WILLIAM DONALD SCHAEFER, Governor

Ch. 6

(1)     EXCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION, AFTER AN
INDIVIDUAL TRANSFERS SERVICE CREDIT TO A NEW SYSTEM UNDER THIS TITLE,
THE INDIVIDUAL:

(I)      SHALL PAY THE RATE OF CONTRIBUTION APPLICABLE TO A
MEMBER OF THE NEW SYSTEM; AND

(II)     IS ELIGIBLE FOR A PENSION AND ANNUITY AS PROVIDED
UNDER THE NEW SYSTEM, DETERMINED BY TAKING INTO ACCOUNT THE
TRANSFERRED SERVICE CREDIT.

(2)     EXCEPT AS PROVIDED IN § 37-204 OF THIS SUBTITLE, IF AN
INDIVIDUAL TRANSFERS FROM A NONCONTRIBUTORY SYSTEM TO A
CONTRIBUTORY SYSTEM, ON RETIREMENT THE INDIVIDUAL'S RETIREMENT
ALLOWANCE SHALL BE REDUCED BY THE ACTUARIAL EQUIVALENT OF THE
ACCUMULATED CONTRIBUTIONS THAT WOULD HAVE BEEN DEDUCTED IF THE
INDIVIDUAL HAD EARNED THE TRANSFERRED SERVICE CREDIT UNDER THE NEW
SYSTEM, INCLUDING INTEREST ON THOSE CONTRIBUTIONS.

(3)      IF AN INDIVIDUAL RETIRES WITHIN 5 YEARS AFTER TRANSFERRING
INTO A NEW SYSTEM, THE BENEFITS PAYABLE WITH RESPECT TO THE
TRANSFERRED SERVICE CREDIT MAY NOT BE GREATER THAN THE BENEFITS THAT
WOULD HAVE BEEN PAYABLE BY THE PREVIOUS SYSTEM WITH RESPECT TO THAT
SERVICE IF THE INDIVIDUAL HAD REMAINED IN THE PREVIOUS SYSTEM.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 73B, §§ 1-401(b) through (e) and (f)(4), 1-402(b),
and 1-405.

This section consolidates provisions formerly repeated for transfers from and
to different kinds of State and local retirement and pension systems.

In subsection (a)(1) of this section, the reference to a requirement that a
claim for the transfer of service credit be made "within 1 year after becoming
a member of the new system" is made expressly applicable to a transfer from
one contributory system to another contributory system. The applicability of
this requirement was implicit under the second sentence of former Art. 73B, §
1-401(b), which required the individual's accumulated contributions in the
previous system to be deposited in the new system within 1 year.

Also in subsection (a)(1) of this section, the former cut-off date "July 1, 1991"
is deleted as obsolete.

In subsection (b) of this section, the references to a system "operated on
actuarial basis" are deleted as unnecessary in light of § 37-201.

Also in subsection (b) of this section, the limitation in the first sentence of
former Art. 73B, § 1-401(c) to transfers on or after "January 1, 1980" is
deleted as obsolete.

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