Md. Code, State Personnel and Pensions, Title 24

Md. Code, State Personnel and Pensions, Title 24
in effect

Md. Code, State Personnel and Pensions § 24-205

(a) Except as provided in subsection (b) of this section, a member’s contribution rate is 8% of the member’s earnable compensation. (b) After 28 years of service as a member, a member does not make any further contributions.

Md. Code, State Personnel and Pensions § 24-206

(a) Except as provided in subsection (b) of this section, regular interest is payable on member contributions at the rate of 4% a year, compounded annually, until retirement or withdrawal of the accumulated contributions. (b) Except as provided in subsection (c) of this section, no further interest shall be paid on member contributions after membership ends if the former member is not eligible to receive a vested allowance under Title 29, Subtitle 3 of this article. (c) (1) In this subsection, “active member” means a member who is not separated from employment with the State or a participating employer of one of the several systems. (2) This subsection applies only to an individual who: (i) is a former member of the State Police Retirement System; (ii) is not eligible to receive a vested allowance from the State Police Retirement System under Title 29, Subtitle 3 of this article; (iii) has not withdrawn the individual’s member contributions from the State Police Retirement System; and (iv) is an active member of one of the several systems. (3) An individual described in paragraph (2) of this subsection shall receive regular interest at the rate described under subsection (a) of this section on the individual’s member contributions in a nonvested account in the State Police Retirement System while the individual is an active member of one of the several systems.

Md. Code, State Personnel and Pensions § 24-207

Membership ends if the member: (1) is separated from employment for more than 4 years; (2) withdraws the member’s accumulated contributions; (3) becomes a retiree; (4) dies; or (5) elects to participate in the Deferred Retirement Option Program established under § 24-401.1 of this title.

Md. Code, State Personnel and Pensions § 24-207.1

§24–207.1. (a) This section applies to an individual who: (1) on or before June 30, 2011, was a member of the State Police Retirement System; (2) (i) is separated from employment for 4 years or less; (ii) 1. is separated from employment for military service that meets the requirements of the federal Uniformed Services Employment and Reemployment Rights Act; and 2. resumes employment within 1 year of leaving military service in a position that is included in the State Police Retirement System; or (iii) is separated from employment with the minimum eligibility service needed to be eligible for a vested allowance under Title 29, Subtitle 3 of this article; (3) does not withdraw the member’s accumulated contributions; and (4) does not become a retiree. (b) An individual described in subsection (a) of this section who resumes employment in a position that is included in the State Police Retirement System is subject to the same requirements to which an individual who was a member of the State Police Retirement System on June 30, 2011, and remains a member on July 1, 2011, is subject.

Md. Code, State Personnel and Pensions § 24-208

If an individual was a member of any one of the several systems on June 30, 2011, and without incurring a break in employment of more than 30 days, becomes a member of the State Police Retirement System on or after July 1, 2011, the individual: (1) shall be considered to be a new member of the State Police Retirement System as of the date the individual joins the system; and (2) is subject to the same requirements to which an individual who was a member of the State Police Retirement System on June 30, 2011, and remains a member on July 1, 2011, is subject.

Md. Code, State Personnel and Pensions § 24-302

(a) Subject to subsections (b) and (c) of this section, the Board of Trustees shall adopt regulations that specify the period of employment in a year that is equal to 1 year of service credit. (b) The Board of Trustees may not allow more than 1 year of service credit for a calendar year. (c) A member is entitled to receive 1 month of service credit for employment for a month or a part of a month if a member contribution is made in that month.

Md. Code, State Personnel and Pensions § 24-303

Eligibility service for a member consists of service credit: (1) for employment as a member; (2) regained under § 24-304 of this subtitle by a member who redeposits accumulated contributions previously withdrawn; (3) transferred from a retirement or pension system under Title 37 of this article; (4) for military service as provided in Title 38 of this article; or (5) purchased under this subtitle.

Md. Code, State Personnel and Pensions § 24-304

(a) A member who previously terminated membership and withdrew accumulated contributions from either the State Police Retirement System, the Employees’ Retirement System, or the Teachers’ Retirement System may receive service credit for the period of employment during the previous membership if the member redeposits in a single payment the withdrawn accumulated contributions plus regular interest to the date of redeposit. (b) If a member receives service credit under this section, the member may not retire within 3 years from the date the member enters or reenters the State Police Retirement System.

Md. Code, State Personnel and Pensions § 24-304.1

§24–304.1. (a) Except as provided in subsection (b) of this section, a member may not purchase service credit under this title if the member is separated from employment. (b) (1) A member who is separated from employment may purchase service credit under this title for a leave of absence approved by the Board of Trustees under regulations that apply to all members, if the member purchases the service credit within 60 days after the expiration of the leave of absence. (2) For good cause shown, the Executive Director, in the Executive Director’s sole discretion, may extend the time period to purchase service credit under paragraph (1) of this subsection if: (i) the purchased service credit would allow the member to meet the eligibility service requirements to apply for an ordinary disability retirement under § 29–105(a) of this article; and (ii) the member completes the purchase of the service credit before the earlier of: 1. 4 years after the expiration of the leave of absence; or 2. the date membership ends. (3) The Board of Trustees shall adopt regulations to carry out this subsection.

Md. Code, State Personnel and Pensions § 24-305

(a) A member may purchase service credit as provided in subsection (b) of this section: (1) for a period of employment when the member was on an employer-approved leave of absence not exceeding 2 years that has qualified for purchase under regulations adopted by the Board of Trustees; or (2) when membership was mandatory but for which member contributions were not made. (b) (1) A member who purchases service credit under this section shall: (i) complete a claim for the service credit and file it with the Board of Trustees on the form that the Board of Trustees provides; and (ii) pay to the Board of Trustees in a single payment the member contributions the member would have made for the period of employment for which service credit is being purchased plus regular interest to the date of payment. (2) A member may pay for service credit purchased under this section at any time before retirement.

Md. Code, State Personnel and Pensions § 24-306

(a) A member may purchase service credit as provided in this section for periods of employment described in subsection (c) of this section for which the member is not otherwise entitled to service credit. (b) (1) A member who purchases service credit under this section shall: (i) complete a claim for the service credit and file it with the Board of Trustees on the form that the Board of Trustees provides; and (ii) pay to the Board of Trustees an amount equal to the annuity reserve and pension reserve required to fund the additional allowance. (2) The member shall pay for service credit purchased under this section in a single payment at retirement. (c) A member may purchase service credit for a period of employment not exceeding 10 years for: (1) federal service; or (2) out-of-state service with a political subdivision.

Md. Code, State Personnel and Pensions § 24-401

(a) (1) (i) This paragraph applies to an individual who is a member on or before June 30, 2011. (ii) A member may retire with a normal service retirement allowance if: 1. on or before the date of retirement, the member: A. has at least 22 years of eligibility service; or B. is at least 50 years old; and 2. the member completes and submits a written application to the Board of Trustees, on the form that the Board of Trustees provides, stating the date when the member desires to retire. (2) (i) This paragraph applies to an individual who becomes a member on or after July 1, 2011. (ii) A member may retire with a normal service retirement allowance if: 1. on or before the date of retirement, the member: A. has at least 25 years of eligibility service; or B. is at least 50 years old; and 2. the member completes and submits a written application to the Board of Trustees, on the form that the Board of Trustees provides, stating the date when the member desires to retire. (b) (1) Subject to the approval of the Board of Trustees, the Secretary of State Police may order a member who is at least 50 years old to retire on the first day of the month after the member is notified of the Secretary’s order. (2) Before approving the Secretary’s order, the Board of Trustees shall give the member at least 30 days’ notice and an opportunity to be heard. (c) Except for the Secretary of State Police, a member shall retire with a normal service retirement allowance not later than the first day of the month after the member becomes 60 years old. (d) (1) Except as provided in paragraphs (2) and (3) of this subsection, on retirement under this section, a member is entitled to receive a normal service retirement allowance that equals 2.55% of the member’s average final compensation multiplied by each year of the member’s years of creditable service. (2) A member’s normal service retirement allowance may not exceed 71.4% of the member’s average final compensation. (3) Subject to paragraph (2) of this subsection, on retirement under this section, if a member’s annuity is greater than the member’s normal service retirement allowance calculated under paragraph (1) of this subsection, the member’s normal service retirement allowance shall equal the member’s annuity. (e) Subject to §§ 29–401, 29–402, and 29–403 of this article, a retiree, or a beneficiary of a retiree, who retires on or before June 30, 1999 with a service retirement allowance, shall receive an annual retirement allowance adjustment as of July 1, 1999, as follows: (1) for a retiree who has been retired not more than 5 years, $1,200; (2) for a retiree who has been retired more than 5 years but not more than 10 years, $1,500; (3) for a retiree who has been retired more than 10 years but not more than 15 years, $1,800; and (4) for a retiree who has been retired more than 15 years, $2,100.

Md. Code, State Personnel and Pensions § 24-401.1

§24–401.1. (a) (1) In this section the following words have the meanings indicated. (2) “DROP” means the Deferred Retirement Option Program established under this section. (3) “DROP member” means a member of the State Police Retirement System who: (i) is eligible to participate in the DROP as provided in subsection (c) of this section; and (ii) elects to participate in the DROP as provided in subsection (e) of this section. (b) There is a DROP for eligible members of the State Police Retirement System. (c) (1) (i) This paragraph applies to an individual who is a member of the State Police Retirement System on or before June 30, 2011. (ii) Except for the Secretary of State Police, a member of the State Police Retirement System is eligible to participate in the DROP if the member: 1. has at least 22 and less than 32 years of employment in a position eligible for membership in the State Police Retirement System; and 2. is less than 60 years old. (iii) The Secretary of State Police is eligible to participate in the DROP if the Secretary has at least 22 years of employment in a position eligible for membership in the State Police Retirement System. (2) (i) This paragraph applies to an individual who becomes a member of the State Police Retirement System on or after July 1, 2011. (ii) Except for the Secretary of State Police, a member of the State Police Retirement System is eligible to participate in the DROP if the member: 1. has at least 25 years and less than 32 years of employment in a position eligible for membership in the State Police Retirement System; and 2. is less than 60 years old. (iii) The Secretary of State Police is eligible to participate in the DROP if the Secretary has at least 25 years of employment in a position eligible for membership in the State Police Retirement System. (d) An eligible member may elect to participate in the DROP for a period not to exceed the lesser of: (1) 7 years; (2) the difference between 32 years and the member’s years of employment in a position eligible for membership in the State Police Retirement System as of the date of the member’s election to participate in the DROP and retire from the State Police Retirement System; (3) the difference between age 60 and the member’s age as of the date of the member’s election to participate in the DROP and retire from the State Police Retirement System; or (4) a term selected by the member. (e) (1) An eligible member who elects to participate in the DROP shall: (i) complete and submit a written election form to the Board of Trustees, on the form that the Board of Trustees provides, stating: 1. the member’s intention to participate in the DROP; 2. the date when the member desires to retire; 3. the period that the member desires to participate in the DROP, as provided in subsection (d) of this section; 4. the date when the member intends to terminate employment with the Maryland State Police in the form of a binding letter of resignation accepted by the Secretary of State Police or the Secretary’s designee; and 5. any other information required by the Board of Trustees to implement the DROP; and (ii) complete and submit a written retirement application form to the Board of Trustees, on the form that the Board of Trustees provides. (2) An eligible member’s election to participate in the DROP is irrevocable. (f) (1) A DROP member’s participation in the DROP shall commence on the first day of the month following acceptance by the Board of Trustees of the DROP member’s completed election form, retirement application form, and any other information required by the Board of Trustees. (2) A DROP member is a retiree of the State Police Retirement System. (g) Participation in the DROP ends if the DROP participant: (1) separates from employment in accordance with the binding letter of resignation submitted with the member’s election form; (2) except for the Secretary of State Police, attains age 60; (3) dies; (4) is terminated from employment by the Maryland State Police at any time before the date specified on the member’s election form; (5) shortens the time period for participation in the DROP by delivering to the Maryland State Police and the Board of Trustees written notice of the intent of the DROP member to terminate employment; or (6) accepts a special disability retirement allowance as provided in subsection (k) of this section. (h) (1) As of the effective date of participation in the DROP, the Board of Trustees shall determine the DROP member’s normal service retirement allowance under § 24–401 of this subtitle. (2) During the period that a DROP member participates in the DROP, the Board of Trustees shall: (i) deposit the DROP member’s normal service retirement allowance in the DROP for the DROP member’s benefit; (ii) adjust the DROP member’s normal service retirement allowance each fiscal year as provided in §§ 29–401 through 29–403 and 29–408 of this article; and (iii) accrue interest on the amounts calculated under items (i) and (ii) of this paragraph for the DROP member into the DROP at the rate of: 1. 6% a year, compounded monthly if the individual is a DROP member on or before June 30, 2011; or 2. 4% a year, compounded annually, if the individual becomes a DROP member on or after July 1, 2011. (3) A DROP member may not receive creditable service or eligibility service during the period that the DROP member participates in the DROP. (4) A DROP member’s compensation during the period that the DROP member participates in the DROP may not be: (i) subject to the employer pickup provisions of § 21–303 of this article or any reduction or deduction as a member contribution for pension or retirement purposes; or (ii) used to increase the DROP member’s average final compensation except as provided in subsection (k) of this section. (5) During the period that a DROP member participates in the DROP, the DROP member shall: (i) continue to receive compensation, health insurance and other benefit options established under the State Employee and Retiree Health and Welfare Benefit Program administered by the Secretary of Budget and Management, and any other benefits as an employee of the Maryland State Police; (ii) be subject to the personnel law, regulations, and policies applicable to an employee of the Maryland State Police; and (iii) receive retirement benefits only to the extent provided in this section. (6) The Board of Trustees is not required to establish an individual DROP account for each DROP member. (7) Each year, the Board of Trustees shall provide a DROP member with a written accounting of the DROP member’s account balance in the DROP. (i) (1) Subject to paragraphs (2), (3), and (4) of this subsection, on termination of a DROP member’s participation in the DROP, the Board of Trustees shall pay to the DROP member or, if the DROP member has died, the designated beneficiary of the DROP member, the amount accrued in the DROP for the DROP member under subsection (h)(2) of this section, reduced by any withholding taxes remitted to the Internal Revenue Service or other taxing authority, in a lump sum. (2) The designated beneficiary of a DROP member is: (i) the DROP member’s surviving spouse; (ii) if there is not a surviving spouse or if the surviving spouse dies, each child of the deceased DROP member who is under 26 years old or is disabled; or (iii) if there is not a surviving spouse or a child who is under 26 years old or is disabled, the DROP member’s designated beneficiary. (3) A DROP member or designated beneficiary of a DROP member may direct the Board of Trustees to pay all or a portion of the amount accrued for the DROP member’s benefit under subsection (h)(2) of this section directly to the custodian of an eligible retirement plan as provided in Title 21, Subtitle 6 of this article. (4) A DROP member or designated beneficiary of a DROP member is eligible to receive the amount due under this subsection within 90 days after the: (i) date of termination of the DROP member’s participation in the DROP; (ii) receipt by the Board of Trustees of a completed application to receive the DROP amount, on the form that the Board of Trustees provides; and (iii) receipt by the Board of Trustees of any other information that the Board of Trustees requires to process payment of the DROP member’s account balance to the DROP participant, the designated beneficiary of the DROP participant, or the custodian of an eligible retirement plan. (j) (1) Except as provided in paragraph (2) of this subsection, as of the first day of the month following termination of a DROP member’s participation in the DROP, the Board of Trustees shall commence and continue payment of the normal service retirement allowance, including the cost–of–living adjustments as provided in §§ 29–401 through 29–403 and 29–408 of this article, to the member as provided in §§ 24–401 and 24–403 of this subtitle. (2) If a DROP member dies before termination of the DROP member’s participation in the DROP, the Board of Trustees shall pay the survivor benefit to the beneficiary as provided in § 24–403 of this subtitle. (k) (1) A DROP member is eligible to apply for a special disability retirement allowance under § 29–111 of this article if after the DROP member commences participation in the DROP: (i) the member is totally and permanently incapacitated for duty arising out of or in the course of the actual performance of duty that occurs while participating in DROP, and without willful negligence of the member; and (ii) the medical board certifies that: 1. the member is totally incapacitated, either mentally or physically, for the further performance of duty by the occurrence described under item (i) of this paragraph; 2. the incapacity is likely to be permanent; and 3. the member should be retired. (2) (i) If a DROP member is granted a special disability retirement allowance, the DROP member shall: 1. submit an application to the Board of Trustees, on the form the Board of Trustees provides, to receive payment of the amount accrued in the DROP in accordance with subsection (i) of this section; 2. execute a written waiver of any benefits to which the DROP member may be entitled under the DROP; and 3. submit an application to retire with a special disability retirement allowance, on the form the Board of Trustees provides, stating the effective date of the DROP member’s retirement as a special disability retiree. (ii) On acceptance of the application for payment and application to retire, the Board of Trustees shall commence payment of a special disability allowance to the DROP member as provided in § 29–111(c) of this article, except that the DROP member’s average final compensation shall be computed as of the effective date of the DROP member’s application for a special disability retirement allowance.

Md. Code, State Personnel and Pensions § 24-402

(a) This section applies to a former member who: (1) was eligible for a retirement allowance under § 24-401 of this subtitle when the former member’s membership terminated; (2) did not submit a written application under § 24-401 of this subtitle before membership terminated; and (3) has not withdrawn accumulated contributions. (b) (1) A former member described in subsection (a) of this section may retire with a retirement allowance under § 24-401 of this subtitle on the first day of the month after the Board of Trustees receives a written application for retirement from the former member. (2) A former member who retires under this section may not receive benefits for the period before the former member submitted a completed application for retirement to the Board of Trustees.

Md. Code, State Personnel and Pensions § 24-403

(a) This section applies only to a retiree who has retired with a service retirement allowance or a disability retirement allowance or a former member who has retired with a deferred vested allowance. (b) On the death of a retiree or former member, the Board of Trustees shall pay 80% of the retiree’s retirement allowance: (1) to the surviving spouse; or (2) if there is no surviving spouse or if the surviving spouse dies, to any children of the deceased retiree who are under 18 years of age or disabled, as defined under § 72(m)(7) of the Internal Revenue Code, in accordance with subsection (c) of this section. (c) (1) Except as provided in paragraphs (2) and (3) of this subsection, if the Board of Trustees pays an allowance to more than one child, the Board of Trustees shall divide the allowance among the children in a manner that provides for payments to continue until: (i) each child has died; or (ii) each child becomes 18 years old. (2) Notwithstanding paragraph (1)(ii) of this subsection, a surviving child who is disabled shall continue to receive an allowance under paragraph (1) of this subsection past the age of 18 years, if the child continues to be disabled. (3) (i) If a surviving child receiving an allowance under paragraph (1) of this subsection is disabled, as defined under § 72(m)(7) of the Internal Revenue Code, the Board of Trustees shall pay to the disabled surviving child an allowance equal to the total of the allowances paid under paragraph (1) of this subsection after: 1. all other nondisabled surviving children have died; or 2. the youngest nondisabled surviving child becomes 18 years old. (ii) If more than one surviving child is disabled, as defined under § 72(m)(7) of the Internal Revenue Code, the allowance payable under this paragraph shall be divided equally among the disabled children.

Md. Code, State Personnel and Pensions § 24-405

(a) Subject to subsection (c) of this section, and except as provided in subsection (d) of this section, an individual who is receiving a service retirement allowance or a vested allowance may accept employment with a participating employer on a permanent, contractual, or temporary basis if the individual immediately notifies the Board of Trustees: (1) of the individual’s intention to accept the employment; and (2) of the compensation that the individual will receive. (b) An individual who accepts employment on a permanent or contractual basis is not subject to a reduction to the individual’s allowance. (c) (1) (i) For purposes of this section, employment is not on a temporary basis if, in any 12–month period, an individual works: 1. full time for more than 6 months; or 2. part time for the equivalent of more than 6 months of full–time work. (ii) An individual may accept employment under this section on a temporary basis only if the employment is not in a regularly allocated position. (2) The allowance of an individual who accepts employment on a temporary basis is subject to a reduction as provided in paragraph (3) of this subsection. (3) The Board of Trustees shall reduce the allowance of an individual who accepts employment on a temporary basis by the amount by which the sum of the individual’s initial annual basic allowance and the individual’s annual compensation exceeds the average final compensation used to compute the basic allowance. (4) (i) Any reduction taken to an allowance under paragraph (3) of this subsection may not reduce the allowance to an amount less than the required deduction for the individual’s monthly State–approved medical insurance premiums. (ii) The Board of Trustees shall recover from the individual any difference between the reduction required under paragraph (3) of this subsection and the reduction taken under subparagraph (i) of this paragraph. (5) Paragraph (2) of this subsection does not apply to: (i) an individual who has been retired for 5 years, beginning on January 1, after the date the individual retires; or (ii) an individual who participates in the Deferred Retirement Option Program established under § 24–401.1 of this subtitle. (d) A retiree who is receiving a service retirement allowance under this title may not be employed by the State or other participating employer on a permanent, temporary, or contractual basis within 45 days of the date the retiree retired.

Md. Code, State Personnel and Pensions § 24-406

(a) A member may be entitled to benefits under Title 29 of this article other than, or in addition to, the service retirement benefits provided under this subtitle. (b) (1) This subsection does not apply to an individual receiving a service retirement allowance or a vested allowance from the State Police Retirement System who is: (i) serving as a sheriff or State’s Attorney for a county that is a participating governmental unit; or (ii) elected or appointed to the General Assembly and eligible to enroll in the Legislative Pension Plan. (2) A member is not entitled to receive a pension or retirement allowance from another pension or retirement system supported wholly or in part by the State. (c) An individual receiving a service retirement allowance or a vested allowance from the State Police Retirement System who is elected or appointed to the General Assembly and eligible to join the Legislative Pension Plan, may only receive an additional retirement allowance from the Legislative Pension Plan.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://mgaleg.maryland.gov/mgawebsite/Laws/StatutesFetched: 10/16/2026

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