(a) Eligibility for vesting for optional and integrated plans. A member must complete 5 years of membership before the member is qualified to vest, except that a member who has transferred service credit from a public retirement system in Maryland may use that service credit to qualify for vesting. A vested member must leave all member contributions, plus credited interest, in the fund to be eligible to receive retirement benefits. Notwithstanding the preceding, a member may use credited service under any County retirement plan as credited service for vesting purposes.
(b) Withdrawal of contributions for optional and integrated plans.
(1) In accordance with paragraph (2), the County must refund a member’s contributions with credited interest to:
(A) a member whose County service ends before the member is eligible to vest; and
(B) a member eligible to vest whose County service ends and who voluntarily elects to withdraw, thus ceasing to be a member.
(2) (A) If a member’s contributions and interest are more than $1,000, to obtain a refund of contributions, a member must properly complete and submit an application for a refund.
(B) If a member’s contribution and interest are more than $1,000, and the member does not properly complete and submit an application for a refund, the County must refund the contributions with credited interest under the minimum distribution requirements of the Internal Revenue Code and corresponding regulations.
(C) Notwithstanding any other provision, if the member’s contributions and interest is $1,000 or less, the amount must be distributed in a lump sum as soon as administratively feasible after termination of employment even if the member does not submit an application. If the distribution cannot be made because the member cannot be located, the member will forfeit the amount. If the member later contacts the County, the member will receive the forfeited amount.
(3) If a vested member dies before the normal retirement date, the County must pay the designated beneficiary a lump sum death benefit equal to the member's contributions plus credited interest.
(c) Vested benefits.
(1) Before July 1, 1989, a vested member is eligible to receive a percentage of the normal retirement pension that has accrued to date of termination, with payments beginning on the first day of the month following the member's normal retirement date. Percentage of vested rights will be based on years and months of credited service under the following schedule:
Completed Years of Credited Service
|
Percentage of Vested Rights
|
5 | 50% |
6 | 60% |
7 | 70% |
8 | 80% |
9 | 90% |
10 or more | 100% |
If a vested member who has reached normal retirement date dies after qualifying to receive retirement benefits, the designated beneficiary is entitled to receive whatever benefits may be provided under the pension payment option elected. However, an elected or appointed member who has completed 5 years in office, vests 100 percent if the member's service terminates before normal retirement date with a minimum monthly benefit of $150.00.
(2) On or after July 1, 1989, a member who has completed 5 years of credited service is fully vested in a normal retirement pension that has accrued to date of termination, with payments beginning on the first day of the month following the member's normal retirement date.
(3) A former member who has completed 5 years of credited service but has not completed 10 years of credited service, who did not elect to receive a return of accumulated member contributions upon termination of employment, and who returns to county service on or after July 1, 1989, must complete one additional year of credited service before becoming fully vested.
(4) A former member who has completed 10 years of credited service, who did receive a return of accumulated member contributions upon termination of employment and who returns to county service on or after July 1, 1989, must complete 5 additional years of credited service, before becoming fully vested. However, if the member purchases prior county service under section 33-41(1), the member must complete the number of years of credited service which in addition to those years purchased under section 33-41(1) equals 5 years of credited service, but in no event may the member fully vest without completing at least one additional year of credited service.
(5) If a vested member who has reached normal retirement date dies after qualifying to receive retirement benefits, the designated beneficiary is entitled to receive whatever benefits are provided under the pension payment option elected. If a vested member who has reached normal retirement date dies after qualifying to receive retirement benefits, but has not designated a beneficiary, no benefit will be paid unless required by another provision governing the retirement system.
(6) An elected or appointed member who has completed 5 years in office, and is not otherwise fully vested under paragraphs (c)(2) through (c)(5) of this section will vest 100 percent if the member's service terminates before normal retirement date with a minimum monthly benefit of $150.00. However, an elected or appointed member who has any combination of years of credited service or years in office, will vest 100 percent if the member's service terminates before normal retirement date.
(7) Vested benefits for a member who is an elected official on July 1, 1989, will be determined under paragraph (c)(1) of this section before December 3, 1990. On and after December 3, 1990, the elected official's vested benefits will be determined under paragraphs (c)(2) through (c)(6) of this section.
(8) Vesting for the guaranteed retirement income plan. A member, except a member who is an elected official, has a 100% vested interest in the member’s County contribution credits and the credited interest on the member’s County contribution credits after the member attains 3 years of credited service. A member who is an elected official has a 100% vested interest in the member’s County contribution credits and the credited interest on the member’s County contribution credits after the member attains the lesser of a full term of office or 4 years of credited services. A member who is not 100% vested in accordance with the preceding two sentences must become 100% vested in the member’s County contribution credits and the credited interest on the County contribution credits from the effective date of a termination of the guaranteed retirement income plan or upon death or disability. A member is disabled if the member is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months. A member who terminates employment with the County and is not vested in any County contribution credits or the credited interest on the County contribution credits must forfeit the County contribution credits plus the credited interest on the County contributions credits.
(9) For purposes of this subsection, vesting will be in accordance with Section 401(a)(37) of the Internal Revenue Code. Effective January 1, 2007, the beneficiary of a member on a leave of absence to perform military service with reemployment rights described in Section 414(u) of the Internal Revenue Code, where the member cannot return to employment on account of his or her death, must be entitled to any additional benefits (other than benefit accruals relating to the period of qualified military service) that would be provided under the employees’ retirement system had the member died as an active employee, in accordance with Section 401(a)(37) of the Internal Revenue Code. This provision applies to the elected officials’ plan, the guaranteed retirement income plan, and the optional and integrated plans.
(d) Discontinued service retirement for optional and integrated plans.
(1) Any member whose employment has been terminated by an administrative action may elect a discontinued service pension if the member has at least 10 years of continuous service. Except for a Group G member, pension payments must begin on the member's early retirement date, or immediately if the member is eligible for early retirement. For a Group G member, pension payments must begin on the member’s normal retirement date, or immediately if the member is eligible for normal retirement.
(2) A member who has been dismissed for cause or who has resigned is not eligible for a discontinued service pension.
(3) A member enrolled on or before June 30, 1978, and continuously enrolled thereafter, may substitute 10 or more years of credited service for the 10 or more years of continuous service requirement.
(4) The discontinued service retirement pension of a member who has been continuously enrolled in the retirement system since before July 1, 1978, is the amount of pension the member would have received under Section 33-42(b) for regular retirement, as modified as follows:
(A) substitute "final earnings" wherever the term "average final earnings" appears in the applicable formula under Section 33-42(b);
(B) add 5 percent of final earnings; and
(C) treat a member who submitted an application to transfer from the optional plan to the integrated plan before September 26, 1983, as if the member had remained in the optional plan.
(5) The discontinued service retirement pension of any other member is the amount of pension the member would have received under Section 33-42(b)(2) for regular retirement.
(e) Discontinued service benefits of elected and appointed members.
(1) If an elected or appointed member with 10 or more years of credited service, is not reappointed or reelected, the member may opt to:
(A) receive a pension immediately, if the member enrolled or reenrolled before January 22, 1974; or
(B) receive a pension at age 60, if the member enrolled or reenrolled on or after January 22, 1974.
(2) The pension for a member enrolled or reenrolled on or before September 26, 1983, or who submitted an application to transfer from the optional plan to the integrated plan before September 26, 1983, is the pension the member would have received under Section 33-42(b) for regular retirement, except that:
(A) "final earnings" replaces "average final earnings" in the applicable formula in Section 33-42(b);
(B) a member who submitted an application to transfer from the optional plan to the integrated plan before September 26, 1983, must be treated as if the member had remained in the optional plan; and
(C) the monthly benefit must be at least $300.00.
(3) The pension for a member enrolled or reenrolled after September 26, 1983, or a member who submits an application to transfer from the optional plan to the integrated plan after September 26, 1983, is the amount of pension the member would have received under Section 33-42(b)(2) for regular retirement, except that:
(A) "final earnings" replaces "average final earnings" in the applicable formula in Section 33-42(b); and
(B) the monthly benefit must be at least $300.
(f) [Exception.] Section 33-45 does not apply to the elected officials' plan.
(g) Limitation on the use of forfeitures. Except as provided in section 33-40(c), any forfeitures arising through the termination of members who have not attained full vesting must not be used to increase the benefits of any other member in the retirement system. (Ord. No. 5-152; Ord. No. 6-195, § 1; 1971 L.M.C., ch. 39, § 6; 1972 L.M.C., ch. 19, § 10; 1974 L.M.C., ch. 31, § 13; 1974 L.M.C., ch. 59, § 6; 1978 L.M.C., ch. 44, § 1; 1980 L.M.C., ch. 11, § 1; 1984 L.M.C., ch. 11, § 1; 1987 L.M.C., ch. 27, § 8; 1987 L.M.C., ch. 44, § 3; 1989 L.M.C., ch. 45, § 1.; 1993 L.M.C., ch. 21, § 1; 1998 L.M.C., ch. 31, § 1; 1999 L.M.C., ch. 26, § 1; 2001 L.M.C., ch. 21, § 1; 2006 L.M.C., ch. 20, § 1; 2006 L.M.C., ch. 33, § 1; 2007 L.M.C., ch. 3, § 1; 2008 L.M.C., ch. 22, § 1; 2009 LMC ch. 33, § 2; 2012 L.M.C., ch. 10, § 1; 2017 L.M.C., ch. 7, §1; 2021 L.M.C., ch. 36, §1.)
Editor’s note—See County Attorney Opinion dated 4/10/06-A discussing the appointment and supervision of heads of departments and principal offices. See County Attorney Opinion dated 4/10/06, concerning the Chief Administrative Officer’s authority to terminate an appointed official, which quoted Section 33-45. See County Attorney Opinion dated 5/9/91 explaining that discontinued service pension for administrative services coordinator based upon proposed abolishment of the position meets the intent of the retirement system law.
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.