Md. Code, State Personnel and Pensions, Title 26

Md. Code, State Personnel and Pensions, Title 26
in effect

Md. Code, State Personnel and Pensions § 26-201

(a) Except as provided in subsection (b) of this section, this subtitle applies only to: (1) an employee of the Department of Natural Resources commissioned by the Secretary of Natural Resources as: (i) a Natural Resources police officer; or (ii) a law enforcement officer, other than a Natural Resources police officer; (2) a law enforcement officer employed by: (i) the Field Enforcement Bureau; or (ii) the Field Enforcement Division of the Alcohol, Tobacco, and Cannabis Commission; (3) a member of the Maryland Transportation Authority Police Force who has the powers granted to a police officer under § 4–208 of the Transportation Article; (4) a deputy sheriff employed by the Baltimore City Sheriff’s Department; (5) a member of the University System of Maryland Police Force who has the powers granted to a police officer under § 13–601 of the Education Article; (6) a law enforcement officer or firefighter employed by a participating governmental unit that on or after July 1, 1999, has elected to participate in the Law Enforcement Officers’ Pension System; (7) the State Fire Marshal or a Deputy State Fire Marshal; (8) a member of the Morgan State University Police Force who has the powers granted to a police officer under § 14–106 of the Education Article; (9) a member of the BWI Airport Fire & Rescue Department; (10) a member of the Maryland Capitol Police of the Department of General Services who has the powers granted to a police officer under § 4–605 of the State Finance and Procurement Article; (11) an employee of the Maryland Department of Health commissioned by the Secretary of Health as a Maryland Department of Health police officer; (12) an employee of the Motor Vehicle Administration commissioned by the Secretary of Transportation as a Motor Vehicle Administration police officer; (13) a firefighter or law enforcement officer for the Martin State Airport employed by the Military Department; (14) a police officer employed by the Division of Rehabilitation Services in the Department of Education, certified in accordance with the Maryland Police and Correctional Training Commissions; (15) a firefighter or paramedic employed by the Salisbury Fire Department who is eligible to be a member as provided in Title 31, Subtitle 2A of this article; (16) an aviator employed by the Department of State Police to operate an aircraft for the State Emergency Medical System; (17) a member of the Maryland Transit Administration Police Force who has the powers granted to a police officer under § 7–207 of the Transportation Article; (18) an individual who is elected or appointed as the Baltimore City Sheriff and who does not elect to join the Employees’ Pension System under Title 23 of this article within 6 months of the date the individual begins serving as the Baltimore City Sheriff; (19) a member of the Department of Public Safety and Correctional Services Intelligence and Investigative Division who has the powers granted to a police officer under § 10–701 of the Correctional Services Article; (20) a police officer employed by the Baltimore City Community College who has the power granted to a police officer under § 16–513 of the Education Article; (21) an employee of the Warrant Apprehension Unit of the Intelligence and Investigative Division in the Department of Public Safety and Correctional Services who has the powers granted to a peace officer or police officer under § 10–702 of the Correctional Services Article; (22) the Executive Director of the Alcohol, Tobacco, and Cannabis Commission, only if the Executive Director is a sworn police officer with the powers granted to an officer or employee of the Field Enforcement Division under § 1–313 of the Alcoholic Beverages and Cannabis Article; and (23) an emergency medical technician employed by a participating governmental unit who is eligible to be a member as provided in Title 31, Subtitle 2A of this article. (b) This subtitle does not apply to: (1) a Maryland Transportation Authority police officer who transferred from the Employees’ Retirement System to the Employees’ Pension System on or after December 1, 1996; (2) a deputy sheriff employed by the Baltimore City Sheriff’s Department who transferred from the Employees’ Retirement System to the Employees’ Pension System on or after December 1, 1996; (3) a member of the University System of Maryland Police Force who transferred from the Employees’ Retirement System to the Employees’ Pension System on or after December 1, 1997; (4) a law enforcement officer, firefighter, or emergency medical technician employed by a participating governmental unit who transferred from the Employees’ Retirement System to the Employees’ Pension System on or after December 1, 1997; (5) a Maryland Port Administration police officer who transferred from the Employees’ Retirement System to the Employees’ Pension System on or after December 1, 1997; (6) a State Fire Marshal or Deputy State Fire Marshal who transferred from the Employees’ Retirement System to the Employees’ Pension System on or after December 1, 1996; (7) a member of the Morgan State University Police Force who transferred from the Employees’ Retirement System to the Employees’ Pension System on or after December 1, 1997; (8) a member of the BWI Airport Fire & Rescue Department who transferred from the Employees’ Retirement System to the Employees’ Pension System on or after April 1, 1998; (9) a member of the Maryland Capitol Police of the Department of General Services, Maryland Department of Health, or Motor Vehicle Administration who transferred from the Employees’ Retirement System to the Employees’ Pension System on or after April 1, 1998; (10) a firefighter or law enforcement officer for the Martin State Airport employed by the Military Department who transferred from the Employees’ Retirement System to the Employees’ Pension System on or after April 1, 1998; (11) a police officer employed by the Division of Rehabilitation Services in the Department of Education who: (i) is certified in accordance with the Maryland Police and Correctional Training Commissions; and (ii) transferred from the Employees’ Retirement System to the Employees’ Pension System on or after April 1, 1998; (12) a firefighter or paramedic employed by the Salisbury Fire Department who transferred from the Employees’ Retirement System to the Employees’ Pension System on or after April 1, 1998; (13) an aviator employed by the Department of State Police to operate an aircraft for the State Emergency Medical System who transferred from the Employees’ Retirement System to the Employees’ Pension System on or after April 1, 1998; or (14) a police officer employed by the Baltimore City Community College who transferred from the Employees’ Retirement System to the Employees’ Pension System on or after December 1, 1996.

Md. Code, State Personnel and Pensions § 26-202

(a) Except as provided in subsection (b) of this section, an individual described in § 26–201 of this subtitle is a member of the Law Enforcement Officers’ Pension System as a condition of employment. (b) (1) Subject to paragraph (2) of this subsection, membership in the Law Enforcement Officers’ Pension System is optional for an individual described in § 26–201 of this subtitle: (i) who was employed by the Department of Natural Resources on July 1, 1990, and who elects membership on or before December 31, 2002; (ii) who was employed by the Field Enforcement Division on June 30, 1995, and who elects membership on or before December 31, 2002; (iii) who was employed by the Maryland Transportation Authority on June 30, 1997, and who elects membership on or before December 31, 2002; (iv) who was employed by the Baltimore City Sheriff’s Department on June 30, 1997, and who elects membership on or before December 31, 2002; (v) who was employed by the University System of Maryland Police Force on June 30, 1999, and who elects membership on or before December 31, 2002; (vi) who is employed by a participating governmental unit on the effective date of participation: 1. on or after July 1, 1999, but before July 1, 2017, for that participating governmental unit and who elects membership within 6 months of the effective date of participation; or 2. on or after July 1, 2017, for that participating governmental unit and who elects membership before the effective date of participation; (vii) who was employed by the Maryland Port Administration Police Force and was subsequently transferred to and employed by the Maryland Transportation Authority Police Force on July 1, 1998, and who elects membership on or before December 31, 2002; (viii) who was employed by the office of the State Fire Marshal on June 30, 1998, and who elects membership on or before December 31, 2002; (ix) who was employed by the Morgan State University Police Force on June 30, 1999, and who elects membership on or before December 31, 2002; (x) who was employed by the BWI Airport Fire & Rescue Department on June 30, 2000, and who elects membership on or before December 31, 2002; (xi) who was employed by the Department of General Services, Maryland Department of Health, or Motor Vehicle Administration on June 30, 2000, and who elects membership on or before December 31, 2002; (xii) who was employed by the Military Department as a firefighter at Martin State Airport on June 30, 2001, and who elects membership on or before December 31, 2002; (xiii) who was employed on June 30, 2002, by the Division of Rehabilitation Services in the Department of Education as a police officer certified in accordance with the Maryland Police and Correctional Training Commissions, and who elects membership on or before December 31, 2002; (xiv) who was employed on June 30, 2004, by the Salisbury Fire Department as a firefighter or paramedic and who elects membership on or before December 31, 2004, if eligible under Title 31, Subtitle 2A of this article; (xv) who was employed on June 30, 2005, by the Department of State Police as an aviator operating an aircraft for the State Emergency Medical System, and who elects membership on or before December 31, 2005; (xvi) who was employed by the Military Department as a law enforcement officer at Martin State Airport on June 30, 2007, and who elects membership on or before December 31, 2007; (xvii) who was a member of the Department of Public Safety and Correctional Services Intelligence and Investigative Division who has powers granted to a police officer under § 10–701 of the Correctional Services Article on June 30, 2007, and who elects membership on or before December 31, 2007; (xviii) who was employed on July 1, 2008, as a police officer by the Baltimore City Community College Police Force and who elects membership on or before December 31, 2008; or (xix) who was an employee of the Warrant Apprehension Unit, formerly of the Division of Parole and Probation in the Department of Public Safety and Correctional Services, who had powers granted to a peace officer or police officer under the former § 6–106 of the Correctional Services Article on June 30, 2015, and who elected membership on or before December 31, 2015. (2) To elect to be a member of the Law Enforcement Officers’ Pension System, an individual shall file a written application with the State Retirement Agency on a form that the State Retirement Agency provides. (3) (i) An election to join the Law Enforcement Officers’ Pension System under this subsection is a one–time, irrevocable election. (ii) If an individual does not elect membership during the applicable period specified under paragraph (1) of this subsection, the individual may not subsequently become a member of the Law Enforcement Officers’ Pension System.

Md. Code, State Personnel and Pensions § 26-203.1

§26–203.1. (a) For members who transfer from the Employees’ Pension System or the Employees’ Retirement System, the Board of Trustees shall transfer to the accumulation fund of the Law Enforcement Officers’ Pension System the employer contributions that were made to the Employees’ Retirement System and the Employees’ Pension System on behalf of those members who transferred, plus the interest earned on those contributions through the date of transfer. (b) For those full–time employees of the BWI Airport Fire & Rescue Department who were employed on or after October 1, 1993, and who elect membership in the Law Enforcement Officers’ Pension System on or before December 31, 2000, the Board of Trustees shall transfer to the accumulation fund of the Law Enforcement Officers’ Pension System the employer contributions made to the Employees’ Retirement System and the Employees’ Pension System on behalf of those transferring members, plus the interest earned on those contributions through the date of transfer. (c) (1) For members who transfer from a local pension system, the local pension system shall transfer to the Board of Trustees the employer contributions that were made to the local pension system on behalf of those members who transferred, plus the interest earned on those contributions through the date of transfer. (2) The Board of Trustees shall deposit any funds transferred under paragraph (1) of this subsection in the accumulation fund of the Law Enforcement Officers’ Pension System. (d) (1) On or before January 1, 2006, for members who transfer from the Maryland Transit Administration Pension System established under § 7–603 of the Transportation Article, the Maryland Transit Administration shall transfer to the Board of Trustees the employer contributions made to the pension system established under § 7–603 of the Transportation Article on behalf of those members who transfer, plus the interest earned on those contributions through July 1, 2005. (2) The Board of Trustees shall deposit any funds transferred under paragraph (1) of this subsection in the accumulation fund of the Law Enforcement Officers’ Pension System. (e) (1) This subsection applies to members of the Department of Public Safety and Correctional Services Intelligence and Investigative Division who: (i) have the powers granted to a police officer under § 10–701 of the Correctional Services Article; and (ii) transfer to the Law Enforcement Officers’ Pension System on or before December 31, 2007. (2) The Board of Trustees shall transfer to the accumulation fund of the Law Enforcement Officers’ Pension System the employer contributions made to the Correctional Officers’ Retirement System or the Employees’ Pension System on behalf of those members under paragraph (1) of this subsection, plus the interest earned on those contributions through the date of transfer. (f) (1) This subsection applies to a member of the Warrant Apprehension Unit, formerly of the Division of Parole and Probation in the Department of Public Safety and Correctional Services, who: (i) had the powers granted to a peace officer or police officer under the former § 6–106 of the Correctional Services Article; and (ii) transferred to the Law Enforcement Officers’ Pension System on or before December 31, 2015. (2) The Board of Trustees shall transfer to the accumulation fund of the Law Enforcement Officers’ Pension System the employer contributions made to the Employees’ Pension System on behalf of those members under paragraph (1) of this subsection, plus the interest earned on those contributions through the date of transfer.

Md. Code, State Personnel and Pensions § 26-203.2

§26–203.2. (a) This section applies to a member of the Maryland Transit Administration Police Force who: (1) has the powers granted to a police officer under § 7–207 of the Transportation Article; and (2) transfers to the Law Enforcement Officers’ Pension System on or before December 31, 2005. (b) Before the transfer of a member to the Law Enforcement Officers’ Pension System, the Maryland Transit Administration shall perform all calculations and compile all necessary information and documentation as directed or required by the State Retirement and Pension System for the transfer of each individual account. (c) (1) At least 60 days before transferring to the Law Enforcement Officers’ Pension System, a member of the Maryland Transit Administration Police Force may elect to pay all or a portion of the member contribution that would have been paid by a member of the Law Enforcement Officers’ Pension System for the period of time the member of the Maryland Transit Administration Police Force was employed with the Maryland Transit Administration from July 1, 2000, through December 31, 2005. (2) A member who elects to pay all or a portion of the member contributions under paragraph (1) of this subsection, shall pay the Maryland Transit Administration in accordance with subsection (e)(1) of this section. (3) The member shall complete and file with the Maryland Transit Administration a form stating the member’s intent to pay all or a portion of the member contributions under this subsection. (4) The Maryland Transit Administration shall coordinate and manage the member’s election to pay all or a portion of the member contributions under this subsection. (d) If a member elects not to pay all or a portion of the member contributions as provided in subsection (c) of this section: (1) the Maryland Transit Administration may not pay any amount of member contributions due for prior service credit for that member to the Board of Trustees; and (2) on retirement from the Law Enforcement Officers’ Pension System, the member’s retirement allowance shall be reduced by the actuarial equivalent of the member contributions that would have been deducted if the member had earned the service credit under the Law Enforcement Officers’ Pension System, including interest on those contributions. (e) (1) If a member elects to pay for all or a portion of the member contributions as provided in subsection (d) of this section, the member shall pay the Maryland Transit Administration 4% of the member’s Maryland Transit Administration annual salary on February 23, 2005, multiplied by 50% of the member’s number of years of service, including partial years, from July 1, 2000, through July 1, 2005. (2) Payments made under this subsection shall begin the first pay period of 2006 and continue until the total amount owed by the member is paid. (3) The Maryland Transit Administration shall administer and manage the payments as follows: (i) the member shall pay to the Maryland Transit Administration, through payroll deductions, the sum of $30 per week until the amount as calculated by the Maryland Transit Administration is paid; (ii) the member shall pay the Maryland Transit Administration any remaining balance due at the time of separation from service with the Maryland Transit Administration; and (iii) any amount remaining to be paid by a member who dies while still employed by the Maryland Transit Administration shall be forgiven by the Maryland Transit Administration. (4) For a member who elects to pay a portion of the member contributions under this section, the State Retirement and Pension System shall bill the Maryland Transit Administration, and the Maryland Transit Administration shall pay, the entire amount of member contributions due for the period of July 1, 2000, through July 1, 2005, including interest, no later than January 1, 2006, as specified by the State Retirement and Pension System. (f) (1) If a member participated in the Maryland Transit Administration’s Supplemental Pension Plan in addition to the Maryland Transit Administration’s Pension System, the member’s retirement allowance shall be reduced by the set–off amount that was fixed upon termination of the Supplemental Pension Plan in December 2003. (2) The Maryland Transit Administration shall provide the names and set–off amounts for all members to the State Retirement and Pension System at the time of retirement.

Md. Code, State Personnel and Pensions § 26-203.3

§26–203.3. (a) This section applies to members of the Department of Public Safety and Correctional Services Intelligence and Investigative Division who: (1) have the powers granted to a police officer under § 10–701 of the Correctional Services Article; and (2) transfer to the Law Enforcement Officers’ Pension System on or before December 31, 2007. (b) A member shall deposit in the annuity savings fund of the Law Enforcement Officers’ Pension System contributions at the rate of 4% of the individual’s earnable compensation after July 1, 2000, including regular interest on the contributions at the rate of 5% per year compounded annually.

Md. Code, State Personnel and Pensions § 26-203.4

§26–203.4. (a) This section applies to an employee of the Warrant Apprehension Unit, formerly of the Division of Parole and Probation in the Department of Public Safety and Correctional Services, who: (1) had the powers granted to a peace officer or police officer under the former § 6–106 of the Correctional Services Article; and (2) transferred to the Law Enforcement Officers’ Pension System on or before December 31, 2015. (b) A member shall deposit in the annuity savings fund of the Law Enforcement Officers’ Pension System: (1) contributions at the rates specified under § 26–204 of this subtitle; and (2) regular interest on the contributions required under item (1) of this subsection at the rate of 5% per year compounded annually. (c) (1) The Board of Trustees shall transfer a member’s accumulated contributions from the annuity savings fund of the Employees’ Pension System to the annuity savings fund of the Law Enforcement Officers’ Pension System. (2) The amount a member is required to deposit under subsection (b) of this section shall be reduced by the amount of accumulated contributions transferred under this subsection.

Md. Code, State Personnel and Pensions § 26-204

(a) (1) Except as provided in subsection (b) of this section, a member’s contribution rate is: (i) 4% of the member’s earnable compensation received before July 1, 2011; (ii) 6% of the member’s earnable compensation received from July 1, 2011, to June 30, 2012, both inclusive; and (iii) 7% of the member’s earnable compensation received on or after July 1, 2012. (2) Notwithstanding paragraph (1) of this subsection, after 32 years and 6 months of service as a member, a member does not make any further contributions. (b) (1) This subsection applies only to a member who: (i) transferred to the Law Enforcement Officers’ Pension System from the Employees’ Retirement System on or after January 1, 2001, and on or before December 31, 2004; or (ii) 1. transferred to the Law Enforcement Officers’ Pension System from the Employees’ Retirement System on or before December 31, 2000; and 2. 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 subtitle. (2) The contribution rate for a member who has transferred from the Employees’ Retirement System is the rate set under: (i) Section 22–214(a) of this article, for a member who had elected Selection A (Additional member contributions) under § 22–219 of this article; or (ii) Section 22–214(b) of this article, for a member who had elected Selection B (Limited cost–of–living adjustment) under § 22–220 of this article.

Md. Code, State Personnel and Pensions § 26-205

(a) Except as provided in subsection (b) of this section, regular interest is payable on member contributions until retirement or withdrawal of accumulated contributions at the rate of: (1) 4% a year, compounded annually, for a member who has transferred from the Employees’ Retirement System on or before December 31, 2004; or (2) 5% a year, compounded annually, for each other member. (b) Except as provided in subsection (c) of this section, no further interest shall be paid on member contributions after membership ends if the former member is not eligible to receive a vested allowance under Title 29, Subtitle 3 of this article. (c) (1) In this subsection, “active member” means a member who is not separated from employment with the State or a participating employer of one of the several systems. (2) This subsection applies only to an individual who: (i) is a former member of the Law Enforcement Officers’ Pension System; (ii) is not eligible to receive a vested allowance from the Law Enforcement Officers’ Pension System under Title 29, Subtitle 3 of this article; (iii) has not withdrawn the individual’s member contributions from the Law Enforcement Officers’ Pension System; and (iv) is an active member of one of the several systems. (3) An individual described in paragraph (2) of this subsection shall receive regular interest at the rate described under subsection (a) of this section on the individual’s member contributions in a nonvested account in the Law Enforcement Officers’ Pension System while the individual is an active member of one of the several systems.

Md. Code, State Personnel and Pensions § 26-206.1

§26–206.1. (a) This section applies to an individual who: (1) on or before June 30, 2011, was a member of the Law Enforcement Officers’ Pension System; (2) (i) is separated from employment for 4 years or less; (ii) 1. is separated from employment for military service that meets the requirements of the federal Uniformed Services Employment and Reemployment Rights Act; and 2. resumes employment within 1 year of leaving military service in a position that is included in the Correctional Officers’ Retirement System; or (iii) is separated from employment with the minimum eligibility service needed to be eligible for a vested allowance under Title 29, Subtitle 3 of this article; (3) does not withdraw the member’s accumulated contributions; and (4) does not become a retiree. (b) An individual described in subsection (a) of this section who resumes employment in a position that is included in the Law Enforcement Officers’ Pension System is subject to the same requirements to which an individual who was a member of the Law Enforcement Officers’ Pension System on June 30, 2011, and remains a member on July 1, 2011, is subject.

Md. Code, State Personnel and Pensions § 26-207

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

Md. Code, State Personnel and Pensions § 26-209

(a) Except as provided in subsection (b) of this section, this Part II of this subtitle applies to an individual who is a member of the Law Enforcement Officers’ Pension System. (b) This Part II of this subtitle does not apply to an individual who: (1) is a member of the Law Enforcement Officers’ Pension System; (2) transferred to the Law Enforcement Officers’ Pension System from the Employees’ Retirement System; and (3) did not elect to participate in the Contributory Law Enforcement Officers’ Modified Pension Benefit as provided in § 26-211 of this subtitle.

Md. Code, State Personnel and Pensions § 26-210

(a) A member who is subject to this Part II of this subtitle shall: (1) receive an allowance for all creditable service as follows: (i) for normal service retirement as provided in § 26–401(b) of this title; (ii) for ordinary disability retirement as provided in § 29–108 of this article; and (iii) for accidental disability retirement as provided in §§ 29–109(c) and 29–110 of this article; (2) have the allowance adjusted as provided in §§ 29–401, 29–402, 29–406, and 29–408 of this article; and (3) make member contributions at the rate specified in § 26–204(a) of this subtitle. (b) A member who is not subject to this Part II of this subtitle shall receive an allowance for accidental disability retirement as provided in §§ 29-109(c) and 29-110 of this article.

Md. Code, State Personnel and Pensions § 26-211

(a) This section applies only to a member of the Law Enforcement Officers’ Pension System who transferred to the Law Enforcement Officers’ Pension System from the Employees’ Retirement System. (b) On or before December 31, 2000, a member may elect to participate in the Law Enforcement Officers’ Modified Pension Benefit under this part by submitting an election on a form provided by the State Retirement Agency. (c) (1) An election by a member under this section is irrevocable. (2) Subject to § 26-401(a)(2) of this title, an election by a member under this section shall be effective on the date that it is filed with the State Retirement Agency. (3) The Board of Trustees may not accept an election to participate in the Law Enforcement Officers’ Modified Pension Benefit that is filed with the State Retirement Agency after 5 p.m. on December 29, 2000.

Md. Code, State Personnel and Pensions § 26-212

A member of the Law Enforcement Officers’ Pension System who did not elect to participate in the Law Enforcement Officers’ Modified Pension Benefit as provided in § 26–211 of this subtitle, shall receive each benefit enhancement added on or after July 1, 2001, to the Law Enforcement Officers’ Modified Pension Benefit.

Md. Code, State Personnel and Pensions § 26-302

(a) Subject to subsections (b), (c), and (d) of this section, a member is entitled to eligibility service for periods of employment while a member of the Law Enforcement Officers’ Pension System. (b) The Board of Trustees may not allow more than 1 year of service credit for a calendar year. (c) (1) If a member completes at least 500 hours of employment while a member in any fiscal year, the member is entitled to 1 year of eligibility service. (2) Except in the first and last fiscal years, a member may not receive any eligibility service for a fiscal year in which the member completes less than 500 hours of employment while a member. (3) In the first and last fiscal years, if a member completes less than 500 hours of employment while a member, the Board of Trustees shall prorate the eligibility service based on the number of hours worked. (d) If a member who is subject to the Law Enforcement Officers’ Modified Pension Benefit under Subtitle 2, Part II of this title completes less than 500 hours of employment while a member, the Board of Trustees shall prorate the member’s eligibility service based on the number of hours worked.

Md. Code, State Personnel and Pensions § 26-303

(a) This section applies to a member of the Law Enforcement Officers’ Pension System who is subject to the Law Enforcement Officers’ Modified Pension Benefit under Subtitle 2, Part II of this title. (b) A member is entitled to the eligibility service to which the member was entitled before the separation from employment if the member: (1) was entitled to a vested allowance from the Law Enforcement Officers’ Pension System at the time of the separation from employment; and (2) has completed 1 year of employment as a member of the Law Enforcement Officers’ Pension System who is subject to the Law Enforcement Officers’ Modified Pension Benefit under Subtitle 2, Part II of this title.

Md. Code, State Personnel and Pensions § 26-304

A member is entitled to eligibility service that equals: (1) the member’s service credit transferred from a retirement or pension system under Title 37 of this article; (2) for a member who has transferred from the Employees’ Retirement System, the member’s creditable service recognized under the Employees’ Retirement System through the date before the member became a member of the Law Enforcement Officers’ Pension System; and (3) for a member who has transferred from the Employees’ Pension System, the member’s eligibility service recognized under the Employees’ Pension System through the date before the member became a member of the Law Enforcement Officers’ Pension System.

Md. Code, State Personnel and Pensions § 26-306

(a) A member is entitled to eligibility service during a leave of absence if the leave of absence: (1) is approved by the Board of Trustees under regulations that apply to all members similarly situated; and (2) is not otherwise recognized as eligibility service under this subtitle. (b) To receive service credit for a leave of absence described under subsection (a) of this section, a member shall pay the member contributions with regular interest, if any, as determined by the Board of Trustees under regulations that apply to all members similarly situated.

Md. Code, State Personnel and Pensions § 26-306.1

§26–306.1. (a) Except as provided in subsection (b) of this section, a member may not purchase service credit under this title if the member is separated from employment. (b) (1) A member who is separated from employment may purchase service credit under this title for a leave of absence approved by the Board of Trustees under regulations that apply to all members, if the member purchases the service credit within 60 days after the expiration of the leave of absence. (2) For good cause shown, the Executive Director, in the Executive Director’s sole discretion, may extend the time period to purchase service credit under paragraph (1) of this subsection if: (i) the purchased service credit would allow the member to meet the eligibility service requirements to apply for an ordinary disability retirement under § 29–105(a) of this article; and (ii) the member completes the purchase of the service credit before the earlier of: 1. 4 years after the expiration of the leave of absence; or 2. the date membership ends. (3) The Board of Trustees shall adopt regulations to carry out this subsection.

Md. Code, State Personnel and Pensions § 26-307

(a) (1) In the year of retirement, a member may purchase service credit for eligibility service of up to 10 years for periods of employment for which the member: (i) would have been entitled to purchase the service credit under the Employees’ Pension System; and (ii) is not otherwise entitled to service credit under the Law Enforcement Officers’ Pension System. (2) To purchase service credit under this section, a member must: (i) complete a claim for the service credit and file it with the Board of Trustees on the form that the Board of Trustees provides; and (ii) pay to the Board of Trustees an amount equal to the annuity reserve and pension reserve required to fund the additional allowance. (b) (1) A member may purchase credit for eligibility service for previous service in a position described in § 23-204(a) of this article. (2) To purchase the service credit, the member must pay, in a single payment, the contributions, with interest, that the Board of Trustees considers appropriate.

Md. Code, State Personnel and Pensions § 26-307.1

§26–307.1. (a) A member may purchase service credit as provided in subsection (b) of this section for periods of employment described in subsection (c) of this section for which the member is not otherwise entitled. (b) (1) A member who purchases service credit under this section shall: (i) complete a claim for the service credit and file it with the Board of Trustees on a form that the Board of Trustees provides; and (ii) pay to the Board of Trustees in a single payment the member contributions the member would have made for the period of employment for which service credit is being purchased plus regular interest to the date of payment. (2) A member may pay for service credit purchased under this section at any time before retirement. (c) (1) Subject to paragraph (2) of this subsection, a member may purchase service credit for a period of employment as a member of the Law Enforcement Officers’ Pension System if the member: (i) has withdrawn the member’s accumulated contributions after a prior termination of membership; and (ii) was subject to the modified pension benefit under Subtitle 2, Part II of this title when the member previously terminated membership in the Law Enforcement Officers’ Pension System. (2) A member may not purchase eligibility service credit that exceeds the member’s creditable service credit.

Md. Code, State Personnel and Pensions § 26-308

(a) For the purpose of computing benefits under this title, creditable service consists of: (1) eligibility service as adjusted under subsection (b) of this section; and (2) credit for unused sick leave as provided in § 20-206 of this article. (b) (1) This subsection does not apply to eligibility service that consists of: (i) service credit transferred from another retirement or pension system; (ii) military service credit granted under Title 38 of this article; or (iii) service credit purchased under this subtitle. (2) The Board of Trustees shall adjust a member’s eligibility service as provided in this subsection. (3) (i) The Board of Trustees shall adopt regulations to determine for any fiscal year the amount of creditable service that equals the eligibility service for a member who has completed less than the normal hours of employment for the member’s position. (ii) The normal hours of employment for a position equals the minimum number of hours to be completed by a full-time employee serving in the member’s position. (iii) The creditable service recognized for a fiscal year may not be less than the eligibility service for the member multiplied by a fraction, not to exceed 1, that has: 1. as its numerator, the number of hours of employment as a member that the member has completed during that year; and 2. as its denominator, the normal number of hours for the member’s position.

Md. Code, State Personnel and Pensions § 26-401

(a) (1) Subject to paragraph (2) of this subsection, a member may retire with a normal service retirement allowance if: (i) on or before the date of retirement, the member: 1. has at least 25 years of eligibility service; or 2. is at least 50 years old; and (ii) the member completes and submits a written application to the Board of Trustees on the form that the Board of Trustees provides stating the date when the member desires to retire. (2) A member may not retire before the first day of the month after employment ends. (b) (1) Except as provided in paragraphs (2), (3), and (4) of this subsection, on retirement under this section, a member is entitled to receive a normal service retirement allowance that equals the number of years of the member’s creditable service multiplied by 2% of the member’s average final compensation. (2) A member’s normal service retirement allowance under paragraph (1) of this subsection may not exceed 65% of the member’s average final compensation. (3) (i) This paragraph applies only to a member who is not subject to the Law Enforcement Officers’ Modified Pension Benefit under Subtitle 2, Part II of this title. (ii) Except as provided in paragraph (4) of this subsection, on retirement under this paragraph, the member is entitled to receive a normal service retirement allowance that equals: 1. 2.3% of the member’s average final compensation multiplied by each year of the member’s first 30 years of creditable service; and 2. 1% of the member’s average final compensation multiplied by each year of creditable service in excess of 30 years. (4) Subject to paragraph (2) of this subsection, on retirement under this section, if a member’s annuity is greater than the member’s normal service retirement allowance calculated under paragraph (1) or (3) of this subsection, the member’s normal service retirement allowance shall equal the member’s annuity.

Md. Code, State Personnel and Pensions § 26-401.1

§26–401.1. (a) (1) In this section the following words have the meanings indicated. (2) “DROP” means the Deferred Retirement Option Program established under this section. (3) “DROP member” means a member of the Law Enforcement Officers’ Pension System who: (i) is eligible to participate in the DROP as provided in subsection (c) of this section; and (ii) elects to participate in the DROP as provided in subsection (e) of this section. (b) There is a DROP for eligible members of the Law Enforcement Officers’ Pension System. (c) (1) In this subsection, “creditable service” does not include credit for unused sick leave as provided in § 20–206 of this article. (2) A member of the Law Enforcement Officers’ Pension System is eligible to participate in the DROP if the member has at least 25 and less than 32 years of creditable service. (d) (1) In this subsection, “creditable service” does not include credit for unused sick leave as provided in § 20–206 of this article. (2) An eligible member may elect to participate in the DROP for a period not to exceed the lesser of: (i) 7 years; (ii) the difference between 32 years and the member’s creditable service as of the date of the member’s election to participate in the DROP and retire from the Law Enforcement Officers’ Pension System; or (iii) a term selected by the member. (e) (1) An eligible member who elects to participate in the DROP shall: (i) complete and submit a written election form to the Board of Trustees, on the form that the Board of Trustees provides, stating: 1. the member’s intention to participate in the DROP; 2. the date when the member desires to retire; 3. the period that the member desires to participate in the DROP, as provided in subsection (d) of this section; 4. the date when the member intends to terminate employment with the State in the form of a binding letter of resignation accepted by the Secretary or the Secretary’s designee of the Department for which the member is employed; and 5. any other information required by the Board of Trustees to implement the DROP; and (ii) complete and submit a written retirement application form to the Board of Trustees, on the form that the Board of Trustees provides. (2) An eligible member’s election to participate in the DROP is irrevocable. (f) (1) A DROP member’s participation in the DROP shall commence on the first day of the month following acceptance by the Board of Trustees of the DROP member’s completed election form, retirement application form, and any other information required by the Board of Trustees. (2) A DROP member is a retiree of the Law Enforcement Officers’ Pension System. (g) Participation in the DROP ends if the DROP participant: (1) separates from employment in accordance with the binding letter of resignation submitted with the member’s election form; (2) dies; (3) is terminated from employment by the DROP member’s participating employer at any time before the date specified on the member’s election form; (4) shortens the time period for participation in the DROP by delivering to the DROP member’s participating employer and the Board of Trustees written notice of the intent of the DROP member to terminate employment; or (5) accepts an accidental disability retirement allowance as provided in subsection (k) of this section. (h) (1) As of the effective date of participation in the DROP, the Board of Trustees shall determine the DROP member’s normal service retirement allowance under § 26–401 of this subtitle. (2) During the period that a DROP member participates in the DROP, the Board of Trustees shall: (i) deposit the DROP member’s normal service retirement allowance in the DROP for the DROP member’s benefit; (ii) adjust the DROP member’s normal service retirement allowance each fiscal year as provided in §§ 29–401, 29–402, 29–406, and 29–408 of this article; and (iii) accrue interest on the amounts calculated under subparagraphs (i) and (ii) of this paragraph for the DROP member into the DROP at the rate of: 1. 6% a year, compounded monthly if the individual is a DROP member on or before June 30, 2011; or 2. 4% a year, compounded annually, if the individual becomes a DROP member on or after July 1, 2011. (3) A DROP member may not receive creditable service or eligibility service during the period that the DROP member participates in the DROP. (4) A DROP member’s compensation during the period that the DROP member participates in the DROP may not be: (i) subject to the employer pickup provisions of § 21–303 of this article or any reduction or deduction as a member contribution for pension or retirement purposes; or (ii) used to increase the DROP member’s average final compensation except as provided in subsection (k) of this section. (5) During the period that a DROP member participates in the DROP, the DROP member shall: (i) continue to receive compensation, health insurance, and other benefit options established under the State Employee and Retiree Health and Welfare Benefit Program administered by the Secretary of Budget and Management, and any other benefits as an employee of the State; (ii) be subject to the personnel law, regulations, and policies applicable to an employee of the State agency for which the member is employed; and (iii) receive retirement benefits only to the extent provided in this section. (6) The Board of Trustees is not required to establish an individual DROP account for each DROP member. (7) Each year, the Board of Trustees shall provide a DROP member with a written accounting of the DROP member’s account balance in the DROP. (i) (1) Subject to paragraphs (2), (3), and (4) of this subsection, on termination of a DROP member’s participation in the DROP, the Board of Trustees shall pay to the DROP member or, if the DROP member has died, the designated beneficiary of the DROP member, the amount accrued in the DROP for the DROP member under subsection (h)(2) of this section, reduced by any withholding taxes remitted to the Internal Revenue Service or other taxing authority, in a lump sum. (2) The designated beneficiary of a DROP member is: (i) the DROP member’s surviving spouse; (ii) if there is not a surviving spouse or if the surviving spouse dies, each child of the deceased DROP member who is under 26 years old or is disabled; or (iii) if there is not a surviving spouse or a child who is under 26 years old or is disabled, the DROP member’s designated beneficiary. (3) A DROP member or designated beneficiary of a DROP member may direct the Board of Trustees to pay all or a portion of the amount accrued for the DROP member’s benefit under subsection (h)(2) of this section directly to the custodian of an eligible retirement plan as provided in Title 21, Subtitle 6 of this article. (4) A DROP member or designated beneficiary of a DROP member is eligible to receive the amount due under this subsection within 90 days after: (i) the date of termination of the DROP member’s participation in the DROP; (ii) the receipt by the Board of Trustees of a completed application to receive the DROP amount, on the form that the Board of Trustees provides; and (iii) the receipt by the Board of Trustees of any other information that the Board of Trustees requires to process payment of the DROP member’s account balance to the DROP participant, the designated beneficiary of the DROP participant, or the custodian of an eligible retirement plan. (j) (1) Except as provided in paragraph (2) of this subsection, as of the first day of the month following termination of a DROP member’s participation in the DROP, the Board of Trustees shall commence and continue payment of the normal service retirement allowance, including the cost–of–living adjustments as provided in §§ 29–401, 29–402, 29–406, and 29–408 of this article, to the member as provided in §§ 26–401 and 26–402 of this subtitle. (2) If a DROP member dies before termination of the DROP member’s participation in the DROP, the Board of Trustees shall pay 50% of the normal service retirement allowance, including the cost–of–living adjustments as provided in §§ 29–401, 29–402, 29–406, and 29–408 of this article, to the beneficiary as provided in § 26–402 of this subtitle. (k) (1) A DROP member is eligible to apply for an accidental disability retirement allowance under § 29–109 of this article if after the DROP member commences participation in the DROP: (i) the member is totally and permanently incapacitated for duty arising out of or in the course of the actual performance of duty that occurs while participating in the DROP, and without willful negligence of the member; and (ii) the medical board certifies that: 1. the member is totally incapacitated, either mentally or physically, for the further performance of duty by the occurrence described under item (i) of this paragraph; 2. the incapacity is likely to be permanent; and 3. the member should be retired. (2) (i) If a DROP member is granted an accidental disability retirement allowance, the DROP member shall: 1. submit an application to the Board of Trustees, on the form the Board of Trustees provides, to receive payment of the amount accrued in the DROP in accordance with subsection (i) of this section; 2. execute a written waiver of any benefits to which the DROP member may be entitled under the DROP; and 3. submit an application to retire with an accidental disability retirement allowance, on the form the Board of Trustees provides, stating the effective date of the DROP member’s retirement as an accidental disability retiree. (ii) On acceptance of the application for payment and application to retire, the Board of Trustees shall commence payment of an accidental disability allowance to the DROP member as provided in § 29–110 of this article, except that the DROP member’s average final compensation shall be computed as of the effective date of the DROP member’s application for an accidental disability retirement allowance.

Md. Code, State Personnel and Pensions § 26-402

(a) This section applies to the surviving spouse or a child of a retiree in receipt of a service retirement allowance or a disability retirement allowance. (b) On the death of a retiree, the Board of Trustees shall pay 50% of the retiree’s retirement allowance to: (1) the surviving spouse; or (2) if there is no surviving spouse or if the surviving spouse dies, to any children of the deceased retiree who are under 26 years old or disabled, as defined under § 72(m)(7) of the Internal Revenue Code. (c) (1) Except as provided in paragraphs (2) and (3) of this subsection, if the Board of Trustees pays an allowance to more than one child, the Board of Trustees shall divide the allowance among the children in a manner that provides for payments to continue until: (i) each child has died; or (ii) each child becomes 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 this paragraph shall be divided equally among the disabled children.

Md. Code, State Personnel and Pensions § 26-403

(a) Except as provided in subsections (f) and (g) of this section, a retiree who is receiving a service retirement allowance may accept employment with a participating employer on a permanent, temporary, or contractual basis, without any reduction in retirement allowance. (b) A reemployed retiree who is receiving a service retirement allowance may not receive creditable service or eligibility service during the period of reemployment. (c) The 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. (d) The State Retirement Agency shall institute appropriate reporting procedures with the affected payroll systems to ensure compliance with this section. (e) (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. (f) An individual who is receiving a service 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. (g) (1) This section applies to a retiree who is elected as a sheriff less than 1 year after the retiree’s date of retirement. (2) The Board of Trustees shall, after giving notice, temporarily suspend the retiree’s allowance as of the date the retiree begins serving as a sheriff. (3) (i) On receiving satisfactory documentation that the individual is no longer serving as a sheriff, the Board of Trustees shall reinstate the retiree’s allowance with accumulated cost–of–living adjustments from the date the allowance was temporarily suspended. (ii) The retiree’s allowance will be reinstated on the first day of the month following the month in which the retiree ceased serving as a sheriff. (4) If a retiree whose allowance is temporarily suspended dies while serving as a sheriff, survivorship benefits selected by the member at the time of retirement shall be paid to: (i) the surviving spouse or child, in accordance with § 26–402 of this subtitle; or (ii) if there is no surviving spouse or child, the designated beneficiary in accordance with § 21–403 of this article.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://mgaleg.maryland.gov/mgawebsite/Laws/StatutesFetched: 10/16/2026