Ch. 590                                         1993 LAWS OF MARYLAND

(2)      A retirement benefit in the form of a lump sum payment [that an
employing unit pays as a result of a layoff or shutdown shall] IS not [be] deductible from
benefits for the period of eligibility IF:

(I) THE EMPLOYING UNIT PAYS THE LUMP SUM PAYMENT AS A
RESULT OF A LAYOFF OR SHUTDOWN; OR

(II) WITHIN 10 30 DAYS OF RECEIVING THE LUMP SUM PAYMENT,
THE CLAIMANT:

                                 1. PLACES THE LUMP SUM PAYMENT IN A QUALIFIED

RETIREMENT PLAN; AND                                                           

2. PROVIDES PROOF TO THE SECRETARY THAT THE LUMP
SUM PAYMENT HAS BEEN PLACED IN A QUALIFIED RETIREMENT PLAN,

(3)      In the case of payment in the form of a pension, annuity, retirement, or
retired payment paid to an individual under the Social Security Act or the Railroad
Retirement Act of 1974, the individual's contribution shall be taken into consideration
and the weekly benefit amount shall not be reduced.

(c) (1) To determine the effect of a retirement payment on eligibility for
benefits under subsection (b) of this section:

(i) if a base period employer paid the full cost of the plan that
provides the retirement, the full retirement payment shall be considered; and

(ii) if a base period employer paid only part of the cost of the plan that
provides the retirement payment, 50% of the retirement payment shall be considered.

(2)      To compute the weekly amount of a periodic retirement payment, it
shall be prorated on a weekly basis for the period between periodic retirement payments.

(3)      To compute the weekly amount of a lump sum retirement payment, it
shall be allocated to. the number of weeks that follow the date of separation from
employment in accordance with the number of weeks of pay that an individual received at
the individual's last wage rate.

(D) PRIOR TO DISTRIBUTING A RETIREMENT BENEFIT IN THE FORM OF A
LUMP SUM TO ANY FORMER EMPLOYEE AN EMPLOYER SHALL PROVIDE WRITTEN
NOTICE TO THE FORMER EMPLOYEE OF THE EFFECT OF THE LUMP SUM
DISTRIBUTION ON THE WEEKLY BENEFIT AMOUNT UNDER THIS SECTION IF THE
EMPLOYEE SUBSEQUENTLY FILES A CLAIM FOR UNEMPLOYMENT INSURANCE
BENEFITS.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 1993.

Approved May 27, 1993.

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