PARRIS N. GLENDENING, Governor                             Ch. 618

(I) A RETIREE WHOSE AVERAGE FINAL COMPENSATION WAS LESS
THAN $10,000 AND WHO IS REEMPLOYED ON A TEMPORARY OR CONTRACTUAL BASIS; OR

(II) A RETIREE WHO IS SERVING IN AN ELECTED POSITION AS AN
OFFICIAL OF A PARTICIPATING GOVERNMENTAL UNIT OR AS A CONSTITUTIONAL
OFFICER FOR A COUNTY THAT IS A PARTICIPATING GOVERNMENTAL UNIT.

(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, IF:

(1) THE RETIREE IMMEDIATELY NOTIFIES THE BOARD OF TRUSTEES OF
THE RETIREE'S INTENTION TO ACCEPT THIS EMPLOYMENT; AND

(2) THE RETIREE SPECIFIES THE COMPENSATION TO BE RECEIVED.

(B) (1) THIS SUBSECTION DOES NOT APPLY TO:

(I) A RETIREE WHOSE AVERAGE FINAL COMPENSATION WAS LESS
THAN $10,000 AND WHO IS REEMPLOYED ON A TEMPORARY OR CONTRACTUAL
BASIS; OR

(II) A RETIREE WHO IS SERVING IN AN ELECTED POSITION AS AN
OFFICIAL OF A PARTICIPATING GOVERNMENTAL UNIT OR AS A CONSTITUTIONAL
OFFICER FOR A COUNTY THAT IS A PARTICIPATING GOVERNMENTAL UNIT.

(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.

(C) (B) (C) A REEMPLOYED RETIREE WHO IS RECEIVING A SERVICE
RETIREMENT ALLOWANCE MAY NOT RECEIVE CREDITABLE SERVICE OR
ELIGIBILITY SERVICE DURING THE PERIOD OF REEMPLOYMENT.

(D) (C) (D) THE RETIREE'S COMPENSATION DURING THE PERIOD OF
REEMPLOYMENT MAY NOT BE SUBJECT TO THE EMPLOYER PICKUP PROVISIONS OF §
21-303 OF THIS ARTICLE OR ANY REDUCTION OR DEDUCTION AS A MEMBER
CONTRIBUTION FOR PENSION OR RETIREMENT PURPOSES.

(E)    (D) (E) THE STATE RETIREMENT AGENCY SHALL INSTITUTE
APPROPRIATE REPORTING PROCEDURES WITH THE AFFECTED PAYROLL SYSTEMS
TO ENSURE COMPLIANCE WITH THIS SECTION.

(F)     (E) (F) (1) IMMEDIATELY ON THE EMPLOYMENT OF ANY RETIREE, A
PARTICIPATING EMPLOYER SHALL NOTIFY THE STATE RETIREMENT AGENCY OF
THE TYPE OF EMPLOYMENT AND THE ANTICIPATED EARNINGS OF THE RETIREE.

(2) AT LEAST ONCE EACH YEAR, IN A FORMAT SPECIFIED BY THE STATE
RETIREMENT AGENCY, EACH PARTICIPATING EMPLOYER SHALL PROVIDE THE

- 3569 -