Md. Code Regs. 22.05.03.02

Current through Register Vol. 51, No. 25, December 13, 2024

Section 22.05.03.02 - Purchase of Credit for Previous Service

A. At any time before retirement, a member may purchase credit for eligibility service for each period of previous service in a position described in State Personnel and Pensions Article, § 23-204(a), Annotated Code of Maryland.

B. Except as provided in §C of this regulation, to purchase the service credit, the member shall pay, in a single payment to the Retirement Agency, the sum of:

(1) The employer contributions that would have been paid on behalf of the member had the member elected to join the Employees' Pension System during the period of previous service;

(2) The member contributions that would have been deducted from the member's earnable compensation under State Personnel and Pensions Article, § 23-212, Annotated Code of Maryland, if any, had the member elected to join the Employees' Pension System during the period of previous service; and

(3) Interest on the amounts determined under §B(1) and (2) of this regulation at the rate of interest in effect in the year of purchase based on the actuarial assumptions adopted by the Board of Trustees compounded annually.

C. On receipt of documentation satisfactory to the Executive Director that a member did not elect to join the Employees' Pension System because the member was not aware of the member's option to elect to join the System, to purchase the service credit the member shall pay, in a single payment to the Retirement Agency, the sum of:

(1) The member contributions that would have been deducted from the member's earnable compensation under State Personnel and Pensions Article, § 23-212, Annotated Code of Maryland, if any, had the member elected to join the Employees' Pension System during the period of previous service; and

(2) Interest on the amounts determined under §C(1) of this regulation at the regular rate of interest compounded annually to the date of payment.

D. The Retirement Agency shall calculate the member's cost to purchase credit for eligibility service on receipt of documentation satisfactory to the Retirement Agency which verifies the following information:

(1) The member's previous service in a position described in State Personnel and Pensions Article, § 23-204(a), Annotated Code of Maryland;

(2) The period of the member's previous service;

(3) The member's earnable compensation during the member's previous service; and

(4) Any documentation required under §C of this regulation to substantiate a member's claim that the member did not know about the member's option to elect to join the Employees' Pension System.

E. If the Executive Director rejects a member's request to purchase the service credit by paying the amount determined under §C of this regulation, the member may request a hearing under COMAR 22.03.04.

Md. Code Regs. 22.05.03.02

Regulation .02 amended effective September 6, 1999 (26:18 Md. R. 1378)