Section 31-113 - Effect of participation. - Maryland Statutes

§ 31-113. Effect of participation.
 

(a)  Termination of local pension system.- Except as provided in subsection (b) of this section, the operation of the local pension system of an eligible governmental unit terminates on the effective date. 

(b)  Continuation of benefits.-  

(1) An eligible governmental unit may elect to continue to operate a local pension system after the effective date of participation in the Employees' Pension System to provide benefits to a person who: 

(i) is receiving benefits from the local pension system; 

(ii) is eligible to receive benefits from the local pension system on account of the person's previous employment by the eligible governmental unit; or 

(iii) did not elect to join the Employees' Pension System under § 23-204(b) of this article. 

(2) A person may not be enrolled in the local pension system of a participating governmental unit electing to continue to operate its system under paragraph (1) of this subsection if the person becomes employed or is rehired by the participating governmental unit on or after the effective date of participation of the participating governmental unit in the Employees' Pension System. 

(c)  Liability for continuation of benefits.- The liability for the continuation of benefits under subsection (b) of this section shall be included in the computation of the special accrued liability as provided by § 21-305.3 of this article. 

(d)  Transfer of funds.-  

(1) On the effective date: 

(i) the assets to the credit of the local pension system of the participating governmental unit that are attributable to the employees of the participating governmental unit who elect to become members of the Employees' Pension System under § 23-204(b) of this article shall be transferred to the Employees' Pension System; and 

(ii) the trustee or other administrative head of the local pension system shall certify the proportion of the funds of the local pension system that represents the accumulated contributions of the members as of that date. 

(2) The accumulated contributions shall be credited to the respective annuity savings accounts of the members in the Employees' Pension System. 

(3) Any balance of the funds transferred to the Employees' Pension System shall be offset against the special accrued liability to be funded by the participating governmental unit as provided by § 21-305.3 of this article. 
 

[An. Code 1957, art. 73B, § 10-104; 1994, ch. 6, § 2; ch. 687, § 2; 1996, ch. 10, § 21; 2000, ch. 374.]