Section 29-303 - Vested allowances for members of pension systems. - Maryland Statutes

§ 29-303. Vested allowances for members of pension systems.
 

(a)  Scope of section.- This section applies only to members of: 

(1) the Employees' Pension System; 

(2) the Local Fire and Police System; 

(3) the Law Enforcement Officers' Pension System; or 

(4) the Teachers' Pension System. 

(b)  Conditions to receive vested allowance.- A member is eligible to receive a vested allowance if: 

(1) the member separated from employment other than by death or retirement; and 

(2) the member has at least 5 years of eligibility service. 

(c)  Time and method of payment; computation.- Except as provided in subsections (e), (f), and (g) of this section, a vested allowance: 

(1) is a deferred allowance that begins at normal retirement age; 

(2) is computed as a normal service retirement allowance on the basis of the member's average final compensation and eligibility service at separation from employment; and 

(3) may be paid in one of the optional forms of allowances under § 21-403 of this article. 

(d)  Employees and teachers - Sick leave.- If a member of the Employees' Pension System or the Teachers' Pension System separated from employment on or before June 30, 1990, unused sick leave reported by the member's employer at the time of separation from employment is creditable service for computing the vested allowance. 

(e)  Employees and teachers - Vested allowance for members with at least 15 years.- Except as provided in subsection (f) of this section, a former member of the Employees' Pension System or the Teachers' Pension System who has separated from employment before the age of 55 with at least 15 years of eligibility service is eligible to receive a vested allowance that: 

(1) begins on the first day of the month following the member's 55th birthday; and 

(2) equals the reduced allowance computed under § 23-402 of this article. 

(f)  Employees and teachers - Separation on or before June 30, 1998.-  

(1) The vested allowance of a former member of the Employees' Pension System or the Teachers' Pension System who separates from employment on or before June 30, 1998: 

(i) is a deferred allowance that begins at normal retirement age; 

(ii) is computed on the basis of the member's average final compensation and eligibility service at separation from employment; 

(iii) shall equal the number of years of the member's creditable service multiplied by: 

1. 0.8% of the member's average final compensation that is not in excess of the Social Security integration level; and 

2. 1.5% of the member's average final compensation that exceeds the Social Security integration level; and 

(iv) may be paid in one of the optional forms of allowances under § 21-403 of this article. 

(2) A former member of the Employees' Pension System or the Teachers' Pension System who has separated from employment on or before June 30, 1998 and before the age of 55 with at least 15 years of eligibility service is eligible to receive a vested allowance that: 

(i) begins on the first day of the month following the member's 55th birthday; and 

(ii) equals the allowance under paragraph (1) of this subsection, reduced by 0.5% for each month that the member's early retirement date precedes the date the member will be 62 years old. 

(g)  Separation from employment on or before June 30, 2000.-  

(1) Except as provided in paragraph (2) of this subsection and subject to paragraph (3) of this subsection, the vested allowance of a former member of the Law Enforcement Officers' Pension System who separates from employment on or before June 30, 2000: 

(i) is a deferred allowance that begins at normal retirement age; 

(ii) is computed on the basis of the member's average final compensation and eligibility service at separation from employment; and 

(iii) shall equal the number of years of the member's creditable service multiplied by: 

1. 1% of the member's average final compensation that is not in excess of the Social Security integration level; and 

2. 1.7% of the member's average final compensation that exceeds the Social Security integration level. 

(2) (i) This subsection applies only to a former member of the Law Enforcement Officers' Pension System who: 

1. transferred to the Law Enforcement Officers' Pension System from the Employees' Retirement System; and 

2. separates from employment on or before June 30, 2000. 

(ii) The vested allowance of a former member: 

1. is a deferred allowance that begins at normal retirement age; 

2. is computed on the basis of the member's average final compensation and eligibility service at separation from employment; and 

3. shall equal: 

A. 2% of the member's average final compensation multiplied by each year of the member's first 30 years of creditable service; and 

B. 1% of the member's average final compensation multiplied by each year of creditable service in excess of 30 years. 

(3) (i) This paragraph applies only to a former member who is: 

1. receiving a deferred allowance under paragraph (1) of this subsection; and 

2. under the age of 62 years. 

(ii) On receipt of a vested allowance, a former member shall receive a supplemental deferred allowance that equals the difference between: 

1. the former member's vested allowance; and 

2. 1.7% of the member's average final compensation for each year of creditable service. 

(iii) payment of the supplemental deferred allowance ends when the former member: 

1. attains the age of 62 years; or 

2. dies. 
 

[An. Code 1957, art. 73B, §§ 4-415, 5-414, 8-409, 10-225; 1994, ch. 6, § 2; 1996, ch. 438, § 3; 1998, ch. 530, § 2; 2000, ch. 395, § 2; ch. 396; 2007, ch. 337; 2010, ch. 696.]