(a) Generally. Each active participant in a plan who transfers to a position covered by another plan shall cease to be a participant in the former plan and become a participant in the latter plan on the effective date of the transfer. An employee may not be an active participant in more than one plan at the same time.
(b) Appointed positions. A participant in a plan who is appointed to the position of Chief of Police, Fire Chief, or Superintendent of Detention Facilities may elect to transfer and become a participant in another plan for which the participant becomes eligible on appointment. The election shall be made within one year of the appointment.
(c) Transfer of assets. On transfer of a participant, the Personnel Officer shall provide for a transfer of assets as provided in subsection (d) and the participant's credited service as provided in subsection (e).
(d) Amount of assets.
(1) The amount of assets transferred shall equal the value of the employee's benefit under the former plan and shall be calculated using the projected unit credit basis, with the calculation performed as of the participant's date of transfer, using the valuation assumptions in effect for the actuarial valuation immediately preceding the transfer date, and credited with interest at the valuation interest rate from the participant's date of transfer to the date the assets are transferred.
(2) The amount of assets transferred may not be less than accumulated contributions to the former plan on the date the assets are transferred.
(3) Asset transfers may be calculated as part of the annual actuarial valuation of a plan.
(e) Credited service. A participant's credited service in the former plan shall be transferred to the latter plan and shall be used for the purposes of determining the normal retirement date or the early retirement date and for determining the amount of the pension benefit in the latter plan, in accordance with the provisions of the latter plan, provided that:
(1) transferred service received as credited service in the former plan shall be considered to be actual plan service transferred to the latter plan in accordance with § 5-1-101(5)(i); and
(2) credited pre-plan military service shall be considered in accordance with § 5-1-209(b).
(f) Adjustments. A participant is not entitled to receive, or required to make, a payment adjustment for differences in employee contribution rates between the two plans for the period of participation prior to the transfer.
(1985 Code, Art. 7, § 1-202) (Bill No. 90-01; Bill No. 7-03)