Section 23-308 - Purchase of service credit by members of Teachers' Pension System. - Maryland Statutes

§ 23-308. Purchase of service credit by members of Teachers' Pension System.
 

(a)  In general.- In the year of retirement, a member of the Teachers' Pension System may purchase credit for eligibility service for periods of employment described in subsection (f) of this section for which the member is not otherwise entitled to service credit. 

(b)  Requirements for purchase.- Except as provided in § 23-308.2 of this subtitle, to purchase service credit under this section, a member must: 

(1) complete and file a claim for the service credit with the Board of Trustees on the form that the Board of Trustees provides; and 

(2) pay to the Board of Trustees an amount equal to the annuity reserve and pension reserve required to fund the additional allowance. 

(c)  Alternate methods of payment.- A member may pay the amount required by subsection (b) of this section: 

(1) on an installment basis by contributing at least 2% of earnable compensation per year; or 

(2) by transferring, on written request to the Board of Trustees, any prior contributions to a voluntary retirement benefit, less any costs of administering that benefit. 

(d)  Options at retirement.- A member who elects to make payments under subsection (c) of this section and who retires before completing the payments required to purchase this service credit: 

(1) is entitled to receive the service credit purchased before the date of retirement; or 

(2) may pay at the time of retirement the amount necessary to receive full credit. 

(e)  Options of surviving spouse.- The surviving spouse of a member who elects to make payments under subsection (c) of this section may pay for the appropriate final adjustment if: 

(1) the member dies while actively employed as a member; and 

(2) the deceased member's service qualifies for a death benefit under § 29-206 of this article. 

(f)  Types of employment.- A member may only purchase service credit under this section for employment: 

(1) with an out-of-state public school; 

(2) with the federal government; 

(3) with a nonpublic school; 

(4) with a political subdivision; 

(5) as a postsecondary teacher; 

(6) with the State; 

(7) with a public school as a teacher; or 

(8) as a Baltimore City teacher on or before December 31, 1970, on verified leave of absence of not more than 2 years that is similar in all respects to leaves of absence approved by the Board of Trustees. 

(g)  Limitations.-  

(1) Except as provided in paragraph (2) of this subsection, the total amount of service credit in the Teachers' Retirement System or Teachers' Pension System that a member may purchase under this section and § 23-308.2 of this subtitle may not exceed 10 years. 

(2) A member who purchases service credit under this subsection may not purchase more than 5 years of service credit in the Teachers' Pension System for employment as a postsecondary school teacher. 
 

[An. Code 1957, art. 73B, § 5-301; 1994, ch. 6, § 2; 2001, ch. 577; 2002, ch. 375; 2006, ch. 618, § 1.]