Loading...
It is the policy of the county to maintain a system of retirement pay and benefits for its employees which is adequately funded and insures employees sufficient income to enjoy during their retirement years. Any modifications to such retirement system shall not reduce the overall value of benefits which existed for members immediately prior to such modifications except that benefits may be reduced if necessary to maintain the fiscal integrity of the system after a finding by the county council that such change is necessary.
Before all liabilities with respect to the members and their beneficiaries are satisfied, no person may use or divert any part of the corpus or income of the retirement system to purposes other than the exclusive benefit of the members and beneficiaries. (1978 L.M.C., ch. 44, § 1; 1987 L.M.C., ch. 27, § 3.)
Editor’s note-The above section 33-34 is cited in Fultz v. Shaffer, 111 Md.App. 278, 681 A.2d 568 (1996); quoted in Montgomery County v. Buckman, 333 Md. 516, 636 A.2d 448 (1994) and cited in Benson v. Board of Education of Montgomery County, 280 Md. 338, 373 A.2d 926 (1977).
See County Attorney Opinion dated 11/14/11 regarding the County’s liability for errors in the administration of the pension and retirement funds of employees. See County Attorney Opinion dated 10/28/10 comparing the limits on Council authority to make changes to retirement benefits with its ability to modify health benefits. See County Attorney Opinion dated 5/13/08 regarding health insurance premiums and retirement benefits.
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.
(a) Effective date. A retirement system is hereby established, effective August 15, 1965.
(b) Coverage generally. The primary purpose of this retirement system is to provide a pension and other benefits for full-time and career part-time paid employees of the county, the Montgomery County Employees Federal Credit Union, fire department, rescue squads, office of the state's attorney, office of the sheriff, office of the board of supervisors of elections, housing opportunities commission, agencies supported or financed in whole or in part by taxes levied by the county council, agencies supported by bond issues underwritten by the county, and political subdivisions of the county. Any agency or political subdivision desiring coverage for its employees may make a written request to the county personnel board for approval. No liability shall accrue to the county by the inclusion of other than county employees. Each participating agency or political subdivision shall be fully responsible for the cost of coverage for its employees and any necessary costs for administrative services provided.
(c) Name of retirement system. The retirement system shall be known as the "employees' retirement system of Montgomery County," and it shall have the powers and privileges of a corporation.
(d) Uniformed Services Employment and Reemployment Rights Act. Notwithstanding the provisions of any plan, the County must provide rights, contributions, benefits, and service credit for qualified military service according to Section 414(u) of the Internal Revenue Code, including subsection 414(u)(12). (Ord. No. 5-152; Ord. No. 6-195, § 1; 1972 L.M.C., ch. 19, § 1; 1974 L.M.C., ch. 31, § 2; 1978 L.M.C., ch. 44, § 1; 1987 L.M.C., ch. 29, § 4; 1993 L.M.C., ch. 3, § 1; 2003 L.M.C., ch. 3, § 1; 2017 L.M.C., ch. 7, §1.)
Editor's note—2003, ch. 3, § 2, states: Rule of Interpretation. The amendments made by Section 1 of this Act must be interpreted to comply with requirements stated in letters issued on December 11, 2002, and January 14, 2003, by the Internal Revenue Service to the County regarding the continued qualification of County employee retirement plans. 2003, ch. 3, § 3, states, in part: Retroactivity. (a) The amendment made by Section 1 of this Act to Code Section 33-36 takes effect December 12, 1994.
The above section is cited in Fultz v. Shaffer, 111 Md.App. 278, 681 A.2d 568 (1996).
Division 2. Eligibility and Qualifications.
(a) Full-time employees.
(1) A full-time employee of the County or participating agency must become a member of a County retirement plan as a condition of employment, when the employee meets the applicable eligibility requirements, if the employee waives all rights of membership under any other retirement system supported in whole or in part by the State, a political subdivision of the State, or the County.
(2) A part-time employee who becomes a full-time employee and is not an active member of any County retirement plan must become an active member of:
(A) the integrated retirement plan, if the employee is eligible for membership in the integrated plan;
(B) the Retirement Savings Plan, if the employee satisfies the requirements for membership in Group I or II, even if the employee did not begin or return to County service on or after October 1, 1994 and participates as described in Section 33-115; or
(C) the guaranteed retirement income plan if the employee is eligible for membership and participates as described in subsection (k).
(3) A temporary employee who becomes a full-time employee must become an active member of:
(A) the integrated plan, if the employee is eligible for membership in the integrated plan;
(B) the Retirement Savings Plan, if the employee satisfies the requirements for membership in Group I or II, even if the employee did not begin or return to County service on or after October 1, 1994 and participates as described in 33-115; or
(C) the guaranteed retirement income plan if the employee is eligible for membership and participates as described in subsection (k).
(b) Part-time employees.
(1) A part-time employee of the County or participating agency may become a member of a County retirement plan if the employee waives all rights of membership under any other retirement system supported in whole or in part by the State, a political subdivision of the State, or the County. Membership is effective on the date the employee's application for membership is approved.
(2) A part-time employee who is not an active member of a retirement plan may become a member of either:
(A) the integrated plan, if the employee is eligible for membership in the integrated plan;
(B) the Retirement Savings Plan if the employee satisfies the requirements for membership in Group I or II, even if the employee did not begin or return to County service on or after October 1, 1994 and elects to participate as described in Section 33-115; or
(C) the guaranteed retirement income plan if the employee is eligible for membership and elects to participate as described in subsection (k).
(3) A part-time employee who withdraws from active membership in a County retirement plan may not become an active member again unless the employee becomes a full-time employee or an elected official.
(4) An employee who becomes a member of the integrated plan may not withdraw from active membership except by transferring to the Retirement Savings Plan under Section 115(c)(2).
(5) A full-time employee who becomes a part-time employee may withdraw from active membership in the optional, integrated, or guaranteed retirement income plan and stop making retirement contributions, but must not become an active member of a County retirement plan again unless the employee becomes a full- time employee or an elected official.
(c) Appointed officials. Each person appointed by the Executive or Council to head a principal department or office of the County government must be subject to all regulations and laws governing full-time members of the retirement system.
(d) Hearing Examiners. Any person appointed by the Executive or Council to serve as a hearing examiner must be treated as a full-time employee under the laws and regulations governing members of the retirement system if that person serves full time as a hearing examiner, and must be treated as a part-time employee under the laws and regulations governing members of the retirement system if that person serves less than full time as a hearing examiner.
(e) Retirement plans.
(1) This retirement system consists of an integrated retirement plan, an optional retirement plan, an elected officials' plan, and a guaranteed retirement income plan.
(2) An employee enrolled or re-enrolled on or after July 1, 1978, and before October 1, 1994, is a member of the integrated retirement plan unless the employee becomes a member of the Retirement Savings Plan through transfer or election. An employee enrolled before July 1, 1978, may be a member of the optional retirement plan, the integrated retirement plan, or the Retirement Savings Plan. A member’s decision to transfer from the optional retirement plan or the integrated retirement plan is irrevocable. A former County employee who returns to County service is a member of the plan in which the employee was enrolled when the employee left County service if the employee:
(A) was vested under Section 33-45 when the employee left County service;
(B) left all member contributions plus credited interest in the fund;
(C) returned to County service within 25 months; and
(D) did not transfer to the Retirement Savings Plan.
(3) (A) If the County or a participating agency withdraws from Social Security, each member of the integrated retirement plan must have an opportunity to re-enter the optional retirement plan after repaying the prior refund and any difference in member contributions required for the period of membership in the integrated retirement plan. Any additional contributions must not be treated as picked-up contributions.
(B) The Chief Administrative Officer may treat a member as if the member had been in the optional retirement plan since the beginning of the member’s entry into the retirement system if the member is:
(i) employed by a participating agency; and
(ii) a member of the integrated plan; but not covered by Social Security during the period of employment by the participating agency.
The Chief Administrative Officer may require additional member contributions and participating agency contributions.
(4) (A) Except as provided in subparagraphs (B), (C), and Subsection (k)(5), any individual who becomes an elected official must become a member of the elected officials' plan on the date the individual becomes an elected official.
(B) If an individual was an active member of a County retirement plan, including an employee on leave without pay, before becoming an elected official, the individual may choose to continue or return to participate in the retirement plan in which the individual participated before becoming an elected official, subject to the eligibility and transfer rules set out in this subsection and subsection (f).
(C) An individual who chooses to continue to participate in a County retirement plan in which the individual participated before becoming an elected official must not participate in the elected official’s plan.
(5) (A) An elected official who chooses to continue to participate in another County retirement plan under paragraph (4)(B) may become a member of the elected officials' plan at any time while an elected official after terminating participation in the other plan.
(B) An individual who chooses to become a member of the elected officials’ plan under subparagraph (A) retains the individual's rights under the plan in which the individual was a member before becoming a member of the elected officials’ plan, except for disability, but is not entitled to a refund of contributions from that plan. The disability benefits of an individual who chooses to become a member of the elected officials’ plan under subparagraph (A) are provided in article VIII. The individual's vested rights under the elected officials' plan must be determined based on the individual's total credited service, which includes service in the prior plan. The amount of the individual's retirement benefit under the prior plan must be determined based only on credited service while participating in the prior plan. However, the individual's regular earnings until retirement or other termination of service with the County or a participating agency must be used in determining final average earnings for purposes of determining the amount of the retirement benefit under the prior plan.
(C) The Executive must adopt regulations under method (3) to allow an eligible individual to make the choice authorized by subparagraph (A).
(6) A former County employee who returns to County service may transfer to the retirement savings plan or to the guaranteed retirement income plan the actuarial present value of the employee’s benefit in the optional plan or integrated plan, calculated using the latest published valuation assumptions, as of the date the employee returns to County service, if the employee:
(A) was vested under Section 33-45 when the employee left County service;
(B) left all member contributions plus credited interest in the fund;
(C) left County service before October 1, 1994; and
(D) did not return to County service within 25 months.
(f) Membership groups and eligibility. Any full-time or part-time employee is eligible for membership in the appropriate membership group if the employee meets all of the requirements for the group:
(1) Group A: An employee, elected official, or appointed official not eligible for membership in another group is a group A member. An employee who otherwise would be eligible for membership in group A must participate in the guaranteed retirement income plan or the retirement savings plan if the employee:
(A) begins, or returns to, County service on or after October 1, 1994 (except as provided in the last sentence of subsection (e)(2));
(B) is not represented by an employee organization;
(C) does not occupy a bargaining unit position; and
(D) is not an elected official (except as provided in subsection (e)(4)(D)(ii)).
(2) Group B: Any correctional officer, fire prevention officer or deputy sheriff, appointed or promoted to the position on or before June 30, 1978, who has not elected to transfer to any other membership group. Any correctional officer, fire prevention officer or deputy sheriff who is a group A member as of June 30, 1978, may elect to retain membership therein.
(3) Group D: Any full-time police officer appointed on or before August 15, 1965, who has been continuously employed as a police officer and has not elected to transfer to any other membership group.
(4) Group E: The Chief Administrative Officer, the Executive Director of the Office of the County Council, the hearing examiners, the County Attorney and each head of a principal department or office of the County government, if appointed to that position before July 30, 1978, or a member having held that position on or before October 1, 1972. Any sworn deputy sheriff or uniformed County correctional officer in the position of Correctional Officer I, Correctional Officer II, Correctional Officer III, Correctional Dietary Officer I, Correctional Dietary Officer II, Resident Supervisor I, Resident Supervisor II, Resident Supervisor III, Correctional Supervisor-Sergeant, Correctional Dietary Supervisor, Correctional Shift Commander-Lieutenant, Correctional Unit Commander-Captain, Deputy Warden, or Warden, or the following positions in the Emergency Communications Center: Public Safety Emergency Communications Specialist I, Public Safety Emergency Communications Specialist II, Public Safety Emergency Communications Specialist III, Public Safety Emergency Communications Specialist IV, Senior Public Safety Emergency Communications Specialist, Public Safety Communications Supervisor, Public Safety Emergency Communications Manager, or Emergency Communications MLS Manager 2. Any Group E member who has reached elective early retirement date may retain membership in Group E if the member transfers from the position which qualified the member for Group E. Any Group E member who is temporarily transferred from the position which qualified the member for Group E may retain membership in Group E as long as the temporary transfer from the Group E position does not exceed 3 years. Notwithstanding the foregoing provisions in Group E, any employee who is eligible for membership in Group E must participate in the guaranteed retirement income plan or the retirement savings plan under Article VIII if the employee:
(A) (i) begins, or returns to, County service on or after October 1, 1994 (except as provided in the last sentence of subsection (e)(2));
(ii) is not represented by an employee organization; and
(iii) does not occupy a bargaining unit position; or
(B) (i) begins County service on or after October 1, 1994; and
(ii) is subject to the terms of a collective bargaining agreement between the County and an employee organization which requires the employee to participate in the guaranteed retirement income plan or the retirement savings plan.
(5) Group F: sworn police officers.
(A) A group F member who has reached elective early retirement date may retain membership in group F if the member is transferred from the position that qualified the member for group F membership.
(B) A group F member who is temporarily transferred from the position that qualified the member for group F membership may retain membership in group F as long as the temporary transfer from the group F position does not exceed 3 years.
(C) Notwithstanding the foregoing provisions in group F, an employee who is eligible for membership in group F must participate in the retirement savings plan under Article VIII or the guaranteed retirement income plan if the employee:
(i) begins, or returns to, County service on or after October 1, 1994 (except as provided in the last sentence of subsection (e)(2));
(ii) is not represented by an employee organization; and
(iii) does not occupy a bargaining unit position.
(D) An employee who is eligible for membership in group F must participate in the retirement savings plan under Article VIII if the employee:
(i) begins County service on or after October 1, 1994; and
(ii) is subject to the terms of a collective bargaining agreement between the County and an employee organization that requires the employee to participate in the retirement savings plan.
(E) A group F member who is a member of the Police Bargaining Unit may transfer to the retirement savings plan under Article VIII if the employee has accumulated enough credited service to obtain the maximum retirement benefit under the optional or integrated plan.
(6) Group G: Any paid firefighter, paid fire officer, and paid rescue service personnel. Any group G member who has reached normal retirement may retain membership in group G if the member transfers from the position which qualified the member for group G. Any group G member who is temporarily transferred from the position which qualified the member for Group G may retain membership in group G as long as the temporary transfer from the group G position does not exceed 3 years.
(A) Notwithstanding the foregoing provisions in group G, any employee who is eligible for membership in group G must participate in the retirement savings plan under Article VIII if the employee:
(i) begins County service on or after October 1, 1994; and
(ii) is subject to the terms of a collective bargaining agreement between the County and an employee organization which requires the employee to participate in the retirement savings plan.
(B) An employee who is eligible for membership in group G must participate in the retirement savings plan under Article VIII or the guaranteed retirement income plan if:
(i) the employee begins, or returns to, County service on or after October 1, 1994 (except as provided in the last sentence of subsection (e)(2);
(ii) is not represented by an employee organization; and
(iii) does not occupy a bargaining unit position.
(7) Group H: Any member, including any probationary employee, who holds a bargaining unit position described in section 33-105(a)(1) or section 33-105(a)(2), unless the member is eligible for membership in group B or E. Notwithstanding the foregoing provisions in group H, any employee who is eligible for membership in group H must participate in the guaranteed retirement income plan or the retirement savings plan under Article VIII if the employee:
(A) begins, or returns to, County service on or after October 1, 1994 (except as provided in the last sentence of subsection (e)(2)); and
(B) is subject to the terms of a collective bargaining agreement between the County and an employee organization which requires the employee to participate in the guaranteed retirement income plan or the retirement savings plan.
(8) Group J: Any County member who works in a correctional facility or the Emergency Communications Center and due to the required duties of the member’s position, is designated by the Chief Administrative Officer. Any Group J member who has reached elective early retirement date may retain membership in Group J if the member transfers from the position which qualified the member for Group J. Any Group J member who is temporarily transferred from the position which qualified the member for Group J may retain membership in Group J as long as the temporary transfer from the Group J position does not exceed 3 years. Notwithstanding the foregoing provisions in Group J, any employee who is eligible for membership in Group J must participate in the guaranteed retirement income plan or the retirement savings plan under Article VIII if the employee:
(A) (i) begins, or returns to, County service on or after October 1, 1994 (except as provided in the last sentence of subsection (e)(2));
(ii) is not represented by an employee organization; and
(iii) does not occupy a bargaining unit position; or
(B) (i) begins County service on or after October 1, 1994; and
(ii) is subject to the terms of a collective bargaining agreement between the County and an employee organization which requires the employee to participate in the guaranteed retirement income plan or the retirement savings plan.
(g) Transfer from one group to another. A member who elects to transfer from one membership group to another as a result of amendments to this Article must transfer by December 31, 1978, or forfeit this option. However, under paragraph 4, a group D member may transfer to group F at any time before the member's retirement date. Additional contributions made as a result of the transfer must not be treated as picked-up contributions.
(1) Transfers From Group A to Group E, F, G, H, or J. Whenever a group A member transfers to a position which is qualified for membership in group E, F, G, H, or J, the retirement service credits earned as a group A member must be used for the purpose of qualifying for retirement. Except for the contribution rate increase as of the effective date of transfer, there will be no additional charges levied on any member who is transferred prior to July 1, 1970. Any member who transfers after July 1, 1970, in addition to paying the contribution rate increase as of the effective date of transfer, must pay the additional amount of contributions that would have been paid as a member of group E, F, G, H, or J from July 1, 1970, or hire date, if later, plus interest at the rate of 6 ½ percent per annum to date of full payment.
(2) Transfers From Group B, D, E, F, G, or J to Group A or H. Whenever a group B, D E, F, G, or J member transfers to a position which is qualified for membership in group A or H, the retirement service credits earned as a group B, D, E, F, G, or J member must be used for the purpose of qualifying for retirement as a group A or H member. The rate of contribution must be decreased as of the date of transfer, and the difference in member contributions must not be refunded. Notwithstanding any other provision of this Article, any group E, F, or J member who has not met the elective early retirement date and who transfers to group A or H must receive credited service at the rate of 1.25 years of service for each full year of service as a member of group E, F, or J. Notwithstanding any other provision of this Article, any group G member who has not met the normal retirement date and who transfers to group A or H must receive credited service at the rate of 1.25 years of service for each full year of service as a member of group G.
(3) Transfers From Group B to Group E, F, G, or J. Whenever a group B member transfers to a position which is qualified for membership in group E, F, G, or J, the retirement date must be adjusted accordingly. Except for the contribution rate increase as of the effective date of transfer, there must be no additional charges levied on any member who transferred on or before July 1, 1970. Any member who transfers after July 1, 1970, in addition to paying the contribution rate increase as of the effective date of transfer, must pay the additional amount of contributions that would have been paid as a member of group E, F, G, or J from July 1, 1970, or hire date, if later, plus interest at the rate of 6 ½ percent per annum to date of full payment.
(4) Transfers From Group D to Group E, F, G, or J. A group D member may transfer to group E, F, G, or J and the retirement service credits earned as a group D member must be used for the purpose of qualifying for retirement under group E, F, G, or J. Except for the contribution rate increase as of the effective date of transfer, there will be no additional charges levied on any member who transferred on or before July 1, 1970. Any member who transfers after July 1, 1970, in addition to paying the contribution rate increase as of the effective date of transfer, must pay the additional amount of contributions that would have been paid as a member of group E, F, G, or J from July 1, 1970, plus interest at the rate of 6 ½ percent per annum to date of full payment.
(5) Transfers From Group H to Group A, E, F, G, or J. A group H member may transfer to group A, E, F, G, or J and the retirement service credits earned as a group H member must be used for the purpose of qualifying for retirement under group A, E, F, G, or J. Any member who transfers on or after July 1, 1989, in addition to paying the contribution rate increase as of the effective date of transfer, must pay the additional amount of contributions that would have been paid as a member of group A, E, F, G, or J from July 1, 1970, or hire date, if later, plus interest at the rate of 6 ½ percent per annum to date of full payment.
(h) Requirements of membership. Unless specifically exempt from membership by the chief administrative officer, each full-time employee of the county government or a participating agency must become a member or forfeit employment when the employee meets the eligibility requirements. If the administrative head of a participating agency does not enforce this provision, any new employee of the agency must not be enrolled as a member.
(i) Transfers to the Retirement Savings Plan. Any member in the optional retirement plan or in the integrated retirement plan may elect to participate in the Retirement Savings Plan under Article VIII if the member otherwise qualifies for participation under Section 33-115, even if the member did not begin County service on or after October 1, 1994. If an employee transfers from the optional retirement plan or the integrated plan to the Retirement Savings Plan:
(1) transfers must not be made before April 1, 1995;
(2) the election to transfer to the retirement savings plan is irrevocable;
(3) the member's credited service for purposes of vesting in the optional retirement plan or the integrated plan must include the member's years of credited service earned while participating in the retirement savings plan;
(4) the amount of the member's benefit under the optional retirement plan or the integrated plan must not be increased by the member's credited service earned while participating in the retirement savings plan; and
(5) the member's retirement benefit under the optional retirement plan or the integrated plan must be determined using the regular earnings of the member during the applicable years preceding the member's transfer to the retirement savings plan.
(6) the amount of sick leave used for credited service under Section 33-41(f) must not exceed the amount of sick leave accumulated on the date the employee transferred to the Retirement Savings Plan, or the amount accumulated on the effective date of the employee’s retirement or separation from County service, whichever is less.
(j) Election to join the Retirement Savings Plan. An employee who is eligible for membership in the integrated retirement plan but who chooses to become a member of the Retirement Savings Plan must remain a member of the Retirement Savings Plan until the employee becomes ineligible for membership in Group I or II.
(k) Eligibility for the guaranteed retirement income plan.
(1) A full time or part time employee hired on or after October 1, 1994 and before January 1, 2009 who participates in the retirement savings plan and who is not a public safety employee as defined in Section 33-113(o) may make a one time irrevocable election to terminate participation in the retirement savings plan and participate in the guaranteed retirement income plan, effective the first full paycheck after July 1, 2009. An employee must make this election between December 31, 2008 and June 1, 2009. An employee who makes this election must have his or her retirement savings plan account balance transferred to the guaranteed retirement income plan. The amount transferred into the guaranteed retirement income plan must become the participant’s initial guaranteed retirement income plan account balance. An employee who does not make this election must continue to participate in the retirement savings plan.
(2) A full time or part time employee hired between December 31, 2008 and July 1, 2009 who participates in the retirement savings plan and who is not a public safety employee as defined in Section 33-113(o) may make a one time irrevocable election to terminate participation in the retirement savings plan. An employee has 150 days after the date the employee was hired to make this election and must begin participation on the first full payroll after completing 180 days of employment. An employee who makes this election must have his or her retirement savings plan account balance transferred to the guaranteed retirement income plan. The amount transferred into the guaranteed retirement income plan must become the participant’s initial guaranteed retirement income plan account balance. An employee who does not make this election must continue to participate in the retirement savings plan.
(3) An eligible full-time employee hired on or after July 1, 2009 and before July 1, 2015, and a part time or temporary employee who becomes full time on or after July 1, 2009 and before July 1, 2015, who does not participate in the retirement savings plan, may elect to participate in the guaranteed retirement income plan. An eligible employee must make an irrevocable election during the first 150 days of full time employment. If an eligible employee elects to participate, participation must begin on the first pay period after an employee has completed 180 days of full time employment. An employee who does not participate in the guaranteed retirement income plan must participate in the retirement savings plan beginning on the first pay period after the employee completes 180 days of full time employment.
(4) An eligible part time employee who does not participate in the retirement savings plan may make a one time irrevocable election to participate in the guaranteed retirement income plan after the employee completes at least 150 days of employment. Participation must begin on the first full pay period beginning 30 days after the employee makes the election.
(5) An eligible full-time or part-time public safety employee hired on or after October 1, 1994 and before January 1, 2009 who participates in the retirement savings plan may make a one time irrevocable election to terminate participation in the retirement savings plan and participate in the guaranteed retirement income plan, effective the first full pay period after December 31, 2009. An employee must make this election between October 1, 2009 and December 1, 2009. An employee who makes this election must have his or her retirement savings plan account balance transferred to the guaranteed retirement income plan. The amount transferred into the guaranteed retirement income plan must become the participant’s initial guaranteed retirement income plan account balance. An employee who does not make this election must continue to participate in the retirement savings plan.
(6) An individual who is an elected official after December 6, 2010 who participates in the elected officials’ plan may make a one-time irrevocable decision to terminate participation in the elected officials’ plan and participate in the guaranteed retirement income plan. An elected official must make this decision during the first 150 days after becoming an elected official. If an eligible elected official decides to participate, participation must begin on the first pay period after the elected official has been in office for 180 days. An elected official who decides to participate must have his or her elected officials’ plan account balance transferred to the guaranteed retirement income plan. The amount transferred into the guaranteed retirement income plan must become the participant’s initial guaranteed retirement income plan account balance. An elected official who does not participate in the guaranteed retirement income plan must continue to participate in the elected officials’ plan.
(7) A member of the Office, Professional and Technical (OPT) or the Service, Labor and Trades (SLT) collective bargaining unit of the County government must participate in the guaranteed retirement income plan unless the employee makes a one-time irrevocable election to participate in the retirement savings plan during the first 150 days of employment, if the employee:
(A) is hired as a full-time employee on or after July 1, 2015;
(B) is a part time employee who does not participate in the retirement savings plan and becomes a full-time employee on or after July 1, 2015; or
(C) is hired as a part time employee on or after July 1, 2023, and does not elect to forego participation in either the guaranteed retirement income plan or the retirement savings plan.
Participation must begin on the first pay period after an employee has completed 180 days of full time employment.
(8) On or after July 1, 2015, an eligible full-time employee or a part-time or temporary employee who becomes a full-time employee in a position that is not within a bargaining unit or an eligible employee of a participating agency must participate in the retirement savings plan unless the employee makes a one-time irrevocable election to participate in the guaranteed retirement income plan during the first 150 days of full time employment. If the employee elects to participate, participation must begin on the first pay period after an employee has completed 180 days of full-time employment. A part-time employee who participates in either the retirement savings plan or the guaranteed retirement income plan when the employee becomes a full-time employee must continue to participate in the same retirement plan.
(9) An individual who changes employment from the County government to a participating agency or from a participating agency to the County government must continue to participate in his or her retirement plan and is not eligible to make an election. (Ord. No. 5-152; Ord. No. 6-195, § 1; 1972 L.M.C., ch. 19, § 2; 1974 L.M.C., ch. 31, § 3; 1974 L.M.C., ch. 59, § 1; 1978 L.M.C., ch. 44, § 1; 1980 L.M.C., ch. 17, § 1; 1987 L.M.C., ch. 27, § 5; 1988 L.M.C., ch. 22, § 1; 1989 L.M.C., ch. 45, § 1; FY 1991 L.M.C., ch. 26, § 1; 1994 L.M.C., ch. 13, § 1; 1994 L.M.C., ch. 33, § 1; 1998 L.M.C., ch. 30, § 1; 1998 L.M.C., ch. 31, § 1; 2000 L.M.C., ch. 20
, § 1; 2001 L.M.C., ch. 21, § 1; 2004 L.M.C., ch 17, § 1; 2007 L.M.C., ch. 3, § 1; 2008 L.M.C., ch. 22, § 1; 2008 L.M.C., ch. 30, § 1; 2009 L.M.C., ch. 2, § 1; 2009 L.M.C., ch. 23, § 1; 2009 L.M.C., ch. 33, § 2; 2014 L.M.C., ch. 17, § 1; 2015 L.M.C., ch. 28, § 1; 2016 L.M.C., ch. 42, § 1; 2018 L.M.C., ch. 3, §1; 2021 L.M.C., ch. 36, §1; 2023 L.M.C., ch. 24, § 1.)
Editor’s note—See County Attorney Opinion dated 11/14/11 regarding the County’s liability for errors in the administration of the pension and retirement funds of employees. See County Attorney Opinion dated 9/12/05 discussing the legislative history and prior opinions regarding the effect of hiring a retired employee on a part-time basis.
2016 L.M.C., ch. 42, § 2, states, in part: ... Any active group E member who is not a County correctional officer or a sworn deputy sheriff must become a group J member on the date this law takes effect.
2009 L.M.C., ch. 33, § 3, states, in part: Section 2 of this Act takes effect on December 6, 2010. An eligible individual who is an elected official on December 5, 2010, and remains in office on and after December 6, 2010, must decide to participate in the guaranteed retirement income plan on or before May 1, 2011. If an elected official decides to participate between December 6, 2010 and May 1, 2011, that elected official’s participation must begin on the first pay period after June 1, 2011.
See County Attorney Opinion dated 9/12/05 discussing the legislative history and prior opinions regarding the effect of hiring a retired employee on a part-time basis.
2008 L.M.C., ch. 30, § 2, states: Transition. An individual who was an active member of a County retirement plan immediately before becoming an elected official, and who was required to participate in the elected officials’ plan, may make a one time election to continue to participate in the retirement plan the individual participated in immediately before becoming an elected official. The individual’s account balance must be transferred to the retirement plan in which the individual is resuming membership. The individual must contribute to the plan any accumulated contributions the individual would have made had the individual continued participation in that plan after deducting the individual’s participant contributions made to the elected officials’ plan. The individual must have no interest in the County elected official contributions made on the individual’s behalf. The individual must continue participation as if the individual had not participated in the elected officials’ plan.
2001 L.M.C., ch. 21, § 2(a), states: Section 33-37(e)(8), added by Section 1 of this Act, applies to any employee to whom it would otherwise apply who returned to County service before this Act took effect [August 14, 2001]. Any such employee may transfer to the Retirement Savings Plan the actuarial present value of the employee's benefit in the Employees' Retirement System, calculated using the System's latest published valuation assumptions, as of the effective date of this Act [August 14, 2001].
(a) Normal retirement date. The normal retirement date is the first day of the month elected by a member after the member meets the years of service and age requirements for the applicable membership group. For normal retirement:
(1) Group A:
(A) The member must have at least:
(i) 5 years of credited service and be at least age 60; or
(ii) 30 years of credited service and be at least age 55.
(B) After June 30, 2002, a Group A member who is a Police Telecommunicator must have at least:
(i) 5 years of credited service and be at least age 60; or
(ii) 30 years of credited service and be at least age 50.
(2) Group B: The member must have at least:
(A) 15 years of credited service and be at least age 55; or
(B) 30 years of credited service and be at least age 51.
(3) Group D: The member must meet the requirements of the County police relief and retirement fund law.
(4) Group E: The member must have at least:
(A) 15 years of credited service and be at least age 55; or
(B) 25 years of credited service and be at least age 46.
(5) Group F: The member must have at least:
(A) 15 years of credited service and be at least age 55; or
(B) 25 years of credited service.
(6) Group G: The member must have at least:
(A) 15 years of credited service and be at least age 55; or
(B) 20 years of credited service regardless of age.
(7) (A) Group H: The member must have at least:
(i) 5 years of credited service and be at least age 60; or
(ii) 30 years of credited service and be at least age 55.
(B) After June 30, 2002, a Group H member who is a Police Telecommunicator must have at least:
(i) 5 years of credited service and be at least age 60; or
(ii) 30 years of credited service and be at least age 50.
(C) After June 30, 2002, a Group H member who is also an SLT bargaining unit member must have at least:
(i) 5 years of credited service and be at least age 60; or
(ii) 30 years of credited service and be at least age 50.
(8) Group J: The member must have at least:
(A) 15 years of credited service and be at least age 55; or
(B) 25 years of credited service and be at least age 46.
(9) An elected officials’ participant or an elected official who participates in the guaranteed retirement income plan must have at least the lesser of a full term of office or 4 years of credited service and be at least age 62.
(10) A guaranteed retirement income plan participant, except an elected official, must be at least age 62 with 3 years of credited service.
(b) Retirement date election. A member other than a Group F member must submit written application for retirement at least 30 days before the date elected. A Group F member must submit a written application for retirement at least 14 days before the date elected. In extenuating circumstances, the Chief Administrative Officer may waive this requirement.
(c) Early retirement date.
(1) A member, other than a group G member, who has not met the age and service requirements for a normal retirement may elect to receive pension payments beginning on an early retirement date the first day of a month after the following requirements are met:
(A) the group A member has at least 15 years of credited service and has reached age 50, or has at least 20 years of credited service and has reached age 45;
(B) the group B member has at least 15 years of credited service and has reached age 45;
(C) the group E member has at least 15 years of credited service and has reached age 45, or has at least 20 years of credited service and has reached age 41;
(D) the group F member has at least 15 years of credited service and has reached age 45, or has at least 20 years of credited service and has reached age 41;
(E) the group H member has at least 15 years of credited service and has reached age 50, or has at least 20 years of credited service and has reached age 45; or
(F) the group J member has at least 15 years of credited service and has reached age 45, or has at least 20 years of credited service and has reached age 41.
(2) A group G member is not eligible for an early retirement.
(3) A participant in the guaranteed retirement income plan is not eligible for early retirement.
(d) Trial retirement.
(1) A trial retirement under this subsection is not available to:
(A) an elected official;
(B) a non-merit appointed official;
(C) a member covered under a collective bargaining agreement, except a member of the Police Bargaining Unit;
(D) a non-County Government employee; or
(E) a member who participates in a retirement incentive program.
(2) A member who is eligible for normal retirement may retire on a trial basis for a period not to exceed 9 months.
(3) A member may retire on a trial basis only once.
(4) A member who wishes to retire on a trial basis must notify the Chief Administrative Officer in writing at least 30 days before the retirement date of the member's intention to retire on a trial basis.
(5) A member may elect to return to County service before the end of the nine- month trial retirement period by notifying the Chief Administrative Officer in writing at least 30 days before the member returns to service, under procedures adopted by the Chief Administrative Officer.
(6) (A) After the member notifies the Chief Administrative Officer that the member intends to return to County service, the Chief Administrative Officer must return the member to:
(i) the position the member held before retirement, if it is still available;
(ii) a position with an equivalent salary and grade in the same or another office of the County government; or
(iii) if the member was a member of the Police Bargaining Unit, to a position in the Department of Police with an equivalent salary and grade, when such a position becomes available.
(B) The member may accept a position with a lower salary or grade, but is not required to do so.
(C) If the member does not accept an offer of the position that the member held before retirement or a position with an equivalent salary and grade, the member is considered to have permanently retired.
(7) A member returning from trial retirement:
(A) Has the same rights and benefits as the member had before the trial retirement; and
(B) Receives a salary reflecting all cost-of-living adjustments granted to that position while the member was on trial retirement.
(8) When the Chief Administrative Officer receives notice of a member's intention to retire on a trial basis, the member must not be paid for accrued annual leave until:
(A) The member notifies the Chief Administrative Officer in writing that the member no longer intends to retire on a trial basis; or
(B) The member retires permanently. (Ord. No. 5-152; Ord. No. 6-195, § 1; 1971 L.M.C., ch. 39, § 1; 1972 L.M.C., ch. 19, § 3; 1974 L.M.C., ch. 31, § 4; 1974 L.M.C., ch. 59, § 2; 1978 L.M.C., ch. 44, § 1; 1987 L.M.C., ch. 27, § 5; 1988 L.M.C., ch. 26, § 1; 1989 L.M.C., ch. 45, § 1.; 1993 L.M.C., ch. 21, § 1; 1995 L.M.C., ch. 31, § 1; 1999 L.M.C., ch. 26, § 1; 2001 L.M.C., ch. 21, § 1
; 2004 L.M.C., ch 17, § 1
; 2007 L.M.C., ch. 3, § 1; 2008 L.M.C., ch. 22, § 1; 2008 L.M.C., ch. 23, § 1; 2009 L.M.C., ch. 33, § 2; 2010 L.M.C., ch. 49, § 1; 2016 L.M.C., ch. 42, § 1.)
Editor’s note—2016 L.M.C., ch. 42, § 2, states, in part: ... Any active group E member who is not a County correctional officer or a sworn deputy sheriff must become a group J member on the date this law takes effect.
2009 L.M.C., ch. 33, § 3, states, in part: Section 2 of this Act takes effect on December 6, 2010. An eligible individual who is an elected official on December 5, 2010, and remains in office on and after December 6, 2010, must decide to participate in the guaranteed retirement income plan on or before May 1, 2011. If an elected official decides to participate between December 6, 2010 and May 1, 2011, that elected official’s participation must begin on the first pay period after June 1, 2011.
See editor’s note to Article III, Employee’s Retirement System, regarding Retirement Incentive Program.
The above section is cited in Fultz v. Shaffer, 111 Md.App. 278, 681 A.2d 568 (1996) and in Cohen v. Goldstein, 58 Md.App. 699, 474 A.2d 229 (1984).
Loading...