2013 Maryland Code
STATE PERSONNEL AND PENSIONS
§ 29-407 - Computation of adjusted allowance
§29-407.
(a) Except as provided in subsection (b) of this section, the total allowance payable in any fiscal year shall be the sum of:
(1) the initial allowance;
(2) all prior cost-of-living adjustments;
(3) the cost-of-living adjustment provided for under § 29-406 of this subtitle; and
(4) any additional annuity.
(b) (1) In this subsection, “zero-adjustment fiscal year” means any fiscal year when the cost-of-living adjustment provided in § 29-406 of this subtitle is less than $0.00.
(2) For any fiscal year, the total allowance payable may not be less than the allowance paid for the preceding fiscal year.
(3) (i) This paragraph applies only to a fiscal year that is not a zero-adjustment fiscal year.
(ii) Subject to subparagraph (iii) of this paragraph:
1. for a fiscal year that follows immediately after a zero-adjustment fiscal year, the allowance payable as provided in subsection (a) of this section shall be reduced by the difference between the allowance paid in the preceding fiscal year and the allowance that would have been payable for the preceding fiscal year if the allowance for that fiscal year had been calculated without regard to paragraph (2) of this subsection; and
2. for a fiscal year that follows immediately after 2 or more consecutive zero-adjustment fiscal years, the allowance payable as provided in subsection (a) of this section shall be reduced by the difference between the total of the allowances paid in each consecutive zero-adjustment fiscal year preceding the fiscal year and the total allowances that would have been payable for each of those fiscal years if the allowance for each of those fiscal years had been calculated without regard to paragraph (2) of this subsection.
(iii) If the amount of the reduction required for any fiscal year under subparagraph (ii) of this paragraph exceeds the difference between the allowance as provided in subsection (a) of this section for the fiscal year and the allowance paid in the preceding fiscal year, the excess shall be deducted in future years, subject to paragraph (2) of this subsection, until the difference is fully recovered.
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