# COMAR Title 22 — State Retirement and Pension System

## Subtitle 04 — Membership

### Chapter 01 — Reporting and Member Contribution Requirements of Participating Employers

**Authority:** State Personnel and Pensions Article, §§21-110 and 21-314, 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**Administrative History:** Effective January 1, 1996, all of Title 22 was repealed and completely new regulations adopted.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 and recodified to be Regulation .02, new Regulation .01 adopted effective December 13, 2021 (48:25 Md. R. 1080)

**Administrative History:** Regulation .03 adopted effective December 13, 2021 (48:25 Md. R. 1080)

**Administrative History:** Regulation .04 adopted effective December 13, 2021 (48:25 Md. R. 1080)

#### Regulation .01 Definitions.

*COMAR 22.04.01.01*

A. In this chapter, the following words have the meanings indicated.

B. Terms Defined.

  (1) “ACH Credit” means a transaction through the Automated Clearing House Network originated by a participating employer to transmit payment of member contributions to an account at a financial institution designated by the Retirement Agency.

  (2) “ACH Debit” means a transaction through the Automated Clearing House Network originated by the Retirement Agency to remove member contributions from a financial institution designated by a participating employer for payment into an account at a financial institution designated by the Retirement Agency.

  (3) “Local employer” means a county board of education or the Baltimore City Board of School Commissioners.

  (4) “Participating employer” has the meaning set forth in COMAR 22.01.01.01B(11).

  (5) Participating Governmental Unit.

    (a) “Participating governmental unit” means a governmental unit that participates in a State system under State Personnel and Pensions Article, Title 31, Annotated Code of Maryland.

    (b) “Participating governmental unit” includes a governmental unit that has withdrawn from participation in a State system in accordance with State Personnel and Pensions Article, Title 31, Subtitle 3, Annotated Code of Maryland, but has employees that continue to participate in a State system.

  (6) “Supporting payroll data” means the information required to be provided by a participating employer for each member of a State system as each payroll is paid in accordance with Regulation .02 of this chapter.

#### Regulation .02 Payroll Reporting Requirements of Participating Employers.

*COMAR 22.04.01.02*

A. Subject to §§B and C of this regulation, as each payroll is paid, each participating employer shall certify to the Retirement Agency for each member of the State system the following information:

  (1) The full name, address, and Social Security number;

  (2) The retirement system code, employer agency code, and pay code;

  (3) The earnable compensation paid during the pay period;

  (4) The actual hours worked during the pay period;

  (5) The budgeted earnable compensation for the position;

  (6) The budgeted earnable compensation for the position on an annualized basis, as if the member is regularly employed to perform the same duties on a full-time basis;

  (7) The standard hours for the position during the pay period as if the member is regularly employed to perform the same duties on a full-time basis;

  (8) The budgeted ratio that the position of employment bears to the standard for a full-time employee;

  (9) Employer contributions required, if any, during the pay period; and

  (10) Member contributions required, if any, during the pay period.

B. When reporting the amounts required under §A(3) and (4) of this regulation, a participating employer may not include amounts paid or hours worked that are excluded when determining a member's earnable compensation.

C. The participating employer shall provide the information required under this regulation in a manner and format acceptable to the Retirement Agency.

D. A participating employer that does not submit the information required under this regulation as each payroll is paid, and the in the manner and format required by the Retirement Agency, is liable for penalties and interest in accordance with State Personnel and Pensions Article, §21-314(d), Annotated Code of Maryland.

#### Regulation .03 Electronic Payment of Member Contributions.

*COMAR 22.04.01.03*

A. This regulation applies only to a participating employer that:

  (1) Is a local employer;

  (2) Is a participating governmental unit; or

  (3) Does not pay its employees through the Central Payroll Bureau of the Office of the State Comptroller.

B. Except for a participating employer that has been granted a waiver in accordance with Regulation .04 of this chapter, each participating employer shall designate an authorized account at a financial institution for the purpose of making payment of all required member contributions via ACH Debit.

C. Except as provided in §D of this regulation, as each payroll is paid and upon final submission of the supporting payroll data in the manner and format required by the Retirement Agency, the participating employer shall pay the amounts provided in Regulation .02A(10) of this chapter via an ACH Debit.

D. Payment via ACH Credit.

  (1) This section applies only to a participating employer that has been granted a waiver in accordance with Regulation .04 of this chapter.

  (2) As each payroll is paid, and immediately following final submission of the supporting payroll data in the manner and format required by the Retirement Agency, the participating employer shall pay the amounts provided in Regulation .02A(10) of this chapter via an ACH Credit.

E. A participating employer that does not pay the member contributions required by this regulation as each payroll is paid and in the manner prescribed by the Retirement Agency is liable for penalties and interest in accordance with State Personnel and Pensions Article, §21-314(d), Annotated Code of Maryland.

#### Regulation .04 Requests for Waiver of the ACH Debit Requirement.

*COMAR 22.04.01.04*

A. A participating employer that is subject to Regulation .03 of this chapter may request a waiver from the requirement to pay contributions via ACH Debit.

B. A request for a waiver shall be made in writing to the Executive Director or the Executive Director’s designee and shall detail the reasons why the participating employer is unable to comply with the ACH Debit requirement.

C. Upon receipt of a request for a waiver, the Executive Director or the Executive Director’s designee may request, and the participating employer shall provide, any additional information or documentation that the Executive Director or the designee considers appropriate to substantiate the participating employer’s request.

D. The Executive Director or the Executive Director’s designee may grant the participating employer’s request for a waiver on a temporary or indefinite basis if the participating employer demonstrates to the satisfaction of the Executive Director or the designee that the participating employer is unable to comply with the ACH Debit requirement.

E. If the Executive Director or the Executive Director’s designee grants a participating employer’s request for a waiver on a temporary basis, the Executive Director or the designee shall specify the time period for the waiver. Any granted waiver shall be effective on the date granted, and no retroactive waivers will be granted.

F. If the Executive Director or the Executive Director’s designee grants a participating employer’s request for a waiver on an indefinite basis, the Retirement Agency may require the participating employer to periodically submit documentation demonstrating the continued necessity of the waiver. If the Executive Director or the designee determines that a waiver is no longer needed, the Executive Director or the designee may rescind the waiver.

G. If the Executive Director or the Executive Director’s designee grants a participating employer’s request for a waiver and the participating employer fails to make timely member contribution payments in accordance with Regulation .03 of this chapter, or fails to submit the information required under Regulation .02 of this chapter as each payroll is paid, and in the manner and format required by the Retirement Agency, the Executive Director or the designee may rescind the waiver.

H. The denial of a request for a waiver from the ACH Debit requirement 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.