Md. Code, State Personnel and Pensions § 29-101
This subtitle does not apply to the Judges’ Retirement System.
Md. Code, State Personnel and Pensions, Title 29
Md. Code, State Personnel and Pensions, Title 29
in effectMd. Code, State Personnel and Pensions § 29-102
Before the Board of Trustees grants a retirement allowance for a disability, an application must be completed and submitted to the Board of Trustees in accordance with §§ 29-103 and 29-104 of this subtitle.
Md. Code, State Personnel and Pensions § 29-103
(a) Subject to § 29–104 of this subtitle, an application for disability retirement may be submitted:
(1) by a member;
(2) by a former member;
(3) by a surviving beneficiary of a deceased member; or
(4) for a member, as provided in subsections (b) through (d) of this section.
(b) (1) This subsection does not apply to members of:
(i) the State Police Retirement System;
(ii) the Teachers’ Pension System; or
(iii) the Teachers’ Retirement System.
(2) If a member is unable to apply, the member’s department head may complete and submit an application to the Board of Trustees for the member.
(c) (1) This subsection applies to a member of the State Police Retirement System.
(2) The Secretary of State Police may complete an application and submit it to the Board of Trustees for a member if:
(i) the member is unable or refuses to submit an application for disability retirement;
(ii) the Secretary believes the member to be permanently physically or mentally incapable of performing assigned duties;
(iii) there is sufficient medical evidence in the form of a professional opinion of an independent medical practitioner who has recognized expertise in the diagnosis and treatment of the specified illness of the officer to support the Secretary’s determination of permanent disability;
(iv) the onset of the disability occurred at least 1 year earlier; and
(v) any administrative leave granted under § 2-410 of the Public Safety Article has expired.
(3) This subsection does not prevent an officer from exercising rights granted under § 21-111(b) of this article.
(d) (1) This subsection applies to members of:
(i) the Teachers’ Pension System; and
(ii) the Teachers’ Retirement System.
(2) If a member is unable to apply, the member’s State or county superintendent may complete and submit an application to the Board of Trustees for the member.
Md. Code, State Personnel and Pensions § 29-104
(a) Except as provided in subsections (c) and (d) of this section and subject to subsection (e) of this section, an application for disability retirement must be submitted before the date membership ends.
(b) (1) This subsection applies only to an application for an ordinary or accidental disability retirement allowance filed by a member of the Employees’ Pension System or the Teachers’ Pension System who is not subject to the contributory pension benefit or the Alternate Contributory Pension Selection and who separated from employment on or before June 30, 2005.
(2) For the purpose of submitting an application for disability, membership continues for 4 years after paid employment ends.
(c) (1) Except as provided in paragraph (2) of this subsection, the Board of Trustees may accept an application for ordinary, accidental, or special disability retirement from a former member within 24 months after the month membership ended if the former member proves to the satisfaction of the medical board that failure to submit an application while a member was attributable solely to physical or mental incapacity during the filing period.
(2) The Board of Trustees may accept an application for ordinary or accidental disability retirement from a former member of the Teachers’ Retirement System within 12 months after the month membership ended if the former member of the Teachers’ Retirement System proves to the satisfaction of the medical board that failure to submit an application while a member of the Teachers’ Retirement System was attributable solely to physical or mental incapacity during the filing period.
(3) If the Board of Trustees accepts a disability retirement application under this subsection and grants a disability retirement allowance, the retirement allowance begins as of the first day of the month after the Board of Trustees receives the application.
(d) (1) The Board of Trustees shall accept an application for ordinary, accidental, or special disability retirement from a surviving beneficiary of a deceased member, if a preliminary application for disability retirement or an application for disability retirement:
(i) is signed and dated by the deceased member within 7 days before the death of the member; and
(ii) is received by the Board of Trustees on or before 30 days after the date of the death of the member.
(2) If the Board of Trustees receives an application under paragraph (1) of this subsection:
(i) the medical board shall review the application to determine if the deceased member was mentally or physically incapacitated for the further performance of the normal duties of the individual’s position; and
(ii) the Board of Trustees shall review the application to determine if the preliminary application for disability retirement or the application for disability retirement was signed by the deceased member before the death of the member.
(3) The Board of Trustees shall grant a disability retirement allowance, if:
(i) the medical board determines that the deceased member would have been eligible for disability retirement at the time the deceased member signed the disability application; and
(ii) the Board of Trustees determines that the signature is valid.
(4) In order for the signature to be valid, a surviving beneficiary shall submit to the Board of Trustees an affidavit signed by an individual who witnessed the deceased member signing the preliminary application for disability retirement or the application for disability retirement before the death of the member.
(5) If the Board of Trustees accepts a disability retirement application under this subsection and grants a disability retirement allowance, the retirement allowance begins as of the first day of the month after the Board of Trustees receives the application.
(e) (1) This subsection does not apply to an application for special disability under the State Police Retirement System or an application for accidental disability under the Law Enforcement Officers’ Pension System or to an application for accidental disability under the Correctional Officers’ Retirement System.
(2) The Board of Trustees may not accept an application for accidental disability filed by a member or former member more than 5 years after the date of the claimed accident.
Md. Code, State Personnel and Pensions § 29-105
(a) The Board of Trustees shall grant an ordinary disability retirement allowance to a member if:
(1) the member has at least 5 years of eligibility service; and
(2) the medical board certifies that:
(i) the member is mentally or physically incapacitated for the further performance of the normal duties of the member’s position;
(ii) the incapacity is likely to be permanent; and
(iii) the member should be retired.
(b) (1) This subsection applies only to a member of the Employees’ Pension System who:
(i) is promoted within the Department of Corrections to a position that no longer is eligible for membership in the Correctional Officers’ Pension System as provided in § 25-201 of this article;
(ii) elects not to transfer the years of creditable service the individual accrued in the Correctional Officers’ Retirement System to the Employees’ Pension System; and
(iii) is eligible to receive a vested allowance from the Correctional Officers’ Retirement System.
(2) A member may combine the eligibility service accrued in the Correctional Officers’ Retirement System and the Employees’ Pension System to determine if the member is eligible for an ordinary disability retirement allowance under subsection (a) of this section from the Employees’ Pension System.
Md. Code, State Personnel and Pensions § 29-106
(a) This section applies only to members of:
(1) the Correctional Officers’ Retirement System;
(2) the Employees’ Retirement System; and
(3) the Teachers’ Retirement System.
(b) An ordinary disability retirement allowance equals the greater of:
(1) a normal service retirement allowance; or
(2) the amount computed under subsection (c) or (d) of this section.
(c) If a member is at least normal retirement age, the amount to be used under subsection (b)(2) of this section is 25% of the member’s average final compensation.
(d) If a member is under normal retirement age, the amount to be used under subsection (b)(2) of this section is the lesser of:
(1) 25% of the member’s average final compensation; or
(2) the normal service retirement allowance that is computed by using:
(i) the number of years of creditable service that the member would have received if the member continued employment until normal retirement age; and
(ii) an average final compensation that the member would have received if the member continued employment without a change in earnable compensation.
Md. Code, State Personnel and Pensions § 29-107
(a) This section applies only to members of the State Police Retirement System.
(b) An ordinary disability retirement allowance equals the greater of:
(1) a normal service retirement allowance; or
(2) 35% of the member’s average final compensation.
Md. Code, State Personnel and Pensions § 29-108
(a) This section applies only to members of:
(1) the Employees’ Pension System;
(2) the Local Fire and Police System;
(3) the Law Enforcement Officers’ Pension System; and
(4) the Teachers’ Pension System.
(b) Except as provided in subsections (c), (d), and (e) of this section, an ordinary disability retirement allowance equals:
(1) if the member is at least normal retirement age, a normal service retirement allowance; or
(2) if the member is under normal retirement age, a normal service retirement allowance that is computed by using:
(i) the number of years of creditable service the member would have received if the member continued employment until normal retirement age; and
(ii) an average final compensation the member would have received if the member continued employment without a change in earnable compensation.
(c) A member of the Employees’ Pension System or the Teachers’ Pension System who has transferred from the Employees’ Retirement System or the Teachers’ Retirement System shall receive the benefits provided under the State system from which the member transferred, offset by any refunded contributions including any interest received in connection with the transfer, if:
(1) the member applies for the retirement allowance within 2 years after the transfer; and
(2) the Board of Trustees grants a disability retirement allowance to the member.
(d) (1) This subsection applies only to:
(i) a member of the Local Fire and Police Pension System who has transferred from the Employees’ Retirement System; or
(ii) a member of the Law Enforcement Officers’ Pension System who has transferred from the Employees’ Retirement System after electing to receive benefits in accordance with Selection A (Additional member contributions) as defined in § 22-101(b) of this article or Selection B (Limited cost-of-living adjustment) as defined in § 22-101(c) of this article.
(2) An ordinary disability retirement allowance equals the greater of:
(i) a normal service retirement allowance; or
(ii) 25% of the member’s average final compensation.
(e) (1) This subsection applies only to a member of the Employees’ Pension System who:
(i) is promoted within the Department of Corrections to a position that no longer is eligible for membership in the Correctional Officers’ Retirement System as provided in § 25-201 of this article;
(ii) elects not to transfer the years of creditable service the individual accrued in the Correctional Officers’ Retirement System to the Employees’ Pension System; and
(iii) is eligible to receive a vested allowance from the Correctional Officers’ Retirement System.
(2) An ordinary disability retirement allowance equals:
(i) a normal service retirement allowance in the Correctional Officers’ Retirement System based on the member’s total years of creditable service accrued in the Correctional Officers’ Retirement System; plus
(ii) an ordinary disability retirement allowance based on the member’s total years of creditable service accrued in the Employees’ Pension System.
Md. Code, State Personnel and Pensions § 29-109
(a) This section does not apply to the State Police Retirement System.
(b) Except as provided in subsection (c) of this section, the Board of Trustees shall grant an accidental disability retirement allowance to a member if:
(1) the member is totally and permanently incapacitated for duty as the natural and proximate result of an accident that occurred in the actual performance of duty at a definite time and place without willful negligence by the member; and
(2) the medical board certifies that:
(i) the member is mentally or physically incapacitated for the further performance of the normal duties of the member’s position;
(ii) the incapacity is likely to be permanent; and
(iii) the member should be retired.
(c) The Board of Trustees shall grant an accidental disability retirement allowance to a member of the Law Enforcement Officers’ Pension System if:
(1) the member is totally and permanently incapacitated for duty arising out of or in the course of the actual performance of duty without willful negligence by the member; and
(2) the medical board certifies that:
(i) the member is totally incapacitated, either mentally or physically, for the further performance of duty;
(ii) the incapacity is likely to be permanent; and
(iii) the member should be retired.
Md. Code, State Personnel and Pensions § 29-110
(a) This section does not apply to the State Police Retirement System.
(b) Except as provided in subsection (c) of this section, an accidental disability retirement allowance equals the lesser of:
(1) the member’s average final compensation; or
(2) the sum of:
(i) an annuity that is the actuarial equivalent of the member’s accumulated contributions at retirement; and
(ii) a pension equal to two-thirds of the member’s average final compensation.
(c) (1) This subsection applies to a member of a State system other than the Law Enforcement Officers’ Pension System who is at least normal retirement age.
(2) An accidental disability retirement allowance equals the greater of:
(i) a normal service retirement allowance; or
(ii) an accidental disability retirement allowance computed in accordance with subsection (b) of this section.
(d) (1) This subsection applies only to a member of the Employees’ Pension System who:
(i) is promoted within the Department of Corrections to a position that no longer is eligible for membership in the Correctional Officers’ Retirement System as provided in § 25-201 of this article;
(ii) elects not to transfer the years of creditable service the individual accrued in the Correctional Officers’ Retirement System to the Employees’ Pension System; and
(iii) is eligible to receive a vested allowance from the Correctional Officers’ Retirement System.
(2) A member may receive an accidental disability retirement allowance under this section if the member:
(i) does not elect to receive a vested allowance from the Correctional Officers’ Retirement System; and
(ii) transfers the member’s accumulated contributions in the Correctional Officers’ Retirement System to the Employees’ Pension System.
Md. Code, State Personnel and Pensions § 29-111
(a) This section applies to the State Police Retirement System.
(b) Except as provided in § 24–401.1(k) of this article, the Board of Trustees shall grant a special disability retirement allowance to a member if:
(1) the member is totally and permanently incapacitated for duty arising out of or in the course of the actual performance of duty without willful negligence by the member; and
(2) the medical board certifies that:
(i) the member is totally incapacitated, either mentally or physically, for the further performance of duty;
(ii) the incapacity is likely to be permanent; and
(iii) the member should be retired.
(c) Except as provided in subsection (d) of this section, a special disability retirement allowance equals the lesser of:
(1) the member’s average final compensation; or
(2) the sum of:
(i) an annuity that is the actuarial equivalent of the member’s accumulated contributions at retirement; and
(ii) a pension equal to two–thirds of the member’s average final compensation.
(d) (1) This subsection applies to a member who is at least normal retirement age.
(2) A special disability retirement allowance equals the greater of:
(i) a normal service retirement allowance; or
(ii) a special disability retirement allowance computed in accordance with subsection (c) of this section.
Md. Code, State Personnel and Pensions § 29-112
If the Board of Trustees approves an application for disability retirement for a member of the State Police Retirement System that was filed by the Secretary of State Police under § 29-103(c) of this subtitle or § 2-415(b) of the Public Safety Article, the member:
(1) within 90 days after approval, may exercise an option as provided under §§ 21-402 and 21-403 of this article; or
(2) shall receive the basic allowance.
Md. Code, State Personnel and Pensions § 29-113
(a) Subject to subsection (b) of this section, a disability retiree of the State Police Retirement System, or a beneficiary of a disability retiree of the State Police Retirement System, who retires on or before June 30, 1999, with an ordinary or special disability retirement allowance under § 29–107 or § 29–111 of this subtitle, 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.
(b) Each fiscal year, the Board of Trustees shall increase the adjustment received by the retiree or the beneficiary as of July 1, 1999, by multiplying the adjustment by a fraction that has:
(1) as its numerator, the Consumer Price Index for the calendar year ending December 31 of the preceding fiscal year; and
(2) as its denominator, the Consumer Price Index for the calendar year ending December 31, 1998.
Md. Code, State Personnel and Pensions § 29-114
A member entitled to an accidental disability retirement allowance or a special disability retirement allowance may not receive a retirement allowance for ordinary disability.
Md. Code, State Personnel and Pensions § 29-115
(a) (1) This section applies only to a disability retiree who is not eligible to receive a normal service retirement.
(2) This section does not apply to a disability retiree:
(i) who is a retiree of:
1. the State Police Retirement System;
2. the Law Enforcement Officers’ Pension System;
3. the Local Fire and Police System; or
4. the Employees’ Retirement System or the Employees’ Pension System, if at the time of retirement the retiree was a law enforcement officer for a participating employer under § 26–201(a) of this article;
(ii) who is reemployed by a participating employer in any position other than a probationary status law enforcement officer, a law enforcement officer, as defined in § 1–101 of the Public Safety Article, or chief; and
(iii) whose average final compensation was less than the minimum annual salary on the standard State pay scale as of January 1 of the preceding calendar year.
(b) (1) (i) The Board of Trustees shall, after giving notice, temporarily suspend the retiree’s allowance if the retiree:
1. began receiving a disability retirement allowance on or after July 1, 1998; and
2. is employed by a participating employer at an annual compensation that is at least equal to the retiree’s average final compensation at retirement.
(ii) A temporary suspension under this subsection shall begin as of the date the retiree is reemployed by a participating employer under subparagraph (i)2 of this paragraph.
(2) A retiree whose allowance is temporarily suspended under this subsection is not subject to a reduction as provided in § 29–116 of this subtitle during the period of employment by a participating employer.
(3) Upon receiving satisfactory documentation that the retiree is no longer employed by a participating employer, the Board of Trustees shall reinstate the retiree’s allowance with accumulated cost–of–living adjustments from the date the allowance was temporarily suspended.
(4) The retiree’s allowance will be reinstated on the first day of the month following the month in which the retiree ceased employment with the participating employer.
Md. Code, State Personnel and Pensions § 29-116
(a) This section does not apply to a disability retiree:
(1) (i) who is a retiree of:
1. the State Police Retirement System;
2. the Law Enforcement Officers’ Pension System;
3. the Local Fire and Police System; or
4. the Employees’ Retirement System or the Employees’ Pension System, if at the time of retirement the retiree was a law enforcement officer for a participating employer under § 26–201(a) of this article; and
(ii) who is reemployed by a participating employer in any position other than a probationary status law enforcement officer, a law enforcement officer, as defined in § 1–101 of the Public Safety Article, or chief; or
(2) (i) whose average final compensation was less than the minimum annual salary on the standard State pay scale as of January 1 of the preceding calendar year; and
(ii) who is reemployed by a participating employer.
(b) The Board of Trustees shall reduce the pension of a retiree on ordinary disability if:
(1) the retiree is under normal retirement age;
(2) the medical board certifies in a report to the Board of Trustees that the retiree is employed by a participating employer at an annual compensation that is greater than the difference between:
(i) the retiree’s retirement allowance at retirement; and
(ii) the sum of:
1. the retiree’s average final compensation; and
2. $5,000, which shall be adjusted annually by the percentage growth in the Consumer Price Index, as defined in § 29–401 of this title, in the calendar year preceding the fiscal year, and each subsequent adjustment shall be made on the amount calculated in the prior fiscal year;
(3) the Board of Trustees agrees with the medical board’s report; and
(4) the retiree’s allowance has not been temporarily suspended as provided in § 29–115 of this subtitle.
(c) The Board of Trustees shall reduce the pension of a retiree who has been receiving an ordinary disability retirement allowance for:
(1) less than 10 years, by $1 for every $2 that the retiree’s current compensation exceeds the limit under subsection (b) of this section; or
(2) at least 10 years, by $1 for every $5 that the retiree’s current compensation exceeds the limit under subsection (b) of this section.
(d) The pension to be reduced under this section is the pension at retirement without any cost–of–living adjustment.
Md. Code, State Personnel and Pensions § 29-117
(a) A disability retiree who is rehired by a participating employer may not receive creditable service or eligibility service during the period of reemployment.
(b) The disability retiree’s compensation during the period of reemployment may not be 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.
(c) The State Retirement Agency shall institute appropriate reporting procedures with the affected payroll systems to ensure compliance with this section.
(d) (1) Immediately on the employment of any retiree, a participating employer shall notify the State Retirement Agency of the type of employment and the anticipated earnings of the retiree.
(2) At least once each year, in a format specified by the State Retirement Agency, each participating employer shall provide the State Retirement Agency with a list of all employees included on any payroll of the employer, the Social Security numbers of the employees, and their earnings for that year.
(e) An individual who is receiving a disability retirement allowance under this title may not be employed within 45 days of the date the individual retired, on a permanent, temporary, or contractual basis, by:
(1) the State or other participating employer; or
(2) a withdrawn participating governmental unit, if the retiree was an employee of the withdrawn participating governmental unit while the withdrawn governmental unit was a participating employer.
Md. Code, State Personnel and Pensions § 29-118
(a) (1) Except as otherwise provided in this subsection, this section applies to a retiree and any designated beneficiary.
(2) (i) This section does not apply to:
1. a retiree of a participating governmental unit, or a designated beneficiary of that retiree; or
2. a retiree of the Employees’ Pension System or the Employees’ Retirement System who receives a disability retirement benefit as a former employee of a county board of education or the Board of School Commissioners of Baltimore City, or a designated beneficiary of that retiree.
(ii) A retiree described in subparagraph (i) of this paragraph, or a designated beneficiary of that retiree is subject to § 9–610 of the Labor and Employment Article.
(b) (1) Subject to paragraph (2) of this subsection, the Board of Trustees shall reduce an accidental or special disability retirement benefit by any related workers’ compensation benefits paid or payable after the effective date of retirement if the workers’ compensation benefits:
(i) are paid or payable while a pension is paid or payable; and
(ii) are for an accidental personal injury arising out of and in the course of the retiree’s employment by a participating employer.
(2) (i) This paragraph applies to a retiree who was originally awarded an ordinary disability retirement benefit, but whose benefit was later converted to an accidental or special disability retirement benefit by the Board of Trustees.
(ii) If the retiree was awarded related workers’ compensation benefits paid or payable after the effective date of retirement, the Board of Trustees shall adjust its reduction of the retiree’s accidental or special disability retirement benefit under paragraph (1) of this subsection to reflect any offset awarded to the retiree’s employer by the Workers’ Compensation Commission for the original ordinary disability retirement benefit.
(3) A retirement allowance may not be reduced:
(i) to be less than the sum of the retiree’s annuity and the amount authorized to be deducted for health insurance premiums; or
(ii) for workers’ compensation benefits that are reimbursements for legal fees, medical expenses, or other payments made to third parties and not to the retiree.
(c) The retirement allowance to be reduced under this section is the retirement allowance at retirement without any cost–of–living adjustment.
(d) Subject to subsection (b)(2) of this section, the retirement allowance to be reduced under this section is retroactive.
Md. Code, State Personnel and Pensions § 29-201
Except as provided in § 29–204.3 of this subtitle, this subtitle does not apply to the Judges’ Retirement System.
Md. Code, State Personnel and Pensions § 29-202
(a) (1) (i) Subject to subparagraph (ii) of this paragraph, when the Board of Trustees receives proof of death of an individual who died while employed as a member, the Board of Trustees shall pay to the designated beneficiary or, if there is no designated beneficiary, to the member’s estate the amounts specified in this subsection.
(ii) If a member designates more than one beneficiary, on the death of the member, the Board of Trustees shall pay the amounts specified in this subsection in equal shares to each of the designated beneficiaries.
(2) Subject to paragraph (1) of this subsection, the Board of Trustees shall pay the member’s accumulated contributions.
(3) Subject to paragraph (1) of this subsection, the Board of Trustees shall pay an amount equal to the member’s annual earnable compensation at death if the member dies in the course of the performance of duty or the member has at least 1 year of eligibility service.
(b) (1) A death benefit under this section may not be paid for the death of a member of the State Police Retirement System if a special death benefit under § 29–204 of this subtitle is paid for that death.
(2) A death benefit under this section may not be paid for the death of a member of the Correctional Officers’ Retirement System if a special death benefit under § 29–204.1 of this subtitle is paid for that death.
(3) A death benefit under this section may not be paid for the death of a member of the Employees’ Retirement System, Employees’ Pension System, Teachers’ Retirement System, or Teachers’ Pension System if a special death benefit under § 29–204.2 of this subtitle is paid for that death.
(4) A death benefit under this section may not be paid for the death of a member of the Law Enforcement Officers’ Pension System if a special death benefit under § 29–203 of this subtitle is paid for that death.
(5) A death benefit under this section may not be paid for the death of a member if a retirement allowance under § 29–205 or § 29–206 of this subtitle is paid for that death.
(6) (i) If all individuals who are eligible for a special death benefit under § 29–203, § 29–204, § 29–204.1, or § 29–204.2 of this subtitle elect to waive the payment of a special death benefit, a benefit shall be paid in accordance with subsection (a) of this section.
(ii) If all individuals who are eligible for an allowance under § 29–205 or § 29–206 of this subtitle elect to waive the payment of an allowance, a benefit shall be paid in accordance with subsection (a) of this section.
(c) The Board of Trustees may provide the death benefit as group life insurance if the Board of Trustees finds that the designated beneficiaries would receive a more favorable tax treatment of the death benefit.
Md. Code, State Personnel and Pensions § 29-203
(a) (1) This subsection applies only to an individual who dies while employed as a member of the Law Enforcement Officers’ Pension System:
(i) without willful negligence by the member; and
(ii) with more than 2 years of eligibility service.
(2) When the Board of Trustees receives proof of death of a member and finds that the death has occurred in the manner described in paragraph (1) of this subsection, the Board of Trustees shall pay:
(i) if the member is survived by a spouse, a child under the age of 26 years, a disabled child, or a dependent parent:
1. the member’s accumulated contributions to the designated beneficiary, or otherwise to the member’s estate; and
2. an allowance of 50% of the ordinary disability retirement allowance provided for in § 29–108 of this title:
A. to the surviving spouse;
B. if there is no surviving spouse or if the surviving spouse dies, to any children of the deceased member who are under the age of 26 years or disabled, as defined under § 72(m)(7) of the Internal Revenue Code, in accordance with subsection (c) of this section; or
C. if there is no surviving spouse, no child younger than 26 years of age, or no disabled child, to the member’s dependent parent to continue as the Board of Trustees may direct for the rest of the parent’s life; or
(ii) if the member is not survived by a spouse, a child under the age of 26 years, a disabled child, or a dependent parent, the death benefit under § 29–202 of this subtitle.
(b) (1) This subsection applies only to an individual who dies while employed as a member of the Law Enforcement Officers’ Pension System:
(i) without willful negligence by the member; and
(ii) with death arising out of or in the course of the actual performance of duty.
(2) When the Board of Trustees receives proof of death of a member and finds that the death has occurred in the manner described in paragraph (1) of this subsection, the Board of Trustees shall pay:
(i) if the member is survived by a spouse, a child under the age of 26 years, a disabled child, or a dependent parent:
1. the member’s accumulated contributions to the designated beneficiary, or otherwise to the member’s estate; and
2. an allowance of two–thirds of the member’s average final compensation:
A. to the surviving spouse;
B. if there is no surviving spouse or if the surviving spouse dies, to any children of the deceased member who are under the age of 26 years or disabled, as defined under § 72(m)(7) of the Internal Revenue Code, in accordance with subsection (c) of this section; or
C. if there is no surviving spouse, no child younger than 26 years of age, or no disabled child, to the member’s dependent parent to continue as the Board of Trustees may direct for the rest of the parent’s life; or
(ii) if the member is not survived by a spouse, a child under the age of 26 years, a disabled child, or a dependent parent, the death benefit under § 29–202 of this subtitle.
(c) (1) Except as provided in paragraphs (2) and (3) of this subsection, if the Board of Trustees pays an allowance under this section 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 26 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 26 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 26 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 subparagraph (i) of this paragraph shall be divided equally among the disabled children.
(d) Before the payment of any special death benefit is made under this section, if all individuals eligible for a special death benefit under this section elect to waive the payment of the special death benefit, a benefit shall be paid in accordance with § 29–202(a) of this subtitle.
Md. Code, State Personnel and Pensions § 29-204
(a) (1) This subsection applies only to an individual who dies while employed as a member of the State Police Retirement System:
(i) without willful negligence by the member; and
(ii) with more than 2 years of eligibility service.
(2) When the Board of Trustees receives proof of death of a member and finds that the death has occurred in the manner described in paragraph (1) of this subsection, the Board of Trustees shall pay:
(i) if the member is survived by a spouse, a child under the age of 26 years, a disabled child, or a dependent parent:
1. the member’s accumulated contributions to the designated beneficiary, or otherwise to the member’s estate; and
2. an allowance of 50% of the member’s average final compensation:
A. to the surviving spouse;
B. if there is no surviving spouse or if the surviving spouse dies, to any children of the deceased member who are under the age of 26 years or disabled, as defined under § 72(m)(7) of the Internal Revenue Code, in accordance with subsection (c) of this section; or
C. if there is no surviving spouse, no children younger than 26 years of age, or no disabled child, to the member’s dependent parent to continue as the Board of Trustees may direct for the rest of the parent’s life; or
(ii) if the member is not survived by a spouse, a child under the age of 26 years, a disabled child, or a dependent parent, the death benefit under § 29–202 of this subtitle.
(b) (1) This subsection applies only to an individual who dies while employed as a member of the State Police Retirement System:
(i) without willful negligence by the member; and
(ii) with death arising out of or in the course of the actual performance of duty.
(2) When the Board of Trustees receives proof of death of a member and finds that the death has occurred in the manner described in paragraph (1) of this subsection, the Board of Trustees shall pay:
(i) if the member is survived by a spouse, a child under the age of 26 years, a disabled child, or a dependent parent:
1. the member’s accumulated contributions to the designated beneficiary, or otherwise to the member’s estate; and
2. an allowance of two–thirds of the member’s average final compensation:
A. to the surviving spouse;
B. if there is no surviving spouse or if the surviving spouse dies, to any children of the deceased member who are under the age of 26 years or disabled, as defined under § 72(m)(7) of the Internal Revenue Code, in accordance with subsection (c) of this section; or
C. if there is no surviving spouse, no children younger than 26 years of age, or no disabled child, to the member’s dependent parent to continue as the Board of Trustees may direct for the rest of the parent’s life; or
(ii) if the member is not survived by a spouse, a child under the age of 26 years, a disabled child, or a dependent parent, the death benefit under § 29–202 of this subtitle.
(c) (1) Except as provided in paragraphs (2) and (3) of this subsection, if the Board of Trustees pays an allowance under this section 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 26 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 26 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 26 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 subparagraph (i) of this paragraph shall be divided equally among the disabled children.
(d) Before the payment of any special death benefit is made under this section, if all individuals eligible for a special death benefit under this section elect to waive the payment of the special death benefit, a benefit shall be paid in accordance with § 29–202(a) of this subtitle.
Md. Code, State Personnel and Pensions § 29-204.1
§29–204.1.
(a) This section applies only to an individual who dies while employed as a member of the Correctional Officers’ Retirement System:
(1) without willful negligence by the member; and
(2) with death arising out of or in the course of the actual performance of duty.
(b) When the Board of Trustees receives proof of death of a member and finds that the death has occurred in the manner described in subsection (a) of this section, the Board of Trustees shall pay:
(1) if the member is survived by a spouse, a child under the age of 26 years, a disabled child, or a dependent parent:
(i) the member’s accumulated contributions to the designated beneficiary, or otherwise to the member’s estate; and
(ii) an allowance of two–thirds of the member’s average final compensation:
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 member who are under the age of 26 years or disabled, as defined under § 72(m)(7) of the Internal Revenue Code, in accordance with subsection (c) of this section; or
3. if there is no surviving spouse, no child younger than 26 years of age, or no disabled child, to the member’s dependent parent to continue as the Board of Trustees may direct for the rest of the parent’s life; or
(2) if the member is not survived by a spouse, a child under the age of 26 years, a disabled child, or a dependent parent, the death benefit under § 29–202 of this subtitle.
(c) (1) Except as provided in paragraphs (2) and (3) of this subsection, if the Board of Trustees pays an allowance under this section 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 26 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 26 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 26 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 subparagraph (i) of this paragraph shall be divided equally among the disabled children.
(d) Before the payment of any special death benefit is made under this section, if all individuals eligible for a special death benefit under this section elect to waive the payment of the special death benefit, a benefit shall be paid in accordance with § 29–202(a) of this subtitle.
Md. Code, State Personnel and Pensions § 29-204.2
§29–204.2.
(a) This section applies only to an individual who is killed while a member of the Employees’ Retirement System, Employees’ Pension System, Teachers’ Retirement System, or Teachers’ Pension System:
(1) without willful negligence by the member; and
(2) with death arising out of or in the course of the actual performance of duty.
(b) When the Board of Trustees receives proof of death of a member and finds that the death has occurred in the manner described in subsection (a) of this section, the Board of Trustees shall pay:
(1) if the member is survived by a spouse, a child under the age of 26 years, a disabled child, or a dependent parent:
(i) the member’s accumulated contributions to the designated beneficiary, or otherwise to the member’s estate; and
(ii) an allowance of two–thirds of the member’s average final compensation:
1. to the surviving spouse;
2. if there is no surviving spouse or if the surviving spouse dies, to any children of the deceased member who are under the age of 26 years or disabled, as defined under § 72(m)(7) of the Internal Revenue Code, in accordance with subsection (c) of this section; or
3. if there is no surviving spouse, no child younger than 26 years of age, or no disabled child, to the member’s dependent parent to continue as the Board of Trustees may direct for the rest of the parent’s life; or
(2) if the member is not survived by a spouse, a child under the age of 26 years, a disabled child, or a dependent parent, the death benefit under § 29–202 of this subtitle.
(c) (1) Except as provided under paragraphs (2) and (3) of this subsection, if the Board of Trustees pays an allowance under this section 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 26 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 26 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 26 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 subparagraph (i) of this paragraph shall be divided equally among the disabled children.
(d) Before the payment of any special death benefit is made under this section, if all individuals eligible for a special death benefit under this section elect to waive the payment of the special death benefit, a benefit shall be paid in accordance with § 29–202(a) of this subtitle.
Md. Code, State Personnel and Pensions § 29-204.3
§29–204.3.
(a) This section applies only to an individual who is killed while a member of the Judges’ Retirement System:
(1) without willful negligence by the member; and
(2) with death arising out of or in the course of the actual performance of duty.
(b) When the Board of Trustees receives proof of death of a member and finds that the death has occurred in the manner described in subsection (a) of this section, the Board of Trustees shall pay:
(1) if the member is survived by a spouse, a child under the age of 26 years, a disabled child, or a dependent parent:
(i) the member’s accumulated contributions to the designated beneficiary, or otherwise to the member’s estate; and
(ii) an allowance of two–thirds of the salary payable in that fiscal year to a member holding the same level judicial position as that held by the member as of the date of death of the member:
1. to the surviving spouse;
2. if there is no surviving spouse or if the surviving spouse dies, to any children of the deceased member who are under the age of 26 years or disabled, as defined under § 72(m)(7) of the Internal Revenue Code, in accordance with subsection (c) of this section; or
3. if there is no surviving spouse, no child under the age of 26 years, or no disabled child, to the member’s dependent parent to continue as the Board of Trustees may direct for the rest of the parent’s life; or
(2) if the member is not survived by a spouse, a child under the age of 26 years, a disabled child, or a dependent parent, a death benefit in accordance with § 27–403(a)(2) of this article.
(c) (1) Except as provided in paragraphs (2) and (3) of this subsection, if the Board of Trustees pays an allowance under this section 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 26 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 26 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 26 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 subparagraph (i) of this paragraph shall be divided equally among the disabled children.
(d) Before the payment of any special death benefit is made under this section, if all individuals eligible for a special death benefit under this section elect to waive the payment of the special death benefit, a benefit shall be paid in accordance with § 27–403 of this article.
Md. Code, State Personnel and Pensions § 29-205
(a) This section applies to an individual who died while employed as a member:
(1) (i) of the Correctional Officers’ Retirement System;
(ii) of the Employees’ Retirement System;
(iii) of the Local Fire and Police System, if the member had transferred from the Employees’ Retirement System; or
(iv) of the Teachers’ Retirement System; and
(2) (i) who was eligible to retire; or
(ii) who was at least 55 years old with at least 15 years of eligibility service.
(b) Except as provided in subsections (d) and (e) of this section, a member’s surviving spouse may elect to receive one of the following:
(1) the death benefit, under § 29–202 of this subtitle; or
(2) an allowance equal to the amount payable under Option 2 as described in § 21–403 of this article.
(c) (1) Except as provided in subsections (d) and (e) of this section, when the Board of Trustees receives proof of a death of a member described under subsection (a) of this section and there is no surviving spouse, a child under the age of 26 years or a disabled child of the member may elect to receive an allowance in accordance with this subsection.
(2) If an election is made under paragraph (1) of this subsection, the Board of Trustees shall pay, in accordance with paragraph (3) of this subsection, an allowance equal to 50% of the basic allowance the member was eligible to receive under Division II of this article to any children of the deceased member who are under the age of 26 years or disabled, as defined under § 72(m)(7) of the Internal Revenue Code.
(3) (i) Except as provided in subparagraphs (ii) and (iii) of this paragraph, if the Board of Trustees pays an allowance under this subsection 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:
1. each child has died; or
2. each child becomes 26 years old.
(ii) Notwithstanding subparagraph (i)2 of this paragraph, a surviving child who is disabled shall continue to receive an allowance under subparagraph (i) of this paragraph past the age of 26 years, if the child continues to be disabled.
(iii) 1. If a surviving child receiving an allowance under subparagraph (i) of this paragraph 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 subparagraph (i) of this paragraph after:
A. all other nondisabled surviving children have died; or
B. the youngest nondisabled surviving child becomes 26 years old.
2. If more than one surviving child is disabled, as defined under § 72(m)(7) of the Internal Revenue Code, the retirement allowance payable under subsubparagraph 1 of this subparagraph shall be divided equally among the disabled children.
(4) Before the payment of an allowance under this subsection, if all individuals who are eligible to receive a death benefit under this subsection elect to waive the payment of an allowance, a benefit shall be paid in accordance with § 29–202(a) of this subtitle.
(d) A death benefit under this section may not be paid for the death of a member of the Correctional Officers’ Retirement System if a special death benefit under § 29–204.1 of this subtitle is payable or has been paid for that death.
(e) A death benefit under this section may not be paid for the death of a member of the Employees’ Retirement System or Teachers’ Retirement System if a special death benefit under § 29–204.2 of this subtitle is payable or has been paid for that death.
Md. Code, State Personnel and Pensions § 29-206
(a) This section applies to an individual who died while employed as a member:
(1) (i) of the Employees’ Pension System;
(ii) of the Teachers’ Pension System; or
(iii) of the Local Fire and Police System, if the member had not transferred from the Employees’ Retirement System; and
(2) (i) who was eligible to retire;
(ii) who had at least 25 years of eligibility service; or
(iii) who:
1. was not subject to the Reformed Contributory Pension Benefit and was at least 55 years old with at least 15 years of eligibility service; or
2. was subject to the Reformed Contributory Pension Benefit and was at least 60 years old with at least 15 years of eligibility service.
(b) Except as provided in subsection (d) of this section, a member’s surviving spouse may elect to receive one of the following:
(1) the death benefit under § 29–202 of this subtitle; or
(2) an allowance equal to the amount payable under Option 2 as described in § 21–403 of this article.
(c) (1) Except as provided in subsection (d) of this section, when the Board of Trustees receives proof of a death of a member described under subsection (a) of this section and there is no surviving spouse, a child under the age of 26 years or a disabled child of the member may elect to receive an allowance in accordance with this subsection.
(2) If an election is made under paragraph (1) of this subsection, the Board of Trustees shall pay, in accordance with paragraph (3) of this subsection, an allowance equal to 50% of the basic allowance the member was eligible to receive under Division II of this article to any children of the deceased member who are under the age of 26 years or disabled, as defined under § 72(m)(7) of the Internal Revenue Code.
(3) (i) Except as provided in subparagraphs (ii) and (iii) of this paragraph, if the Board of Trustees pays an allowance under this subsection 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:
1. each child has died; or
2. each child becomes 26 years old.
(ii) Notwithstanding subparagraph (i)2 of this paragraph, a surviving child who is disabled shall continue to receive an allowance under subparagraph (i) of this paragraph past the age of 26 years, if the child continues to be disabled.
(iii) 1. If a surviving child receiving an allowance under subparagraph (i) of this paragraph 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 subparagraph (i) of this paragraph after:
A. all other nondisabled surviving children have died; or
B. the youngest nondisabled surviving child becomes 26 years old.
2. If more than one surviving child is disabled, as defined under § 72(m)(7) of the Internal Revenue Code, the retirement allowance payable under subsubparagraph 1 of this subparagraph shall be divided equally among the disabled children.
(4) Before the payment of an allowance under this subsection, if all individuals who are eligible to receive a death benefit under this subsection elect to waive the payment of an allowance, a benefit shall be paid in accordance with § 29–202(a) of this subtitle.
(d) A death benefit under this section may not be paid for the death of a member of the Employees’ Pension System or Teachers’ Pension System if a special death benefit under § 29–204.2 of this subtitle is payable or has been paid for that death.
Md. Code, State Personnel and Pensions § 29-207
(a) If a former member who is eligible for a vested allowance dies before payment of the vested allowance starts, the Board of Trustees, after receiving proof of death, shall pay the former member’s accumulated contributions to:
(1) the designated beneficiary; or
(2) if there is no designated beneficiary, the former member’s estate.
(b) If a former member who is not eligible for a vested allowance dies before withdrawing the former member’s accumulated contributions, the Board of Trustees, after receiving proof of death, shall pay the former member’s accumulated contributions to:
(1) the designated beneficiary; or
(2) if there is no designated beneficiary, the former member’s estate.
Md. Code, State Personnel and Pensions § 29-301
(a) This section applies only to a member of the Judges’ Retirement System who becomes a member on or after July 1, 2012.
(b) (1) A member may elect to receive a vested allowance if:
(i) the member is separated from employment other than by death or retirement; and
(ii) the member has at least 5 years of eligibility service.
(2) A member is deemed to have elected a vested allowance, unless the member requests the return of the accumulated contributions before membership ends.
(c) A vested allowance is a deferred allowance starting at age 60.
(d) A vested allowance:
(1) is computed as a retirement allowance under § 27–402 of this article on the basis of the former member’s creditable service at the time of separation from employment; and
(2) may be paid in one of the optional forms of allowances under § 21–403 of this article, if at retirement, the member does not have a spouse or child who is under the age of 26 or is disabled.
(e) (1) If a former member who elected a vested allowance requests the return of accumulated contributions before payment of the vested allowance begins, the Board of Trustees shall return the accumulated contributions to the former member.
(2) When accumulated contributions are returned to a former member, the former member is not entitled to further benefits on account of the former member’s previous membership.
Md. Code, State Personnel and Pensions § 29-302
(a) This section applies only to members of:
(1) the Correctional Officers’ Retirement System;
(2) the Employees’ Retirement System;
(3) the State Police Retirement System; and
(4) the Teachers’ Retirement System.
(b) (1) This subsection applies to an individual who is a member on or before June 30, 2011.
(2) A member may elect to receive a vested allowance if:
(i) the member is separated from employment other than by death or retirement; and
(ii) subject to paragraph (3) of this subsection, the member has at least 5 years of eligibility service.
(3) A former member of the State Police Retirement System who separated from employment on or before June 30, 1989, must have at least 15 years of eligibility service to elect a vested allowance.
(4) A member is deemed to have elected a vested allowance, unless the member requests the return of the accumulated contributions before membership ends.
(b–1) (1) This subsection applies to an individual who becomes a member on or after July 1, 2011.
(2) A member is eligible to receive a vested allowance if:
(i) the member separated from employment other than by death or retirement; and
(ii) the member has at least 10 years of eligibility service.
(c) A vested allowance is a deferred allowance starting at:
(1) normal retirement age for members of:
(i) the Employees’ Retirement System;
(ii) the State Police Retirement System; and
(iii) the Teachers’ Retirement System;
(2) except as provided in item (3) of this subsection, age 55 for a member of the Correctional Officers’ Retirement System; or
(3) age 60 for a member of the Correctional Officers’ Retirement System who:
(i) served as a maximum security attendant at the Clifton T. Perkins Hospital Center;
(ii) separated from employment as a maximum security attendant at the Clifton T. Perkins Hospital Center before July 1, 2016; and
(iii) does not resume employment in a position eligible for membership in the Correctional Officers’ Retirement System.
(d) A vested allowance:
(1) is computed as a normal service retirement allowance on the basis of the former member’s creditable service and average final compensation at the time of separation from employment; and
(2) may be paid in one of the optional forms of allowances under § 21–403 of this article.
(e) If a member separated from employment on or before June 30, 1990, unused sick leave reported by the member’s employer at the time of separation from employment is creditable service for computing the vested allowance.
(f) (1) If a former member who elected a vested allowance requests the return of accumulated contributions before payment of the vested allowance begins, the Board of Trustees shall return the accumulated contributions to the former member.
(2) When accumulated contributions are returned to a former member, the former member is not entitled to further benefits on account of the former member’s previous membership.
Md. Code, State Personnel and Pensions § 29-302.1
§29–302.1.
(a) This section applies only to an individual who:
(1) is a former member of:
(i) the Employees’ Retirement System; or
(ii) the Teachers’ Retirement System;
(2) is eligible to receive a vested allowance under § 29-302 of this subtitle; and
(3) has not elected to receive a benefit under § 29-302 of this subtitle.
(b) Notwithstanding § 29-302 of this subtitle, an individual under subsection (a) of this section may elect a lump-sum payment equal to the present value of the individual’s vested allowance if:
(1) the vested allowance is less than $50 a month;
(2) (i) the individual is not a member of the Optional Retirement Program and has terminated any employment with a participating employer for the State; or
(ii) the individual is a member of the Optional Retirement Program and has terminated employment with an employing institution as defined in § 30-101(e) of this article; and
(3) the individual requests a lump-sum payment of the vested allowance on a form provided by the State Retirement Agency.
Md. Code, State Personnel and Pensions § 29-303
(a) This section applies only to members of:
(1) the Employees’ Pension System;
(2) the Local Fire and Police System;
(3) the Law Enforcement Officers’ Pension System; or
(4) the Teachers’ Pension System.
(b) (1) This subsection applies to an individual who is a member on or before June 30, 2011.
(2) A member is eligible to receive a vested allowance if:
(i) the member separated from employment other than by death or retirement; and
(ii) the member has at least 5 years of eligibility service.
(b–1) (1) This subsection applies to an individual who becomes a member on or after July 1, 2011.
(2) A member is eligible to receive a vested allowance if:
(i) the member separated from employment other than by death or retirement; and
(ii) the member has at least 10 years of eligibility service.
(c) (1) Except as provided in subsections (e) through (i) of this section, a vested allowance:
(i) is a deferred allowance that begins at normal retirement age;
(ii) except as provided in paragraph (2) of this subsection, is computed as a normal service retirement allowance on the basis of the member’s average final compensation and eligibility service at separation from employment; and
(iii) may be paid in one of the optional forms of allowances under § 21–403 of this article.
(2) On retirement under this subsection, if a former member’s annuity is greater than the former member’s normal service retirement allowance calculated under paragraph (1) of this subsection, the former member’s normal service retirement allowance shall equal the former member’s annuity.
(d) If a member of the Employees’ Pension System or the Teachers’ Pension System separated from employment on or before June 30, 1990, unused sick leave reported by the member’s employer at the time of separation from employment is creditable service for computing the vested allowance.
(e) Except as provided in subsection (f) of this section, a former member of the Employees’ Pension System or the Teachers’ Pension System who has separated from employment before the age of 55 with at least 15 years of eligibility service is eligible to receive a vested allowance that:
(1) begins on the first day of the month following the member’s 55th birthday; and
(2) equals the reduced allowance computed under § 23–402 of this article.
(f) (1) The vested allowance of a former member of the Employees’ Pension System or the Teachers’ Pension System who separates from employment on or before June 30, 1998:
(i) is a deferred allowance that begins at normal retirement age; and
(ii) except as provided in paragraph (2)(ii) of this subsection, is computed on the basis of the member’s average final compensation and eligibility service at separation from employment.
(2) (i) Except as provided in subparagraph (ii) of this paragraph, the vested allowance described under paragraph (1) of this subsection shall equal the number of years of the member’s creditable service multiplied by:
1. 0.8% of the member’s average final compensation that is not in excess of the Social Security integration level; and
2. 1.5% of the member’s average final compensation that exceeds the Social Security integration level.
(ii) If the former member’s annuity is greater than the former member’s vested allowance calculated under subparagraph (i) of this paragraph, the former member’s vested allowance shall equal the former member’s annuity.
(iii) The former member’s vested allowance may be paid in one of the optional forms of allowances under § 21–403 of this article.
(3) A former member of the Employees’ Pension System or the Teachers’ Pension System who has separated from employment on or before June 30, 1998 and before the age of 55 with at least 15 years of eligibility service is eligible to receive a vested allowance that:
(i) begins on the first day of the month following the member’s 55th birthday; and
(ii) equals the allowance under paragraph (2) of this subsection, reduced by 0.5% for each month that the member’s early retirement date precedes the date the member will be 62 years old.
(g) (1) Except as provided in subsection (h) of this section and subject to subsection (i) of this section, the vested allowance of a former member of the Law Enforcement Officers’ Pension System who separates from employment on or before June 30, 2000:
(i) is a deferred allowance that begins at normal retirement age; and
(ii) except as provided in paragraph (2)(ii) of this subsection, is computed on the basis of the member’s average final compensation and eligibility service at separation from employment.
(2) (i) Except as provided in subparagraph (ii) of this paragraph, the vested allowance described under paragraph (1) of this subsection shall equal the number of years of the member’s creditable service multiplied by:
1. 1% of the member’s average final compensation that is not in excess of the Social Security integration level; and
2. 1.7% of the member’s average final compensation that exceeds the Social Security integration level.
(ii) If the former member’s annuity is greater than the former member’s vested allowance calculated under subparagraph (i) of this paragraph, the former member’s vested allowance shall equal the former member’s annuity.
(h) (1) This subsection applies only to a former member of the Law Enforcement Officers’ Pension System who:
(i) transferred to the Law Enforcement Officers’ Pension System from the Employees’ Retirement System; and
(ii) separates from employment on or before June 30, 2000.
(2) The vested allowance of a former member:
(i) is a deferred allowance that begins at normal retirement age; and
(ii) except as provided in paragraph (4) of this subsection, is computed on the basis of the member’s average final compensation and eligibility service at separation from employment.
(3) Except as provided in paragraph (4) of this subsection, the vested allowance described under paragraph (2) of this subsection shall equal:
(i) 2% of the member’s average final compensation multiplied by each year of the member’s first 30 years of creditable service; and
(ii) 1% of the member’s average final compensation multiplied by each year of creditable service in excess of 30 years.
(4) If the former member’s annuity is greater than the former member’s vested allowance calculated under paragraph (3) of this subsection, the former member’s vested allowance shall equal the former member’s annuity.
(i) (1) This paragraph applies only to a former member who is:
(i) receiving a deferred allowance under subsection (g) of this section; and
(ii) under the age of 62 years.
(2) On receipt of a vested allowance, a former member shall receive a supplemental deferred allowance that equals the difference between:
(i) the former member’s vested allowance; and
(ii) 1.7% of the member’s average final compensation for each year of creditable service.
(3) Payment of the supplemental deferred allowance ends when the former member:
(i) attains the age of 62 years; or
(ii) dies.
(j) (1) If a former member who elected a vested allowance requests the return of accumulated contributions before payment of the vested allowance begins, the Board of Trustees shall return the accumulated contributions to the former member.
(2) When accumulated contributions are returned to a former member, the former member is not entitled to further benefits on account of the former member’s previous membership.
Md. Code, State Personnel and Pensions § 29-303.1
§29–303.1.
(a) This section applies only to an individual who:
(1) is a former member of:
(i) the Employees’ Pension System; or
(ii) the Teachers’ Pension System;
(2) is eligible to receive a vested allowance under § 29-303 of this subtitle; and
(3) has not elected to receive a benefit under § 29-303 of this subtitle.
(b) Notwithstanding § 29-303 of this subtitle, an individual under subsection (a) of this section may elect a lump-sum payment equal to the present value of the vested allowance if:
(1) the vested allowance is less than $50 a month;
(2) (i) the individual is not a member of the Optional Retirement Program and has terminated any employment with a participating employer for the State; or
(ii) the individual is a member of the Optional Retirement Program and has terminated employment with an employing institution as defined in § 30-101(e) of this article; and
(3) the individual requests a lump-sum payment of the vested allowance on a form provided by the State Retirement Agency.
Md. Code, State Personnel and Pensions § 29-304
An individual shall have immediate vesting rights on taking office in the State system in which the individual is a member if the individual is the:
(1) secretary of a principal department of the Executive Branch of State government as provided under § 8–201 of the State Government Article;
(2) Executive Director of the Alcohol, Tobacco, and Cannabis Commission;
(3) Adjutant General of the Military Department;
(4) Chair of the State Board of Contract Appeals;
(5) Chair of the Public Service Commission;
(6) Chair of the Workers’ Compensation Commission;
(7) Chief Administrative Law Judge of the Office of Administrative Hearings;
(8) Director of the Health Care Alternative Dispute Resolution Office;
(9) Director of the Maryland Energy Administration;
(10) Director of the Office of the Deaf and Hard of Hearing;
(11) Director of the Office of Homeland Security;
(12) Director of the Office of Performance Improvement;
(13) Director of the State Department of Assessments and Taxation;
(14) Director of the State Lottery and Gaming Control Agency;
(15) Executive Director of the Governor’s Office of Community and Crime;
(16) Executive Director of the Governor’s Office of Crime Prevention and Policy;
(17) Executive Director of the State Retirement Agency;
(18) Insurance Commissioner of the Maryland Insurance Administration;
(19) Special Secretary of the Office of Small, Minority, and Women Business Affairs;
(20) Special Secretary of the Governor’s Office for Children;
(21) State Archivist;
(22) State Prosecutor of the State Prosecutor’s Office; or
(23) State Superintendent of Schools.
Md. Code, State Personnel and Pensions § 29-305
(a) In this section, “constitutional officer” means:
(1) the Attorney General of the State;
(2) the Comptroller of the State;
(3) the Lieutenant Governor of the State;
(4) the Secretary of State; or
(5) the Treasurer of the State.
(b) (1) A constitutional officer who is a member of the Employees’ Pension System:
(i) on taking office, has immediate vesting rights in the Employees’ Pension System; and
(ii) except as provided in paragraph (2) of this subsection, is entitled to a retirement allowance as provided in Title 23, Subtitle 4 of this article.
(2) The retirement allowance of a constitutional officer who serves at least one full term may not be less than 10% of the annual salary received during the constitutional officer's last term.
Md. Code, State Personnel and Pensions § 29-401
(a) In this subtitle the following words have the meanings indicated.
(b) (1) “Accumulated cost–of–living adjustment amount” means the sum of all prior cost–of–living adjustments made to an allowance.
(2) “Accumulated cost–of–living adjustment amount” does not include the cost–of–living adjustment made as of July 1 of the current fiscal year.
(c) (1) “Allowance” has the meaning stated in § 20–101 of this article.
(2) “Allowance” includes an annual retirement allowance adjustment payable as of July 1, 1999, to a retiree of the State Police Retirement System who retired on or before June 30, 1999, under § 24–401(e) of this article.
(d) “Consumer Price Index” means the annual average Consumer Price Index (all urban consumers, United States city average, all items, not seasonally adjusted, 1982–1984 = 100) for the calendar year ending December 31 as published by the United States Department of Labor, Bureau of Labor Statistics.
(e) “Cost–of–living adjustment” means the amount by which an allowance is adjusted as of July 1 of a fiscal year.
(f) “Cost–of–living rate” means the rate computed in accordance with § 29–402(c) of this subtitle that is used to determine a cost–of–living adjustment.
(g) “Cost–of–living rate cap” means the maximum cost–of–living rate that may be used to determine a cost–of–living adjustment in a fiscal year.
(h) “Effective date” means:
(1) for an allowance of a former member, a retiree, or the surviving beneficiary of a deceased member, the first day of the month in which an allowance is first paid to the former member, retiree, or surviving beneficiary; or
(2) for an allowance of a surviving beneficiary of a former member or a retiree, the first day of the month in which an allowance was first paid to the former member or retiree.
(i) “Initial allowance” means a basic allowance or an optional allowance paid in accordance with § 21–403 of this article, not including a cost–of–living adjustment, accumulated cost–of–living adjustment, or any additional annuity.
(j) “Selection A (Additional member contributions)” means the retirement selection described in § 22–219 of this article.
(k) “Selection B (Limited cost–of–living adjustment)” means the retirement selection described in § 22–220 of this article.
(l) “Selection C (Combination formula)” means the retirement selection described in § 22–221 of this article.
Md. Code, State Personnel and Pensions § 29-402
(a) (1) This subtitle applies only to an allowance paid to a former member, a retiree, or the surviving beneficiary of a deceased member, former member, or retiree of:
(i) the Correctional Officers’ Retirement System;
(ii) the Employees’ Pension System;
(iii) the Employees’ Retirement System;
(iv) the Law Enforcement Officers’ Pension System;
(v) the Local Fire and Police System;
(vi) the State Police Retirement System;
(vii) the Teachers’ Pension System; and
(viii) the Teachers’ Retirement System.
(2) This subtitle does not apply to an allowance that is payable under the Judges’ Retirement System, under the Legislative Pension Plan, or for a Governor under § 22–405 of this article.
(b) (1) Except as provided in paragraph (2) of this subsection, each fiscal year, the Board of Trustees shall adjust an allowance as provided in this subtitle.
(2) An initial cost–of–living adjustment may not be made until the second July 1 after the day preceding the effective date of an allowance.
(3) A cost–of–living adjustment does not apply to:
(i) benefits paid in a single payment;
(ii) the return of accumulated contributions; or
(iii) benefits attributable to additional contributions.
(c) (1) Except as provided in paragraph (2) of this subsection, and subject to subsection (f) of this section, to determine the cost–of–living rate used to adjust an allowance in a fiscal year, the Board of Trustees shall:
(i) subtract the Consumer Price Index for the calendar year ending December 31 in the second preceding fiscal year from the Consumer Price Index for the calendar year ending December 31 in the preceding fiscal year; and
(ii) divide the amount determined under item (i) of this paragraph by the Consumer Price Index for the calendar year ending December 31 in the second preceding fiscal year.
(2) The cost–of–living rate used to adjust an allowance in a fiscal year may not exceed any cost–of–living rate cap that is applicable to the allowance under § 29–404(c), § 29–405(c), § 29–406(c), or § 29–408(c) of this subtitle.
(d) (1) A cost–of–living adjustment payable in a fiscal year shall be determined as provided in this subsection.
(2) For a compound cost–of–living adjustment, the cost–of–living adjustment as of July 1 of a fiscal year shall be determined by multiplying the cost–of–living rate determined in subsection (c) of this section by the sum of:
(i) the initial allowance; and
(ii) the accumulated cost–of–living adjustment amount.
(3) For a simple cost–of–living adjustment, the cost–of–living adjustment as of July 1 of a fiscal year shall be determined by multiplying the cost–of–living rate determined in subsection (c) of this section by the initial allowance.
(e) The total allowance payable in any fiscal year shall be the sum of:
(1) the initial allowance;
(2) the cost–of–living adjustment;
(3) the accumulated cost–of–living adjustment amount; and
(4) any additional annuity.
(f) (1) In this subsection, “zero rate fiscal year” means any fiscal year when the cost–of–living rate calculated under subsection (c) of this section is less than 0%.
(2) For any fiscal year in which the cost–of–living rate determined under subsection (c) of this section is less than 0%, the cost–of–living rate for that fiscal year shall be 0%.
(3) (i) This paragraph applies only to a fiscal year that is not a zero rate fiscal year.
(ii) Subject to subparagraph (iii) of this paragraph:
1. for a fiscal year that follows immediately after a zero rate fiscal year, the cost–of–living rate determined under subsection (c) of this section shall be reduced by the difference between 0% and the cost–of–living rate that would have been determined under subsection (c) of this section for the preceding fiscal year without regard to paragraph (2) of this subsection; and
2. for a fiscal year that follows immediately after 2 or more consecutive zero rate fiscal years, the cost–of–living rate determined under subsection (c) of this section shall be reduced by the difference between 0% and the total cost–of–living rate that would have been determined under subsection (c) of this section for each of those fiscal years without regard to paragraph (2) of this subsection.
(iii) If the rate reduction required for any fiscal year under subparagraph (ii) of this paragraph would reduce the cost–of–living rate for the fiscal year to be less than 0%, the difference between 0% and the excess rate reduction shall be deducted from the cost–of–living rate in future years, subject to paragraph (2) of this subsection, until the total required rate reduction has been fully applied.
Md. Code, State Personnel and Pensions § 29-403
(a) This section applies only to:
(1) an allowance of a former member, retiree, or surviving beneficiary of a deceased member, former member, or retiree:
(i) of the Employees’ Retirement System or the Teachers’ Retirement System who elected Selection A (Additional member contributions);
(ii) who transferred to the Local Fire and Police System from the Employees’ Retirement System; or
(iii) who transferred to the Law Enforcement Officers’ Pension System from the Employees’ Retirement System and had elected Selection A (Additional member contributions);
(2) an allowance based on creditable service earned before July 1, 2011, for a former member, retiree, or surviving beneficiary of a deceased member, former member, or retiree of:
(i) the Correctional Officers’ Retirement System; or
(ii) the State Police Retirement System; and
(3) an additional annual allowance adjustment payable to a retiree or the beneficiary of a retiree of the State Police Retirement System under § 24–401(e) of this article.
(b) A cost–of–living adjustment payable under this section shall be a compound cost–of–living adjustment computed in accordance with § 29–402(d)(2) of this subtitle.
(c) A cost–of–living adjustment payable under this section is not subject to any cost–of–living rate cap.
(d) A cost–of–living adjustment payable under this section may not reduce an allowance to an amount that is less than the initial allowance.
Md. Code, State Personnel and Pensions § 29-404
(a) (1) Except as provided in paragraph (2) of this subsection, this section applies only to an allowance based on creditable service earned before July 1, 2011, for a former member, retiree, or surviving beneficiary of a deceased member, former member, or retiree of:
(i) the Employees’ Pension System, if the deceased member, former member, or retiree was an employee of:
1. a participating governmental unit that has not elected the contributory pension benefit or the Alternate Contributory Pension Selection for its members in accordance with § 31–116 or § 31–116.1 of this article; or
2. a former participating governmental unit, other than Frederick County, that has withdrawn before July 1, 1998, while a member;
(ii) the Law Enforcement Officers’ Pension System, only if the deceased member, former member, or retiree transferred to the Law Enforcement Officers’ Pension System from the Employees’ Retirement System and did not elect to participate in the Law Enforcement Officers’ Modified Pension Benefit on or before December 31, 2000, as provided in § 26–211 of this article; or
(iii) the Local Fire and Police System.
(2) This section does not apply to an allowance that is subject to adjustment under § 29–403, § 29–405, § 29–406, § 29–407, or § 29–408 of this subtitle.
(b) A cost–of–living adjustment payable under this section shall be a simple cost–of–living adjustment computed in accordance with § 29–402(d)(3) of this subtitle.
(c) A cost–of–living adjustment payable under this section shall be subject to a cost–of–living rate cap of 3%.
Md. Code, State Personnel and Pensions § 29-405
(a) This section applies only to an allowance received by a former member, retiree, or surviving beneficiary of a deceased member, former member, or retiree:
(1) of the Employees’ Retirement System or the Teachers’ Retirement System who elected Selection B (Limited cost–of–living adjustment); or
(2) who transferred to the Law Enforcement Officers’ Pension System from the Employees’ Retirement System and had elected Selection B (Limited cost–of–living adjustment).
(b) A cost–of–living adjustment payable under this section shall be a compound cost–of–living adjustment computed in accordance with § 29–402(d)(2) of this subtitle.
(c) A cost–of–living adjustment payable under this section shall be subject to a cost–of–living rate cap of 5%.
Md. Code, State Personnel and Pensions § 29-406
(a) (1) Except as provided in subsection (a)(2) of this section, this section applies:
(i) on or after July 1, 1998, only to an allowance based on creditable service earned before July 1, 2011, and received by a former member, retiree, or surviving beneficiary of a deceased member, former member, or retiree of the Employees’ Pension System or the Teachers’ Pension System; and
(ii) on or after December 31, 2000, only to an allowance based on creditable service earned before July 1, 2011, and received by a former member, retiree, or surviving beneficiary of a deceased member, former member, or retiree of the Law Enforcement Officers’ Pension System.
(2) This section does not apply if the member, former member, or retiree:
(i) was an employee of a participating governmental unit that did not elect the contributory pension benefit or the Alternate Contributory Pension Selection for its employees in accordance with § 31–116 or § 31–116.1 of this article;
(ii) was an employee of a former participating governmental unit, other than Frederick County, that has withdrawn before July 1, 1998, while a member; or
(iii) transferred to the Law Enforcement Officers’ Pension System from the Employees’ Retirement System and did not elect to participate in the Law Enforcement Officers’ Modified Pension Benefit on or before December 31, 2000, as provided in § 26–211 of this article.
(b) A cost–of–living adjustment payable under this section shall be a compound cost–of–living adjustment computed in accordance with § 29–402(d)(2) of this subtitle.
(c) A cost–of–living adjustment payable under this section shall be subject to a cost–of–living rate cap of 3%.
Md. Code, State Personnel and Pensions § 29-407
(a) This section applies only to an allowance received by a former member, retiree, or surviving beneficiary of a deceased member, former member, or retiree of the Employees’ Retirement System or the Teachers’ Retirement System who elected Selection C (Combination formula).
(b) Except as provided in subsection (c) or (d) of this section, the Board of Trustees shall adjust an allowance subject to this section:
(1) for creditable service before the effective date of selection, the cost–of–living adjustment as provided by § 29–403 of this subtitle; and
(2) for creditable service on or after the effective date of selection, the cost–of–living adjustment as provided by § 29–406 of this subtitle.
(c) For a member, former member, or retiree who was subject to Selection B (Limited cost–of–living adjustment) before electing Selection C (Combination formula), the Board of Trustees shall adjust an allowance subject to this section:
(1) for creditable service before the effective date of selection, the cost–of–living adjustment as provided by § 29–405 of this subtitle; and
(2) subject to subsection (d) of this section, for creditable service on or after the effective date of selection, the cost–of–living adjustment as provided by § 29–406 of this subtitle.
(d) If an allowance is received by a former member, retiree, or a surviving beneficiary of a deceased member, former member, or retiree who, while a member, was an employee of a participating governmental unit that has not elected the contributory pension benefit or the Alternate Contributory Pension Selection for its members in accordance with § 31–116 or § 31–116.1 of this article, or a former participating governmental unit, other than Frederick County, that has withdrawn before July 1, 1998, the Board of Trustees shall adjust the allowance for creditable service on or after the effective date of selection as provided in § 29–404 of this subtitle.
Md. Code, State Personnel and Pensions § 29-408
(a) This section applies only to an allowance based on creditable service earned on or after July 1, 2011, for a former member, retiree, or surviving beneficiary of a deceased member, former member, or retiree of:
(1) the Correctional Officers’ Retirement System;
(2) the Employees’ Pension System;
(3) the Law Enforcement Officers’ Pension System;
(4) the State Police Retirement System; or
(5) the Teachers’ Pension System.
(b) A cost–of–living adjustment payable under this section shall be a compound cost–of–living adjustment computed in accordance with § 29–402(d)(2) of this subtitle.
(c) A cost–of–living adjustment payable under this section shall be subject to a cost–of–living rate cap of:
(1) 2.5% if, for the calendar year ending December 31 in the preceding fiscal year, the total investment performance of the several systems equals or exceeds the assumed rate of investment return established by the Board of Trustees in accordance with § 21–125(c) of this article and in effect as of December 31 of the preceding fiscal year; or
(2) 1% if, for the calendar year ending December 31 in the preceding fiscal year, the total investment performance of the several systems does not equal or exceed the assumed rate of investment return established by the Board of Trustees in accordance with § 21–125(c) of this article and in effect as of December 31 of the preceding fiscal year.
Md. Code, State Personnel and Pensions § 29-409
(a) This section applies only to a retiree of the Employees’ Retirement System or Employees’ Pension System who:
(1) retired from the Employees’ Retirement System or Employees’ Pension System on or before June 30, 2009;
(2) before retirement was an employee of the Maryland School for the Deaf; and
(3) before retirement, as an employee of the Maryland School for the Deaf, was a 10–month employee incorrectly classified as a 12–month employee.
(b) (1) If a retiree is receiving a benefit that differs from the benefit the retiree is entitled to receive, the Board of Trustees shall, beginning July 1, 2010, and each subsequent July 1, suspend any annual cost–of–living adjustment the retiree may otherwise be entitled to receive under this subtitle.
(2) Beginning July 1, 2010, and each subsequent July 1, any adjustment to the retiree’s annual retirement allowance described under paragraph (1) of this subsection shall be calculated using the current retirement allowance the retiree is entitled to receive and not the current retirement allowance the retiree is receiving.
(3) The Board of Trustees shall suspend any annual cost–of–living adjustment otherwise payable under this subsection until the total amount of retirement allowance the retiree is entitled to receive, including any suspended annual cost–of–living adjustment, equals or exceeds the total amount of retirement allowance the retiree is receiving on July 1, 2010.
(4) When the total amount of retirement allowance the retiree is entitled to receive, including any suspended annual cost–of–living adjustments, equals or exceeds the total amount of retirement allowance the retiree is receiving on July 1, 2010, the Board of Trustees shall resume adjusting the retiree’s annual allowance on July 1 of each year in accordance with this subtitle, so that the amount of the allowance, including any cost–of–living adjustments, equals the total allowance the retiree is entitled to receive.
(c) If a retiree dies before the total amount of retirement allowance the retiree was entitled to receive, including any suspended annual cost–of–living adjustments, equals the total amount of retirement allowance the retiree was receiving on July 1, 2010, and the retiree has selected an optional form of allowance under Title 21, Subtitle 4 of this article, the deceased retiree’s beneficiary shall receive a benefit calculated on the retirement allowance the deceased retiree was entitled to receive at the time of the retiree’s death and not what the retiree was receiving at the time of the retiree’s death.
Md. Code, State Personnel and Pensions § 29-501
The Board of Trustees shall pay a member or former member the amount of the member’s or former member’s accumulated contributions if:
(1) the member or former member separated from employment for a reason other than death or retirement; and
(2) the member or former member requests the payment.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://mgaleg.maryland.gov/mgawebsite/Laws/StatutesFetched: 10/16/2026