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§ 31-113. Operation of local plan

West's Annotated Code of MarylandState Personnel and PensionsEffective: July 1, 2017

West's Annotated Code of Maryland
State Personnel and Pensions (Refs & Annos)
Division II. Pensions [Titles 20-34] (Refs & Annos)
Title 31. Participating Governmental Units
Subtitle 1. Participation in Employees' Systems (Refs & Annos)
Effective: July 1, 2017
MD Code, State Personnel and Pensions, § 31-113
§ 31-113. Operation of local plan
Currentness
Application of section
(a) This section applies only to a local plan that is a qualified plan under § 401(a) of the Internal Revenue Code and provides a defined benefit to its participants.
In general
(b) Except as provided in subsection (c) of this section, the operation of the local plan of an eligible governmental unit terminates on the effective date.
Continuation of local plan
(c)(1) An eligible governmental unit may elect to continue to operate a local plan after the effective date of participation in the Employees' Pension System to provide benefits to an individual who:
(i) is receiving benefits from the local plan;
(ii) is eligible to receive benefits from the local plan on account of the individual's previous employment by the eligible governmental unit; or
(iii) did not elect to join the Employees' Pension System under § 23-204(a) of this article.
(2) An individual may not be enrolled in the local plan of a participating governmental unit electing to continue to operate its local plan under paragraph (1) of this subsection if the individual becomes employed or is rehired by the participating governmental unit on or after the effective date of participation of the participating governmental unit in the Employees' Pension System.
Computation of special accrued liability
(d) The liability for the continuation of benefits under subsection (c) of this section shall be included in the computation of the special accrued liability as provided by § 21-305.3 of this article.
Transfers and credits on effective date
(e)(1) On the effective date:
(i) the assets to the credit of the local plan of the participating governmental unit that are attributable to the employees of the participating governmental unit who elect to become members of the Employees' Pension System under § 23-204(a) of this article shall be transferred to the Employees' Pension System; and
(ii) the trustee or other administrative head of the local plan shall certify the proportion of the funds of the local plan that represents the accumulated contributions of the members as of that date.
(2) The accumulated contributions shall be credited to the respective annuity savings accounts of the members in the Employees' Pension System.
(3) Any balance of the funds transferred to the Employees' Pension System shall be offset against the special accrued liability to be funded by the participating governmental unit as provided by § 21-305.3 of this article.

Credits

Added by Acts 1994, c. 6, § 2, eff. Oct. 1, 1994. Renumbered from § 31-112 by Acts 1994, c. 687, § 2, eff. Oct. 1, 1994. Amended by Acts 1996, c. 10, § 21, eff. April 9, 1996; Acts 2000, c. 374, § 1, eff. July 1, 2000; Acts 2015, c. 182, § 1, eff. July 1, 2015; Acts 2017, c. 271, § 1, eff. July 1, 2017; Acts 2017, c. 272, § 1, eff. July 1, 2017.
MD Code, State Personnel and Pensions, § 31-113, MD ST PERS & PENS § 31-113
Current through legislation effective through May 9, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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