Title 22 — Subtitle 05. Service Credit
Chapter 01. Qualifying Leaves of Absence
Regulation .01 Scope.LinkCopy Citation
This chapter does not apply to the Judges' Retirement System or the Legislative Pension Plan.
Regulation .02 Definition.LinkCopy Citation
“Qualifying leave of absence” means a leave of absence for a period not exceeding 2 years which is approved by a member's employer for one of the following reasons:
A.
Personal illness;
B.
Birth of a child;
C.
Study;
D.
Temporary assignment with another governmental employer; or
E.
Legal adoption of a child.
Regulation .03 Service Credit for a Qualifying Leave of Absence.LinkCopy Citation
A.
Grant of Eligibility and Creditable Service for a Qualifying Leave of Absence.
(1)
Except as provided in §A(2) of this regulation, to receive eligibility and creditable service for a period of absence from employment that is determined by the Retirement Agency to be a qualifying leave of absence, a member shall:
(a)
Submit a completed form to request a qualifying leave of absence form to the Retirement Agency as provided in §D of this regulation; and
(b)
Pay the member contributions with regular interest as provided under §C of this regulation:
(i)
Before separation from employment; or
(ii)
If the individual is separated from employment, within 60 days after the expiration of the leave of absence.
(2)
A member may not receive eligibility or creditable service credit for a qualifying leave of absence if the individual is otherwise entitled to receive eligibility and creditable service during the period of the member’s absence under State Personnel and Pensions Article, Division II or III, Annotated Code of Maryland.
B.
Benefit Calculation.
(1)
Except as provided in §B(2) of this regulation, creditable service for a member on a qualifying leave of absence shall be based on the full-time equivalent for the member's position as certified by the member's participating employer under COMAR 22.04.01 on the effective date of the leave, and earnable compensation shall be based on the actual salary for the member’s position on the effective date of the leave.
(2)
For a member of the Employees’ Pension System, Law Enforcement Officers’ Pension System, Local Fire and Police System, or Teachers’ Pension System who works on a part-time basis, creditable service for a qualifying leave of absence shall be pro-rated, and earnable compensation shall be based on the full-time equivalent salary for the member's position on the effective date of the leave.
C.
Member Contributions.
(1)
A member shall pay the Retirement Agency the member contributions as determined under this section, together with regular interest on the contributions compounded annually to the date of payment.
(2)
Except as provided in §C(3) of this regulation, a member shall pay the member contributions based on the salary for the member's position as of the effective date of the qualifying leave of absence.
(3)
A member of the Employees' Pension System or the Teachers' Pension System who is not subject to the contributory pension benefit and who was receiving earnable compensation in excess of the Social Security taxable wage base on the effective date of the qualifying leave of absence shall pay the member contributions payable on the excess.
D.
Filing Procedures.
(1)
A member shall properly complete and submit the form available from the Retirement Agency to request a qualifying leave of absence.
(2)
The request for a qualifying leave of absence form shall:
(a)
State the term of the leave approved by the employer, not to exceed 2 years, including the dates that the qualifying leave of absence begins and ends;
(b)
Specify the type of qualifying leave;
(c)
Contain certification by the member’s employer that:
(i)
The employee was placed on a leave of absence for the term and reason specified on the form; and
(ii)
The leave of absence has been approved by a member's employer; and
(d)
Require the member to provide any documentation or information that is requested by the Retirement Agency, including a letter of explanation from the member's employer if the leave of absence has been approved for a temporary assignment with another governmental employer.
(3)
Except as provided in §D(4) of this regulation, to protect a member's benefits while on a qualifying leave of absence, including any death benefits, a member shall submit a completed form requesting a qualifying leave of absence to the Retirement Agency before the member is placed on the qualifying leave of absence. A member's employer representative may complete and submit the form to the Retirement Agency on the member's behalf.
(4)
Waiver of Filing Requirement.
(a)
The Executive Director may waive the requirements for filing a request for a qualifying leave of absence form before a member is placed on a qualifying leave of absence on a showing by the member of good cause.
(b)
The Executive Director shall waive the requirement for filing a request for a qualifying leave of absence form before a member is placed on a qualifying leave of absence for a terminal illness for a period of up to 6 months following the last contribution or payroll report and shall treat the member as if the member is on a qualifying leave of absence unless the employer notifies the system to the contrary.
Regulation .04 Term of a Qualifying Leave of Absence.LinkCopy Citation
A.
A qualifying leave of absence ends upon the earlier of:
(1)
The end of the term of the leave approved by the member’s employer and determined by the Retirement Agency to be a qualifying leave of absence;
(2)
The date the member returns to work with the member’s employer; or
(3)
Separation from employment.
B.
Unless the member returns to work with the member’s employer or separates from employment, a request for a qualifying leave of absence may not be withdrawn or discontinued earlier than the end of the term of the leave approved by the member’s employer and determined by the Retirement Agency to be a qualifying leave of absence.
C.
An individual may not retire with a disability retirement allowance or a service retirement allowance prior to the earlier of:
(1)
Separation from employment; or
(2)
The expiration of a qualifying leave of absence.
Chapter 02. Creditable Service
Regulation .01 10-Month Employees.LinkCopy Citation
A.
This regulation applies only to an individual who:
(1)
Is employed by:
(a)
A county board of education;
(b)
The Board of School Commissioners for Baltimore City;
(c)
The State; or
(d)
A participating governmental unit; and
(2)
Works in an ancillary educational program on a 10-month school year basis instead of a 12-month calendar year basis.
B.
Subject to §C of this regulation, at retirement or on receipt of a vested allowance, a member or former member of the Employees' Pension System, Employees' Retirement System, Teachers' Pension System, or Teachers' Retirement System shall receive 1 year of creditable service for each year that the member or former member worked on a 10-month school year basis.
C.
At retirement or on receipt of a vested allowance, the creditable service of a member or former member shall be pro-rated if the member or former member:
(1)
Participated in the Employees' Pension System or the Teachers' Pension System; and
(2)
Worked less than the minimum number of hours to be completed by a full-time employee serving in the member's position.
Regulation .02 Retroactive Credit.LinkCopy Citation
A.
The Secretary to the Board of Trustees may approve retroactive payments by a member of a State system, if, in the secretary's discretion, the request is justified.
B.
The Secretary to the Board of Trustees shall report a denial of a member's request to the Board of Trustees for review.
Chapter 03. Purchase of Service Credit
Regulation .01 Scope.LinkCopy Citation
This chapter applies to a member of the Employees' Pension System who is seeking to purchase credit for eligibility service for previous service in a position described in State Personnel and Pensions Article, §23-204(a), Annotated Code of Maryland.
Regulation .02 Purchase of Credit for Previous Service.LinkCopy Citation
A.
At any time before retirement, a member may purchase credit for eligibility service for each period of previous service in a position described in State Personnel and Pensions Article, §23-204(a), Annotated Code of Maryland.
B.
Except as provided in §C of this regulation, to purchase the service credit, the member shall pay, in a single payment to the Retirement Agency, the sum of:
(1)
The employer contributions that would have been paid on behalf of the member had the member elected to join the Employees' Pension System during the period of previous service;
(2)
The member contributions that would have been deducted from the member's earnable compensation under State Personnel and Pensions Article, §23-212, Annotated Code of Maryland, if any, had the member elected to join the Employees' Pension System during the period of previous service; and
(3)
Interest on the amounts determined under §B(1) and (2) of this regulation at the rate of interest in effect in the year of purchase based on the actuarial assumptions adopted by the Board of Trustees compounded annually.
C.
On receipt of documentation satisfactory to the Executive Director that a member did not elect to join the Employees' Pension System because the member was not aware of the member's option to elect to join the System, to purchase the service credit the member shall pay, in a single payment to the Retirement Agency, the sum of:
(1)
The member contributions that would have been deducted from the member's earnable compensation under State Personnel and Pensions Article, §23-212, Annotated Code of Maryland, if any, had the member elected to join the Employees' Pension System during the period of previous service; and
(2)
Interest on the amounts determined under §C(1) of this regulation at the regular rate of interest compounded annually to the date of payment.
D.
The Retirement Agency shall calculate the member's cost to purchase credit for eligibility service on receipt of documentation satisfactory to the Retirement Agency which verifies the following information:
(1)
The member's previous service in a position described in State Personnel and Pensions Article, §23-204(a), Annotated Code of Maryland;
(2)
The period of the member's previous service;
(3)
The member's earnable compensation during the member's previous service; and
(4)
Any documentation required under §C of this regulation to substantiate a member's claim that the member did not know about the member's option to elect to join the Employees' Pension System.
E.
If the Executive Director rejects a member's request to purchase the service credit by paying the amount determined under §C of this regulation, the member may request a hearing under COMAR 22.03.04.
Chapter 04. Military Service Credit
Regulation .01 Scope.LinkCopy Citation
This chapter applies to a member of a State system who is seeking to receive service credit for military service in accordance with State Personnel and Pensions Article, §38-103 or 38-104, Annotated Code of Maryland.
Regulation .02 Definitions.LinkCopy Citation
A.
In this chapter, the following terms have the meanings indicated.
B.
Terms Defined.
(1)
Member.
(a)
“Member” means an individual:
(i)
For whom membership in a State system is a condition of employment; or
(ii)
For whom membership in a State system is optional and who has elected to become a member of that State system.
(b)
“Member” does not include a former member or retiree.
(2)
“Military service” has the meaning stated in State Personnel and Pensions Article, §38-101(d), Annotated Code of Maryland.
(3)
“State system” has the meaning stated in State Personnel and Pensions Article, §38-101(g), Annotated Code of Maryland.
Regulation .03 Claiming Credit for Military Service that Interrupts Membership.LinkCopy Citation
In order to claim credit for military service pursuant to State Personnel and Pensions Article, §38-103, Annotated Code of Maryland, an eligible member of a State system shall submit a completed application in the form that the State Retirement Agency provides, along with all documentation required by the State Retirement Agency.
Regulation .04 Claiming Credit for Prior Military ServiceLinkCopy Citation
A.
In order to claim for military service pursuant to State Personnel and Pensions Article, §38-104, Annotated Code of Maryland, an eligible member of a State system shall submit a completed application in the form that the State Retirement Agency provides, along with all documentation required by the State Retirement Agency.
B.
The State Retirement Agency may not accept an application to claim military service from a member until the member has attained at least 10 years of creditable service in a State system.
Chapter 05. Transfers of Service Credit — Waivers
Regulation .01 Scope.LinkCopy Citation
This chapter applies to an individual who has accrued service credit in a State or local retirement or pension system, has accepted new employment in a position requiring membership in one of the several systems, and did not make a claim to transfer the previous service credit within 1 year after becoming a member of one of the several systems as required under State Personnel and Pensions Article, §37-203 or 37-203.1, Annotated Code of Maryland.
Regulation .02 Claim for Transfer.LinkCopy Citation
In order to make a claim to transfer service credit from the member's previous system under State Personnel and Pensions Article, §37-203 or 37-203.1, Annotated Code of Maryland, an eligible member shall, within 1 year of becoming a member of the new system:
A.
Submit a completed application to transfer the service credit in the form that the Retirement Agency provides, along with all documentation required by the Retirement Agency; and
B.
Deposit into the annuity savings fund of the new system any member contributions plus interest that are required to be deposited pursuant to State Personnel and Pensions Article, §37-203 or 37-203.1, Annotated Code of Maryland.
Regulation .03 Automatic Waiver of 1-Year Requirement.LinkCopy Citation
A.
The Agency shall grant an automatic waiver of the 1-year filing requirement if:
(1)
The member submits a completed application to transfer the service credit in the form that the Retirement Agency provides, along with all documentation required by the Retirement Agency, within 1 year of becoming a member of the new system;
(2)
The required deposit of member contributions plus interest, in accordance with Regulation .02B of this chapter, does not occur within 1 year; and
(3)
The delay in the deposit of member contributions is attributable solely to the failure of the member's previous employer to transfer the member contributions.
B.
The Agency may not apply the transferred service credit to the member's account until the required deposit of member contributions plus interest is made, in accordance with Regulation .02B of this chapter.
Regulation .04 Requests for Waiver of 1-Year Requirement.LinkCopy Citation
A.
A member who fails to make a claim to transfer service credit within 1 year of becoming a member of the new system in accordance with Regulation .02 of this chapter for any reason other than is set forth in Regulation .03 of this chapter, may request the Executive Director to accept the member's claim to transfer service credit accrued in the individual's previous system by submitting a written statement, along with any supporting documentation, which details the reasons why the member did not make a claim to transfer service credit within 1 year of becoming a member of the new system.
B.
A request for a waiver shall be made within 4 years of becoming a member of the new system. A member or former member who became eligible to transfer service credit prior to July 1, 2007, may apply for a waiver of the 1-year requirement on or before June 30, 2011.
C.
A member who requests a waiver based on Regulation .05A(2) of this chapter shall provide written certification from the member's previous or current employer that the sole reason that the member failed to make a claim within 1 year was due to misinformation from or mishandling by the member's employer. The written certification shall be from the member's appointing authority, the Secretary or the Deputy Secretary of the member's principal department, or, if the member does not work for a principal department, the equivalent agency head.
D.
Upon receipt of a request for waiver, the Executive Director may request, and the member shall provide, any additional information or documentation that the Executive Director considers appropriate to substantiate the member's request.
Regulation .05 Review of a Request for Waiver of 1-Year Requirement by the Executive Director.LinkCopy Citation
A.
The Executive Director may accept a member's request for a waiver if the member demonstrates, to the satisfaction of the Executive Director, that:
(1)
The member's failure to make a claim to transfer service credit within 1 year was attributable solely to physical or mental incapacity during the filing period; or
(2)
The member's failure to make a claim to transfer service credit within 1 year was attributable solely to misinformation or mishandling by the member's employer, and the member provides the certification required in Regulation .04C of this chapter.
B.
If the Executive Director denies a request for a waiver, the Executive Director shall present the decision to the Administrative Committee of the Board of Trustees for review at a regular meeting of the Committee. The Executive Director shall notify the member of the date of the Administrative Committee meeting at which time the member shall have an opportunity to be heard.
Regulation .06 Review of the Denial of a Request for Waiver by the Administrative Committee of the Board of Trustees.LinkCopy Citation
A.
The Administrative Committee may overturn the decision of the Executive Director and accept a member's request for a waiver if the Administrative Committee finds that the member's failure to make a claim to transfer service credit within 1 year was due to one of the reasons specified in Regulation .05A of this chapter.
B.
The review of the denial of a request for a waiver by the Administrative Committee 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.
Chapter 06. Service Credit for Officers of Employee Organizations
Regulation .01 Definitions.LinkCopy Citation
A.
In this chapter, the following term has the meaning indicated.
B.
Term Defined. “Employee organization” means an organization designated as the exclusive representative under a public bargaining law or the State affiliate of an organization so designated.
Regulation .02 Grant of Eligibility and Creditable Service Credit.LinkCopy Citation
A member who is elected to serve as a full-time executive officer of an employee organization may receive eligibility and creditable service for the period the member serves as such officer if, during that period:
A.
the member remits member contributions, if any; and
B.
the participating employer remits employer contributions payable with respect to the member’s earnable compensation as provided in the member’s State system. The employee organization may not remit payments of member or employer contributions to the Retirement Agency.
Regulation .03 Limits on Service Credit.LinkCopy Citation
If the member elected as an officer of the employee organization becomes eligible to receive a retirement benefit of any type from the employee organization, the member shall notify the Retirement Agency and is subject to the following limitations with respect to his retirement benefit from the State system:
A.
The member may only receive a maximum of 5 years eligibility and creditable service; and
B.
The member must have 5 years of eligibility or creditable service with one or more participating employers before receiving eligibility or creditable service for time spent as an officer of an employee organization.