WILLIAM DONALD SCHAEFER, Governor

Ch. 6

The fourth sentence of former Art. 73B, § 2-409(b) is deleted as unnecessary
because retirement allowances generally continue for the life of the retiree.

Defined terms: "Allowance" § 20-101
"Board of Trustees" § 20-101
"Retirement allowance" § 20-101

22-406. EFFECT OF EMPLOYMENT OF RETIREE — AS TEMPORARY OR CONTRACTUAL
EMPLOYEE.

(A)     IN GENERAL.

SUBJECT TO SUBSECTION (B) OF THIS SECTION, A RETIREE WHO IS RECEIVING
A SERVICE RETIREMENT ALLOWANCE MAY ACCEPT EMPLOYMENT WITH A
PARTICIPATING EMPLOYER ON A TEMPORARY OR CONTRACTUAL BASIS, WITHOUT
ANY REDUCTION IN RETIREMENT ALLOWANCE, IF THE RETIREE IMMEDIATELY
NOTIFIES THE BOARD OF TRUSTEES:

(1)      OF THE RETIREE'S INTENTION TO ACCEPT THE EMPLOYMENT; AND

(2)      OF THE COMPENSATION THAT THE RETIREE WILL RECEIVE.

(B)     LIMITATION ON EARNINGS; REDUCTION OF RETIREMENT ALLOWANCE.

(1)      THIS SUBSECTION DOES NOT APPLY TO A RETIREE WHO HAS BEEN
RETIRED FOR MORE THAN 10 YEARS.

(2)     THE BOARD OF TRUSTEES SHALL REDUCE A RETIREE'S
RETIREMENT ALLOWANCE BY THE AMOUNT THAT THE SUM OF THE RETIREE'S
ANNUAL BASIC ALLOWANCE, AT THE TIME OF RETIREMENT, AND THE RETIREE'S
ANNUAL COMPENSATION EXCEEDS THE AVERAGE FINAL COMPENSATION USED TO
COMPUTE THE BASIC ALLOWANCE.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 73B, §§ 2-411(a) and 3-408(a).

In subsection (a) of this section, the phrase "accept employment ... on a
temporary or contractual basis" is substituted for the former phrase "accept
temporary employment or enter into a contract for personal services" for
brevity and to conform to Division I of this article.

Also in subsection (a) of this section, the former phrase "in which all or part
of the compensation for the employment or services comes from State funds"
is deleted for accuracy and consistency. The State Personnel and Pensions
Article Review Committee notes, for the consideration of the General
Assembly, that whether a retiree's service retirement allowance is affected is
determined by whether the employer participates in the several systems, not
by whether the particular position is funded with State funds. In many
instances, it is impractical to determine whether a particular position is paid
out of State funds. The deletion of this phrase is consistent with the practice
of the Board of Trustees.

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