<?xml version='1.0' encoding='utf-8'?>
<regulation prefix="Regulation" num=".02" citation="COMAR 22.01.04.02" title_num="22" subtitle_num="01" chapter_num="04" heading="Average Final Compensation — Retirement Systems.">
  <paragraph num="A.">
    <text>This regulation applies only to the Correctional Officers' Retirement System, the Employees' Retirement System, the State Police Retirement System, and the Teachers' Retirement System.</text>
  </paragraph>
  <paragraph num="B.">
    <text>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:</text>
    <paragraph num="(1)">
      <text>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</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Member's total period of employment, if the member was employed less than 3 years as a member.</text>
    </paragraph>
  </paragraph>
  <paragraph num="C.">
    <text>Except as provided in §§D and F of this regulation, the average final</text>
    <paragraph num="(1)">
      <text>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</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Member’s total period of employment, if the member was employed less than 5 years as a member.</text>
    </paragraph>
  </paragraph>
  <paragraph num="D.">
    <text>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:</text>
    <paragraph num="(1)">
      <text>The increase is the result of the member’s:</text>
      <paragraph num="(a)">
        <text>Promotion by the member’s employer; or</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Appointment or election to a public office;</text>
      </paragraph>
    </paragraph>
    <paragraph num="(2)">
      <text>Including the increase when determining the member’s average final compensation would increase the member’s allowance by $25 or less per month; or</text>
    </paragraph>
    <paragraph num="(3)">
      <text>The Board of Trustees determines that the increase is not an extraordinary salary increase in accordance with Regulation .05 of this chapter.</text>
    </paragraph>
  </paragraph>
  <paragraph num="E.">
    <text>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.</text>
  </paragraph>
  <paragraph num="F.">
    <text>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.</text>
  </paragraph>
</regulation>