Section 23-303.1 - Eligibility service - Employees' or Teachers' Pension Systems. - Maryland Statutes

§ 23-303.1. Eligibility service - Employees' or Teachers' Pension Systems.
 

(a)  In general.- This section applies to a member of the Employees' Pension System or Teachers' Pension System who has prior service in a part of the Employees' Pension System or Teachers' Pension System that is subject to a different rate of member contributions and benefit accrual. 

(b)  Prior eligibility service - contributory pension benefit or Alternate Contributory Pension Selection.- A member who is subject to the contributory pension benefit or Alternate Contributory Pension Selection is entitled to combine the member's prior eligibility service with the member's current service if the member: 

(1) at the time of separation from employment, was entitled to a vested allowance from: 

(i) the Employees' Pension System; or 

(ii) the Teachers' Pension System; 

(2) did not transfer to the Employees' Pension System or the Teachers' Pension System from the Employees' Retirement System or Teachers' Retirement System after April 1, 1998; and 

(3) has completed 1 year of employment as a member who is subject to the contributory pension benefit under Subtitle 2, Part II of this title. 

(c)  Prior eligibility service - Noncontributory pension benefit.- A member who is subject to the noncontributory pension benefit is entitled to combine the member's prior eligibility service with the member's current service if the member did not transfer to the Employees' Pension System or Teachers' Pension System from the Employees' Retirement System or Teachers' Retirement System after April 1, 1998. 

(d)  Combining prior eligibility service with current service.-  

(1) A member may combine the member's prior credit for eligibility service with the member's current service under this section if the member: 

(i) completes a claim for the service credit and files it with the Board of Trustees on the form that the Board of Trustees provides at any time before retirement; and 

(ii) deposits into the annuity savings fund the member contributions, if any, that would have been due if the member had earned the prior service in the same part of the Employees' Pension System or Teachers' Pension System in which the member is currently enrolled, plus regular interest on the contributions. 

(2) When a member combines credit for eligibility service under this section, the member has no further rights in the prior system. 

(3) Subject to § 414(h)(2) of the Internal Revenue Code, an individual's accumulated contributions in excess of the amount determined under paragraph (1) of this subsection shall be refunded on request. 

(e)  Withdrawal of accumulated contributions.- If a member withdrew the member's accumulated contributions after the prior separation from employment, the member shall: 

(1) redeposit any of the amounts withdrawn with regular interest to the date of redeposit; or 

(2) on retirement, the individual's retirement allowance shall be reduced by the actuarial equivalent of the accumulated contributions withdrawn with regular interest to the date of retirement. 
 

[2000, ch. 396; 2007, ch. 337.]