In this chapter, the following words have the meanings indicated. Terms Defined. “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. “Participant” has the meaning set forth in COMAR 22.01.01.01B. “Payee” means a participant or alternate payee. 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. A payee shall properly complete the electronic fund transfer sign-up form provided by the Retirement Agency and file it with the Retirement Agency. The Retirement Agency shall accept the electronic fund transfer sign-up form filed by a payee if: The form has been properly completed in accordance with the form’s instructions; The institution named by the payee on the form participates in the Automated Clearing House Network; Not more than five payees share the same account number at the institution; and The Retirement Agency deems the form acceptable. 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. 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. 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. 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. 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: The total amount of the monthly allowance; Any amounts deducted from the monthly allowance; and The portion of the monthly allowance electronically transferred. A payee may request payment of an allowance by check instead of an electronic fund transfer. 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. 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: Lives outside the United States; Maintains a bank account with a financial institution that is not a member of the Automated Clearing House Network; Receives less than a $250 net monthly allowance; Is of an advanced age, has a disability, or both, affecting the payee’s ability to maintain or access a bank account, or both; Resides in a remote geographic location lacking the infrastructure to support electronic fund transfer; Has been denied the opportunity to open or maintain a banking account; or Demonstrates that circumstances exist that would create a hardship if the payee is required to receive an allowance by electronic funds transfer. 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. 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. The Retirement Agency may suspend payment of a payee’s benefit of any type for reasons including, but not limited to, the following: The payee fails to submit a properly completed electronic fund transfer sign-up form required for a monthly allowance; The payee fails to provide a current mailing address; The payee fails to return a properly completed verification form required to confirm receipt of a monthly allowance; The Retirement Agency receives conflicting payment instructions; 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; The Retirement Agency has reason to believe the payee is no longer living; or The Retirement Agency has reason to believe that it has received false or fraudulent information. 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. A retiree may elect to have the Retirement Agency deduct from the retiree’s allowance and pay for the retiree: Dues for a retiree or employee organization that the Executive Director has approved to receive deductions; To the extent approved by the Executive Director, payments to the State Employees’ Credit Union of Maryland, Inc.; To the extent approved by the Executive Director, all or part of a premium for: Insurance offered through an employee organization; or State-approved or locally approved insurance for retirees; or If approved by the Executive Director, charitable contributions in connection with the Maryland Charity Campaign conducted by the Secretary of State. Information Sharing with Entities Receiving Deductions. 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. 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. State Personnel and Pensions Article, §§21-110 and 21-501, Annotated Code of Maryland Effective date: January 1, 1996 (22:26 Md. R. 2031) 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. Regulation .01 repealed effective August 4, 2003 (30:15 Md. R. 993) Regulation .03B amended effective October 15, 2012 (39:20 Md. R. 1309) Regulation .04 amended effective March 10, 1997 (24:5 Md. R. 413) Regulation .04C amended effective October 15, 2012 (39:20 Md. R. 1309) Regulation .04C, D amended effective December 11, 2003 (30:24 Md. R. 1745) Chapter revised effective November 23, 2015 (42:23 Md. R. 1435) Chapter revised effective October 7, 2019 (46:20 Md. R. 847)