Md. Code, State Personnel and Pensions, Title 38

Md. Code, State Personnel and Pensions, Title 38
in effect

Md. Code, State Personnel and Pensions § 38-101

(a) In this subtitle the following words have the meanings indicated. (b) “Accumulated contributions”: (1) when used in relation to a State system, has the meaning stated in § 20–101 of this article; and (2) when used in relation to a local retirement or pension system, has the meaning most closely analogous to the meaning stated in § 20–101 of this article within the context of the local retirement or pension system. (c) “Member”: (1) when used in relation to a State system, has the meaning stated in § 20–101 of this article; and (2) when used in relation to a local retirement or pension system, has the meaning most closely analogous to the meaning stated in § 20–101 of this article within the context of the local retirement or pension system. (d) “Military service” means: (1) induction into the armed forces of the United States for training and service under the Selective Training and Service Act of 1940 or a subsequent act of a similar nature; (2) membership in a reserve component of the armed forces of the United States: (i) on active duty or ordered or assigned to active duty; or (ii) on active duty for training or inactive duty for training that interrupts a member’s service; (3) enlistment into the armed forces of the United States; (4) membership in the Maryland National Guard; or (5) active duty with the commissioned corps of the Public Health Service, the National Oceanic and Atmospheric Administration, or the Coast and Geodetic Survey. (e) “Regular interest”: (1) when used in relation to a State system, has the meaning stated in § 20–101 of this article; and (2) when used in relation to a local retirement or pension system, has the meaning most closely analogous to the meaning stated in § 20–101 of this article within the context of the local retirement or pension system. (f) “State or local retirement or pension system” means a retirement or pension system operated under the laws of the State or a political subdivision of the State. (g) “State system” means a retirement or pension system that is included in the State Retirement and Pension System under § 21–102 of this article other than the Legislative Pension Plan except to the extent provided by the joint resolution submitted to the General Assembly by the General Assembly Compensation Commission under Article III, § 15 of the Maryland Constitution.

Md. Code, State Personnel and Pensions § 38-102

(a) Except as provided in subsections (b) and (c) of this section, during a period that a member of a State or local retirement or pension system is absent from employment for military service, the member or the member’s estate, under a State or local retirement or pension system, is not entitled to: (1) ordinary disability benefits; (2) accidental disability benefits; (3) death benefits; (4) optional allowances; or (5) other disability or death benefits. (b) (1) This subsection applies to an individual who: (i) is a member of a State or local retirement or pension system as defined in § 37–101(r) of this article; and (ii) dies on or after January 1, 2007, while performing qualified military service as defined in Chapter 43, Title 38 of the United States Code. (2) To the extent required by § 401(a)(37) of the Internal Revenue Code, an individual described under paragraph (1) of this subsection shall receive any additional benefits that the system provides for any member who resumes employment after completing military service and then dies, including any death benefits that are contingent on a member’s death while employed. (c) (1) This subsection applies to an individual who: (i) is a member of a State or local retirement or pension system as defined in § 37–101(r) of this article; and (ii) becomes disabled or dies on or after January 1, 2007, while performing qualified military service as defined in Chapter 43, Title 38 of the United States Code. (2) (i) To the extent permitted by § 414(u)(8) of the Internal Revenue Code, a State or local retirement or pension system may provide that, for benefit accrual purposes, an individual described under paragraph (1) of this subsection shall be treated as having returned to employment on the day before the death or disability and then terminated on the date of death or disability. (ii) If a State or local retirement or pension system provides benefits under subparagraph (i) of this paragraph, the system may choose to provide either partial or full benefits, but whichever option is chosen, it shall be applied to all similarly situated members in a reasonably equivalent manner. (d) (1) This subsection applies to an individual who: (i) is a member of a State or local retirement or pension system as defined in § 37–101(r) of this article; and (ii) on or after January 1, 2009, receives differential wage payments from an employer while performing qualified military service as defined in Chapter 43, Title 38 of the United States Code. (2) (i) To the extent permitted by § 3401(h) of the Internal Revenue Code, an individual described under paragraph (1) of this subsection shall be treated as employed by the employer described in paragraph (1)(ii) of this subsection while performing qualified military service and the differential wage payments shall be treated as compensation. (ii) To the extent permitted by § 414(u)(12) of the Internal Revenue Code, a State or local retirement or pension system may provide benefits to the individual based on the differential wage payments. (iii) If a State or local retirement or pension system provides benefits under subparagraph (ii) of this paragraph, the benefits shall be provided to all similarly situated members in a reasonably equivalent manner.

Md. Code, State Personnel and Pensions § 38-103

(a) This section applies only to a member of a State or local retirement or pension system who: (1) does not withdraw any of the member’s accumulated contributions, unless the member redeposits the sum withdrawn as provided under subsection (b) of this section; (2) within 1 year after the member leaves military service, is employed by the State or a political subdivision of the State; (3) does not take any employment other than the employment described in item (2) of this subsection, except for temporary employment after the member: (i) applied for reemployment in the member’s former classification or position in the State service; and (ii) was refused immediate reemployment for causes beyond the member’s control; and (4) applies for service credit with the State or local retirement or pension system in which the member held membership before the member’s military service began. (b) If a member of a State or local retirement or pension system who is absent from employment for military service withdraws any of the member’s accumulated contributions and redeposits the sum withdrawn with regular interest into the State or local retirement or pension system, the member, if otherwise qualified, is entitled to the benefits of this section as if the withdrawal had not been made. (c) Except as otherwise provided in this subtitle, a member of a State or local retirement or pension system who is actively reemployed under subsection (a)(2) of this section retains the status and rights as a member during a period of absence from employment for military service. (d) (1) Subject to paragraph (2)(i) of this subsection, a member of a State or local retirement or pension system shall receive service credit for a period of absence from employment while in military service if: (i) the employment of the member under subsection (a)(2) of this section is active or the employee is reinstated as a regular employee on a leave of absence; and (ii) membership in a State or local retirement or pension system is a requirement of employment. (2) (i) For an absence for military service, service credit for the military service may not exceed 5 years. (ii) 1. This subparagraph applies only to a member of a State system. 2. Subject to subparagraph (i) of this paragraph and in addition to any service credit received under paragraph (1) of this subsection, a member of the Maryland National Guard or of a reserve component of the armed forces of the United States who has been activated under Title 10 of the United States Code and who is on active or inactive duty for training that interrupts the member’s service shall receive service credit at the rate of 4 months for each full year for military service, not to exceed a total of 36 months. 3. Subject to subparagraph (i) of this paragraph, an individual shall receive service credit at the rate of 4 months for each full year of attendance at a United States service academy that interrupts the member’s employment, not to exceed a total of 16 months. (e) A member of a State or local retirement or pension system who receives service credit for military service under this section may transfer the credit to another State or local retirement or pension system. (f) The service credit for military service that a member of a State system receives under this section shall be applied to the individual’s retirement allowance using the accrual rate at the time the individual retires from a State system.

Md. Code, State Personnel and Pensions § 38-104

(a) (1) This section applies to an individual who is: (i) a member of a State system; or (ii) a former member of a State system who is eligible to receive a benefit under § 29–302 or § 29–303 of this article. (2) This section does not apply to a retiree of a State system. (b) Except as provided in subsection (c) of this section, an individual described in subsection (a) of this section, who has not met the conditions set forth in § 38–103(a)(2) through (4) of this subtitle, is entitled to receive service credit for military service only on the attainment of 10 years of service credit earned through employment as a member of a State system. (c) (1) An individual described in subsection (a) of this section may not receive credit for that military service if the individual receives credit for military service from another retirement system for which retirement benefits have been or will be received by the individual. (2) Paragraph (1) of this subsection does not apply to: (i) credit for military service provided under: 1. the Social Security Act; 2. the National Railroad Retirement Act; or 3. Title 3 or Title 10, Chapter 1223, §§ 12731 through 12737 of the United States Code; or (ii) disability payments from a pension or retirement system. (3) (i) Military service credit under this section may not exceed 5 years. (ii) Subject to subparagraph (i) of this paragraph, a member of the Maryland National Guard or of a reserve component of the armed forces of the United States who has not been activated under Title 10 of the United States Code, shall receive service credit at the rate of 4 months for each full year of service with the Maryland National Guard or with a reserve component of the armed forces of the United States, not to exceed a total of 36 months. (iii) Subject to subparagraph (i) of this paragraph, an individual shall receive service credit at the rate of 4 months for each full year of attendance at a United States service academy, not to exceed a total of 16 months. (d) (1) Except as provided in paragraph (2) of this subsection, the service credit for military service that an individual receives under this section shall be applied to the individual’s retirement allowance using the accrual rate in effect at the time the individual retires from a State system. (2) If an individual applies for military service credit on or after July 1, 2011, the service credit for military service that the individual receives under this section shall be applied to the individual’s retirement allowance using the accrual rate in effect at the time the individual submits an application for military service credit to the State Retirement Agency.

Md. Code, State Personnel and Pensions § 38-201

(a) This section applies only to individuals who are members of the General Assembly from and after January 15, 1963. (b) Notwithstanding any provisions of general or local law to the contrary, any member of a local retirement system that is operated on an actuarial basis, as described in Title 37 of this article, who is on leave of absence without pay from employment with a political subdivision of the State to serve as a member of the General Assembly shall, on application, receive service credit in the local retirement system for the period of the absence required for service in the General Assembly. (c) To receive the benefit of the service credit provided under this section, the member of the General Assembly shall contribute into the local retirement system, at the member’s usual rate of contribution based upon the salary of the position from which the member is on leave without pay to serve as a member of the General Assembly. (d) The Comptroller of the State shall make appropriate certifications as to the service credit to which the members of the General Assembly are entitled under this section.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://mgaleg.maryland.gov/mgawebsite/Laws/StatutesFetched: 10/16/2026