(a) Member's credited service.
(1) A member's credited service is the total service rendered under the employees' retirement system of Montgomery County, plus any credited service earned under the employees' retirement system of the State of Maryland and/or the Montgomery County police relief and retirement fund law plus any other credited service purchased or granted pursuant to this section.
(2) However, credited service earned while an individual is a participant in the elected officials’ plan must be used only for the purposes described in Section 33-37(e) and Section 33-55A. Credited service earned while an individual is a participant in the retirement savings plan under Article VIII must be used only as provided in Section 33-37(i). Credited service earned while an individual is a participant in the GRIP must only be used for GRIP and must not be used as credited service while an individual is a member of the integrated plan. Notwithstanding the preceding sentence, for purposes of determining vested benefits in the integrated plan, a member must receive one year of credited service for each year of County service and one month of credited service for each month of County service during which the member contributed to a County retirement plan. Each year of County service ends on the anniversary of the member’s date of retirement plan participation.
(3) The Chief Administrative Officer must notify each eligible employee who attains 5 years of County service of the opportunity provided under this Section to purchase credited service. The Chief Administrative Officer must also notify each new employee that any person who transfers from State service or from a dual merit system position may be eligible to transfer credited service to the County retirement system.
(4) Notwithstanding other provisions of this Section, a member must not be granted or permitted to purchase credited service for any period of actual or credited service under another retirement system if the member is receiving retirement benefits or has retained a vested right to retirement benefits from that system, unless federal law provides that the member must be permitted to purchase the credited service.
(5) Member contributions paid under this Section to purchase credited service must not be treated as picked-up contributions.
(b) Procedures for determining credited service.
(1) Full-Time Members. Service rendered during the full normal working time in a 12-month period, including paid authorized leave or other leave specifically provided here, will equal one year of credited service. The 12-month period referred to in the preceding sentence is the 12-month period that starts on the date (or the anniversary of the date) the employee first completed one hour of County service as a member.
(2) Part-Time Members. Any member working less than the normal scheduled work week for full-time employees on a continuing basis shall receive one year of credited service for each 12-month period. The 12-month period referred to in the preceding sentence is the 12-month period that starts on the date (or the anniversary of the date) the employee first completed one hour of County service as a member.
(3) Combined Full-Time and Part-Time Service.
(A) Except to determine the date that benefits begin under subsection (b)(3)(B), service credits for any member who has a combination of part-time and full-time service must be determined as follows: Each 176 hours equals one month of credited service. Accumulated hours of 88 to 176 equals one month of credited service. An accumulation of less than 88 hours must not be credited, and excess hours must not be carried over from one fiscal year to the next. For both full-time and part-time members, one month's credit must be granted for service of 15 days or more in any one calendar month.
(B) For purposes of determining years of credited service to establish the date of commencement of benefits, credited service means service completed in accordance with paragraphs (b)(1) and (b)(2), plus any service granted or purchased under the retirement system. Years of credited service of less than one full year must be prorated. This subsection does not apply to members who retire before July 1, 1989 or to members who are elected officials on July 1, 1989, and who retire before December 3, 1990.
(c) Credit for service in the armed forces of the United States, state militia, national guard, or other service covered under the Uniformed Services Employment and Reemployment Rights Act.
(1) A member who enters the armed forces of the United States, a state militia, national guard, or other service covered under the Uniformed Services Employment and Reemployment Rights Act and does not withdraw member contributions and interest must receive service credit for periods of active military service if the member:
(A) does not remain in the military service for more than 5 years, not including any military service described in Section 4312(c) of Title 38 of the United States Code; and
(B) reports for County service or applies for reemployment and submits proof of military service:
(i) within one year after completing the military service and without any other employment after discharge from the military service; or
(ii) within 2 years after completing the military service, if the member was hospitalized or convalescing from an illness or injury incurred in, or aggravated during, military service.
(2) A member who withdraws member contributions and redeposits the withdrawn contributions with interest at a rate of 6.5% must receive the credited service under this Section. The member must make the repayment while employed by the County, and not later than the earlier of the period of military service or 5 years, beginning on the date of reemployment.
(3) The participating agency from which a member enters the military service must contribute on a current basis the funds necessary to purchase retirement service credit while the member is in the military service.
(d) Credited service as a fire alarm dispatcher, firefighter, or fire officer in Montgomery County. Any member shall have the opportunity to obtain credit for any period of full- time paid service as a fire alarm dispatcher, firefighter or fire officer in a county fire department (including the Takoma Park fire department) or as rescue service personnel in a county rescue squad if such service has not otherwise been credited. In order to receive credit for such service, the member shall pay, in a lump-sum or by extended payments, the full cost which shall be determined on an actuarial basis.
(e) Credited service for prior military service.
(1) In this subsection, “uniformed services” means the United States Army, Navy, Air Force, Marine Corps, Coast Guard, the commissioned corps of the National Oceanic and Atmospheric Administration and the Public Health Service of the United States, and active duty service in the National Guard of any state of the United States.
(2) A member with 5 years of membership in the Employees Retirement System enrolled or re-enrolled on or after July 1, 1978, may obtain credited service for all or part of any military service in the uniformed services of the United States up to a maximum of 48 months. A member exercising this option must pay, in a lump sum or on an extended payment basis, the full actuarial cost for these service credits.
(3) Group G.
(A) A Group G member may obtain credited service for all or part of any military service in the uniformed services of the United States, at no cost to the employee, up to a maximum of 24 months.
(B) The amount of the credited service must be:
(i) 12 months of credited service, for 7 years of County service; or
(ii) 24 months of credited service, for 15 years of County service.
(C) The credited service must be applied when the years-of-service threshold under subparagraph (B) is reached.
(4) A Group E member with 5 years of membership in the Employees’ Retirement System enrolled or re-enrolled on or after July 1, 1978, may elect to obtain credited service for all or part of any military service in the uniformed services of the United States up to a maximum of 48 months, up to 24 months of which will be credited by the County Government at no cost to the member. A member exercising this option must pay, in a lump sum or an extended payment basis, the actuarial cost for credited service above the 24 months credited by the County Government.
(f)
Use of sick leave for credited service.
An employee must receive credit toward retirement for any accumulated sick leave, up to a maximum of 4,224 hours. Each 176 hours of accumulated sick leave is equal to 1 month of credited service. Accumulated sick leave totaling less than 11 days must not be credited for retirement purposes. Accumulated sick leave totaling 11 to 22 days must be credited as 1 month of service for retirement purposes. A member must have sick leave credited for vesting purposes under Section 33-45. An employee who transfers to the Retirement Savings Plan must receive credit toward retirement under the optional plan or integrated plan under Section 33-37(i) for the employee’s accumulated sick leave.
(g) Credited service for period of sick leave without pay. Any member who is granted authorized sick leave without pay shall have the opportunity to obtain credited service for up to one (1) year of such absence. Before receiving credited service, the member shall pay both the member contributions and the county contributions on a current basis during the period of time on sick leave without pay.
(h) Transfers between the county retirement system and any public retirement system in the State of Maryland. Under State law, a member entering or leaving County employment may transfer to or from any public retirement system in the State and receive credited service. A member may transfer to the County service credits accumulated under the previous system if the transfer complies with State law. If the member retires within 5 years after transferring to the County, the benefits payable for the transferred service are limited to the benefits that would have been payable under the other plan. The Chief Administrative Officer may provide by regulation adopted under method (3) procedures to assure favorable income tax treatment for members who transfer picked-up contributions between any of the eligible retirement systems. The two systems must have a reciprocity agreement to share contributions under State law.
(i) Purchase of service credits for prior service with the federal government, a municipality, or another state. A vested member may purchase prior service credits for any period of membership in the retirement system of the federal government, a municipality, or a state in the United States. Before receiving any of that credited service, the member must pay, in a lump sum or on an extended basis, both the employee and employer share of the actuarial value of the purchased prior service.
(j) Limitation on credited service. Credited service purchased may not be used to qualify for vesting or retirement before at least 5 years of membership. Under Section 33-45(a), service credits transferred from a public retirement system in Maryland may be used to qualify for vesting.
(k) Purchase of part-time service credits. A member may purchase service credit for any period of career part-time Montgomery County service or career part-time service in a participating agency. A member exercising this option must pay, in a lump sum or on an extended payment basis, the full actuarial cost for prior service credits.
(l) Purchase of prior State of Maryland and Montgomery County service credits. A member may purchase service credits for any period of prior temporary or regular State of Maryland or Montgomery County service. A member exercising this option must pay, in a lump sum or on an extended payment basis, the full actuarial cost for prior service credits.
(m) Purchase of service credits for periods of leave without pay. A Group F member who is on leave without pay may buy service credits at their full actuarial cost, in a lump sum or on an extended basis, for up to one year of that leave. A member must not buy service credits for a period of leave without pay in connection with an act for which the member was charged with a felony unless the charge is resolved by other than a finding of guilty.
(n) Payment for purchase of service credits.
(1) The Chief Administrative Officer may approve a member’s request to pay for a purchase of service credits over an extended period, if:
(A) the payment period does not exceed 5 years; and
(B) the member agrees to pay an additional payment of at least 6 ½ % per year until the purchase is complete.
(2) In extenuating circumstances, the Chief Administrative Officer may approve an extension of the payment period.
(3) A member may pay for the purchase of service credits by having some or all of the member’s account balance in an eligible governmental 457(b) plan transferred to the retirement system through a trustee to trustee transfer.
(o) [Limitation on purchase of credited service.] Except as required by state or federal law, an elected officials' participant may not be granted or permitted to purchase credited service for any purpose under the elected officials' plan.
(p) Despite any other provision in this Section, a member must not transfer or purchase credited service for membership in a defined contribution or capital accumulation plan or in a plan with both defined contribution and defined benefit elements.
(q) For the guaranteed retirement income plan, subsections (a)-(o) do not apply and credited service must be determined only under this subsection.
(1) Credited service includes the total County service the participant rendered under the guaranteed retirement income plan, the retirement savings plan, the optional retirement plan, the integrated plan, and the elected officials’ plan. Each participant must receive one year of credited service for each year of County service and one month of credited service for each month of County service during which the participant contributed to a County retirement plan. Each year of County service ends on the anniversary of the participant’s date of participation.
(2) County service includes any period of service in the armed forces of the United States or a state militia or other military service covered under the Uniformed Services Employment and Reemployment Rights Act if the member:
(A) was a member of the retirement savings plan, the optional retirement plan, the integrated plan, or the guaranteed retirement income plan when the military service began;
(B) applied for reemployment or returned to County service within:
(i) one year after discharge from the military service and without any other employment after discharge from the military service; or
(ii) within 2 years after completion of military service if the member was hospitalized or convalescing from an illness or injury incurred or aggravated during military service; or
(iii) more than 2 years if circumstances beyond the control of the participant made it impossible or unreasonable for the participant to apply for reemployment within 2 years; and
(C) the total period of military service did not exceed 5 years, excluding periods of military service described under Section 4312(c) of Title 38 of the United States Code.
(3) An employee who did not become a member of the guaranteed retirement income plan solely because the employee was called to active duty before completing 180 days of County employment, must be eligible to receive contribution credit under Sections 33-39 and 33-40 if the employee elects to participate in the guaranteed retirement income plan upon reemployment.
(r) Positions added to Group E eligibility.
(1) Notwithstanding subsection (a)(2), an employee in the position of 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 who was hired on or before July 1, 2023, and who was participating in the guaranteed retirement income plan or the retirement savings plan prior to eligibility in Group E may:
(A) make a one-time irrevocable election to purchase credited service with their entire existing guaranteed retirement income plan or retirement savings plan balances up to and including August 7, 2024, in accordance with an actuarial determination of the value transferred; or
(B) retain guaranteed retirement income plan or retirement savings plan balances, will no longer participate in the guaranteed retirement income plan or retirement savings plan, and will enter Group E with a credited service balance of 0 years, unless the employee is otherwise eligible to purchase other service credits provided for in this section.
(2) Eligible employees who elect to purchase credited service under this subsection may not apply any years of service while a member of the guaranteed retirement income plan or the retirement savings plan for the purposes of calculating years of service under either the optional retirement plan or the integrated retirement plan.
(3) Eligibility for early or normal retirement will be based upon the credited service at the time the employee enters Group E plus any credited service purchased by the employee.
(4) The vesting provisions in subsection (a)(2) will apply to employees listed in subsection (r)(1) regardless of whether they elect to purchase service credit under this subsection.
(s) Positions added to Group J eligibility.
(1) Notwithstanding subsection (a)(2), a County member who was hired on or before July 1, 2023, and who was participating in the guaranteed retirement income plan or the retirement savings plan prior to Group J eligibility, and who becomes Group J eligible after July 1, 2023 may:
(A) make a one-time irrevocable election to purchase credited service with their entire existing guaranteed retirement income plan or retirement savings plan balances up to and including August 7, 2024, in accordance with an actuarial determination of the value transferred; or
(B) retain guaranteed retirement income plan or retirement savings plan balances, will no longer participate in the guaranteed retirement income plan or retirement savings plan, and will enter Group J with a credited service balance of 0 years, unless the employee is otherwise eligible to purchase other service credits provided for in this section.
(2) Eligible employees who elect to purchase credited service under this subsection may not apply any years of service while a member of the guaranteed retirement income plan or the retirement savings plan for the purposes of calculating years of service under either the optional retirement plan or the integrated retirement plan.
(3) Eligibility for early or normal retirement will be based upon the credited service at the time the employee enters Group J plus any credited service purchased by the employee.
(4) The vesting provisions in subsection (a)(2) will apply to employees listed in subsection (s)(1) regardless of whether they elect to purchase service credit under this subsection. (Ord. No. 5-152; Ord. No. 6-195, § 1; 1971 L.M.C., ch. 39, § 2; 1972 L.M.C., ch. 19, § 6; 1974 L.M.C., ch. 31, § 7; 1974 L.M.C., ch. 59, § 3; 1978 L.M.C., ch. 44, § 1; 1986 L.M.C., ch. 56, § 1; 1987 L.M.C., ch. 27, § 7; 1989 L.M.C., ch. 45, § 1.; 1993 L.M.C., ch. 3, § 1; 1993 L.M.C., ch. 8, § 1; 1994 L.M.C., ch. 6, § 1; 1994 L.M.C., ch. 13, § 1; 1998 L.M.C., ch. 30, § 1; 1998 L.M.C., ch. 31, § 1; 2001 L.M.C., ch. 21, § 1; 2006 L.M.C., ch. 20, § 1; 2008 L.M.C., ch. 22, § 1; 2008 L.M.C., ch. 23, § 3; 2008 L.M.C., ch. 25, § 1; 2008 L.M.C., ch. 30, § 1; 2009 L.M.C., ch. 2, § 2; 2009 L.M.C., ch. 33, § 2; 2010 L.M.C., ch. 13, § 1; 2010 L.M.C., ch. 49, § 1; 2014 L.M.C., ch. 17, § 1; 2021 L.M.C., ch. 36, §1; 2022 L.M.C., ch. 14, §1; 2023 L.M.C., ch. 24, § 1; 2024 L.M.C., ch. 3, § 1.)
Editor’s note—2024 L.M.C., ch. 3
, § 3, states: Retroactive Application. This Bill applies retroactively to January 4, 2024, in order to provide for an uninterrupted extension of the time to make the elections described in Sec. 1.
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.
2001 L.M.C., ch. 21, § 2(b), states: Any active employee who was eligible at any time to transfer service credits from any public retirement system in the state under Section 33-41(h), but did not do so within the applicable time period under state law, may transfer all applicable credits to the County retirement system, subject to all applicable requirements of state law, by December 31, 2001. Any transfer under this subsection must be retroactive to the date the employee was originally eligible to apply for the transfer.
1993 L.M.C., ch. 8, § 2, reads as follows:
"Sec. 2. Limited opportunity to purchase military service credit.
(a) A member with 5 years of credited service who was enrolled or re-enrolled before July 1, 1978, may obtain credited service for all or part of any service in the uniformed services of the United States, up to a maximum of 48 months, if the member:
(1) exercises the option to purchase this credited service by December 31, 1993; and
(2) pays, in a lump sum or on an extended payment basis, the sum of:
(A) an amount determined by multiplying the member's salary on the day before the fifth anniversary of service by the member's group contribution rate, multiplied by the number of full years of military service the member wishes to purchase. The member must pay a pro-rata amount for any period less than one year; and
(B) interest on the amount determined under subparagraph (2)(A) at the rate of 4 percent per year from the member's fifth anniversary of service to July 1, 1970, and at the rate of 6 percent per year from July 1, 1970 to the day the member exercises the option to purchase credited service under this Section.
However, if under federal law a person must be permitted to purchase a period of actual or credited service under another retirement system when that person is receiving retirement benefits or has retained a vested right to retirement benefits from that system, the person must pay the full actuarial cost of the service to be credited.
(b) In this Section, ‘uniformed services’ means the Army, Navy, Air Force, Marine Corps, and Coast Guard."