2013 Maryland Code
STATE PERSONNEL AND PENSIONS
§ 23-303 - Eligibility service -- Break in service rules


MD State Pers & Pens Code § 23-303 (2013) What's This?

§23-303.

(a) In this section, “break in service” means a period of separation from employment in a fiscal year after the one in which a member first becomes employed, if during that fiscal year the member does not complete more than 350 hours of employment while a member.

(b) (1) This section applies to a member of the Employees’ Pension System or the Teachers’ Pension System who was a member of one of those State systems.

(2) This section does not apply to:

(i) a retiree of the Employees’ Pension System or the Teachers’ Pension System; or

(ii) a member of the Employees’ Pension System or Teachers’ Pension System who is subject to the contributory pension benefit or the Alternate Contributory Pension Selection.

(c) A member is entitled to the eligibility service to which the member was entitled before the separation from employment if:

(1) the member has not incurred a break in service;

(2) the member was entitled to a vested allowance at the time of the separation from employment; or

(3) (i) the member has completed 1 year of eligibility service after a break in service; and

(ii) the number of consecutive years in which the member incurred a break in service is less than the years of eligibility service as a member before the break in service.

(d) To determine if a member is eligible for prior eligibility service under subsection (c)(3)(ii) of this section, the Board of Trustees shall determine the number of years of prior eligibility service:

(1) as of the day the member separated from employment; but

(2) excluding any eligibility service lost because of a prior break in service.

(e) When a member receives credit for eligibility service under subsection (c) of this section from the other system, the member has no further rights in the other system.

§ 23-303 - 1. Eligibility service -- Employees' or Teachers' Pension Systems

(a) In general. -- This section applies to a member of the Employees' Pension System or Teachers' Pension System who has prior service in a part of the Employees' Pension System or Teachers' Pension System that is subject to a different rate of member contributions and benefit accrual.

(b) Prior eligibility service -- contributory pension benefit or Alternate Contributory Pension Selection. -- A member who is subject to the contributory pension benefit or Alternate Contributory Pension Selection is entitled to combine the member's prior eligibility service with the member's current service if the member:

(1) at the time of separation from employment, was entitled to a vested allowance from:

(i) the Employees' Pension System; or

(ii) the Teachers' Pension System;

(2) did not transfer to the Employees' Pension System or the Teachers' Pension System from the Employees' Retirement System or Teachers' Retirement System after April 1, 1998; and

(3) has completed 1 year of employment as a member who is subject to the contributory pension benefit under Subtitle 2, Part II of this title.

(c) Prior eligibility service -- Noncontributory pension benefit. -- A member who is subject to the noncontributory pension benefit is entitled to combine the member's prior eligibility service with the member's current service if the member did not transfer to the Employees' Pension System or Teachers' Pension System from the Employees' Retirement System or Teachers' Retirement System after April 1, 1998.

(d) Combining prior eligibility service with current service. --

(1) A member may combine the member's prior credit for eligibility service with the member's current service under this section if the member:

(i) completes a claim for the service credit and files it with the Board of Trustees on the form that the Board of Trustees provides at any time before retirement; and

(ii) deposits into the annuity savings fund the member contributions, if any, that would have been due if the member had earned the prior service in the same part of the Employees' Pension System or Teachers' Pension System in which the member is currently enrolled, plus regular interest on the contributions.

(2) When a member combines credit for eligibility service under this section, the member has no further rights in the prior system.

(3) Subject to § 414(h)(2) of the Internal Revenue Code, an individual's accumulated contributions in excess of the amount determined under paragraph (1) of this subsection shall be refunded on request.

(e) Withdrawal of accumulated contributions. -- If a member withdrew the member's accumulated contributions after the prior separation from employment, the member shall:

(1) redeposit any of the amounts withdrawn with regular interest to the date of redeposit; or

(2) on retirement, the individual's retirement allowance shall be reduced by the actuarial equivalent of the accumulated contributions withdrawn with regular interest to the date of retirement.

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