2013 Maryland Code
EDUCATION
§ 5-203 - Retirement contributions [Section subject to repeal effective July 1, 2014]

§5-203. IN EFFECT

// EFFECTIVE UNTIL JULY 1, 2014 PER CHAPTER 1 OF THE FIRST SPECIAL SESSION OF 2012 //

(a) (1) Subject to paragraph (2) of this subsection, a local school system shall reimburse the State annually for the employer contributions made by the State for an employee who:

(i) Is a member of the Teachers’ Retirement System or the Teachers’ Pension System under Division II of the State Personnel and Pensions Article; and

(ii) Is receiving a salary funded by a source other than State or local aid.

(2) To the extent that an employee’s salary is funded in part by sources other than State or local aid, the local school system shall reimburse the State a pro rata share of the State’s payment based on the percentage of the employee’s salary funded by a source other than State or local aid.

(b) (1) To ensure that each local school system is properly reimbursing the State as provided under subsection (a) of this section, the Department or, at the Department’s request, a county board may at any time examine the records of local school systems to determine whether the State’s payments for retirement contributions for employees of the school systems are in accordance with the provisions of Division II of the State Personnel and Pensions Article.

(2) An audit conducted under paragraph (1) of this subsection may be:

(i) Included with an existing annual financial audit as a supplemental part and tested independently;

(ii) Conducted in conjunction with a supplemental federally mandated single audit of federal financial assistance programs and tested independently; or

(iii) Conducted as a separate independent audit.

(c) (1) (i) If an examination of the records of a local school system shows that the State has paid more than is required under Division II of the State Personnel and Pensions Article, within 30 days after the date of the notice to the school system of the State overpayment, the school system may appeal the notice of State overpayment to the Secretary of Budget and Management who shall appoint a hearing examiner who is an attorney.

(ii) The hearing examiner shall make recommendations to the Secretary of Budget and Management who shall make a determination regarding the amount, if any, of the State overpayment.

(iii) Should a local school system request a transcript of an audit appeals hearing, the local school system shall provide and pay for the production of the transcript.

(2) At the request of the Department the moneys owed shall be deducted from any other State funds that would otherwise be paid to the school system if:

(i) A local school system does not appeal to the Secretary of Budget and Management or to the Office of Administrative Hearings; or

(ii) The Office of Administrative Hearings determines that the State is due reimbursement for excess payments as provided in paragraph (3) of this subsection.

(3) (i) The local school system may appeal to the Office of Administrative Hearings a determination by the Secretary of Budget and Management regarding the amount, if any, of the State overpayment.

(ii) Within 45 days after the close of the hearing record, the Office of Administrative Hearings shall issue a written decision to the parties and may grant any appropriate remedy.

(iii) The written decision issued by the Office of Administrative Hearings is the final finding of fact and conclusion of law and binding on all parties and is not subject to judicial review.

(d) (1) Any reimbursements under subsection (a) of this section:

(i) Shall be applied first to the cost of any audit or portion of any audit relating to subsection (a) of this section to reimburse either the Department or the county board for the expenses of the audits; and

(ii) After reimbursement to the Department or county board under item (i) of this paragraph, shall be credited to the General Fund.

(2) If an audit under this section is performed by a county board, before the county board is reimbursed under paragraph (1)(i) of this subsection, the county board shall provide documentation to the Department that the incremental costs of the audit incurred by the county board are reasonable.

§ 5-203 - Retirement contributions (Repeal of section effective July 1, 2014)

Repealed by Acts 2012, 1st Sp. Sess., ch. 1, § 3, effective July 1, 2014.