Plain Text Law

Chapter 01. Option Factors and Annuity Values

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Regulation .01 Definitions.Copy Citation

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A.
In this chapter, the following terms have the meanings indicated.
B.
Terms Defined.
(1)
Effective Date of Retirement.
(a)
“Effective date of retirement” means the effective date of the commencement of:
(i)
A retirement allowance;
(ii)
A vested allowance;
(iii)
An allowance payable on the death of an individual employed as a member; or
(iv)
For a member of a deferred retirement option program, participation in the deferred retirement option program.
(b)
“Effective date of retirement” does not mean the date of a change of beneficiary by a retiree, or the date of commencement of an allowance to a beneficiary of a retiree.
(2)
“Post-reform COLA rate” means the assumed cost-of-living adjustment rate under Regulation .03 or .04 of this chapter, for creditable service that is subject to State Personnel and Pensions Article, §29-408, Annotated Code of Maryland.
(3)
“Pre-reform COLA rate” means the assumed cost-of-living adjustment rate under Regulation .03 or .04 of this chapter, for creditable service that is not subject to State Personnel and Pensions Article, §29-408, Annotated Code of Maryland.
(4)
“System’s actuary” means the actuary designated by the Board of Trustees in accordance with State Personnel and Pensions Article, §21-125, Annotated Code of Maryland.

Regulation .02 Option and Annuity Factors on or before June 30, 2017.Copy Citation

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A.
This regulation applies to an effective date of retirement on or before June 30, 2017.
B.
Incorporation by Reference.
(1)
In this regulation, the following document is incorporated by reference.
(2)
Document Incorporated. Option Factors and Annuity Values (State Retirement and Pension System, State Retirement Agency, August 1995) is incorporated by reference.
C.
The general option factors and annuity values, set forth in Chapter 02 of Option Factors and Annuity Values, shall be applicable to the Correctional Officers’ Retirement System, Employees’ Pension System, Employees’ Retirement System, Judges’ Retirement System, Teachers’ Pension System, and Teachers’ Retirement System.
D.
The law enforcement option factors and annuity values, set forth in Chapter 03 of Option Factors and Annuity Values, shall be applicable to the Law Enforcement Officers’ Pension System, Local Fire and Police System, and State Police Retirement System.

Regulation .03 Option and Annuity Factors from July 1, 2017, until December 31, 2021.Copy Citation

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A.
This regulation applies to an effective date of retirement from July 1, 2017, until December 31, 2021.
B.
General option factors and annuity values, which are established by the System’s actuary and are based on the actuarial assumptions adopted by the Board of Trustees as set forth in §F of this regulation, shall be applicable to the Correctional Officers’ Retirement System, Employees’ Pension System, Employees’ Retirement System, Judges’ Retirement System, Teachers’ Pension System, and Teachers’ Retirement System.
C.
Law Enforcement option factors and annuity values, which are established by the System’s actuary and based on the actuarial assumptions adopted by the Board of Trustees as set forth in §F of this regulation, shall be applicable to the Law Enforcement Officers’ Pension System, Local Fire and Police System, and State Police Retirement System.
D.
Legislative plan option factors and annuity values, which are established by the System’s actuary and based on the actuarial assumptions adopted by the Board of Trustees as set forth in §F of this regulation, shall be applicable to the Legislative Pension Plan.
E.
Upon request, the Retirement Agency shall make the option factors and annuity values established by the System’s actuary available to a participant.
F.
Actuarial Assumptions.

Regulation .04 Option and Annuity Factors on or After January 1, 2022.Copy Citation

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A.
This regulation applies to an effective date of retirement on or after January 1, 2022.
B.
Employee option factors and annuity values, which are established by the System’s actuary and are based on the actuarial assumptions adopted by the Board of Trustees as set forth in §I of this regulation, shall be applicable to the Employees’ Pension System and Employees’ Retirement System.
C.
Judicial option factors and annuity values, which are established by the System’s actuary and based on the actuarial assumptions adopted by the Board of Trustees as set forth in §I of this regulation, shall be applicable to the Judges’ Retirement System.
D.
Legislator option factors and annuity values, which are established by the System’s actuary and based on the actuarial assumptions adopted by the Board of Trustees as set forth in §I of this regulation, shall be applicable to the Legislative Pension Plan.
E.
Public safety option factors and annuity values, which are established by the System’s actuary and based on the actuarial assumptions adopted by the Board of Trustees as set forth in §I of this regulation, shall be applicable to the Correctional Officers’ Retirement System, Law Enforcement Officers’ Pension System, Local Fire and Police System, and State Police Retirement System.
F.
Teacher option factors and annuity values, which are established by the System’s actuary and based on the actuarial assumptions adopted by the Board of Trustees as set forth in §I of this regulation, shall be applicable to the Teachers’ Pension System and Teachers’ Retirement System.
G.
For mortality and disabled mortality table assumptions, the base table rates (with scaling) are projected from the year 2010 using the MP-2018 generational mortality projection scales and birth year based on age in 2023.
H.
Upon request, the Retirement Agency shall make the option factors and annuity values established by the System’s actuary available to a participant.
I.
Actuarial Assumptions.

Regulation .05 Determining a Member's or Beneficiary's Age.Copy Citation

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A.
Except as provided in §B or C of this regulation, to determine the applicable option factor or annuity value , the Retirement Agency shall use the age of a member, former member, or designated beneficiary as of the effective date of retirement.
B.
If the effective date of retirement is 6 months or more after the previous birth date of the member, former member, or designated beneficiary, the Retirement Agency shall increase the age of the member, former member, or designated beneficiary to the next full year.
C.
For the recalculation of an allowance payable under State Personnel and Pensions Article, §21-403(b), (c), (e), or (f), Annotated Code of Maryland (Options 2, 3, 5, or 6), to determine the applicable option factor, the Retirement Agency shall use:
(1)
The option factors and annuity values described under Regulation .02, .03, or .04 of this chapter which are applicable to the retiree as of the effective date of retirement; and
(2)
Subject to §B of this regulation, the ages of the retiree and designated beneficiary at the time of the change of beneficiary.
Chapter annotations
Authority: State Personnel and Pensions Article, §§20-202, 21-108, 21-110, 21-125, and 21-402, Annotated Code of Maryland
History: Effective date: January 1, 1996 (22:26 Md. R. 2031)
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.
History: Regulation .03 amended effective June 13, 2011 (38:12 Md. R. 707)
History: Regulation .05 adopted effective September 6, 1999 (26:18 Md. R. 1377)
History: Chapter revised effective August 15, 2016 (43:16Md. R. 901)
History: Regulation .01B amended effective February 8, 2021 (48:3 Md. R. 94)
History: Regulation .03 amended effective February 8, 2021 (48:3 Md. R. 94)
History: Regulation .04 repealed and new Regulation .04 adopted effective February 8, 2021 (48:3 Md. R. 94)
History: Regulation .05B, C amended effective February 8, 2021 (48:3 Md. R. 94)