WILLIAM DONALD SCHAEFER, Governor Ch. 337

(II) IF THE MEDICAL BOARD REPORTS AND CERTIFIES
TO THE BOARD OF TRUSTEES THAT ANY DISABILITY BENEFICIARY IS
ENGAGED IN OR IS ABLE TO ENGAGE IN A GAINFUL OCCUPATION PAYING
MORE THAN THE DIFFERENCE BETWEEN HIS OR HER RETIREMENT ALLOWANCE
AT THE TIME OF HIS OR HER RETIREMENT AND HIS OR HER AVERAGE FINAL
COMPENSATION PLUS $3,000, AND IF THE BOARD OF TRUSTEES CONCURS IN
THE REPORT, THEN THE AMOUNT OF THE PENSION SHALL BE REDUCED.

(III) IF THE BENEFICIARY'S EARNING CAPACITY IS
LATER CHANGED, THE AMOUNT OF HIS OR HER PENSION MAY BE FURTHER
MODIFIED, PROVIDED THAT THE NEW PENSION MAY NOT EXCEED THE AMOUNT
OF THE PENSION ORIGINALLY GRANTED.

(IV) A BENEFICIARY RESTORED TO ACTIVE SERVICE
AT A SALARY LESS THAN THE AVERAGE FINAL COMPENSATION UPON THE
BASIS OF WHICH HE OR SHE WAS RETIRED SHALL NOT BECOME A MEMBER OF
THE RETIREMENT SYSTEM UNTIL HIS OR HER SALARY IS AT LEAST EQUAL
TO SUCH AVERAGE FINAL COMPENSATION.

(V) THE AMOUNT OF THE PENSION REDUCTION
REQUIRED UNDER SUBPARAGRAPH (II) AND ALLOWED UNDER SUBPARAGRAPH
(III) OF THIS PARAGRAPH SHALL BE ONE DOLLAR FOR EVERY TWO DOLLARS
BY WHICH HIS OR HER CURRENT COMPENSATION EXCEEDS THE LIMITATION
PROVIDED UNDER THIS PARAGRAPH.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1989.

Approved May 19, 1989.

CHAPTER 337

(Senate Bill 460)

AN ACT concerning

Employees' Retirement and Pension Systems - Disability

Beneficiaries

FOR the purpose of altering the maximum compensation that a
disability beneficiary of the Employees' Retirement System
of the State of Maryland or the Pension System for Employees
of the State of Maryland may receive before a reduction in
the beneficiary's retirement allowance; altering the salary
that a disability beneficiary of the Systems may receive
after returning to active service before becoming a member
of the Systems altering the amount that a disability
beneficiary's retirement allowance is reduced when the
compensation received by a disability beneficiary of the

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