In this Article, the following words and phrases have the following meanings:
Account balances: The balances credited to the retirement accounts of each elected officials' participant under the elected officials' plan as of the valuation date preceding the date of distribution, plus any elected officials' participant contributions or county elected officials' contributions allocated to those accounts since that date, determined without regard to vesting.
Accumulated contributions: The sum of all the amounts deducted from the compensation of the member, including picked-up contributions, and all other contributions paid by the member and credited to the member's retirement account plus credited interest as provided in section 33-39.
Actuarial equivalent: As to any amount, an equivalent amount, determined in accordance with actuarial assumptions provided by an independent enrolled actuary to be used in conjunction with the plan in question.
Board or board of investment trustees: The board of investment trustees established under this article.
County elected officials' contributions: The contributions by the county to the elected officials' plan required under section 33-40.
County government: The county government and, when applicable, any agency whose employees are participating in the retirement system.
County merit system protection board: The merit system protection board as defined in the Charter of Montgomery County, Maryland.
County personnel board or personnel board: The county personnel board as defined in the Charter of Montgomery County, Maryland.
County service: Employment with the county government or any agency whose employees participate as members of this retirement system, and full-time or career part-time service with another agency by the incumbent of a position brought under the county's merit system without a break in service.
Department, office or agency head: The administrative head of a department or principal office of the county government and of each fire department, rescue squad and other participating agency or political subdivision.
Domestic partner: A person who was registered as the domestic partner of a member with the Office of Human Resources on or before June 27, 2016 in a domestic partnership that did not end before the member’s death.
Elected official: The sheriff, the state's attorney, and any county official elected for a fixed term as specifically provided in the Charter.
Elected officials' plan: The defined contribution plan that the county establishes for elected officials.
Elected officials' participant: A member who is participating in the elected officials' plan.
Elected officials' participant contributions: The contributions by an elected officials' participant to the elected officials' plan required under subsection 33-39(a)(3) ("required elected officials' participant contributions") and permitted under subsection 33-39(d) ("voluntary elected officials' participant contributions").
Employee: Any eligible elected or appointed official and any full-time or career part-time employee of the County, or of a participating agency or political subdivision.
Fiduciary: A person who:
(1) exercises discretionary authority to manage a retirement system;
(2) exercises authority to invest or manage assets of a retirement system;
(3) renders investment advice for a fee or other compensation about assets of a retirement system or has authority or responsibility to render that advice; or
(4) is a trustee on the Board of Investment Trustees.
However, an investment manager of an investment vehicle is only a fiduciary if it holds plan assets as defined under the Employee Retirement Income Security Act (ERISA) and its corresponding regulations.
Final earnings: Except as otherwise provided, the regular earnings of a member as of the last date of active service. Final earnings for a member who filed an application for disability benefits under Section 33-43 before May 19, 2010 that is approved after June 30, 2010 must be the member’s regular earnings on the last pay period in fiscal year 2010.
Firefighter/Rescuer Bargaining Unit: The collective bargaining unit described in Section 33-148 that includes certain non-supervisory employees in the Firefighter/Rescuer series employed by the Department of Fire and Rescue Services.
Guaranteed retirement income plan: A retirement plan that provides retirement benefits based on retirement credits and a guaranteed rate of interest on those credits.
Guaranteed retirement income plan account balance: The balance credited to the retirement accounts of each participant under the guaranteed retirement income plan, determined without regard to vesting.
Integrated retirement plan: A retirement plan that provides full retirement benefits until the member is eligible for full social security retirement benefits and supplemental benefits thereafter.
Investment funds: The separate investment funds the County establishes to permit elected officials' participants to invest their account balances in the elected officials' plan.
Investment manager: A person or entity who exercises discretion to manage all or part of the assets of an institutional investor.
Maximum covered compensation level: The maximum dollar amount of earnings upon which social security benefits are based, assuming: (1) an employee's annual compensation was or will be at least equal to the taxable wage base each calendar year for a 35-year period through the year in which the employee attains social security retirement age; (2) the employee worked in employment covered by the federal social security act during each of the above mentioned calendar years; and (3) the taxable wage base remains constant from calendar year of termination or retirement to attainment of social security retirement age in this determination.
Member: An employee or official of the County government or of a participating agency or political subdivision who is contributing to this retirement system.
Member contributions: The contributions required under Section 33-39 from a member, including amounts deducted from the member’s compensation, and picked-up contributions made on or after July 1, 1989.
Membership: the period of time that a member is enrolled and has contributed to the Employees’ Retirement System.
Normal working time: The number of hours a member would be expected to work in a yearly period including paid authorized leave as may be provided in the personnel regulations. In the case of part-time career member, such "normal working time" will be whatever scheduled work time may be set forth as a condition of the member's appointment.
Office, Professional and Technical Bargaining Unit: The collective bargaining unit described in Section 33-105(a)(1) which includes certain employees in eligible classes associated with office, professional, paraprofessional, and technical functions.
Optional retirement plan: A retirement plan that provides retirement benefits independent of social security retirement benefits.
Participant: A person who has a benefit under the optional plan, the integrated plan, the elected officials’ plan, or the guaranteed retirement income plan.
Part-time employee: Any employee working less than the normal scheduled work week for full-time employees, on a continuing basis.
Plan Year: The 12-month period on the basis of which the books and records of the retirement system are maintained. The plan year of the retirement system is the same as the County fiscal year.
Police Bargaining Unit: The collective bargaining unit defined in Section 33-76 which includes non-supervisory sworn County police officers.
Police Telecommunicator: An employee assigned to a position in a supervisory or nonsupervisory occupational class in the Police Telecommunicator occupational series.
Prior service: County service rendered prior to the date of the establishment of the retirement system or qualified County service rendered prior to membership in the retirement system.
Public safety employee: An employee who is a:
(1) sworn officer of the Police Department;
(2) paid firefighter, paid fire officer, or paid rescue service worker of the Montgomery County Fire and Rescue Service;
(3) sworn deputy sheriff;
(4) correctional officer; or
(5) County employee who provides services to a correctional facility and designated as a public safety employee by the Chief Administrative Officer.
Regular earnings: Except as otherwise provided, gross pay for actual hours worked, including paid leave, but not including overtime. To calculate regular earnings, for FY10 only, a Group A, E, or H member who is employed on July 1, 2009 and participates in the integrated or optional plan must include amounts as if the member had received an increase of 4.5% in the member’s gross pay as of July 1, 2009, except for the purpose of calculating a member’s contribution under Section 33-39. To calculate regular earnings, for FY10 only, for a Group F member who is employed on July 1, 2009 and participates in the integrated or optional plan must include amounts as if the member had received an increase of 4.25% in the member’s gross pay as of July 1, 2009, except for the purpose of calculating a member’s contribution under Section 33-39. To calculate regular earnings, for FY10 only, for a Group G member who is employed on July 1, 2009 and participates in the integrated or optional plan must include amounts as if the member had received an increase of 4% in the member’s gross pay as of July 1, 2009, except for the purpose of calculating a member’s contribution under Section 33-39. If a member is required to take any furlough, as defined in personnel regulations adopted under Section 33-7(b), or a collective bargaining agreement, regular earnings must include any amount the member would have received if the member had not been required to take any furlough. Regular earnings for an elected official is gross pay for services rendered to the County. Regular earnings must not exceed the limit under Internal Revenue Code Section 401(a)(17), as adjusted by the Internal Revenue Service. For a member who first became a member in this retirement system before July 1, 1996, the limits in effect before July 1, 1993, and as adjusted by the Internal Revenue Service, shall continue to apply. Gross pay must be used to determine benefits even if the County implements a pick-up plan under Section 414 of the Internal Revenue Code. Gross pay must be used to determine benefits even if a member has agreed to a reduction in earnings under:
(a) The County's deferred compensation plan under Section 457 of the Internal Revenue Code; or
(b) Any statutory fringe benefit program sponsored by the County and permitted by the Internal Revenue Code.
Retired member: Any member who is receiving retirement benefits.
Retirement accounts: The accounts, consisting of a required elected officials' participant contributions account, a voluntary elected officials' participant contributions account, and a County elected officials' contributions account, the Board establishes for each elected officials' participant. Investment of the assets of these retirement accounts may be accounted for by maintaining pro rata accounts of a commingled fund or by maintaining separate and distinct accounts for each elected officials' participant. If the Board establishes pro rata accounts, the Board may make the allocation of realized and unrealized gains and losses using the ratio that the account balance of an elected officials' participant bears to the account balances of all elected officials' participants as of the previous valuation date. If the Board establishes separate and distinct accounts, the Board must determine the value of the individual account solely with respect to the activity within each elected officials' participant's account and the valuation must not be affected by the activity of an account of another elected officials' participant.
Retirement savings plan: The defined contribution retirement plan provided in Article VIII for eligible employees of Montgomery County and participating agencies.
Retirement system: The employees' retirement system of Montgomery County, as provided in this Article.
Service, Labor and Trades Bargaining Unit: The collective bargaining unit described in Section 33-105(a)(2) which includes certain employees in eligible classes that are associated with service/maintenance and skilled crafts.
Social security retirement age: The age used as the retirement age for full (unreduced) benefits under the Federal Social Security Act as follows:
(a) Age 65 with respect to an employee who attains age 62 before January 1, 2000;
(b) Age 66 with respect to an employee who attains age 62 after December 31, 1999 and before January 1, 2017; and
(c) Age 67 with respect to an employee who attains age 62 after December 31, 2016.
Social security retirement age for members who retire or qualify for discontinued service under Section 33-45(d) and (e) before July 1, 1989, is age 65. Social security retirement age for members who are elected officials on July 1, 1989, is age 65 until December 2, 1990, and thereafter is the age set forth in this definition, as appropriate.
Social security wage base: For any particular year, the maximum amount of earnings creditable for benefit computation purposes under the old age, survivors, and disabilities insurance program established by the Federal Social Security Act.
Spouse: Only the husband or wife of a member.
Valuation date: The last business day of March, June, September and December of each year, and any other date the Board establishes for determining the fair market value of the assets of the elected officials' plan. (Ord. No. 5-152; Ord. No. 6-195, § 1; 1972 L.M.C., ch. 19, § 15; 1974 L.M.C., ch. 31, § 1; 1978 L.M.C., ch. 44, § 1; 1982 L.M.C., ch. 40, § 5; 1985 L.M.C., ch. 49, § 1; 1986 L.M.C., ch. 56, § 1; 1987 L.M.C., ch. 27, § 4; 1987 L.M.C., ch. 29, § 3; 1987 L.M.C., ch. 40, § 1; 1989 L.M.C., ch. 45, § 1; 1993 L.M.C., ch. 3, § 1; 1995 L.M.C., ch. 1, § 1; 1995 L.M.C., ch. 3, § 1; 1996 L.M.C., ch. 19, § 1; 1998 L.M.C., ch. 27, § 1; 1998 L.M.C., ch. 30, § 1; 1998 L.M.C., ch. 31, § 1; 1999 L.M.C., ch. 30, § 2; 2001 L.M.C., ch. 21, § 1; 2001 L.M.C., ch. 28, §§ 4, 15 and 16; 2007 L.M.C., ch. 19, § 1; 2008 L.M.C., ch. 22, § 1; 2008 L.M.C., ch. 25, § 1; 2009 L.M.C., ch. 2, § 1; 2009 L.M.C., ch. 15, § 1; 2009 L.M.C., ch. 23, § 1; 2010 L.M.C., ch. 17, § 1; 2010 L.M.C., ch 21, § 1; 2010 L.M.C., ch. 32, § 1; 2010 L.M.C., ch. 45, § 1; 2010 L.M.C., ch. 49, § 1; 2013 L.M.C., ch. 4, § 1; 2017 L.M.C., ch. 29, §1.)
Editor’s note— The above section is interpreted in Main v. Montgomery County, 961 F.Supp. 125 (D.Md. 1997).
See County Attorney Opinion dated 4/10/06-A discussing the appointment and supervision of heads of departments and principal offices.
The effective date of the amendment made to this section by 2001 L.M.C., ch. 28, § 4, is the same effective date as 1998 L.M.C., ch. 27, § 1.