§ 37-203.1. 1-year requirement to claim transferred service credit
West's Annotated Code of MarylandState Personnel and PensionsEffective: June 1, 2011
Effective: June 1, 2011
MD Code, State Personnel and Pensions, § 37-203.1
§ 37-203.1. 1-year requirement to claim transferred service credit
(a)(1) An individual may transfer service credit from a contributory system to the State Alternate Contributory Employees' Pension System, the State Alternate Contributory Teachers' Pension System, the State Contributory Employees' Pension System, the State Contributory Law Enforcement Officers' Pension System, the State Contributory Teachers' Pension System, the State Reformed Contributory Employees' Pension System, or the State Reformed Contributory Teachers' Pension System if, within 1 year after becoming a member of the pension system, the individual:
1. the Employees' Pension System or Teachers' Pension System member contributions at the rate applicable for the period of service if the member had earned the transferred service credit in the new system, including regular interest on the contributions at the rate of 5% per year compounded annually; or
(b)(1) Subject to paragraph (2) of this subsection, an individual may transfer service credit from a noncontributory system to the State Alternate Contributory Employees' Pension System, the State Alternate Contributory Teachers' Pension System, the State Contributory Employees' Pension System, the State Contributory Law Enforcement Officers' Pension System, the State Contributory Teachers' Pension System, the State Reformed Contributory Employees' Pension System, or the State Reformed Contributory Teachers' Pension System if, within 1 year after becoming a member of the pension system, the individual completes a claim for the service credit and files it with the Board of Trustees for the State Retirement and Pension System on a form that the Board of Trustees provides.
(3)(i) 1. This subparagraph applies only to an individual who transferred service credit from a noncontributory system to the State Alternate Contributory Employees' Pension System, the State Alternate Contributory Teachers' Pension System, the State Contributory Employees' Pension System, the State Contributory Teachers' Pension System, the State Reformed Contributory Employees' Pension System, or the State Reformed Contributory Teachers' Pension System and earned any portion of the transferred service credit in a noncontributory system after June 30, 1998.
2. On retirement, the individual's retirement allowance shall be reduced by the actuarial equivalent of the member contributions that would have been deducted during the period after June 30, 1998, when the individual was a member of the noncontributory system, if the individual had earned the transferred service credit under the new system, including regular interest on those contributions at the rate of 5% per year compounded annually.
2. Upon retirement the individual's retirement allowance shall be reduced by the actuarial equivalent of the member contributions that would have been deducted during the period after June 30, 2000, when the individual was a member of the noncontributory system, if the individual had earned the transferred service credit under the State Contributory Law Enforcement Officers' Pension System, including regular interest on those contributions at the rate of 5% per year compounded annually.
(c)(1) An individual may transfer service credit from the State Alternate Contributory Employees' Pension System, the State Alternate Contributory Teachers' Pension System, the State Contributory Employees' Pension System, the State Contributory Law Enforcement Officers' Pension System, the State Contributory Teachers' Pension System, the State Reformed Contributory Employees' Pension System, or the State Reformed Contributory Teachers' Pension System to a noncontributory system if, within 1 year after becoming a member of the noncontributory system, the individual completes a claim for the service credit and files it with the administrator of the noncontributory system on a form that the administrator provides.
(d)(1) An individual may transfer service credit from the State Alternate Contributory Employees' Pension System, the State Alternate Contributory Teachers' Pension System, the State Contributory Employees' Pension System, the State Contributory Law Enforcement Officers' Pension System, the State Contributory Teachers' Pension System, the State Reformed Contributory Employees' Pension System, or the State Reformed Contributory Teachers' Pension System to a contributory system if, within 1 year after becoming a member of the contributory system, the individual:
3. the accumulated contributions that would have been deducted during the period the individual was a member of the State system while it was a noncontributory system if the individual had earned the transferred service credit under the contributory system, including interest on those contributions.
(2) On retirement from the contributory system, the individual's retirement allowance shall be reduced by the actuarial equivalent of the amounts determined under paragraph (1)(ii)2 and 3 of this subsection if the member elects not to deposit those amounts in the annuity savings fund or other corresponding fund of the contributory system.
(e) Except as provided in § 37-204 of this subtitle, an individual who transfers service credit under this title shall receive service credit in the new system in the amount of service credit accumulated under the previous system.
(f) On verification of the service credit, the previous system may not provide any benefit for service credit transferred from the previous system to a new system under this title.
(g)(1) Except as otherwise provided in this subsection, after an individual transfers service credit to a new system under this title, the individual:
(2) If an individual retires within 5 years after transferring into a new system, the benefits payable with respect to the transferred service credit may not be greater than the benefits that would have been payable by the previous system with respect to that service if the individual had remained in the previous system.
Credits
Added by Acts 2000, c. 362, § 1, eff. July 1, 2000. Amended by Acts 2001, c. 29, § 1, eff. April 10, 2001; Acts 2003, c. 23, § 2, eff. July 1, 2003; Acts 2007, c. 337, § 1, eff. July 1, 2007; Acts 2008, c. 36, § 1, eff. April 8, 2008; Acts 2011, c. 397, § 1, eff. June 1, 2011.
MD Code, State Personnel and Pensions, § 37-203.1, MD ST PERS & PENS § 37-203.1
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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