Section 37-203 - Transfers in general. - Maryland Statutes

§ 37-203. Transfers in general.
 

(a)  Scope of section.- This section does not apply to a transfer of service credit to or from the State Alternate Contributory Employees' Pension System, the State Alternate Contributory Teachers' Pension System, the State Contributory Employees' Pension System, the State Contributory Law Enforcement Officers' Pension System, or the State Contributory Teachers' Pension System. 

(b)  Claim for transfer; deposit of accumulated contributions.-  

(1) An individual may not transfer service credit under this title unless the individual makes a claim for the service credit within 1 year after becoming a member of the new system. 

(2) An individual may not transfer service credit from one contributory system to another contributory system unless within 1 year after becoming a member of the new system the individual deposits in the annuity savings fund or other corresponding fund of the new system the total accumulated contributions to the individual's credit in the annuity savings fund or other corresponding fund of the previous system. 

(c)  Service credit received.- Except as provided in § 37-204 of this subtitle, an individual who transfers service credit under this title shall receive service credit in the new system in the amount of service credit accumulated under the previous system. 

(d)  Benefits from previous system prohibited.- On verification of the service credit, the previous system may not provide any benefit for service credit transferred from the previous system to a new system under this title. 

(e)  Refund of accumulated contributions.-  

(1) Except as provided in paragraph (2) of this subsection, if an individual transfers service credit under this title, the previous system shall refund the individual's accumulated contributions on request. 

(2) Accumulated contributions applicable to the receipt of service credit or benefits in the new system may not be refunded if: 

(i) an individual transfers from one noncontributory system to another noncontributory system; or 

(ii) a former member transfers under § 37-202(b) of this subtitle. 

(f)  Contributions and benefits.-  

(1) Except as otherwise provided in this subsection, after an individual transfers service credit to a new system under this title, the individual: 

(i) shall pay the rate of contribution applicable to a member of the new system; and 

(ii) is eligible for a pension and annuity as provided under the new system, determined by taking into account the transferred service credit. 

(2) Except as provided in § 37-204 of this subtitle, if an individual transfers from a noncontributory system to a contributory system, on retirement the individual's retirement allowance shall be reduced by the actuarial equivalent of the member contributions that would have been deducted if the individual had earned the transferred service credit under the new system, including regular interest on those contributions. 

(3) If an individual retires within 5 years after transferring into a new system, the benefits payable with respect to the transferred service credit may not be greater than the benefits that would have been payable by the previous system with respect to that service if the individual had remained in the previous system. 
 

[An. Code 1957, art. 73B, §§ 1-401, 1-402, 1-405; 1994, ch. 6, § 2; 2000, ch. 362; 2002, ch. 426; 2003, ch. 23, § 2; 2007, ch. 337; 2008, ch. 36, § 6.]