Section 24-405 - Effect of employment of individual [Amendment subject to abrogation]. - Maryland Statutes

§ 24-405. Effect of employment of individual [Amendment subject to abrogation].
 

(a)  In general.- Except as provided in § 24-405.1 of this subtitle and subject to subsections (b), (c), and (d) of this section, an individual who is receiving a service retirement allowance or vested allowance may accept employment with a participating employer on a temporary or contractual basis, if: 

(1) the employment is not in a regularly allocated position; and 

(2) the individual immediately notifies the Board of Trustees: 

(i) of the individual's intention to accept the employment; and 

(ii) of the compensation that the individual will receive. 

(b)  Reduction of allowance.-  

(1) The Board of Trustees shall reduce the allowance of an individual who accepts employment as provided under subsection (a) of this section if: 

(i) the individual's current employer is any unit of State government; and 

(ii) the individual's employer at the time of the individual's last separation from employment with the State before the individual commenced receiving a service retirement allowance or vested allowance was also a unit of State government. 

(2) The reduction under paragraph (1) of this subsection shall equal the amount by which the sum of the individual's initial annual basic allowance and the individual's annual compensation exceeds the average final compensation used to compute the basic allowance. 

(3) The reduction under paragraph (1) of this subsection does not apply to: 

(i) an individual who has been retired for 9 years, beginning on January 1, after the date the individual retires; 

(ii) an individual who participates in the Deferred Retirement Option Program established under § 24-401.1 of this subtitle; or 

(iii) a retiree of the State Police Retirement System who is reemployed by the Department of State Police on a contractual basis as a police employee, as defined in § 2-101 of the Public Safety Article, at a rank of trooper first class. 

(c)  Limitation on length of employment.- For purposes of this section, employment is not on a temporary basis if, in any 12-month period, an individual works: 

(1) full time for more than 6 months; or 

(2) part time for the equivalent of more than 6 months of full-time work. 

(d)  Termination of participation in program prior to reemployment.- Prior to commencing reemployment under subsection (b)(3)(iii) of this section, a retiree shall terminate participation in the Deferred Retirement Option Program and receive any lump sum payment associated with the retiree's participation in the Deferred Retirement Option Program as provided under § 24-401.1(i) of this subtitle. 

(e)  Limitations on reemployment.-  

(1) Subject to paragraph (2) of this subsection, a retiree reemployed under subsection (b)(3)(iii) of this section may not be reemployed for more than 4 years. 

(2) A retiree reemployed under subsection (b)(3)(iii) of this section may not be reemployed after becoming 60 years old. 

(f)  Creditable service - Eligibility.- An individual who is receiving a service retirement allowance or a vested allowance and who is reemployed by a participating employer may not receive creditable service or eligibility service during the period of reemployment. 

(g)  Compensation during period of reemployment.- The individual's compensation during the period of reemployment may not be subject to the employer pickup provisions of § 21-303 of this article or any reduction or deduction as a member contribution for pension or retirement purposes. 

(h)  Reporting procedures.- The State Retirement Agency shall institute appropriate reporting procedures with the affected payroll systems to ensure compliance with this section. 

(i)  List of employees by State Police to State Retirement Agency.-  

(1) Immediately on the employment of a retiree who is rehired under subsection (b)(3)(iii) of this section, the Department of State Police shall notify the State Retirement Agency of the type of employment and the anticipated earnings of the individual. 

(2) At least once each year, in a format specified by the State Retirement Agency, the Department of State Police shall provide the State Retirement Agency with a list of all employees included on any payroll of the employer, the Social Security numbers of the employees, and their earnings for that year. 

(j)  Report to Joint Committee on Pensions.- On or before September 1 of each year, the Secretary of State Police shall submit a report in accordance with § 2-1246 of the State Government Article to the Joint Committee on Pensions that provides: 

(1) the number of rehired retirees under subsection (b)(3)(iii) of this section; 

(2) the annual salary of each rehired retiree at the time of retirement and the current annual salary of each rehired retiree; 

(3) the number of police employees hired who are not retirees; and 

(4) the annual salary of each police employee who is hired. 
 

[An. Code 1957, art. 73B, § 6-409; 1994, ch. 6, § 2; 1998, ch. 779; 1999, ch. 122, § 2; ch. 123, § 2; 2005, ch. 493, § 1; 2006, ch. 618, § 1; 2009, chs. 643, 644.]