Md. Code Regs. 22.01.03.02

Current through Register Vol. 51, No. 22, November 1, 2024

Section 22.01.03.02 - Definitions

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

(1) "Agency" means the State Retirement Agency established under State Personnel and Pensions Article, § 21-117, Annotated Code of Maryland.

(2) Allowance.

(a) "Allowance" has the meaning stated in State Personnel and Pensions Article, § 20-101, Annotated Code of Maryland.

(b) "Allowance" includes, but is not limited to:

(i) A service retirement allowance;

(ii) A disability retirement allowance;

(iii) A vested allowance;

(iv) Cost of living adjustments provided in accordance with State Personnel and Pensions Article, Title 29, Subtitle 4, Annotated Code of Maryland; and

(v) Except as provided in §B(10)(c) of this regulation, a lump sum payment of the amount accrued in the Deferred Retirement Option Program on termination of participation.

(3) "Alternate payee" means a former spouse who is named in a domestic relations order as entitled to receive all or a portion of the plan benefit of a participant in accordance with State Personnel and Pensions Article, § 21-502, Annotated Code of Maryland.

(4) "Consent agreement" means a written statement that:

(a) Is signed by both parties to an eligible domestic relations order;

(b) Sets forth the agreed upon method for administering the parties' domestic relations order; and

(c) Does not contravene the parties' domestic relations order.

(5) "Cost-of-living adjustment" has the meaning set forth in State Personnel and Pensions Article, § 29-401, Annotated Code of Maryland.

(6) "Court" means a court of competent jurisdiction.

(7) Domestic Relations Order.

(a) "Domestic relations order" means an assignment of plan benefits in a court decree or order of divorce, or in a court-approved property settlement incident to a court decree or order in accordance with State Personnel and Pensions Article, § 21-502, Annotated Code of Maryland.

(b) "Domestic relations order" does not include a qualified domestic relations order as defined in the Employees' Retirement Income Security Act of 1974 and the Internal Revenue Code of 1986.

(8) "Eligible domestic relations order" means a domestic relations order that conforms to the requirements of Regulation .03 of this chapter.

(9) "Marital share fraction" means a formula in which the numerator represents the participant's numerically specified or unspecified number of total months of service credit received or accrued during the parties' marriage or other relevant period, and the denominator represents the participant's total number of months of service credit.

(10) "Military service credit" means service credit for military service that a participant receives in accordance with State Personnel and Pensions Article, Title 38, Annotated Code of Maryland.

(11) "Notice of administration" means the written notice issued by the Agency under Regulation .04 of this chapter.

(12) "Participant" means a member, former member, or retiree, as defined in State Personnel and Pensions Article, § 20-101, Annotated Code of Maryland.

(13) Plan Benefit.

(a) "Plan benefit" means, unless otherwise stated by an eligible domestic relations order, an amount payable by the Board of Trustees to a participant, including:

(i) An allowance, as defined in §B(2) of this regulation;

(ii) A participant's accumulated contributions;

(iii) A refund payable to a participant under State Personnel and Pensions Article, § 22-212 or 22-213, Annotated Code of Maryland; and

(iv) Except as provided in §B(10)(c) of this regulation, a preretirement death benefit.

(b) Except as provided in §B(10)(c) of this regulation, "plan benefit" may include, if specified in an eligible domestic relations order, a postretirement survivor benefit.

(c) "Plan benefit" does not include:

(i) A preretirement death benefit or postretirement survivor benefit for which payment is restricted to a surviving spouse, parent, or minor child under State Personnel and Pensions Article, Division II, Annotated Code of Maryland; or

(ii) Payment of the amount accrued in the Deferred Retirement Option Program for which payment is restricted to a surviving spouse or minor child in accordance with State Personnel and Pensions Article, § 24-401.1(i) or 26-401.1(i), Annotated Code of Maryland.

(14) "Postretirement survivor benefit" means an optional survivor benefit payable to a designated beneficiary or a participant's estate in accordance with State Personnel and Pensions Article, Title 21, Subtitle 4, Annotated Code of Maryland.

(15) "Preretirement death benefit" means a death benefit payable on behalf of a member or former member to a designated beneficiary or a participant's estate, including a benefit payable under State Personnel and Pensions Article, § 29-202 or 29-207, Annotated Code of Maryland.

(16) "Projected service credit" means service credit that a participant receives in connection with an ordinary disability retirement allowance in accordance with State Personnel and Pensions Article, § 29-106(d) or 29-108(b), Annotated Code of Maryland.

(17) Purchased Service Credit.

(a) "Purchased service credit" means service credit that a participant purchases in accordance with provisions of State Personnel and Pensions Article, Division II, Annotated Code of Maryland.

(b) "Purchased service credit" includes, but is not limited to, service credit a participant receives by paying or redepositing accumulated member contributions.

(18) "Unused sick leave credit" means service credit for unused sick leave that a participant receives in accordance with State Personnel and Pensions Article, § 20-206, Annotated Code of Maryland.

Md. Code Regs. 22.01.03.02

Regulation .02B amended effective 41:15 Md. R. 892, eff.8/4/2014 ; amended effective 46:3 Md. R. 106, eff. 2/11/2019