Section 21-313 - Member contributions - Employer pickup of member contributions. - Maryland Statutes

§ 21-313. Member contributions - Employer pickup of member contributions.
 

(a)  "Approved employer" defined.- In this section, "approved employer" means a participating employer who adopts a resolution and follows procedures as prescribed by the Board of Trustees for an employer pickup program in accordance with § 414(h)(2) of the Internal Revenue Code. 

(b)  In general.- The State or other approved employer of a member shall pick up, within the meaning of § 414(h)(2) of the Internal Revenue Code, the member contributions required by this Division II. 

(c)  Implementation and treatment of pickup amounts.- The member contributions under subsection (b) of this section: 

(1) are designated as employee contributions to be picked up by the employing unit within the meaning of § 414(h)(2) of the Internal Revenue Code and shall be treated as employer contributions in determining tax treatment under that section; 

(2) shall reduce the compensation of the member in an amount that equals the member contribution picked up by the employer; 

(3) may not be included as gross income of the member until the pickup amounts are distributed or made available to the member; 

(4) shall be paid by the State or other approved employer from the same source of funds that is used to pay compensation to the member; and 

(5) for purposes of this Division II, shall be treated in the same manner and to the same extent as member contributions made before establishment of the employer pickup program. 
 

[An. Code 1957, art. 73B, § 1-302; 1994, ch. 6, § 2; 2004, ch. 532, § 2; 2007, ch. 329.]