<?xml version='1.0' encoding='utf-8'?>
<regulation prefix="Regulation" num=".03" citation="COMAR 22.01.04.03" title_num="22" subtitle_num="01" chapter_num="04" heading="Average Final Compensation — Pension Systems.">
  <paragraph num="A.">
    <text>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.</text>
  </paragraph>
  <paragraph num="B.">
    <text>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:</text>
    <paragraph num="(1)">
      <text>3 consecutive years that provide the highest average earnable compensation; 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 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:</text>
    <paragraph num="(1)">
      <text>5 consecutive years that provide the highest average earnable compensation; 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</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>
</regulation>