WILLIAM DONALD SCHAEFER, Governor                         Ch. 528

COMPENSATION DOES NOT INCLUDE A SALARY INCREASE IN THE LAST 3 YEARS OF
EMPLOYMENT IF IT IS AN EXTRAORDINARY SALARY INCREASE ACCORDING TO
REGULATIONS THAT THE BOARD OF TRUSTEES ADOPTS.

10-214.

(c) [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.] EXCEPT FOR A SALARY
INCREASE BECAUSE OF A MEMBER'S PROMOTION, THE MEMBER'S AVERAGE FINAL
COMPENSATION DOES NOT INCLUDE A SALARY INCREASE IN THE LAST 3 YEARS OF
EMPLOYMENT IF IT IS AN EXTRAORDINARY SALARY INCREASE ACCORDING TO
REGULATIONS THAT THE BOARD OF TRUSTEES ADOPTS.

SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland
read as follows:

Article - State Personnel and Pensions

20-205.

(e) [The Board of Trustees may not include in the computation of a member's
average final compensation the earnable compensation in a year that exceeds 20% of the
average of the member's earnable compensation for the previous 2 years.] EXCEPT FOR
A SALARY INCREASE BECAUSE OF A MEMBER'S PROMOTION, THE MEMBER'S
AVERAGE FINAL COMPENSATION DOES NOT INCLUDE A SALARY INCREASE IN THE
LAST 3 YEARS OF EMPLOYMENT IF IT IS AN EXTRAORDINARY SALARY INCREASE
ACCORDING TO REGULATIONS THAT THE BOARD OF TRUSTEES ADOPTS.

SECTION 3. AND BE IT FURTHER ENACTED, That:

(1)     This Act shall apply retroactively to retirees who retired with a disability or
service retirement allowance on or after April 1, 1992, but that payments for these retirees
shall be adjusted prospectively only; and

(2)     This Act shall apply prospectively only for those who retire with a service
retirement allowance or become entitled to receive a vested allowance.

SECTION 4. AND BE IT FURTHER ENACTED, That Section 1 of this Act
shall take effect June 1, 1994 and shall remain in effect until October 1, 1994.

SECTION 5. AND BE IT FURTHER ENACTED, That Section 2 of this Act
shall take effect October 1, 1994.

Approved May 26, 1994.

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