90

LAWS OF MARYLAND

Ch. 23

(9)   "CREDITABLE SERVICE" MEANS SERVICE RECOGNIZED FOR
COMPUTING THE AMOUNT OF ANY BENEFIT UNDER THIS PENSION
SYSTEM.

(10)  "BENEFICIARY" MEANS ANY PERSON WHO RECEIVES A
RETIREMENT ALLOWANCE OR ANY OTHER BENEFIT UNDER THIS
SUBTITLE.

(11)  "REGULAR INTEREST" FOR THE ANNUITY SAVINGS FUND
MEANS INTEREST AT 5 PERCENT PER ANNUM COMPOUNDED ANNUALLY.

(12)  "ACCUMULATED CONTRIBUTIONS" MEANS THE SUM OF ALL
THE AMOUNTS DEDUCTED FROM THE COMPENSATION OF A MEMBER AND
CREDITED TO HIS INDIVIDUAL ACCOUNT IN THE ANNUITY SAVINGS
FUND, TOGETHER WITH THE REGULAR INTEREST ON IT.

(13)  "EARNABLE COMPENSATION" MEANS THE NORMAL
COMPENSATION PAID TO AN EMPLOYEE FOR WORKING THE NORMAL TIME
IN HIS POSITION.

(14)  "AVERAGE FINAL COMPENSATION" MEANS THE AVERAGE
ANNUAL EARNABLE COMPENSATION OF A MEMBER DURING ANY 3
CONSECUTIVE YEARS THAT PROVIDE THE HIGHEST AVERAGE EARNABLE
COMPENSATION. HOWEVER, IF THE EARNABLE COMPENSATION EARNED
IN A YEAR INCLUDED IN THE PERIOD USED TO DETERMINE AVERAGE
FINAL COMPENSATION EXCEEDS THAT OF THE AVERAGE OF THE
PREVIOUS 2 YEARS' COMPENSATION BY MORE THAN 20 PERCENT, THE
AMOUNT IN EXCESS OF 20 PERCENT MAY NOT BE INCLUDED IN THE
COMPUTATION OF AVERAGE FINAL COMPENSATION, IF, IN ANY PERIOD
INCLUDED IN THE COMPUTATION OF AVERAGE FINAL COMPENSATION,
THE EMPLOYEE HAS COMPLETED LESS THAN THE NORMAL NUMBER OF
HOURS FOR A FULL-TIME EMPLOYEE SIMILARLY EMPLOYED, HIS
EARNABLE COMPENSATION FOR THIS PERIOD SHALL BE ADJUSTED TO A
FULL-TIME BASIS FOR THE PURPOSES OF THIS COMPENSATION. IF
THE PERIOD USED TO DETERMINE FINAL AVERAGE COMPENSATION IS
THE PERIOD THAT IMMEDIATELY PRECEDES THE DATE OF RETIREMENT,
ANY MONTH OR MONTHS (NOT IN EXCESS OF 12) THAT OTHERWISE
WOULD BE INCLUDED IN COMPUTING AVERAGE FINAL COMPENSATION
BUT DURING WHICH THE MEMBER WAS ON AUTHORIZED LEAVE OF
ABSENCE AT PARTIAL PAY OR WITHOUT PAY MAY NOT BE INCLUDED IN
THE COMPUTATION OF AVERAGE FINAL COMPENSATION AND THE MONTH
OR AN EQUAL NUMBER OF MONTHS IMMEDIATELY PRECEDING THIS
PERIOD SHALL BE SUBSTITUTED INSTEAD.

(15)  "ANNUITY" MEANS THE PAYMENTS FOR LIFE DERIVED
FROM THE ACCUMULATED CONTRIBUTIONS OF A MEMBER. ALL
ANNUITIES SHALL BE PAYABLE IN EQUAL MONTHLY INSTALLMENTS.

(16)  "RETIREMENT ALLOWANCE" MEANS PAYMENTS FOR LIFE OR
ANY OPTIONAL BENEFIT THAT IS PAYABLE INSTEAD. ALL
RETIREMENT ALLOWANCES SHALL BE PAYABLE IN EQUAL MONTHLY
INSTALLMENTS.

(17)  "RETIREMENT" MEANS WITHDRAWAL FROM ACTIVE SERVICE
WITH A RETIREMENT ALLOWANCE GRANTED UNDER THIS SUBTITLE.