Section 21-402 - Option requirements. - Maryland Statutes

§ 21-402. Option requirements.
 

(a)  Actuarial equivalent.- Each optional form of allowance shall be the actuarial equivalent of the basic allowance under the State system of a member. 

(b)  Designated beneficiaries - Benefits for life.-  

(1) Subject to paragraph (2) of this subsection, for an optional form of allowance providing for payment to a designated beneficiary for life, the designated beneficiary must be an individual. 

(2) If the designated beneficiary is a minor or an individual with a disability, the allowance may be paid into a trust for the benefit of the individual. 

(3) A member who elects to receive a reduced optional allowance under § 21-403 of this subtitle may designate an individual other than the member's child as the member's designated beneficiary. 

(c)  Applicability of subsection.-  

(1) This subsection applies to a member who selects an optional form of allowance as provided in § 21-403(b) or (e) of this subtitle. 

(2) If a member designates a beneficiary other than the member's spouse or disabled child as defined under § 72(m)(7) of the Internal Revenue Code, a member may not designate a beneficiary who is more than 10 years younger than the member. 
 

[An. Code 1957, art. 73B, §§ 2-407, 3-407, 4-409, 5-409, 6-406, 7-407, 8-404, 9-104, 10-220; 1994, ch. 6, § 2; 2001, ch. 723; 2005, ch. 493, § 1; ch. 500; 2006, ch. 44.]