WILLIAM DONALD SCHAEFER, Governor                               Ch. 6

FOR THE PURPOSE OF COMPUTING BENEFITS UNDER THIS DIVISION II, THE
AVERAGE FINAL COMPENSATION OF A MEMBER EQUALS THE AVERAGE ANNUAL
EARNABLE COMPENSATION OF THE MEMBER, ADJUSTED AS PROVIDED IN THIS
SECTION, DURING THE 3 CONSECUTIVE YEARS THAT PROVIDE THE HIGHEST
AVERAGE EARNABLE COMPENSATION.

(C)      EFFECT OF LEAVE OF ABSENCE.

(1)      THIS SUBSECTION APPLIES TO A MEMBER WHO WAS ON
AUTHORIZED LEAVE OF ABSENCE AT PARTIAL PAY OR WITHOUT PAY DURING THE
LAST 3 YEARS OF EMPLOYMENT AS A MEMBER.

(2)      IF THE PERIOD USED TO DETERMINE AVERAGE FINAL
COMPENSATION IS THE PERIOD THAT IMMEDIATELY PRECEDES THE DATE OF
RETIREMENT OR OTHER SEPARATION FROM EMPLOYMENT, THE BOARD OF
TRUSTEES:

(I)       MAY NOT INCLUDE IN THE COMPUTATION OF AVERAGE FINAL
COMPENSATION THE PERIOD OF MONTHS OF THE LEAVE OF ABSENCE, NOT
EXCEEDING 12, THAT OTHERWISE WOULD BE INCLUDED IN THE COMPUTATION;
AND

(II)     SHALL SUBSTITUTE AN EQUAL NUMBER OF MONTHS
IMMEDIATELY PRECEDING THAT PERIOD.

(D)     ADJUSTMENT FOR LESS THAN NORMAL HOURS OF EMPLOYMENT.

(1)      THIS SUBSECTION APPLIES TO A MEMBER WHOSE ELIGIBILITY
SERVICE HAS BEEN ADJUSTED UNDER THIS DIVISION II TO COMPUTE CREDITABLE
SERVICE, ON THE BASIS OF THE MEMBER HAVING COMPLETED LESS THAN THE
NORMAL HOURS OF SERVICE FOR THE MEMBER'S POSITION.

(2)      A MEMBER'S EARNABLE COMPENSATION SHALL BE ADJUSTED TO A
FULL-TIME BASIS FOR ANY PERIOD INCLUDED IN THE COMPUTATION OF AVERAGE
FINAL COMPENSATION.

(E)      EXCLUSION OF EXCESS OVER 20%.

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.

REVISOR'S NOTE: Subsection (a) of this section is new language added for
clarity.

Subsections (b) through (d) of this section are new language derived without
substantive change from former Art. 73B, §§ 4-303, 5-303, 8-303, and 10-214.

In subsection (c)(2) of this section, the reference to "separation from
employment" is substituted for the former reference to "termination of
service" to reflect that "service" is no longer a defined term.

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