2013 Maryland Code
STATE PERSONNEL AND PENSIONS
§ 29-303 - Vested allowances for members of pension systems

§29-303.

(a) This section applies only to members of:

(1) the Employees’ Pension System;

(2) the Local Fire and Police System;

(3) the Law Enforcement Officers’ Pension System; or

(4) the Teachers’ Pension System.

(b) (1) This subsection applies to an individual who is a member on or before June 30, 2011.

(2) A member is eligible to receive a vested allowance if:

(i) the member separated from employment other than by death or retirement; and

(ii) the member has at least 5 years of eligibility service.

(b-1) (1) This subsection applies to an individual who becomes a member on or after July 1, 2011.

(2) A member is eligible to receive a vested allowance if:

(i) the member separated from employment other than by death or retirement; and

(ii) the member has at least 10 years of eligibility service.

(c) Except as provided in subsections (e), (f), and (g) of this section, a vested allowance:

(1) is a deferred allowance that begins at normal retirement age;

(2) is computed as a normal service retirement allowance on the basis of the member’s average final compensation and eligibility service at separation from employment; and

(3) may be paid in one of the optional forms of allowances under § 21-403 of this article.

(d) If a member of the Employees’ Pension System or the Teachers’ Pension System separated from employment on or before June 30, 1990, unused sick leave reported by the member’s employer at the time of separation from employment is creditable service for computing the vested allowance.

(e) Except as provided in subsection (f) of this section, a former member of the Employees’ Pension System or the Teachers’ Pension System who has separated from employment before the age of 55 with at least 15 years of eligibility service is eligible to receive a vested allowance that:

(1) begins on the first day of the month following the member’s 55th birthday; and

(2) equals the reduced allowance computed under § 23-402 of this article.

(f) (1) The vested allowance of a former member of the Employees’ Pension System or the Teachers’ Pension System who separates from employment on or before June 30, 1998:

(i) is a deferred allowance that begins at normal retirement age;

(ii) is computed on the basis of the member’s average final compensation and eligibility service at separation from employment;

(iii) shall equal the number of years of the member’s creditable service multiplied by:

1. 0.8% of the member’s average final compensation that is not in excess of the Social Security integration level; and

2. 1.5% of the member’s average final compensation that exceeds the Social Security integration level; and

(iv) may be paid in one of the optional forms of allowances under § 21-403 of this article.

(2) A former member of the Employees’ Pension System or the Teachers’ Pension System who has separated from employment on or before June 30, 1998 and before the age of 55 with at least 15 years of eligibility service is eligible to receive a vested allowance that:

(i) begins on the first day of the month following the member’s 55th birthday; and

(ii) equals the allowance under paragraph (1) of this subsection, reduced by 0.5% for each month that the member’s early retirement date precedes the date the member will be 62 years old.

(g) (1) Except as provided in paragraph (2) of this subsection and subject to paragraph (3) of this subsection, the vested allowance of a former member of the Law Enforcement Officers’ Pension System who separates from employment on or before June 30, 2000:

(i) is a deferred allowance that begins at normal retirement age;

(ii) is computed on the basis of the member’s average final compensation and eligibility service at separation from employment; and

(iii) shall equal the number of years of the member’s creditable service multiplied by:

1. 1% of the member’s average final compensation that is not in excess of the Social Security integration level; and

2. 1.7% of the member’s average final compensation that exceeds the Social Security integration level.

(2) (i) This subsection applies only to a former member of the Law Enforcement Officers’ Pension System who:

1. transferred to the Law Enforcement Officers’ Pension System from the Employees’ Retirement System; and

2. separates from employment on or before June 30, 2000.

(ii) The vested allowance of a former member:

1. is a deferred allowance that begins at normal retirement age;

2. is computed on the basis of the member’s average final compensation and eligibility service at separation from employment; and

3. shall equal:

A. 2% of the member’s average final compensation multiplied by each year of the member’s first 30 years of creditable service; and

B. 1% of the member’s average final compensation multiplied by each year of creditable service in excess of 30 years.

(3) (i) This paragraph applies only to a former member who is:

1. receiving a deferred allowance under paragraph (1) of this subsection; and

2. under the age of 62 years.

(ii) On receipt of a vested allowance, a former member shall receive a supplemental deferred allowance that equals the difference between:

1. the former member’s vested allowance; and

2. 1.7% of the member’s average final compensation for each year of creditable service.

(iii) Payment of the supplemental deferred allowance ends when the former member:

1. attains the age of 62 years; or

2. dies.

§ 29-303 - 1. Vested allowances for members of pension systems -- Lump-sum payment

(a) Applicability. -- This section applies only to an individual who:

(1) is a former member of:

(i) the Employees' Pension System; or

(ii) the Teachers' Pension System;

(2) is eligible to receive a vested allowance under § 29-303 of this subtitle; and

(3) has not elected to receive a benefit under § 29-303 of this subtitle.

(b) Lump-sum payment. -- Notwithstanding § 29-303 of this subtitle, an individual under subsection (a) of this section may elect a lump-sum payment equal to the present value of the vested allowance if:

(1) the vested allowance is less than $ 50 a month;

(2) (i) the individual is not a member of the Optional Retirement Program and has terminated any employment with a participating employer for the State; or

(ii) the individual is a member of the Optional Retirement Program and has terminated employment with an employing institution as defined in § 30-101(e) of this article; and

(3) the individual requests a lump-sum payment of the vested allowance on a form provided by the State Retirement Agency.