Current with changes from the 2024 Legislative Session
Section 20-205.1 - Average final compensation - Member of pension systems on or after July 1, 2011(a) This section applies only to an individual who on or after July 1, 2011, becomes a member of: (1) the Employees' Pension System;(2) the Law Enforcement Officers' Pension System; or(3) the Teachers' Pension System.(b)(1) In this subsection, "break in service" means a period of employment in which the member's employer did not: (i) deduct the member contributions from the compensation of the member; or(ii) report the hours worked by the member.(2)(i) For the purpose of computing benefits under this Division II, the average final compensation of a member equals the average annual earnable compensation of the member, adjusted as provided in this section, during the 5 consecutive years that provide the highest average earnable compensation.(ii) If the member experienced any break in service during the 5 consecutive years that provide the member's highest average earnable compensation, the Board of Trustees: 1. may not include in the computation of average final compensation the period of months of the breaks in service that otherwise would be included in the computation; and2. in order to generate the highest average earnable compensation for the member, shall extend the 5-year period by an equal number of months immediately preceding or following that period.(c)(1) This subsection applies to a member whose eligibility service has been adjusted under this Division II to compute creditable service, on the basis of the member having completed less than the normal hours of service for the member's position.(2) A member's earnable compensation shall be adjusted to a full-time basis for any period included in the computation of average final compensation.(d)(1) Except as provided in paragraph (2) of this subsection, the member's average final compensation does not include a salary increase in the last 5 years of employment if it is an extraordinary salary increase according to regulations that the Board of Trustees adopts.(2) A salary increase may not be considered an extraordinary salary increase under paragraph (1) of this subsection if the salary increase is:(i) because of a member's promotion; or(ii) subject to paragraph (3) of this subsection, related to a review and adjustment to the compensation for a position classification to:1. address inequities in compensation among employees in the same position classification; or2. increase the compensation for the position classification to be more consistent with market compensation for the position.(3)(i) At the time of retirement, a member who has received a salary increase in accordance with paragraph (2)(ii) of this subsection shall file with the State Retirement Agency a form provided by the State Retirement Agency that:1. is completed by the member's employer; and2. certifies that the member received a salary increase in accordance with paragraph (2)(ii) of this subsection.(ii) A member shall submit to the State Retirement Agency the completed form required under subparagraph (i) of this paragraph within 30 days from the date of the State Retirement Agency's written notice that the member has received an extraordinary salary increase.Amended by 2024 Md. Laws, Ch. 673,Sec. 1, eff. 7/1/2024.Amended by 2024 Md. Laws, Ch. 672,Sec. 1, eff. 7/1/2024.