WILLIAM DONALD SCHAEFER, Governor

Ch. 590

CHAPTER 590
(House Bill 1195)

AN ACT concerning

Unemployment Insurance - Lump Sum Retirement Payments

FOR the purpose of providing that a retirement benefit in the form of a lump sum
payment is not deductible from unemployment insurance benefits if, prior to filing
an initial claim for benefits, the claimant places the lump sum payment in a
qualified retirement plan; requiring an employer to provide a certain notice on the
effect of a lump sum payment at a certain time; and generally relating to the effect
of lump sum retirement payments on unemployment insurance benefits under
certain circumstances.

BY repealing and reenacting, with amendments,
Article - Labor and Employment
Section 8-1008
Annotated Code of Maryland
(1991 Volume and 1992 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Labor and Employment

8-1008.

(a)     In this section, "retirement payment":

(1)     means an amount in the form of a pension, annuity, or retirement or
retired pay from a trust, annuity, profit sharing plan, insurance fund, annuity or insurance
contract, or any other similar lump sum or periodic payment that is based on any previous
covered employment for a base period employer under a plan paid for wholly or partly by
a base period employer; and

(2)     does not include a payment from a state or federal workers'
compensation program.

(b)     (1) For each week in which the Secretary finds that an individual who
otherwise is eligible for benefits receives a retirement payment:

(i) if the weekly amount of the retirement payment computed under
subsection (c) of this section at least equals the individual's weekly benefit amount, the
individual is disqualified from receiving benefits for that week; and

(ii) if the weekly amount of the retirement payment computed under
subsection (c) of this section is less than the individual's weekly benefit amount, the
individual may receive benefits reduced by the amount of the retirement payment.

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