reglab/statecodes huggingface dataset:
2023 Maryland Statutes › State Personnel and Pensions › Division II - Pensions › Title 21 - State Retirement and Pension System › Subtitle 1 - Administration › Section 21-126 - Medical Boards; Other Physicians

(a)    The Board of Trustees shall establish one or more medical boards.
(b)    (1)    Each medical board consists of three members and not more than three alternates.
(2)    Each medical board member and alternate shall be a physician who is not eligible to be a member of a State system.
(3)    (i)    The Board of Trustees shall appoint the medical board members and any alternates.
(ii)    Notwithstanding paragraph (2) of this subsection, the Board of Trustees may appoint a physician who is a participating employee in the Optional Retirement Program under Title 30 of this article to a medical board if the physician is not eligible to receive a disability benefit under Title 29, Subtitle 1 of this article.
(4)    In the absence of a medical board member, an alternate may serve on a medical board.
(c)    Two members of a medical board are a quorum for the conduct of business.
(d)    A medical board shall:
(1)    arrange for and approve all medical examinations required under this Division II;
(2)    investigate all essential certificates and statements by or on behalf of a member concerning the application of the member for disability retirement; and
(3)    submit written reports to the Board of Trustees, with conclusions and recommendations, on all matters that the Board of Trustees refers to the medical board.
(e)    The Board of Trustees may employ other physicians to report on special cases.
(f)    A member of a medical board appointed under subsection (b)(3)(ii) of this section may not participate in a case concerning the application of a member for disability retirement if the applicant is an employee of the same institution that is the employing institution, as defined in § 30–101 of this article, of the member of the medical board.
2023 Maryland Statutes › State Personnel and Pensions › Division II - Pensions › Title 21 - State Retirement and Pension System › Subtitle 1 - Administration › Section 21-128 - Retiree Information for Direct Mailings

(a)    In this section, “retiree organization” means an organization in which State retirees participate and that has as one of its primary purposes, representing or providing services to State retirees.
(b)    This section applies to any retiree organization that has the legal authority to provide services to retirees of the several systems.
(c)    (1)    A retiree organization may submit only two requests each year to the Board of Trustees to assist the retiree organization in performing direct mailings to retirees of the several systems who are members of the retiree organization or eligible to become members of the retiree organization.
(2)    The direct mailings may not be for the purpose of supporting or opposing any political party, ballot measure, or candidate in any election, including any State general or primary election or any election within the retiree organization.
(3)    (i)    The Board of Trustees shall provide the retiree data for addressing envelopes only to the mail processing center under a secure data share agreement with the mail processing center under which neither the retiree organization nor any other entity has direct access to any names or addresses.
(ii)    If the Board of Trustees provides any retiree data to a mail processing center under subparagraph (i) of this paragraph, the Board of Trustees is not required to notify a retiree whose data is released of the provisions of § 21–504 of this title.
(4)    (i)    A retiree organization shall provide the Board of Trustees with copies of all materials that will be included in the direct mailing.
(ii)    The Board of Trustees shall review the materials provided under subparagraph (i) of this paragraph before providing any retiree data to a mail processing center.
(d)    The direct mailing shall provide retirees of the several systems who are members of the retiree organization or eligible to become members of the retiree organization with information that explains the services offered by the retiree organization.
(e)    (1)    A retiree organization is solely responsible for the procurement of a mail processing center under this section.
(2)    The retiree organization shall provide all printed materials to be mailed and envelopes to a mail processing center.
(3)    The retiree organization is responsible for paying all costs for generating mailing labels, inserting materials into envelopes, sealing, labeling, and delivering materials to be mailed to a bulk mail center or post office.
(4)    The retiree organization is responsible for all postage costs involved for the direct mailings.
(f)    The Board of Trustees is not liable for the content of any direct mailing sent under this section.
2023 Maryland Statutes › State Personnel and Pensions › Division II - Pensions › Title 21 - State Retirement and Pension System › Subtitle 2 - Fiduciary Responsibilities › Section 21-201 - Definitions

(a)    In this subtitle the following words have the meanings indicated.
(b)    “Fiduciary” means:
(1)    a member of the Board of Trustees;
(2)    a member of the Investment Committee;
(3)    a member of a committee established by the Board of Trustees as authorized under § 21–108 of this title;
(4)    a member of a committee established under § 21–122(g) of this title; or
(5)    an employee of the State Retirement Agency who exercises any discretionary authority or control over:
(i)    the management or administration of the several systems; or
(ii)    the management or disposition of the assets of the several systems.
(c)    “Several systems” includes the optional retirement program to the extent that the Board of Trustees administers the program under Title 30 of this article.
2023 Maryland Statutes › State Personnel and Pensions › Division II - Pensions › Title 21 - State Retirement and Pension System › Subtitle 2 - Fiduciary Responsibilities › Section 21-202 - Purposes of Assets of System

The Board of Trustees shall hold the assets of each of the several systems for the exclusive purposes of providing:
(1)    benefits to participants; and
(2)    for reasonable expenses of administration.
2023 Maryland Statutes › State Personnel and Pensions › Division II - Pensions › Title 21 - State Retirement and Pension System › Subtitle 2 - Fiduciary Responsibilities › Section 21-203 - Standards of Care

A fiduciary shall discharge the fiduciary's duties with respect to the several systems solely in the interest of the participants and as follows:
(1)    for the exclusive purposes of providing benefits to the participants and for reasonable expenses of administering the several systems;
(2)    with the care, skill, prudence, and diligence under the circumstances then prevailing, that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims;
(3)    by diversifying the investments of the several systems so as to minimize the risk of large losses, unless under the circumstances it is clearly prudent not to do so;
(4)    in accordance with the laws governing the several systems; and
(5)    in accordance with the documents and instruments governing the several systems to the extent that the documents and instruments are consistent with this subtitle.
2023 Maryland Statutes › State Personnel and Pensions › Division II - Pensions › Title 21 - State Retirement and Pension System › Subtitle 2 - Fiduciary Responsibilities › Section 21-204 - Duties and Responsibilities of Trustees

(a)    (1)    Except as otherwise provided in subsection (c) of this section, in exercising the standards set forth in § 21-203 of this subtitle:
(i)    the trustees jointly shall manage and control the assets of the several systems; and
(ii)    each trustee of the several systems, when acting as a fiduciary, shall use reasonable care to prevent another trustee from committing a breach.
(2)    Paragraph (1) of this subsection does not preclude any agreement that allocates specific responsibilities, obligations, or duties among the trustees.
(b)    The Board of Trustees may:
(1)    allocate the responsibilities of the fiduciaries among the fiduciaries; and
(2)    designate any other person to carry out the responsibilities of a fiduciary.
(c)    (1)    If the Board of Trustees makes an allocation or designation to a person under subsection (b) of this section, the Board of Trustees is not liable for an act or omission of that person in carrying out the responsibility, except to the extent that the Board of Trustees violates § 21-203 of this subtitle with respect to:
(i)    the allocation or designation;
(ii)    the establishment or implementation of a procedure to allocate or designate; or
(iii)    the continuance or review of the allocation or designation.
(2)    Except as otherwise provided in paragraph (1) of this subsection, a trustee to whom certain responsibilities, obligations, or duties have not been allocated is not liable, either individually or as a trustee, for any loss resulting to the several systems arising from an act or omission of another person to whom the responsibilities, obligations, or duties have been allocated.
2023 Maryland Statutes › State Personnel and Pensions › Division II - Pensions › Title 21 - State Retirement and Pension System › Subtitle 2 - Fiduciary Responsibilities › Section 21-205 - Prohibited Transactions Involving System Assets

In exercising authority, control, or discretion with respect to the several systems, a fiduciary may not:
(1)    use the assets of the several systems for the fiduciary's own interest or account;
(2)    act in a transaction involving the several systems on behalf of a person, or represent a person, if the interests of the person are adverse to the interests of the several systems or the interests of participants;
(3)    receive any consideration for the fiduciary's own account from a person dealing with the several systems in connection with a transaction involving the assets of the several systems; or
(4)    become an endorser or surety or, in any manner, an obligor, for money lent to or borrowed from the Board of Trustees.
2023 Maryland Statutes › State Personnel and Pensions › Division II - Pensions › Title 21 - State Retirement and Pension System › Subtitle 2 - Fiduciary Responsibilities › Section 21-206 - Liability of Fiduciary for Breach of Duty

(a)    Subject to § 21-207 of this subtitle, a fiduciary who breaches any of the responsibilities, obligations, or duties imposed on a fiduciary by this subtitle:
(1)    is personally liable to the several systems for any losses to the several systems resulting from a breach;
(2)    shall restore to the several systems any profits of the fiduciary made through use of assets of the several systems by the fiduciary; and
(3)    is subject to any equitable or remedial relief, including removal of the fiduciary, that a court considers appropriate.
(b)    A fiduciary is not liable with respect to a breach of fiduciary duty under this subtitle if the breach was committed:
(1)    before the fiduciary became a fiduciary; or
(2)    after the fiduciary ceased to be a fiduciary.
2023 Maryland Statutes › State Personnel and Pensions › Division II - Pensions › Title 21 - State Retirement and Pension System › Subtitle 2 - Fiduciary Responsibilities › Section 21-207 - Indemnification of Fiduciaries

(a)    Subject to the provisions of this section, the State shall indemnify a fiduciary who is, or is threatened to be made, a party to an action or proceeding, including an administrative or investigative proceeding, by reason of the fiduciary’s service as a fiduciary.
(b)    (1)    In this subsection, “expenses” include:
(i)    reasonable attorney’s fees;
(ii)    judgments;
(iii)    fines; and
(iv)    other expenses that were actually and reasonably incurred by the fiduciary in connection with the action or proceeding.
(2)    With respect to a civil, administrative, or investigative action or proceeding, the State shall indemnify a fiduciary for the expenses of the action or proceeding if the fiduciary acted:
(i)    in good faith; and
(ii)    in a manner the fiduciary reasonably believed to be in or not opposed to the best interest of the several systems.
(3)    With respect to a criminal action or proceeding, the State shall indemnify a fiduciary for the expenses of the action or proceeding if the fiduciary:
(i)    acted in good faith;
(ii)    acted in a manner the fiduciary reasonably believed to be in or not opposed to the best interest of the several systems; and
(iii)    did not have reasonable cause to believe that the fiduciary’s conduct was unlawful.
(c)    Any termination of an action or proceeding does not, of itself, create a presumption that the fiduciary did not meet the standards for indemnification described in subsection (b)(2) and (3) of this section.
(d)    The State may not indemnify:
(1)    a fiduciary with respect to an action or proceeding as to which the fiduciary was held liable for gross negligence or willful misconduct in the performance of the fiduciary’s duty to the several systems; or
(2)    an independent contractor furnishing services to the several systems.
(e)    (1)    The State shall provide insurance for a fiduciary eligible for indemnification under this section.
(2)    For the purpose of paragraph (1) of this subsection, the State may provide self–insurance under terms and conditions satisfactory to the State Treasurer.
(3)    A fiduciary may not be required to pay amounts attributable to liability described in this section because the State does not provide adequate insurance coverage or otherwise fails to indemnify in accordance with this section.
2023 Maryland Statutes › State Personnel and Pensions › Division II - Pensions › Title 21 - State Retirement and Pension System › Subtitle 2 - Fiduciary Responsibilities › Section 21-208 - Agreement Relieving Fiduciary From Liability

(a)    Except as provided in § 21-204(b) and (c) of this subtitle, a provision in an agreement that purports to relieve a fiduciary from a responsibility, obligation, or duty, or liability for a responsibility, obligation, or duty under this subtitle is against public policy and void.
(b)    This subtitle does not preclude indemnification of a fiduciary in accordance with § 21-207 of this subtitle.
2023 Maryland Statutes › State Personnel and Pensions › Division II - Pensions › Title 21 - State Retirement and Pension System › Subtitle 2 - Fiduciary Responsibilities › Section 21-209 - Disqualification of Fiduciary; Penalties

(a)    (1)    Notwithstanding any other law, a person may not serve as a fiduciary if the person has been convicted of:
(i)    a felony;
(ii)    a misdemeanor involving moral turpitude;
(iii)    a violation of this subtitle;
(iv)    a conspiracy or attempt to commit a crime described under item (i), (ii), or (iii) of this paragraph; or
(v)    a crime in which a crime described under item (i), (ii), (iii), or (iv) of this paragraph is an element.
(2)    A person may not knowingly allow another person to serve as a fiduciary in violation of paragraph (1) of this subsection.
(b)    Any person who intentionally violates subsection (a) of this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $10,000 or imprisonment not exceeding 1 year or both.
(c)    For the purposes of this section, a person is deemed to be convicted on the later of:
(1)    the date of judgment of the trial court; or
(2)    the date of the final sustaining of judgment on appeal.
(d)    A fiduciary may be removed for a violation of subsection (a) of this section.
2023 Maryland Statutes › State Personnel and Pensions › Division II - Pensions › Title 21 - State Retirement and Pension System › Subtitle 2 - Fiduciary Responsibilities › Section 21-210 - Bond

(a)    Except as provided in subsection (c) of this section, the State shall purchase a bond for each fiduciary in accordance with Title 9, Subtitle 17 of the State Government Article.
(b)    (1)    Unless a fiduciary is bonded as required by subsection (a) of this section, the fiduciary may not exercise custody or control of any assets of a State system.
(2)    A fiduciary may not allow another fiduciary to act in violation of paragraph (1) of this subsection.
(c)    (1)    The State may satisfy the requirement for a bond under subsection (a) of this section by purchasing an insurance policy.
(2)    The State Treasurer, in consultation with the Board of Trustees, shall determine the type and amount of coverage provided by a policy purchased under paragraph (1) of this subsection.
2023 Maryland Statutes › State Personnel and Pensions › Division II - Pensions › Title 21 - State Retirement and Pension System › Subtitle 3 - Funding › Section 21-301 - Funds of Several Systems

(a)    In each State system, there is:
(1)    an accumulation fund;
(2)    an annuity savings fund; and
(3)    an expense fund.
(b)    The Board of Trustees shall credit the assets of each State system to the appropriate fund of the State system according to the purpose for which the assets are held.
2023 Maryland Statutes › State Personnel and Pensions › Division II - Pensions › Title 21 - State Retirement and Pension System › Subtitle 3 - Funding › Section 21-302 - State Guaranty

(a)    The following are obligations of the State:
(1)    the payment of all allowances and other benefits payable under this Division II;
(2)    the creation and maintenance of reserves in the accumulation funds of the several systems;
(3)    the crediting of regular interest to the annuity savings funds of the several systems; and
(4)    except as provided in § 21–316 of this subtitle, the payment of the expenses for administration and operation of the several systems.
(b)    Subject to § 21–316 of this subtitle, the assets of the several systems shall be used to pay the obligations of the State specified in this section.
(c)    Each fiscal year the State shall pay to the accumulation fund of each State system at least an amount that when combined with the amount in the accumulation fund of the system is sufficient to provide the allowances and other benefits payable out of the fund during that fiscal year.
2023 Maryland Statutes › State Personnel and Pensions › Division II - Pensions › Title 21 - State Retirement and Pension System › Subtitle 3 - Funding › Section 21-305 - Employer Contributions -- Participating Governmental Units

(a)    In this section, “employees’ systems” means the Employees’ Pension System and the Employees’ Retirement System.
(b)    (1)    Each fiscal year, on behalf of its employees who are members of one of the employees’ systems, a participating governmental unit shall pay an amount equal to or greater than the product of multiplying:
(i)    the aggregate annual earnable compensation of those members; and
(ii)    the sum of the normal contribution rate and the accrued liability contribution rate, as determined under §§ 21–305.1 and 21–305.2 of this subtitle.
(2)    Each fiscal year, in addition to the amounts required to be paid under paragraph (1) of this subsection, a participating governmental unit shall pay:
(i)    the special accrued liability contribution required by § 21–305.3 of this subtitle;
(ii)    any withdrawal liability contribution required by § 21–305.5 of this subtitle;
(iii)    an amount equal to 5% of the aggregate earnable compensation of its employees who are members of the Employees’ Retirement System; and
(iv)    any annual deficit payment required under § 21–305.4(c) of this subtitle.
(3)    Each fiscal year, a participating governmental unit shall reduce the amounts required to be paid under paragraphs (1) and (2) of this subsection by any annual credit allowed to the participating governmental unit under § 21–305.4(b) of this subtitle.
(c)    (1)    The amount determined under subsection (b) of this section for the employees’ systems shall be based on an actuarial determination of the amounts that are required to preserve the integrity of the accumulation fund of the employees’ systems, using:
(i)    the entry–age actuarial cost method;
(ii)    actuarial assumptions adopted by the Board of Trustees; and
(iii)    the asset valuation method recommended by the actuary and adopted by the Board of Trustees.
(2)    Except as provided in subsection (b)(2)(iii) of this section, for the purpose of making the determinations required under this section, the Employees’ Retirement System and the Employees’ Pension System shall be considered together as one State system.
(d)    The actuary shall compute the contributions payable under this section.
(e)    The amounts computed under this section are a charge against the participating governmental unit to be paid in accordance with § 21–309 of this subtitle.
2023 Maryland Statutes › State Personnel and Pensions › Division II - Pensions › Title 21 - State Retirement and Pension System › Subtitle 3 - Funding › Section 21-305.1 - Employer Contributions -- Normal Contributions

(a)    In this section, “employees’ systems” means the Employees’ Pension System and the Employees’ Retirement System.
(b)    As part of each actuarial valuation, the actuary shall determine the normal contributions, net of member contributions, on account of members of the employees’ systems who are employees of participating governmental units.
(c)    Except as provided in subsection (d) of this section, the normal contribution rate for participating governmental units equals the fraction that has:
(1)    as its numerator, the sum of the normal contributions determined under this section; and
(2)    as its denominator, the aggregate annual earnable compensation of the members of the employees’ systems who are employees of participating governmental units.
(d)    On the recommendation of the actuary, the Board of Trustees may adjust the normal contribution rate to reflect:
(1)    experience gains and losses;
(2)    the effect of changes in actuarial assumptions; and
(3)    the effect of legislation enacted after July 1, 1980.
2023 Maryland Statutes › State Personnel and Pensions › Division II - Pensions › Title 21 - State Retirement and Pension System › Subtitle 3 - Funding › Section 21-305.2 - Employer Contributions -- Accrued Liability Contributions

(a)    In this section, “employees’ systems” means the Employees’ Pension System and the Employees’ Retirement System.
(b)    As part of each actuarial valuation, the actuary shall determine the accrued liability contributions on account of members of the employees’ systems who are employees of participating governmental units.
(c)    Each year the Board of Trustees shall set contribution rates for each State system that shall amortize:
(1)    all unfunded liabilities or surpluses accrued as of June 30, 2016, over 100 years;
(2)    all unfunded liabilities or surpluses accrued as of June 30, 2017, over 40 years;
(3)    all unfunded liabilities or surpluses accrued as of June 30, 2018, over 35 years;
(4)    all unfunded liabilities or surpluses accrued as of June 30, 2019, over 30 years;
(5)    all unfunded liabilities or surpluses accrued as of June 30, 2020, over 25 years;
(6)    all unfunded liabilities or surpluses accrued as of June 30, 2021, over 22 years;
(7)    all unfunded liabilities or surpluses accrued as of June 30, 2022, over 20 years; and
(8)    beginning July 1, 2023, any new unfunded liabilities or surpluses that have accrued from July 1 of the preceding fiscal year over the time remaining until June 30, 2041, to reflect:
(i)    experience gains and losses;
(ii)    the effect of changes in actuarial assumptions; and
(iii)    the effect of legislation effective on or after July 1, 2023.
2023 Maryland Statutes › State Personnel and Pensions › Division II - Pensions › Title 21 - State Retirement and Pension System › Subtitle 3 - Funding › Section 21-305.3 - Employer Contributions -- Special Accrued Liability Contributions

(a)    (1)    In this section the following words have the meanings indicated.
(2)    “Employees’ systems” means the Employees’ Pension System and the Employees’ Retirement System.
(3)    “Special accrued liability” means, as to any participating governmental unit, the liability of the employees’ systems on account of the employees of the participating governmental unit who elect to become members under § 23–204(a) of this article.
(b)    Each participating governmental unit shall make a special accrued liability contribution on account of its participation in the employees’ systems.
(c)    The special accrued liability contribution shall be determined by an actuarial valuation of the special accrued liability as of the date of approval of participation by the legislative body of the participating governmental unit.
(d)    Except as provided in subsection (e) of this section, the annual special accrued liability contribution of each participating governmental unit shall be the level annual payment that is sufficient to liquidate, over 25 years beginning on the date of approval by the legislative body of the participating governmental unit, the amount by which the special accrued liability of the participating governmental unit exceeds the sum of:
(1)    the present value, as of the date of approval, of future normal contributions, future accrued liability contributions, future contributions for members of the Employees’ Retirement System required under § 21–305(b)(2)(iii) of this subtitle, future member contributions on behalf of or by members who are employees of the participating governmental unit; and
(2)    any cash and securities transferred to the Employees’ Pension System in accordance with § 31–113(e) of this article.
(e)    Subject to the approval of the Board of Trustees, a participating governmental unit may liquidate its unfunded special accrued liability:
(1)    over a period not to exceed 40 years; or
(2)    subject to the actuary’s concurrence, by means of annual payments other than level annual payments.
(f)    A participating governmental unit may prepay the special accrued liability in whole or in part at any time with interest at the annual rate established by the Board of Trustees as of the date of payment.
(g)    The expense of making the initial special accrued liability actuarial valuation shall be assessed against and paid by the participating governmental unit on whose account it is necessary.
2023 Maryland Statutes › State Personnel and Pensions › Division II - Pensions › Title 21 - State Retirement and Pension System › Subtitle 3 - Funding › Section 21-305.6 - Employer Contributions -- Partial Withdrawal

(a)    (1)    In this section the following words have the meanings indicated.
(2)    “Employees’ systems” means the Employees’ Pension System and the Employees’ Retirement System.
(3)    “Partial withdrawal” means that a participating governmental unit elects to withdraw from participation in the employees’ systems and transfer to a local pension system any of the following groups of employees of the participating governmental unit who consent to the withdrawal:
(i)    firefighters;
(ii)    law enforcement personnel; or
(iii)    subject to the approval of the Board of Trustees, a homogeneous unit of at least 10 employees.
(b)    This section applies only to a participating governmental unit that elects a partial withdrawal from participation in the employees’ systems.
(c)    (1)    On and after the date of a participating governmental unit’s partial withdrawal from the employees’ systems, the participating governmental unit and its employees are not required to make any further contributions to the employees’ systems for those employees who elect to withdraw from the employees’ systems.
(2)    As of the effective date of the partial withdrawal, the participating governmental unit shall continue:
(i)    to make any contributions required under § 21-305(b)(1) and (2) of this subtitle on behalf of those employees who do not elect to withdraw from the employees’ systems; and
(ii)    to reduce the amounts required to be paid under § 21-305(b)(1) and (2) of this subtitle by any annual credit allowed to the participating governmental unit under § 21-305.4(b) of this subtitle.
(3)    As of the effective date of the partial withdrawal, the Board of Trustees shall transfer to the administrative board of the local pension system the assets that are allocable to the employees of the participating governmental unit who elect to withdraw from the employees’ systems as determined under subsection (d) of this section.
(d)    On the recommendation of the actuary, the Board of Trustees shall adopt regulations that set forth the method for:
(1)    computing the assets allocable to the employees of a participating governmental unit who elect to withdraw from the employees’ systems;
(2)    computing the withdrawal liability contribution of the participating governmental unit; and
(3)    determining the portion of any surplus as determined under § 21-305.4(b) of this subtitle, deficit as determined under § 21-305.4(c) of this subtitle, or transition amount as determined under § 21-305.5(i) of this subtitle that is available to the participating governmental unit as of the effective date of the partial withdrawal to compute the assets allocable to the withdrawing employees and the withdrawal liability contribution.
2023 Maryland Statutes › State Personnel and Pensions › Division II - Pensions › Title 21 - State Retirement and Pension System › Subtitle 3 - Funding › Section 21-309 - Employer Contributions -- Payment by Participating Governmental Unit

(a)    In this section, “participating governmental unit” includes a county required to pay the employer contribution or part of the employer contribution under § 21-307 of this subtitle.
(b)    Each year, the Board of Trustees shall certify to the chief fiscal officer of each participating governmental unit:
(1)    the normal contribution rates, accrued liability contribution rates, special accrued liability contribution rate, and withdrawal liability contribution rate for the participating governmental unit; and
(2)    any amount payable by the participating governmental unit for a magistrate under § 21–307(b) of this subtitle.
(c)    Each participating governmental unit shall:
(1)    include an amount determined based on the rates certified by the Board of Trustees as payable by the participating governmental unit under this section in the next budget, appropriation, or levy of the participating governmental unit after the certification by the Board of Trustees; and
(2)    levy and collect those amounts in the same manner as any other tax.
(d)    (1)    Except as provided in paragraph (3) of this subsection, within 30 days after receiving the certification by the Board of Trustees of the amount payable by the participating governmental unit under this section, the proper fiscal officer of each participating governmental unit shall pay that amount to the Board of Trustees.
(2)    A participating governmental unit that does not pay the amounts certified under this subsection within the time required is liable for:
(i)    a penalty of 10% of the amount due; and
(ii)    interest on delinquent amounts at 10% a year until payment.
(3)    The Secretary of the Board of Trustees may allow a grace period for payment of the amounts certified under this section not to exceed 10 calendar days.
(4)    On notification by the Secretary of the Board of Trustees that a delinquency exists, the State Comptroller immediately shall exercise the right of setoff against any money due or coming due to the delinquent participating governmental unit.
(e)    On receipt of the payments from the fiscal officer of each participating governmental unit, the Board of Trustees shall credit these amounts to the accumulation fund of the appropriate State system.
2023 Maryland Statutes › State Personnel and Pensions › Division II - Pensions › Title 21 - State Retirement and Pension System › Subtitle 3 - Funding › Section 21-309.1 - Employer Contributions -- Payment by Local Employers

(a)    (1)    In this section the following words have the meanings indicated.
(2)    “Local employee” has the meaning stated in § 21–304 of this subtitle.
(3)    “Local employer” has the meaning stated in § 21–304 of this subtitle.
(b)    On or before December 1 of each year, the Board of Trustees shall determine and certify the amounts payable by each local employer under § 21–304(b)(4) of this subtitle for the next fiscal year.
(c)    On or before October 1, January 1, April 1, and June 1 of each fiscal year, each local employer shall pay to the Board of Trustees 25% of the amount of the charges certified to the local employer by the Board of Trustees under subsection (b) of this section.
(d)    (1)    The Secretary of the Board of Trustees may allow a grace period not to exceed 10 calendar days for payment of the amounts certified under this section.
(2)    If a local employer does not pay the amounts required under this section within the time required, on notification by the Secretary of the Board of Trustees that a delinquency exists, the State Comptroller immediately:
(i)    shall withhold the delinquent amounts, including interest on the delinquent amounts at a rate of 7.75% a year, from any installment due the local employer from the General State School Fund; and
(ii)    shall pay to the Board of Trustees the delinquent amounts, including interest, withheld under this paragraph.
(e)    On receipt of the payments from each local employer or the State Comptroller, the Board of Trustees shall credit these amounts to the accumulation fund of the appropriate State system.
2023 Maryland Statutes › State Personnel and Pensions › Division II - Pensions › Title 21 - State Retirement and Pension System › Subtitle 3 - Funding › Section 21-310 - Employer Contributions -- Payment by Maryland Environmental Service

(a)    Each year, the Board of Trustees shall certify to the Maryland Environmental Service the State’s normal contribution rate and the State’s accrued liability contribution rate and the amounts payable under § 21–307(f) of this subtitle.
(b)    (1)    The Maryland Environmental Service shall pay to the Board of Trustees the amount of the charges certified to the Maryland Environmental Service by the Board of Trustees under subsection (a) of this section.
(2)    Within 30 days after receiving the certification by the Board of Trustees, the Maryland Environmental Service shall pay that amount to the Board of Trustees.
(3)    If the Maryland Environmental Service does not pay the amounts certified under this section within the time required, it is liable for:
(i)    a penalty of 10% of the amount due; and
(ii)    interest on delinquent amounts at 10% a year until payment.
(4)    The Secretary of the Board of Trustees may allow a grace period for payment of the amounts certified under this section not to exceed 10 calendar days.
(5)    On notification by the Secretary of the Board of Trustees that a delinquency exists, the State Comptroller immediately shall exercise the right of setoff against any money due or coming due to the Maryland Environmental Service.
(c)    On receipt of the payments from the Maryland Environmental Service, the Board of Trustees shall credit these amounts to the accumulation fund of the appropriate State system.
2023 Maryland Statutes › State Personnel and Pensions › Division II - Pensions › Title 21 - State Retirement and Pension System › Subtitle 3 - Funding › Section 21-311 - Annuity Savings Funds

(a)    The Board of Trustees shall credit to each member’s individual account in the annuity savings fund of the appropriate State system:
(1)    the member contributions of the member as provided in this Division II; and
(2)    regular interest on the accumulated contributions of the member as provided in this Division II.
(b)    From the annuity savings fund of the appropriate system, the Board of Trustees shall pay the accumulated contributions of a member or former member that, as provided in this Division II:
(1)    are withdrawn by the member or former member; or
(2)    if a member or former member dies, are paid to the member’s or former member’s estate or designated beneficiary.
(c)    When a member retires or a former member commences to receive a vested allowance, the Board of Trustees shall transfer the member’s or former member’s accumulated contributions from the annuity savings fund of the appropriate State system to the accumulation fund of that system.
(d)    (1)    If a former member is not eligible to receive a vested allowance under Title 29, Subtitle 3 of this article, when the former member’s membership ends, the Board of Trustees shall transfer the former member’s accumulated contributions from the annuity savings fund of the appropriate State system to the accumulation fund of that system.
(2)    If accumulated contributions of a former member are transferred to the accumulation fund under paragraph (1) of this subsection, at the request of the former member, the Board of Trustees shall return the accumulated contributions to the former member from the accumulation fund.
2023 Maryland Statutes › State Personnel and Pensions › Division II - Pensions › Title 21 - State Retirement and Pension System › Subtitle 3 - Funding › Section 21-312 - Member Contributions -- in General

(a)    To determine the earnable compensation of a member in a payroll period, the Board of Trustees may deem that the rate of annual compensation payable to the member on the first day of the payroll period continues throughout the payroll period.
(b)    The Board of Trustees may omit member contributions for a period less than a full payroll period for an individual who was not a member on the first day of the payroll period.
(c)    To facilitate the making of member contributions, the Board of Trustees may modify the member contribution required of any member by an amount not exceeding 0.1% of the annual earnable compensation on the basis of which the member contribution is to be made.
(d)    (1)    The member contributions provided for under this Division II shall be made notwithstanding any resulting reduction in the actual compensation received below the minimum compensation provided for by law for a member.
(2)    Each member is deemed to agree to make the member contributions required by this Division II and to have received full compensation.
(3)    Except for the benefits provided under this Division II, payment of compensation less any member contribution is a complete discharge of all claims for services rendered by an employee during the time covered by the payment.
(e)    If a member does not make the member contributions required by this Division II, on retirement, the member’s retirement allowance shall be reduced by the actuarial equivalent of the missed accumulated contributions, including regular interest on those contributions at the statutory rate earned on member contributions in the member’s system, compounded annually.
2023 Maryland Statutes › State Personnel and Pensions › Division II - Pensions › Title 21 - State Retirement and Pension System › Subtitle 3 - Funding › Section 21-313 - Member Contributions -- Employer Pickup of Member Contributions

(a)    In this section, “approved employer” means a participating employer who adopts a resolution and follows procedures as prescribed by the Board of Trustees for an employer pickup program in accordance with § 414(h)(2) of the Internal Revenue Code.
(b)    The State or other approved employer of a member shall pick up, within the meaning of § 414(h)(2) of the Internal Revenue Code, the member contributions required by this Division II.
(c)    The member contributions under subsection (b) of this section:
(1)    are designated as employee contributions to be picked up by the employing unit within the meaning of § 414(h)(2) of the Internal Revenue Code and shall be treated as employer contributions in determining tax treatment under that section;
(2)    shall reduce the compensation of the member in an amount that equals the member contribution picked up by the employer;
(3)    may not be included as gross income of the member until the pickup amounts are distributed or made available to the member;
(4)    shall be paid by the State or other approved employer from the same source of funds that is used to pay compensation to the member; and
(5)    for purposes of this Division II, shall be treated in the same manner and to the same extent as member contributions made before establishment of the employer pickup program.
2023 Maryland Statutes › State Personnel and Pensions › Division II - Pensions › Title 21 - State Retirement and Pension System › Subtitle 3 - Funding › Section 21-314 - Member Contributions -- Duties of Participating Employers

(a)    Each participating employer shall submit to the Board of Trustees a statement that shows the name, date of birth, occupational title, duties, compensation, length of service, and other information that the Board of Trustees requires regarding employees or former employees of the participating employer.
(b)    Each year the Board of Trustees shall certify the member contribution rates to the chief fiscal officer of each participating employer.
(c)    (1)    In this subsection, “compensation” means a member’s earnable compensation as provided in § 20–101 of this article and includes the amount earned by the member for all pay periods ending during a calendar year even if an amount is paid to the member after December 31 of the calendar year.
(2)    As each payroll is paid and in a manner that the Board of Trustees prescribes each participating employer shall:
(i)    certify to the Board of Trustees, and the proper fiscal officer of the participating employer shall pay to the Board of Trustees, the member contributions deducted from the compensation of each member employed by the participating employer or made under an employer pickup program; and
(ii)    submit to the State Retirement Agency supporting payroll data required by the State Retirement Agency in a format specified by the State Retirement Agency.
(d)    (1)    A participating employer that does not pay the member contributions certified under this section and submit the supporting payroll data to the Board of Trustees as each payroll is paid and in a manner prescribed by the Board of Trustees is liable for:
(i)    a penalty of 10% of the member contributions due;
(ii)    interest on delinquent member contributions at 10% a year until paid;
(iii)    a $250 penalty for each payroll for which the supporting data is not submitted; and
(iv)    interest on the penalty assessed under item (iii) of this paragraph at 10% per year if the penalty is not paid by the date certified by the State Retirement Agency.
(2)    The Secretary of the Board of Trustees may allow a grace period for payment of the amounts due or submission of supporting payroll data as required under this section not to exceed 10 working days.
(3)    On notification by the Secretary of the Board of Trustees that a delinquency exists, the State Comptroller immediately shall set off the delinquent amount against any money due or coming due to the delinquent participating employer.
(e)    On receipt of the payments from the participating employer, the Board of Trustees shall credit the amounts to the individual account of the member, from whose compensation the member contribution is made, in the annuity savings fund of the appropriate system.
2023 Maryland Statutes › State Personnel and Pensions › Division II - Pensions › Title 21 - State Retirement and Pension System › Subtitle 4 - Optional Forms of Allowance › Section 21-401 - Election

(a)    (1)    Subject to paragraph (2) of this subsection, instead of the basic allowance provided under the State system of a member, the member may elect a reduced allowance to be paid as one of the options under § 21–403 of this subtitle.
(2)    Paragraph (1) of this subsection applies to a member of:
(i)    the Law Enforcement Officers’ Pension System or State Police Retirement System only if, at retirement, the member does not have a spouse; and
(ii)    the Judges’ Retirement System only if, at retirement, the member does not have a spouse or a child who is under the age of 26 years or is disabled.
(b)    To elect an optional form of allowance, a member shall:
(1)    complete the appropriate form that the Board of Trustees provides; and
(2)    file the form with the Board of Trustees before the first allowance payment normally becomes due.
(c)    A member who has elected an optional form of allowance may change the election only if the member notifies the Board of Trustees before the first allowance payment normally becomes due.
(d)    If a member dies before the effective date of retirement, the Board of Trustees shall pay the benefits payable on the member’s behalf as if the member had not elected an optional form of allowance.
2023 Maryland Statutes › State Personnel and Pensions › Division II - Pensions › Title 21 - State Retirement and Pension System › Subtitle 4 - Optional Forms of Allowance › Section 21-402 - Option Requirements

(a)    Each optional form of allowance shall be the actuarial equivalent of the basic allowance under the State system of a member.
(b)    (1)    Subject to paragraph (2) of this subsection, for an optional form of allowance providing for payment to a designated beneficiary for life, the designated beneficiary must be an individual.
(2)    If the designated beneficiary is a minor or an individual with a disability, the allowance may be paid into a trust for the benefit of the individual.
(3)    A member who elects to receive a reduced optional allowance under § 21-403 of this subtitle may designate an individual other than the member’s child as the member’s designated beneficiary.
(c)    (1)    This subsection applies to a member who selects an optional form of allowance as provided in § 21-403(b) or (e) of this subtitle.
(2)    If a member designates a beneficiary other than the member’s spouse or disabled child as defined under § 72(m)(7) of the Internal Revenue Code, a member may not designate a beneficiary who is more than 10 years younger than the member.
2023 Maryland Statutes › State Personnel and Pensions › Division II - Pensions › Title 21 - State Retirement and Pension System › Subtitle 4 - Optional Forms of Allowance › Section 21-404 - Change in Designated Beneficiary -- in General

(a)    This section does not apply to the Judges’ Retirement System.
(b)    To change a designated beneficiary, a retiree shall:
(1)    complete the appropriate form that the Board of Trustees provides; and
(2)    file the form with the Board of Trustees.
(c)    Subject to subsections (d) and (e) of this section, if a retiree changes a designated beneficiary, the Board of Trustees shall recompute the allowance for the election based on the value of the balance in the retiree’s annuity reserve and pension reserve when the change is made.
(d)    (1)    This subsection applies only to a retiree who elected the optional form of allowance payable under § 21–403(b) (Option 2), § 21–403(c) (Option 3), § 21–403(e) (Option 5), or § 21–403(f) (Option 6) of this subtitle.
(2)    A retiree may rescind a request to change the designated beneficiary and restore the retiree’s prior designation of beneficiary by sending written notice to the State Retirement Agency that is received by the State Retirement Agency before the second allowance payment normally becomes due after the change of beneficiary.
(3)    A retiree who rescinds a change of designated beneficiary in a timely manner under paragraph (2) of this subsection shall receive, after the rescission, the allowance payable prior to the change of designated beneficiary, without retroactive adjustment of any allowance payment made while the rescinded designation of beneficiary was in effect.
(e)    (1)    This subsection applies to a retiree if:
(i)    the retiree elected the optional form of allowance payable under § 21–403(e) (Option 5) or § 21–403(f) (Option 6) of this subtitle;
(ii)    the retiree’s designated beneficiary dies before the retiree; and
(iii)    after the death of the designated beneficiary, the retiree elects to change the designated beneficiary.
(2)    The Board of Trustees shall recompute the reduced allowance payable to a retiree and the retiree’s new designated beneficiary using:
(i)    the retiree’s basic allowance at the time of the new beneficiary designation;
(ii)    the retiree’s age at the time of the new beneficiary designation; and
(iii)    the age of the new designated beneficiary.