2013 Maryland Code
STATE PERSONNEL AND PENSIONS
§ 23-308 - Purchase of service credit by members of Teachers' Pension System

§23-308.

(a) In the year of retirement, a member of the Teachers’ Pension System may purchase credit for eligibility service for periods of employment described in subsection (f) of this section for which the member is not otherwise entitled to service credit.

(b) Except as provided in § 23-308.2 of this subtitle, to purchase service credit under this section, a member must:

(1) complete and file a claim for the service credit with the Board of Trustees on the form that the Board of Trustees provides; and

(2) pay to the Board of Trustees an amount equal to the annuity reserve and pension reserve required to fund the additional allowance.

(c) A member may pay the amount required by subsection (b) of this section:

(1) on an installment basis by contributing at least 2% of earnable compensation per year; or

(2) by transferring, on written request to the Board of Trustees, any prior contributions to a voluntary retirement benefit, less any costs of administering that benefit.

(d) A member who elects to make payments under subsection (c) of this section and who retires before completing the payments required to purchase this service credit:

(1) is entitled to receive the service credit purchased before the date of retirement; or

(2) may pay at the time of retirement the amount necessary to receive full credit.

(e) The surviving spouse of a member who elects to make payments under subsection (c) of this section may pay for the appropriate final adjustment if:

(1) the member dies while actively employed as a member; and

(2) the deceased member’s service qualifies for a death benefit under § 29-206 of this article.

(f) A member may only purchase service credit under this section for employment:

(1) with an out-of-state public school;

(2) with the federal government;

(3) with a nonpublic school;

(4) with a political subdivision;

(5) as a postsecondary teacher;

(6) with the State;

(7) with a public school as a teacher; or

(8) as a Baltimore City teacher on or before December 31, 1970, on verified leave of absence of not more than 2 years that is similar in all respects to leaves of absence approved by the Board of Trustees.

(g) (1) Except as provided in paragraph (2) of this subsection, the total amount of service credit in the Teachers’ Retirement System or Teachers’ Pension System that a member may purchase under this section and § 23-308.2 of this subtitle may not exceed 10 years.

(2) A member who purchases service credit under this subsection may not purchase more than 5 years of service credit in the Teachers’ Pension System for employment as a postsecondary school teacher.

§ 23-308 - 1. Purchase of service credit by members of Employees' Retirement System or Teachers' Retirement System

(a) Eligibility. -- This section applies only to a former member, member, retiree, or surviving beneficiary of the Employees' Retirement System or the Teachers' Retirement System who is subject to the Selection C (Combination Formula) as provided in § 22-221 of this article and to Subtitle 2, Part II of this title.

(b) Purchase of credits. -- Except as provided in subsection (c) of this section, a member who is subject to the contributory pension benefit under Subtitle 2, Part II of this title may purchase credit for eligibility service for the period of employment from July 1, 1998 through June 30, 1999, or, if an employee of a participating governmental unit, from July 1, 1998 through the effective date of election of the member's participating employer, by paying to the Board of Trustees:

(1) on or before June 30, 2000, the amount the member would have been required to contribute for that period of employment; or

(2) on or after July 1, 2000, the amount the member would have been required to contribute for that period of employment plus regular interest compounded annually.

(c) Failure to make payments -- Reduction of allowance payable. -- If the member fails to make the payment as provided under subsection (b) of this section, the Board of Trustees shall reduce actuarially the allowance payable to a former member, retiree, or surviving beneficiary of a deceased member, former member, or retiree.

§ 23-308 - 2. Purchase of service credit by members of Teachers' Retirement System or Teachers' Pension System

(a) Purchase authorized. -- For periods of employment as a member of the Teachers' Retirement System or the Teachers' Pension System for which the member is not otherwise entitled to service credit, a member of the Teachers' Pension System may purchase credit for eligibility service as provided in this section.

(b) Limitation. -- The total amount of service credit in the Teachers' Retirement System or Teachers' Pension System that a member may purchase under this section and § 23-308 of this subtitle may not exceed 10 years.

(c) Optional retirement program. -- A member who purchases service credit under this section may not purchase service credit for any period of employment during which the member participated in the optional retirement program.

(d) Requirements. -- To purchase service credit under this section, a member must:

(1) 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

(2) pay to the Board of Trustees an amount equal to one-half of the annuity reserve and one-half of the pension reserve required to fund the additional allowance.