Md. Code Regs. 22.01.04.02

Current through Register Vol. 51, No. 24, December 2, 2024

Section 22.01.04.02 - Average Final Compensation - Retirement Systems

A. This regulation applies only to the Correctional Officers' Retirement System, the Employees' Retirement System, the State Police Retirement System, and the Teachers' Retirement System.

B. Except as provided in §§D and E of this regulation, the average final compensation of a member who became a member before July 1, 2011 equals the average annual earnable compensation of the member, adjusted as provided in Regulation .04 of this chapter, for the:

(1) 3 years of employment as a member during which the member's earnable compensation was highest, if the member was employed at least 3 years as a member; or

(2) Member's total period of employment, if the member was employed less than 3 years as a member.

C. Except as provided in §§D and F of this regulation, the average final compensation of a member of the Correctional Officers' Retirement System or the State Police Retirement System who became a member on or after July 1, 2011 equals the average annual earnable compensation of the member, adjusted as provided in Regulation .04 of this chapter, for the:

(1) 5 years of employment as a member during which the member's earnable compensation was highest, if the member was employed at least 5 years as a member; or

(2) Member's total period of employment, if the member was employed less than 5 years as a member.

D. An increase of more than 20 percent to a member's average annual earnable compensation in any one of the last 3 years of employment for a member who became a member before July 1, 2011, or in any one of the last 5 years of employment for a member who became a member on or after July 1, 2011, is an extraordinary salary increase that is not included in determining the member's average final compensation unless:

(1) The increase is the result of the member's:

(a) Promotion by the member's employer; or

(b) Appointment or election to a public office;

(2) Including the increase when determining the member's average final compensation would increase the member's allowance by $25 or less per month; or

(3) The Board of Trustees determines that the increase is not an extraordinary salary increase in accordance with Regulation .05 of this chapter.

E. If a member of the State Police Retirement System who became a member before July 1, 2011 and who transferred from another actuarial retirement system in the State retires after less than 3 years of employment as a member of the State Police Retirement System, the member's earnable compensation in the other system shall be used to determine the member's average final compensation.

F. If a member of the State Police Retirement System who became a member on or after July 1, 2011 and who transferred from another actuarial retirement system in the State retires after less than 5 years of employment as a member of the State Police Retirement System, the member's earnable compensation in the other system shall be used to determine the member's average final compensation.

Md. Code Regs. 22.01.04.02

Amended effective 46:3 Md. R. 106, eff. 2/11/2019