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The county and each participating agency must pay to the board each fiscal year a normal contribution and, if necessary, an additional contribution to be known as unfunded accrued liability contribution. The actuary for the retirement system must prepare an actuarial valuation and report each year.
(a) Normal contribution. The amount of normal contribution must at least match the contribution made by members each fiscal year but must not be less than the amount which could be provided by multiplying the latest published actuarial normal cost accrual rate, expressed as a percentage of covered payroll, times the payroll of covered members. The actuary for the retirement system must determine a single normal contribution, and, if necessary, an unfunded accrued liability contribution for each group which must be applicable to and payable by each participating agency. The normal contribution must be determined by the actuary for the retirement system after each actuarial valuation as the percentage of the compensation of all members which is sufficient to cover the cost of benefits determined under an actuarial cost method acceptable under the United States Treasury Regulations with respect to qualified retirement plans after taking into account members' contributions.
(b) Unfunded accrued liability contribution. The unfunded accrued liability contribution shall be the amount necessary to liquidate the base amount of the unfunded accrued liability and additions thereto, over not more than forty (40) years. The amount to liquidate annually shall be determined from the unfunded accrued liability published in the latest actuarial report. The base amount of unfunded accrued liability contributions payable by each participating agency shall be determined by the actuary on the basis of June 30, 1975, membership. Thereafter, the actuary shall determine additional unfunded accrued liabilities in excess of the June 30, 1975 base amount that emerge as the result of benefit improvements, salary increases or other applicable factors, which shall be applicable to and payable by each participating agency. The additional unfunded accrued liabilities shall be liquidated over not more than forty (40) years from date incurred.
(c) Additional contributions. The County shall make such contributions as are required annually to provide benefits under subsections (d) and (e) of section 33-45. Any contributions made on behalf of an employee who ceases to be a member as the result of separation from the County service shall be used each fiscal year to accelerate the payment of any unfunded accrued liability or to fund retirement plan improvements.
(d) Elected officials' plan. Subsections 33-40(a), (b), and (c) do not apply to the elected officials' plan. Instead, the following provisions apply:
(1) The County must contribute to the elected officials' plan in monthly installments, on behalf of each elected officials' participant, an amount equal to 8 percent of the elected officials' participants' regular earnings. The county's elected officials' contributions are to be adjusted to take into account any forfeiture under subsection 33-40(d)(2)d. In determining the amount of the County elected officials' contributions, only an elected officials' participant's regular earnings earned while that elected officials' participant made required elected officials' participant contributions are counted.
(2) The Board must allocate the County elected officials' contributions made on behalf of each elected officials' participant to a County elected officials' contributions account the Board establishes for that elected officials' participant. In addition, amounts allocated to the County elected officials' contributions account must be further allocated to sub-accounts to reflect the proportionate amount of each account in each of the applicable investment funds.
(A) As of each valuation date, the Board must value the County elected officials' contributions account of each participant on a current market value basis.
(B) An elected officials' participant has a one hundred (100) percent vested interest in that elected officials' participant's County elected officials' contributions account after the elected officials' participant attains the lesser of a full term of office or four (4) years of credited service. An elected officials' participant whose account balance in the County elected officials' contributions account is not one hundred (100) percent vested in accordance with the preceding sentence will nonetheless be one hundred (100) percent vested in that account balance from and after the effective date of a termination of the elected officials' plan.
(C) An elected officials' participant who has a one hundred (100) percent vested interest in the County elected officials' contributions account of that elected officials' participant and ends employment with the County before the participant's normal retirement date may, at the elected officials' participant's request, receive the account balance in the County elected officials' contributions account in a single lump-sum payment. An elected official who chooses to withdraw the account balance in the County elected officials' contributions account must at the same time withdraw the account balances in the required and voluntary elected officials' participant contributions accounts, and if that elected officials' participant again participates in the elected officials' plan after the withdrawal, that elected officials' participant must complete the lesser of an additional four (4) years of credited service or a full term of office in order to vest in any County elected officials' contributions made after the withdrawal.
(D) An elected officials' participant who ends employment with the County and who is not vested in any County contributions must forfeit the full account balance in the County elected officials' contributions account. If that occurs, the Chief Administrative Officer, upon the participant’s completion of a properly completed distribution form, must pay the participant, in a single lump-sum payment, the full account balances in the required elected officials' participant contributions account and the voluntary elected officials' participant contributions account, less any indebtedness to the county government or the Montgomery County Employees Federal Credit Union. The Chief Administrative Officer must consider all forfeitures arising under the elected officials' plan in determining the County elected officials' contributions and must use the forfeitures to reduce the amount of the county elected officials' contributions.
(e) Guaranteed Retirement Income Plan.
(1) Each pay period, the County must credit to each non-public safety member’s guaranteed retirement income plan account an amount equal to 6 percent for service beginning on the first pay period after June 30, 2011 and 8 percent for service beginning on the first pay period after June 30, 2012 of the member’s regular earnings. Interest must be credited at an annual rate of 7.25 percent on the County contribution credits. If the annual 7.25 percent interest rate does not comply with applicable law, the third segment rate described in Internal Revenue Code Section 430(h)(2)(G) or any successor provision must apply. Interest must be credited to a member’s guaranteed retirement income plan account balance on a monthly basis as of the last day of the month.
(2) Each pay period, the County must credit to each public safety member’s guaranteed retirement income plan account an amount equal to 8 percent for service beginning on the first pay period after June 30, 2011 and 10 percent for service beginning on the first pay period after June 30, 2012 of the member’s regular earnings. Interest must be credited at an annual rate of 7.25 percent on the County contribution credits. If the annual 7.25 percent interest rate does not comply with applicable law, the third segment rate described in Internal Revenue Code Section 430(h)(2)(G) or any successor provision must apply. Interest must be credited to a member’s guaranteed retirement income plan account balance on a monthly basis as of the last day of the month.
(3) When a member rejoins County service after military service that qualifies under Section 33-41(q) as credited service, the County must credit the member the amount that the County would have credited the member if the member worked for the County during military service. The credits must be based on the regular earnings the member would have earned during military service. If the regular earnings are not reasonably ascertainable, the County contribution credit must be based on the member’s regular earnings during a period immediately preceding military service. The averaging period is 12 months, or the full length of the member’s County service, whichever is shorter. The member must not receive any retroactive credited interest on the County contribution credits.
(4) For any member who received a contribution to the member’s guaranteed retirement income plan account under Section 33-42A, interest must be credited at an annual rate of 7.25 percent. If the annual 7.25 percent interest rate does not comply with applicable law, the third segment rate described in Internal Revenue Code Section 430(h)(2)(G) or any successor provision must apply. Interest must be credited to a member’s guaranteed retirement income plan account balance on a monthly basis as of the last day of the month. (Ord. No. 5-152; Ord. No. 6-195, § 1; 1972 L.M.C., ch. 19, § 5; 1974 L.M.C., ch. 31, § 6; 1978 L.M.C., ch. 44, § 1; 1987 L.M.C., ch. 27, § 7; 1987 L.M.C., ch. 29, § 5; 1994 L.M.C., ch. 33, § 1; 2001 L.M.C., ch. 21, § 1; 2008 L.M.C., ch.22, § 1; 2009 L.M.C., ch. 2, §§ 1, 2; 2009 L.M.C., ch. 15, § 1; 2009 L.M.C., ch. 23, § 1; 2009 L.M.C., ch. 33, § 2; 2010 L.M.C., ch. 13, § 1; 2011 L.M.C., ch. 9, § 1.)
Editor’s note—2011 L.M.C., ch. 9, § 2, states in part: Effective Date. This Act takes effect on July 1, 2011 except as otherwise provided. For a member of the Optional Plan, Integrated Plan, or Guaranteed Retirement Income Plan holding the office of County Executive, Councilmember, or Sheriff, the amendments to Sections 33-39(a)(1), 33-39(a)(2), 33-44(c), and 33-40(e)(1) took effect on December 1, 2014. For a member of the Optional Plan, Integrated Plan, or Guaranteed Retirement Income Plan holding the office of State’s Attorney, the amendments to Sections 33-39(a)(1), 33-39(a)(2), 33-44(c), and 33-40(e)(1) took effect on January 5, 2015.
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.
(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."
Division 3. Benefits.
(a) Average final earnings. For a full-time or part-time career member enrolled on or before June 30, 1978, and continuously enrolled to date of retirement, average final earnings shall be the regular earnings for the twelve-month period immediately preceding retirement, or any consecutive twelve-month period, whichever is greater. Whenever such member is on leave without pay status during part of the final twelve-month period of membership, average final earnings will be based on regular earnings for the last twelve (12) months during which the member was in full pay status or any consecutive twelve-month period, whichever is greater. Average final earnings for each employee who became a member on or before June 30, 1978, and remained a member continuously to the date of retirement, who has full-time service credits and is a part-time career member at time of retirement are the average hourly rate of earnings during the last twelve (12) months of membership or any consecutive twelve-month membership period, whichever is greater, multiplied by two thousand eighty (2,080). The average hourly rate for any twelve-month period is equal to the total regular earnings of the member, divided by the total number of hours worked during the period. Average final earnings for each employee who became a member on or after July 1, 1978, shall be the average of regular annual earnings of the member for the thirty-six-month period immediately preceding retirement, or any consecutive thirty-six-month period, whichever is greater. Whenever such employee is on leave without pay status during part of the final thirty-six-month period of membership, average final earnings will be based on regular earnings for the last thirty-six (36) months during which the member was in full pay status, or any consecutive thirty-six-month period, whichever is greater. Average final earnings for an employee who became a member on or after July 1, 1978, who has full-time service credits and is a part-time career member at the time of retirement will be the average hourly rate of earnings during the thirty-six-month period immediately preceding retirement or any consecutive thirty-six-month period, whichever is greater, multiplied by two thousand eighty (2,080). The average hourly rate for any thirty-six-month period is equal to the total regular earnings of the member divided by the total number of hours worked during the period.
(b) Amount of pension at normal retirement date.
(1) Pension amount for an Optional Retirement Plan member.
(A) Except for a Group E, F, G, or J member, the annual pension for a member of the optional retirement plan who retires on a normal retirement must equal 2 percent of average final earnings multiplied by years of credited service, up to a maximum of 36 years, plus sick leave credits. Years of credited service of less than one full year must be prorated.
(B) For a Group E member who is a member of the optional plan and retires on a normal retirement, the annual pension must equal 2.6 percent of average final earnings for each of the first 25 years of credited service completed, and 2.25 percent of average final earnings for each year of credited service of more than 25 years, to a maximum of 30 years plus sick leave credits. Years of credited service of less than one full year must be prorated. Sick leave credits used for years in excess of 25 years must be credited at 2 percent of average final earnings. The maximum benefit with the application of sick leave credits must not exceed 80.25 percent of average final earnings.
(C) For a Group F member who is a member of the optional plan and retires on a normal retirement, the annual pension must equal 2.4% of average final earnings multiplied by years of credited service, up to a maximum of 36 years, including sick leave credits. Years of credited service of less than one full year must be prorated. The maximum benefit with the application of sick leave credits must not exceed 86.4% of average final earnings.
(D) For a Group G member who is a member of the optional plan and retires on a normal retirement, the annual pension must equal:
(i) 2.6 percent of average final earnings for each of the first 25 years of credited service completed; and
(ii) 1.25 percent of average final earnings for each year or prorated portion of a year of credited service of more than 25 years, to a maximum of 31 years, plus sick leave credits; and
(iii) 5 percent for each year of credited service received for accumulated sick leave; and
(iv) 0 percent for years after year 31 (except sick leave credits referred to in subclause (c)).
(E) For a Group J member who is a member of the optional plan and retires on a normal retirement, the annual pension must equal 2.5 percent of average final earnings for each of the first 25 years of credited service completed, and 2 percent of average final earnings for each year of credited service of more than 25 years, to a maximum of 30 years plus sick leave credits. Years of credited service of less than one full year must be prorated. Sick leave credits used for years in excess of 25 years must be credited at 2 percent of average final earnings. The maximum benefit with the application of sick leave credits must not exceed 76.5 percent of average final earnings.
(2) Pension amount for an Integrated Retirement Plan member.
(A) For a Group A, B, or H member in the integrated retirement plan who retires on a normal retirement, the annual pension must be computed as follows:
(i) From date of retirement to the month of attainment of Social Security retirement age: 2 percent of average final earnings multiplied by years of credited service up to a maximum of 36 years, plus sick leave credits. Credited service of less than one full year must be prorated.
(ii) From the month of attainment of Social Security retirement age: 1 ¼ percent of average final earnings up to the Social Security maximum covered compensation level at time of retirement, plus 2 percent of average final earnings above the Social Security maximum covered compensation level at time of retirement, multiplied by years of credited service up to a maximum of 36 years, plus sick leave credits. Credited service of less than one full year must be prorated. This amount is subject initially to the cost-of-living adjustment provided in Section 33-44(c) from date of retirement to Social Security retirement age.
(B) For a Group D member, the annual pension for a member of the integrated retirement plan who retires on a normal retirement must be computed as follows:
(i) From date of retirement to the month of attainment of social security retirement age: 2 percent of average final earnings multiplied by years of credited service up to a maximum of 36 years, plus sick leave credits. Years of credited service of less than one full year must be prorated.
(ii) From the month of attainment of social security retirement age: one percent of average final earnings up to the social security maximum covered compensation level at time of retirement, plus 2 percent of average final earnings in excess of the social security maximum covered compensation level at time of retirement, multiplied by years of credited service, up to a maximum of 36 years, plus sick leave credits. Years of credited service of less than one full year must be prorated. This amount is subject initially to the cost-of-living adjustment provided in Section 33-44(c) from date of retirement to Social Security retirement age, if any.
(C) For a Group E member in the integrated retirement plan who retires on a normal retirement, the annual pension must be computed as follows:
(i) From the date of retirement to the month that the member reaches Social Security normal retirement age: 2.6 percent of average final earnings for each of the first 25 years of credited service completed, and 2.25 percent of average final earnings for each year of credited service of more than 25 years, to a maximum of 30 years plus sick leave credits. Years of credited service of less than one full year must be prorated. Sick leave credits used for years in excess of 25 years must be credited at 2 percent of average final earnings. The maximum benefit with the application of sick leave credits must not exceed 80.25 percent of average final earnings. Beginning July 1, 2024, from the date of retirement to the month that the member reaches the maximum Social Security retirement benefit age: 2.6 percent of average final earnings for each of the first 25 years of credited service completed, and 2.25 percent of average final earnings for each year of credited service of more than 25 years, to a maximum of 30 years plus sick leave credits. Years of credited service of less than one full year must be prorated. Sick leave credits used for years in excess of 25 years must be credited at 2 percent of average final earnings. The maximum benefit with the application of sick leave credits must not exceed 80.25 percent of average final earnings.
(ii) From the month the member reaches Social Security normal retirement age: 1.65 percent of average final earnings up to the Social Security maximum covered compensation in effect on the date of retirement for each year of credited service to a maximum of 30 years plus sick leave credits, plus 2.6 percent of average final earnings above the Social Security maximum covered compensation in effect on the date of retirement for each of the first 25 years of credited service completed, and 2.25 percent of average final earnings above the Social Security maximum covered compensation in effect on the date of retirement for each year of credited service of more than 25 years, to a maximum of 30 years plus sick leave credits. Years of credited service of less than one full year must be prorated. Sick leave credits used for years in excess of 25 years must be credited at 2 percent of average final earnings above the Social Security maximum covered compensation in effect on the date of retirement. The County must increase this initial amount by the cost-of-living adjustments provided under Section 33-44(c) for the period from the member’s date of retirement to the month in which the member reaches Social Security retirement age. Beginning July 1, 2024, from the month the member reaches the maximum Social Security retirement benefit age: 1.65 percent of average final earnings up to the Social Security maximum covered compensation in effect on the date of retirement for each year of credited service to a maximum of 30 years plus sick leave credits, plus 2.6 percent of average final earnings above the Social Security maximum covered compensation in effect on the date of retirement for each of the first 25 years of credited service completed, and 2.25 percent of average final earnings above the Social Security maximum covered compensation in effect on the date of retirement for each year of credited service of more than 25 years, to a maximum of 30 years plus sick leave credits. Years of credited service of less than one full year must be prorated. Sick leave credits used for years in excess of 25 years must be credited at 2 percent of average final earnings above the Social Security maximum covered compensation in effect on the date of retirement. The County must increase this initial amount by the cost-of-living adjustments provided under Section 33-44(c) for the period from the member’s date of retirement to the month in which the member reaches the maximum Social Security retirement benefit age.
(D) For a Group F member in the integrated retirement plan who retires on a normal retirement, the annual pension must be computed as follows:
(i) From date of retirement to the month of attainment of the maximum Social Security retirement benefit age: 2.4 percent of average final earnings multiplied by years of credited service up to a maximum of 36 years, including sick leave credits. Credited service of less than one full year must be prorated. The maximum benefit with the application of sick leave credits must not exceed 86.4 percent of average final earnings. Effective January 1, 2025, the multiplier will increase to 2.6 percent of average final earnings multiplied by years of credited service up to 25 years, and 2.4 percent of average final earnings multiplied by years of credited service from 25 years to a maximum of 34 years, including sick leave credits.
(ii) From the month the member reaches the maximum Social Security retirement benefit age: 1.65 percent of average final earnings up to the maximum of 36 years, including sick leave credits, up to the Social Security maximum covered compensation in effect on the date of retirement, plus 2.4 percent of average final earnings above the Social Security maximum covered compensation in effect on the date of retirement, multiplied by years of credited service up to a maximum of 36 years, including sick leave credits. Years of credited service of less than one full year must be prorated. The County must increase this initial amount by the cost-of-living adjustments provided under Section 33-44(c) for the period from the member’s date of retirement to the month in which the member reaches the maximum Social Security retirement benefit age. Effective January 1, 2025, the multiplier will increase to 1.8 percent of average final earnings up to a maximum of 25 years, and 1.65 percent of average final earnings for more than 25 years to a maximum of 34 years, including sick leave credit, up to the Social Security maximum covered compensation in effect on the date of retirement, plus 2.6 percent of average final earnings above the Social Security maximum covered compensation in effect on the date of retirement multiplied by years of credited service from 25 years, and 2.4 percent of average final earnings above the Social Security maximum covered compensation in effect on the date of retirement multiplied by years of credited service from 25 years to a maximum 34 years, including sick leave credits.
(E) The County must compute the annual pension of a Group G member in the integrated retirement plan who retires on a normal retirement as follows:
(i) from the date of retirement to the month that the member reaches Social Security retirement age, the following percentages of average final earnings apply:
(a) 2.6 percent, for each of the first 25 years of credited service; and
(b) 1.25 percent, for each year of credited service of more than 25 years to a maximum of 31 years, plus sick leave credits; and;
(c) 5 percent for each year of credited service received for accumulated sick leave; and
(d) 0 percent for years after year 31 (except sick leave credits referred to in subclause (c)); and
(ii) from the month the member reaches Social Security retirement age, the percentages specified in clause (i) must be reduced, respectively, by the following percentages of average final earnings for the portion of any amount equal to or less than the Social Security maximum covered compensation in effect on the date of retirement:
(a) 0.81250 percent, for each of the first 25 years of credited service;
(b) 0.390625 percent for each year of credited service of more than 25 years, to a maximum of 31 years, plus sick leave credits; and
(c) 1.5625 percent, for each year of credited service received for accumulated sick leave.
(iii) The County must increase the initial amount of a pension computed under (ii) above by the cost-of-living adjustments provided under Section 33-44(c) for the period from the member’s date of retirement to the month in which the member reaches Social Security retirement age.
(iv) The County must prorate any portion of a year described in this subparagraph.
(v) Effective September 1, 2024, from the date of retirement to the month that the member reaches the maximum Social Security retirement benefit age, the following percentages of average final earnings apply:
(a) 2.6 percent, for each of the first 25 years of credited service; and
(b) 1.25 percent, for each year of credited service of more than 25 years to a maximum of 31 years, plus sick leave credits; and
(c) 5 percent for each year of credited service received for accumulated sick leave; and
(d) 0 percent for years after year 31 (except sick leave credits referred to in subclause (c)); and
(vi) from the month the member reaches the maximum Social Security retirement benefit age, the percentages specified in clause (v) must be reduced, respectively, by the following percentages of average final earnings for the portion of any amount equal to or less than the Social Security maximum covered compensation in effect on the date of retirement:
(a) 0.81250 percent, for each of the first 25 years of credited service;
(b) 0.390625 percent, for each year of credited service of more than 25 years, to a maximum of 31 years, plus sick leave credits; and
(c) 1.5625 percent, for each year of credited service received for accumulated sick leave.
(vii) The County must increase the initial amount of a pension computed under (vi) above by the cost-of-living adjustments provided under Section 33-44(c) for the period from the member’s date of retirement to the month in which the member reaches the maximum Social Security retirement benefit age.
(viii) The County must prorate any portion of a year described in this subparagraph.
(F) For a Group J member in the integrated retirement plan who retires on a normal retirement, the annual pension must be computed as follows:
(i) From the date of retirement to the month that the member reaches Social Security retirement age: 2.5 percent of average final earnings for each of the first 25 years of credited service completed, and 2 percent of average final earnings for each year of credited service of more than 25 years, to a maximum of 30 years plus sick leave credits. Years of credited service of less than one full year must be prorated. Sick leave credits used for years in excess of 25 years must be credited at 2 percent of average final earnings. The maximum benefit with the application of sick leave credits must not exceed 76.5 percent of average final earnings. Beginning July 1, 2024, from the date of retirement to the month that the member reaches the maximum Social Security retirement benefit age: 2.5 percent of average final earnings for each of the first 25 years of credited service completed, and 2 percent of average final earnings for each year of credited service of more than 25 years, to a maximum of 30 years plus sick leave credits. Years of credited service of less than one full year must be prorated. Sick leave credits used for years in excess of 25 years must be credited at 2 percent of average final earnings. The maximum benefit with the application of sick leave credits must not exceed 76.5 percent of average final earnings.
(ii) From the month the member reaches Social Security normal retirement age: 1.65 percent of average final earnings up to the Social Security maximum covered compensation in effect on the date of retirement for each year of credited service to a maximum of 30 years plus sick leave credits, plus 2.5 percent of average final earnings above the Social Security maximum covered compensation in effect on the date of retirement for each of the first 25 years of credited service completed, and 2 percent of average final earnings above the Social Security maximum covered compensation in effect on the date of retirement for each year of credited service of more than 25 years, to a maximum of 30 years plus sick leave credits. Years of credited service of less than one full year must be prorated. Sick leave credits used for years in excess of 25 years must be credited at 2 percent of average final earnings above the Social Security maximum covered compensation in effect on the date of retirement. The County must increase this initial amount by the cost-of-living adjustments provided under Section 33-44(c) for the period from the member’s date of retirement to the month in which the member reaches Social Security retirement age. Beginning July 1, 2024, from the month the member reaches the maximum Social Security retirement benefit age: 1.65 percent of average final earnings up to the Social Security maximum covered compensation in effect on the date of retirement for each year of credited service to a maximum of 30 years plus sick leave credits, plus 2.5 percent of average final earnings above the Social Security maximum covered compensation in effect on the date of retirement for each of the first 25 years of credited service completed, and 2 percent of average final earnings above the Social Security maximum covered compensation in effect on the date of retirement for each year of credited service of more than 25 years, to a maximum of 30 years plus sick leave credits. Years of credited service of less than one full year must be prorated. Sick leave credits used for years in excess of 25 years must be credited at 2 percent of average final earnings above the Social Security maximum covered compensation in effect on the date of retirement. The County must increase this initial amount by the cost-of-living adjustments provided under Section 33-44(c) for the period from the member’s date of retirement to the month in which the member reaches the maximum Social Security retirement benefit age.
(3) Elected Officials' Plan. An elected officials' participant who retires on or after the normal retirement date of that elected officials' participant may receive that elected officials' participant's account balances in the elected officials' plan.
(4) Guaranteed retirement income plan. A member who retires on or after the member’s normal retirement date, except a member who receives a contribution under Section 33-42A, may receive that member’s vested guaranteed retirement income plan account balance under Section 33-44. A member who receives a contribution under Section 33-42A must not receive a distribution of the member’s guaranteed retirement income plan account balance until the member attains the Social Security retirement age.
(c) Amount of pension at early retirement date and early retirement reduction factors.
(1) The yearly amount of pension for a member who retires on an early retirement date will be a percentage of the amount of normal retirement benefit which would have been paid on the basis of years of credited service including sick leave credits. The schedule of early retirement reduction factors is as follows:
Years Early | Reduction Factor | Percentage of Normal Retirement Benefit |
Years Early | Reduction Factor | Percentage of Normal Retirement Benefit |
1 | 2% | 98% |
2 | 5% | 95% |
3 | 9% | 91% |
4 | 14% | 86% |
5 | 20% | 80% |
6 | 28% | 72% |
7 | 36% | 64% |
8 | 44% | 56% |
9 | 52% | 48% |
10 | 60% | 40% |
(2) An elected officials' participant who retires before the normal retirement date of that elected officials' participant may receive the elected officials' participant's vested account balances in the elected officials' plan.
(3) Guaranteed retirement income plan. A participant who terminates employment before the member’s normal retirement date may receive the participant’s vested guaranteed retirement income plan account balance upon termination of employment under Section 33-44.
(d) Adjustment for pension payments previously paid.
(1) If a member who retires has previously retired and received pension payments, the number of years of prior service plus the number of years of service accrued after re-entering the retirement system will be used in computing the amount of pension at subsequent retirement.
(2) If a member receives service connected disability pension payments, and subsequently returns to work and re-enters the retirement system within 5 years of the date that disability retirement commenced and prior to attaining age 55, if a group A or H member, or age 45 if a group B, E, F, G, or J member, the number of years of prior service, plus the number of years the member was on retirement, plus the number of years accrued after re-entering the system must be used in computing the amount of pension at subsequent retirement.
(e) Early retirement on full benefits. Notwithstanding other provisions of this article, whenever a member's credited service plus age equals eighty-five (85), the member may elect early retirement and the early retirement reduction factors shall not apply, provided the member has at least thirty-five (35) years of credited service.
(f) Pension limitation. Notwithstanding any other provision of this section, the initial retirement benefit as provided under this section for those employees enrolled or re-enrolled on or after July 1, 1978, when combined with the primary benefit from social security for which the member is eligible or will be eligible at social security retirement age, must not exceed 90 percent of member's average final earnings. This limitation does not apply to the cost-of-living adjustments received under subsection (c) of section 33-44.
(g) Maximum annual contribution to elected officials' plan.
(1) Regardless of any other provision in this article, the annual addition described in this subsection that is allocated in any limitation year to the retirement accounts of any elected officials' participant must not exceed the lesser of:
(A) $40,000.00 (the “dollar limitation”), as adjusted by the Internal Revenue Service from time to time to reflect cost of living increases; or
(B) 100 percent of the participant's compensation (as defined below) (the “percent limitation”).
(2) For purposes of this subsection (g), the annual addition must be comprised of:
(A) County elected officials’ contributions;
(B) required elected officials’ participant contributions;
(C) voluntary elected officials’ participant contributions; and
(D) forfeitures used to reduce the County elected officials’ contributions in accordance with Section 33-40(d)(2)(D).
(3) In this subsection (g), only:
(A) for purposes of applying Section 415 of the Internal Revenue Code, “compensation” has the same meaning as provided in Treasury Regulation Section 1.415-2(d)(1), including amounts contributed at the election of the participant that are not includible in the gross income of the participant under Sections 125, 132(f)(4), 402(g)(3), or 457 of the Internal Revenue Code. Effective for limitation years after December 31, 2008, must include amounts required to be included pursuant to Section 414(u)(12) of the Internal Revenue Code; and
(B) The limitation year means the twelve (12) consecutive calendar months comprising the fiscal year of the county.
(4) For purposes of this subsection, the maximum dollar limitation of $40,000.00 must be automatically increased as permitted by United States treasury regulations to reflect cost-of-living adjustments.
(5) Multiple plan participation. This paragraph applies only for limitation years ending before January 1, 2000. Regardless of paragraph (1), the otherwise permissible annual benefits for any participant in the elected officials' plan who also participates in another qualified plan sponsored by the County or a participating agency that is a defined benefit plan must be further adjusted to the extent necessary to prevent disqualification of the plans under Section 415 of the Internal Revenue Code. Section 415 imposes the following additional limitations on the benefits payable to a participant in the elected officials' plan who also may be participating in another qualified plan of the county or any participating agency that is a defined benefit plan:
(A) If an individual is a participant at any time of both a defined benefit plan and a defined contribution plan maintained by the county or any participating agency, the sum of the “defined benefit plan fraction” and the “defined contribution plan fraction” for any limitation year must not exceed 1.0. In making this adjustment, the maximum benefit payable under the elected officials' plan must be reduced to the extent necessary to meet the multiple plan limitation.
(i) Defined Benefit Plan Fraction. The defined benefit plan fraction for any limitation year is a fraction, the numerator of which is the elected officials' participant's projected aggregate annual benefit under all defined benefit plans of the county or any participating agency determined at the close of the limitation year, and the denominator of which is the lesser of:
(a) 1.25 multiplied by the defined benefit dollar limitation set forth in section 415(b)(1)(A) of the Internal Revenue Code as applicable from time to time, or
(b) 1.4 multiplied by the defined benefit compensation limitation set forth in section 415(b)(1)(B) of the Internal Revenue Code.
(ii) Defined Contribution Plan Fraction. The defined contribution plan fraction for any limitation year is a fraction, the numerator of which is the sum of the annual additions to the elected officials' participant's accounts under all defined contribution plans of the county or any participating agency in such limitation year and for all prior limitation years, and the denominator of which is the sum of the applicable maximum amounts of annual additions which could have been made under section 415(c) of the Internal Revenue Code for the limitation year and for all prior limitation years of the participant's employment, assuming, for this purpose, that section 415(c) had been in effect during such prior year. The applicable maximum amount for any limitation year must be equal to the lesser of 1.25 multiplied by the dollar limitation in effect for each such limitation year under subsection 415(c)(1)(A) of the Internal Revenue Code, or 1.4 multiplied by twenty-five (25) percent of the elected officials' participant's total annual compensation for each such year.
(iii) For purposes of the above limitations, all defined benefit plans of the county or any participating agency, whether or not terminated, are to be treated as one defined benefit plan and all defined contribution plans of the county or any participating agency, whether or not terminated, are to be treated as one defined contribution plan. defined contribution plan.
(h) Maximum annual benefit. Despite any other provision governing the retirement system, the annual benefit of a member must not exceed the limits of Internal Revenue Code Section 415 that apply to the plan. The Chief Administrative Officer must freeze or reduce a member’s annual benefit to comply with this subsection. Effective for limitation years after December 31, 2008, amounts required to be included under Section 414(u)(12) of the Internal Revenue Code must be included in compensation for purposes of Section 415 of the Internal Revenue Code.
(i) Retirement incentive Program.
(1) Eligibility.
(A) A Group A or H member may participate in the Retirement Incentive Program if the member is eligible for normal retirement as of July 1, 2008 or if the member is eligible for early retirement and within two years of meeting the criteria for normal retirement as of July 1, 2008
(B) An elected or appointed official is not eligible to participate.
(C) A member who wishes to participate must notify the Office of Human Resources in writing by May 21, 2008. Any member chosen to participate must complete all required forms and retire as of July 1, 2008.
(D) Any member employed by a participating agency is not eligible to participate.
(2) Early Retirement Reduction.
(A) A member who is eligible for early retirement and within one year of meeting the criteria for normal retirement must not have any early retirement reduction applied to the member’s pension benefit.
(B) A member who is eligible for early retirement and within two years of meeting the criteria for normal retirement must have an early retirement reduction factor of 2% applied to the member’s pension benefit.
(3) Additional Retirement Benefit.
In addition to a member’s pension benefit calculated under this Section, the member must receive an additional $25,000 retirement benefit. The member may elect to receive the additional $25,000 retirement benefit as follows:
(A) When the member retires, the additional $25,000 retirement benefit must be paid:
(i) to the member in one lump sum;
(ii) as a direct rollover to an eligible retirement plan (as defined in the Internal Revenue Code); or
(iii) a combination of (i) and (ii);
(B) Beginning on the member’s retirement date, 12 monthly installment payments must be paid:
(i) to the member;
(ii) as a direct rollover to an eligible retirement plan (as defined in the Internal Revenue Code); or
(iii) a combination of (i) and (ii); or
(C) as an additional retirement benefit paid over the member’s lifetime in the pension option elected by the member under Section 33-44.
(4) Cost of Living.
Cost of living adjustments do not apply to this benefit. A cost of living adjustment under section 33-44(c) must not include the $25,000 additional retirement benefit.
(5) Approval.
The Chief Administrative Officer must approve a request to participate in the program from a member employed in the Executive Branch. The Executive Director of the Office of the County Council must approve a request to participate in the program from a member employed in the Legislative Branch. If more than 20% of members eligible to participate in the Executive Branch, either Countywide or by department, apply to participate in the program, the Chief Administrative Officer may limit the number of participants, either on a Countywide or department basis. If more than 20% of members eligible to participate in the Legislative Branch apply to participate in the program, the Executive Director of the Office of the County Council may limit the number of participants. The Chief Administrative Officer and the Executive Director of the Office of the County Council must base any limits on the number of participants on years of service with the County. Years of service with the County must not include service with a participating agency, purchased service, or sick leave.
(6) Survivor Benefit.
If a member elects to receive the additional retirement benefit over a 12 month period and the member dies before receiving all 12 payments, the remaining payments must not be paid. (Ord. No. 5-152; Ord. No. 6-195, § 1; 1971 L.M.C., ch. 39, § 3; 1972 L.M.C., ch. 19, § 7; 1974, L.M.C., ch. 31, §§ 8, 9; 1978 L.M.C., ch. 44, § 1; 1985 L.M.C., ch. 49, § 3; 1986 L.M.C., ch. 56, § 2; 1987 L.M.C., ch. 27, § 7; 1987 L.M.C., ch. 44, § 1; 1989 L.M.C., ch. 45, § 1; 1998 L.M.C., ch. 31, § 1; 1999 L.M.C., ch. 26, § 1; 2001 L.M.C., ch. 21, § 1; 2001 L.M.C., ch. 28, §§ 6, 15 and 16; 2003 L.M.C., ch. 3
, § 1; 2003 L.M.C., ch. 13, § 1; 2003 L.M.C., ch. 31, § 1; 2004 L.M.C., ch. 14, § 1; 2007 L.M.C., ch. 3, § 1; 2008 L.M.C., ch. 13, § 1; 2008 L.M.C., ch. 22, § 1; 2008 L.M.C., ch. 23, § 4; 2010 L.M.C., ch. 13, § 1; 2010 L.M.C., ch. 49, § 1; 2013 L.M.C., ch. 4, § 1; 2014 L.M.C., ch. 17, § 1; 2016 L.M.C., ch. 42, § 1; 2017 L.M.C., ch. 7, §1; 2018 L.M.C., ch. 3, §1; 2022 L.M.C., ch. 30, §1; 2023 L.M.C., ch. 24, § 1; 2023 L.M.C., ch. 25, § 1; 2023 L.M.C., ch. 26, § 1.; 2023 L.M.C., ch. 34, § 1; 2024 L.M.C., ch. 8, § 1.)
Editor’s note—2022 L.M.C., ch. 30
, § 2, states: Sec. 2. Required study. The Board of Investment Trustees must include within an actuarial study or experience study of the Employees’ Retirement System data regarding the effects of this Act.
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.
See County Attorney Opinion dated 5/5/09 regarding the County Executive’s ability to impound appropriated funds.
2003 L.M.C., 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. (b) The amendments made by Section 1 of this Act to Code Section 33-42(h)(1)(A) and (B) take effect January 1, 2002. (c) The amendments made by Section 1 of this Act to Section 33-42(h)(3)(A) take effect January 1, 2002. (d) The amendments made by Section 1 of this Act to Section 33-42(h)(5) take effect January 1, 2002. (e) The amendments made by Section 1 of this Act to Section 33-42(h)(6) take effect January 1, 2000.
The effective date of the amendments made to this section by 2001 L.M.C., ch. 28, § 6, is the same effective date as 1998 L.M.C., ch. 31, § 1.
(a) Definitions.
Affected class means an occupational class or a group of occupational classes in a department, including all classes in an occupational series at and below the budget level class, if:
(1) the class includes a position that the department director intends to eliminate; and
(2) eliminating the position may cause an employee in the class to be demoted or terminated.
Affected employee means an employee assigned to a position in an affected class who has received a notice of intent or notification of a Reduction in Force (RIF).
Enhanced retiree life insurance benefit means no reduction in any provided basic life insurance benefit for the first 10 years after the employee’s retirement date.
Enhanced retiree health plan cost sharing benefit means a County contribution of 90% of the premium for individual coverage for any health insurance plan provided by the County for the first 5 years after the employee’s retirement date.
(b) Eligibility.
(1) A Group A, E or H member who is employed in a part time or full time position may apply to participate in the 2010 Retirement Incentive Program if the member:
(A) is eligible for:
(i) normal retirement on or before June 1, 2010; or
(ii) early retirement, and is within 2 years of meeting the criteria for normal retirement on June 1, 2010; and
(B) is an affected employee.
(2) A member is not eligible to participate in the 2010 Retirement Incentive Program if the member:
(A) receives a disability retirement under Section 33-43;
(B) receives a discontinued service retirement under Section 33-45(d);
(C) is an elected or appointed official; or
(D) is employed by a participating agency.
(3) A member must apply to participate in the 2010 Retirement Incentive Program, must complete all required forms by May 14, 2010, and must retire on June 1, 2010.
(4) A member who applies for a disability retirement under section 33-43 must not receive any benefit under this Section unless the member’s application for disability retirement is denied and all appeals from that denial are exhausted.
(c) Early retirement reduction. A member’s pension benefit must not be reduced for early retirement if the member is eligible for early retirement and within 2 years of eligibility for normal retirement.
(d) Additional Retirement Benefit. In addition to the pension benefit calculated under this Section, a participant must elect one of the following additional retirement benefits. A part time participant must receive a pro-rata portion of the applicable retirement benefit, based on that participant’s percent of budgeted full time employment.
(1) $35,000 pension benefit;
(2) $30,000 pension benefit and an enhanced retiree life insurance benefit; or
(3) $28,000 pension benefit and an enhanced retiree health plan cost sharing benefit.
(e) The participant must elect to receive the cash portion of the additional pension benefit paid under Subsection (d) as:
(1) a single lump sum on July 1, 2010:
(A) to the member or the member’s designated beneficiary if the member dies before receiving the lump sum payment;
(B) as a direct rollover to an eligible retirement plan (as defined in the Internal Revenue Code); or
(C) a combination of (A) and (B);
(2) 12 equal monthly payments beginning on July 1, 2010:
(A) to the member or the member’s designated beneficiary if the member dies before receiving all 12 payments;
(B) as a direct rollover to an eligible retirement plan (as defined in the Internal Revenue Code); or
(C) a combination of (A) and (B);
(3) a contribution to an account established for the member under the guaranteed retirement income plan. A member must receive the member’s guaranteed retirement income plan account balance when the member attains the Social Security retirement age; or
(4) an additional pension benefit paid over the member’s lifetime in the pension option elected by the member under Section 33-44, beginning on July 1, 2010.
(f) Cost of Living. Any cost of living adjustment does not apply to this benefit. A cost of living adjustment under Section 33-44(c) must not include the additional pension benefit paid under this Section.
(g) Approval. The Chief Administrative Officer must approve a request to participate in the program from a member employed in the Executive Branch. The Executive Director of the Office of the County Council must approve a request to participate from a member employed in the Legislative Branch. The Chief Administrative Officer and the Executive Director of the Office of the County Council must not approve more applications from an affected class than the number of positions that are abolished in the affected class. The Chief Administrative Officer and the Executive Director of the Office of the County Council may disapprove an application if a vacancy created by a member participating in the program cannot be filled by a member of an affected class. If more members apply to participate in the program than the number of positions abolished, the participants must be approved in order of County seniority calculated under the RIF personnel regulation in the following order:
(1) participants who applied for the proposed 2009 Retirement Incentive Program; and
(2) all other participants.
(h) Repayment. A participant must repay the lump sum benefit received to the Employees’ Retirement System Trust Fund before returning to County service as an employee or under a contract. (2010 L.M.C., ch. 13, § 2; 2013 L.M.C., ch. 4, § 1; 2018 L.M.C., ch. 3, §1.)
Editor’s note—2010 L.M.C., ch. 13, § 3, states: Reports. By July 1, 2010, the Executive must submit a report to the Council that lists the number of employees in each affected class within each department or office who, due to the abolishment of positions in the approved FY11 operating budget, either:
(a) retired with a discontinued service pension; or
(b) participated in the retirement incentive program.
The Executive’s Recommended Budgets for FY12, FY13, and FY14 must compare the number of positions in each class of positions eligible for the retirement incentive program approved for funding in FY11 with the number of positions in the same class recommended for funding in the recommended budget.
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