s annual retirement allowance and the retiree’s earnings exceeds the amount of the compensation on which the retirement allowance is based. (5) The Retirement Agency may not recover more than the allowance paid to the retiree during the applicable calendar year under review. (6) Payment of Retiree Medical Insurance Premiums. (a) The reduced allowance for a fiscal year shall be an amount at least sufficient to pay the employer-approved deduction for retiree medical insurance premiums. (b) Any amounts not reduced from an allowance pursuant to §F(6)(a) of this regulation shall be deducted in the next year, or in future years if needed, until the difference is fully recovered. G. Reduction of an Ordinary Disability Allowance. (1) This section applies to the reduction of an ordinary disability allowance for a retiree who is subject to an earnings limitation, if the retiree is under normal retirement age and has exceeded the retiree’s earnings limitation in the preceding calendar year. (2) The earnings limitation equals the amount determined by subtracting the retiree’s basic allowance at retirement from the sum of: (a) The retiree’s average final compensation; and (b) $5,000, which, beginning in calendar year 2017, shall be adjusted annually by the percentage growth in the Consumer Price Index in the calendar year preceding the fiscal year, with each subsequent adjustment to be made on the amount calculated in the prior fiscal year. (3) On July 1 of each fiscal year, the Retirement Agency shall reduce the allowance of each retiree who has received earnings during the preceding calendar year that exceeded the applicable earnings limitation. (4) Amount of Pension Reduction. (a) The portion of the retiree’s allowance to be reduced under this section is the retiree’s pension derived from employer contributions at retirement, before any reductions based on the retiree’s election of an optional form of allowance, and without any cost-of-living adjustment. (b) The Retirement Agency shall reduce the pension of a retiree who has been receiving an allowance for: (i) Less than 10 years, by $1 for every $2 that the retiree’s current compensation exceeds the retiree’s earnings limitation; or (ii) At least 10 years, by $1 for every $5 that the retiree’s current compensation exceeds the retiree’s earnings limitation. #### Regulation .04 Suspension of Allowance. *COMAR 22.01.11.04* A. Suspension of Allowance for Earnings in Excess of Earnings Limitation. (1) This section applies only to a retiree who: (a) Serves as the Governor, Comptroller, Treasurer, Attorney General, or Secretary of State, or a Secretary, Deputy Secretary, or Assistant Secretary of a principal department of the Executive Branch of the State government; or (b) Is determined, in the sole discretion of the Executive Director, to serve in a position comparable to one described in §A(1)(a) of this regulation for a participating employer. (2) Upon employment with a participating employer, if a retiree receives a salary that exceeds the retiree’s earnings limitation in an amount that would require reduction of the retiree’s entire allowance, the retiree may request temporary suspension of the retiree’s allowance during employment, in lieu of the procedures described in Regulation .03 of this chapter. B. Temporary Suspension of Disability Allowance. (1) This section applies to a retiree who is subject to temporary suspension of a disability allowance under State Personnel and Pensions Article, §29-115, Annotated Code of Maryland. (2) A retiree’s allowance is subject to suspension upon the retiree’s re-employment at an annual compensation at least equal to the retiree’s average final compensation at retirement. (3) Upon receiving notification or otherwise discovering that a retiree’s allowance is subject to suspension, the Retirement Agency shall promptly suspend the allowance. C. Recoveries Due to Delayed Discovery or Notice. (1) The Retirement Agency shall recover all allowance payments overpaid due to delayed discovery or notice that a retiree’s allowance is subject to suspension. (2) After due notice, if a person who has received an improper payment fails to repay the money owed, the Board of Trustees may offset the overpayment from any future monthly payments of that person’s allowance. (3) If reduction of an allowance by offset would result in financial hardship to a retiree, the retiree may request relief in accordance with Regulation .05 of this chapter. #### Regulation .05 Procedures for Obtaining Relief by Extending Period of Reduction or Offset. *COMAR 22.01.11.05* A. If financial hardship to a retiree would result from reduction of an allowance under Regulation .03 of this chapter, or offset of an overpaid allowance under Regulation .04 of this chapter, the retiree may request that the Retirement Agency extend the time period of the reduction or offset by submitting a written request to the Executive Director. B. The request shall: (1) Explain the basis for the retiree’s request; and (2) Include any relevant documentation or records in support of the retiree’s request. C. In the Executive Director’s sole discretion, the Executive Director may grant the retiree’s request by extending the time period over which the reduction or offset occurs. The Executive Director may not cancel or waive any amounts that are required to be reduced or offset from a retiree’s allowance. D. The denial of a request to extend the time period of the reduction or offset is not a contested case under State Government Article, §10-202, Annotated Code of Maryland, for which a hearing is required under COMAR 22.03.04. E. If a retiree believes that the retiree is not subject to an earnings limitation, or that the retiree’s earnings did not exceed any applicable earnings limitation, under Regulation .03 of this chapter, the retiree shall immediately notify the Executive Director in writing of the basis for the retiree’s claim. If the Executive Director denies the retiree’s claim, the Executive Director shall notify the retiree in writing and shall advise the retiree of the retiree’s right to request a hearing under COMAR 22.03.04. F. If a retiree believes that the retiree is not subject to a suspension of the retiree’s disability allowance, or that the Agency has incorrectly calculated the amount of the appropriate offset, under Regulation .04 of this chapter, the retiree shall immediately notify the Executive Director in writing of the basis for the retiree’s claim. If the Executive Director denies the retiree’s claim, the Executive Director shall notify the retiree in writing and shall advise the retiree of the retiree’s right to request a hearing under COMAR 22.03.04. #### Regulation .06 Effect of Retirement for More Than 5 Years. *COMAR 22.01.11.06* A. This regulation applies to a retiree who is receiving a service retirement allowance or vested allowance from the: (1) Correctional Officers’ Retirement System; (2) Employees’ or Teachers’ Retirement System; (3) Employees’ or Teachers’ Pension System; (4) State Police Retirement System; or (5) Judges’ Retirement System. B. Except as provided in §C or D of this regulation, if a retiree has been retired for 5 years beginning on January 1 after the date the individual retired, the retiree may be employed by a participating employer on a permanent, temporary, or contractual basis without any reduction in retirement allowance. C. For a retiree whose effective date of retirement was January 1, the 5-year period shall begin on January 1 of the year in which the retiree accepted the allowance. D. Twelve-Month Reduction for Early Retirement. (1) This section applies to a retiree of the Employees’ or Teachers’ Retirement or Pension Systems who retired with an early service retirement allowance or early vested allowance. (2) Except as provided in §D(3) of this regulation, an individual who becomes employed by a participating employer within 12 months after receiving an early service retirement allowance or early vested allowance shall be subject to the statutory reduction of the individual’s allowance only until the individual has received an allowance for 12 months. (3) An individual who is subject to the 12-month reduction described in §D(2) of this regulation shall, after the individual has received an allowance for 12 months, be subject to an earnings limitation until the individual has received an allowance for 5 years if: (a) The individual’s current employer is any unit of State government, including the University System of Maryland, and the individual was employed by a unit of State government immediately prior to retirement; or (b) The individual’s current employer is a participating employer other than the State and is the same participating employer that employed the individual immediately prior to retirement. #### Regulation .07 Exemption from Earnings Limitation for Certain Eligible Retirees. *COMAR 22.01.11.07* A. This regulation applies to a retiree who is entitled to an exemption from the earnings limitation for a period of less than 5 years. B. The exemption applies by calendar year from the start date of employment without proration. C. If the exemption ends before the 5-year period for the earnings limitation ends, then the Retirement Agency shall apply the annual earnings limitation, without proration, only to the wages earned after the exemption period ends. ### Chapter 12 — Enrollment in the State System **Authority:** State Personnel and Pensions Article, §21-110, Annotated Code of Maryland **Administrative History:** Effective date: December 15, 2008 (35:25 Md. R. 2150) **Administrative History:** Regulation .01 amended effective October 15, 2012 (39:20 Md. R. 1309); November 18, 2019 (46:23 Md. R. 1067); July 21, 2025 (52:14 Md. R. 713) **Administrative History:** Regulation .02 amended effective October 15, 2012 (39:20 Md. R. 1309); November 18, 2019 (46:23 Md. R. 1067); July 21, 2025 (52:14 Md. R. 713) **Administrative History:** Regulation .03 amended effective October 15, 2012 (39:20 Md. R. 1309) **Administrative History:** Regulation .03A amended effective January 13, 2011 (38:1 Md. R. 12) **Administrative History:** Regulation .03B amended effective November 18, 2019 (46:23 Md. R. 1067) **Administrative History:** Regulation .03 adopted effective July 21, 2025 (52:14 Md. R. 713) **Administrative History:** Regulation .04 amended effective July 21, 2025 (52:14 Md. R. 713) **Administrative History:** Regulation .05 amended effective July 21, 2025 (52:14 Md. R. 713) #### Regulation .01 Enrollment Required. *COMAR 22.01.12.01* At commencement of employment, a participating employer is required to enroll an employee who: A. Is a member of a State system as a condition of employment; or B. Has the option to enroll and elects to become a member of a State system. #### Regulation .02 Enrollment Procedure. *COMAR 22.01.12.02* Enrollment shall consist of the participating employer submitting the following information to the Retirement Agency in the manner and format that the Retirement Agency requires: A. For an employee who is a member of a State system as a condition of employment, enrollment data that is properly completed and submitted in accordance with the requirements of the Retirement Agency; B. For an employee who has optional membership and elects to become a member, a written application that is properly completed by the member and participating employer in accordance with the form’s instructions; C. Proof of birth as set forth in COMAR 22.01.05.02; and D. A copy of the employee's job description: (1) For an employee who is to be enrolled: (a) In the Teachers’ Pension System; (b) In the Law Enforcement Officers’ Pension System; (c) In the State Police Retirement System; or (d) If employed by a participating governmental unit, in the Correctional Officers Retirement System; or (2) Upon request by the Retirement Agency. #### Regulation .03 Optional Membership Election. *COMAR 22.01.12.03* At commencement of employment, if an employee who has optional membership elects not to become a member of a State system, the participating employer shall submit to the Retirement Agency an election form that is properly completed by the employee and participating employer in accordance with the form’s instructions, in the manner and format that the Retirement Agency requires. #### Regulation .04 Imposition of Penalty Procedure. *COMAR 22.01.12.04* A. Based on the enrollment records as of June 30 of each fiscal year, the Retirement Agency shall impose a penalty of $100 per employee per year on a participating employer for any employee who: (1) Began employment with the participating employer: (a) Before April 1 of the same fiscal year; or (b) In any previous fiscal year; (2) Is a member of the State system as a condition of employment; and (3) Has not been properly enrolled in accordance with Regulation .02 of this chapter. B. In the sole discretion of the Executive Director, the Retirement Agency may waive any penalty imposed under §A of this regulation, if the participating employer addresses the enrollment failure in a manner satisfactory to the Retirement Agency. #### Regulation .05 Due Date for Payment of Penalty. *COMAR 22.01.12.05* Payment of the penalty is due within 30 days of the date of the invoice. ### Chapter 13 — Member Services Unit — Telephone Recording or Monitoring **Authority:** State Personnel and Pensions Article, §21-110, Annotated Code of Maryland **Administrative History:** Effective date: January 25, 2010 (37:2 Md. R. 69) **Administrative History:** Regulation .02 amended effective June 14, 2021 (48:12 Md. R. 474) #### Regulation .01 Notice of Telephone Recording or Monitoring. *COMAR 22.01.13.01* A. Any monitored telephone call shall contain a notice to the telephone caller that calls may be monitored. B. The notice shall state as follows: “Your call may be recorded or monitored for training and quality control purposes.” #### Regulation .02 Telephone Calls Recorded or Monitored. *COMAR 22.01.13.02* A. The Retirement Agency may only record or monitor: (1) Incoming telephone calls placed to the Member Services Division of the Retirement Agency through the Retirement Agency’s automated call distribution system; and (2) Outgoing telephone calls from the Member Services Division initiated by the virtual hold callback feature of the Retirement Agency’s automated call distribution system. B. The Retirement Agency may not record or monitor calls to or from direct individual lines in the Retirement Agency. C. The Retirement Agency shall securely store all recordings made pursuant to §A of this regulation, and may not retain a recording for longer than 10 years after the date of the recording. ### Chapter 14 — Applications for Service Retirement **Authority:** State Personnel and Pensions Article, §21-110, Annotated Code of Maryland **Administrative History:** Effective date: October 3, 2011 (38:20 Md. R. 1204) **Administrative History:** Regulation .02B amended effective January 8, 2024 (50:26 Md. R. 1132) **Administrative History:** Regulation .03 amended effective May 12, 2014 (41:9 Md. R. 522) #### Regulation .01 Scope. *COMAR 22.01.14.01* This chapter does not apply to a disability retirement allowance paid in accordance with State Personnel and Pensions Article, Title 29, Subtitle 1, Annotated Code of Maryland. #### Regulation .02 Definitions. *COMAR 22.01.14.02* A. In this chapter, the following terms have the meaning indicated. B. Terms Defined. (1) “Former member” means an individual who: (a) Has been a member; (b) Separated from employment with a participating employer; (c) Is not reemployed by a participating employer; and (d) Is not a retiree. (2) “Required beginning date” means the applicable date by which the distribution of a service retirement allowance must commence in accordance with the Internal Revenue Code, 26 U.S.C. §401(a)(9)(C). (3) “Special early retirement” means a retirement pursuant to State Personnel and Pensions Article, §22-404 or 23-404, Annotated Code of Maryland. (4) “Ten-month employee” means an individual who satisfies the criteria set forth in COMAR 22.05.02.01A. #### Regulation .03 Retirement Application. *COMAR 22.01.14.03* A. Application Required. (1) In order to retire with a normal service retirement allowance, early service retirement allowance, or special early retirement allowance, a member or former member who is eligible to retire must properly complete the appropriate written application form that is available from the Retirement Agency and submit it to the Retirement Agency. (2) A retirement application is properly completed if it: (a) Is completed in accordance with the form’s instructions, dated, signed by the member or former member, and properly acknowledged by a notary public; and (b) In the case of a member who is retiring upon separation from employment, contains the employer’s certification of the member or former member’s separation from employment, wages, contributions, and sick leave. (3) Submission Date. (a) Except as provided in §A(3)(b) and (c) of this regulation, a retirement application is considered submitted on the last day of the month immediately prior to the date that it is received by the administrative offices of the Retirement Agency at the mailing address provided on the retirement application. (b) In the case of a member who is retiring upon separation from employment, a retirement application is considered submitted on the last day of the month immediately prior to the date that it was properly acknowledged by a notary public if the application is submitted to the Retirement Agency by the member’s employing agency within 60 days of the notarization date. (c) In the case of a ten-month employee or other former member of the Teachers’ Retirement System or Teachers’ Pension System who separated from employment as of June 30 of the current calendar year, a retirement application is considered submitted as of June 30 if the Retirement Agency receives the retirement application on or before September 15 of the same calendar year. B. Commencement of Retirement Benefits. (1) This section does not apply to the Judges’ Retirement System or the Legislative Pension Plan. (2) A member or former member shall state the date which the member or former member desires to retire on the retirement application. (3) A member or former member who is eligible to retire at the time of separation from employment may not retire with a normal service retirement allowance, early service retirement allowance, or special early service retirement allowance until the later of: (a) The first day of the month after the member or former member is separated from employment; or (b) The first day of the month after the member or former member submits a properly completed retirement application. (4) Except as provided in §B(5) of this regulation, a member or former member who retires with a normal service retirement allowance, early service retirement allowance, or special early service retirement allowance may not receive benefits for the period before the member or former member submitted a properly completed retirement application. (5) Automatic Commencement of Benefits by Required Beginning Date. (a) A service retirement allowance or vested allowance shall commence no later than the required beginning date. (b) A former member who fails to submit a retirement application on or before the required beginning date shall be automatically retired, and shall be treated as if the former member has elected the basic allowance, computed without modification under State Personnel and Pensions Article §21-403, Annotated Code of Maryland. (c) A former member who is automatically retired as of the required beginning date may change the automatic election of the basic allowance only if the former member notifies the Retirement Agency before the first allowance payment normally becomes due.