PARRIS N. GLENDENING, Governor

Ch. 160

2. 1.5 percent of the member's average final compensation that
exceeds the social security integration level; and

(ii) If a member has less than 30 years of creditable service and is less
than 62 years old, the member's retirement allowance computed under subparagraph (i)
of this paragraph shall be:

1. Reduced by the lesser of 0.5% for each month by which the
member's date of retirement precedes the date the member would be 62 years old or
42%; and

2. Increased by the lesser of 18% or the amount of the
reduction under sub-subparagraph 1 of this subparagraph;

(III) IF A MEMBER'S RETIREMENT IS DEFERRED UNDER SECTION 8
OR 9 OF THIS ACT, THE MEMBER SHALL RECEIVE THE GREATER OF A SERVICE
RETIREMENT ALLOWANCE COMPUTED UNDER SUBPARAGRAPHS (I) AND (II) OF THIS
PARAGRAPH AS OF THE RETIREMENT DATE OR A SERVICE RETIREMENT
ALLOWANCE THAT IS EQUAL TO THE SUM OF THE MEMBER'S CREDITABLE SERVICE
AS OF OCTOBER 1, 1996 AND THE ADDITIONAL CREDIT DESCRIBED IN PARAGRAPH
(7) OF THIS SECTION OF THIS ACT AS OF OCTOBER 1, 1996:

1. MULTIPLIED BY 0.8 PERCENT OF THE MEMBER'S
AVERAGE FINAL COMPENSATION THAT IS NOT IN EXCESS OF THE SOCIAL SECURITY
INTEGRATION LEVEL THAT IS IN EFFECT ON OCTOBER 1, 1996;

2. MULTIPLIED BY 1.5 PERCENT OF THE MEMBER'S
AVERAGE FINAL COMPENSATION THAT EXCEEDS THE SOCIAL SECURITY
INTEGRATION LEVEL THAT IS IN EFFECT ON OCTOBER 1, 1996; AND

3. IF, AS OF OCTOBER 1, 1996, THE MEMBER HAS LESS THAN
30 YEARS OF CREDITABLE SERVICE AND IS LESS THAN 62 YEARS OLD, THE MEMBER'S
RETIREMENT ALLOWANCE COMPUTED UNDER ITEMS 1 AND 2 OF THIS
SUBPARAGRAPH SHALL BE:

A REDUCED BY THE LESSER OF 0.5% FOR EACH MONTH BY
WHICH OCTOBER 1, 1996 PRECEDES THE DATE THE MEMBER WOULD BE 62 YEARS
OLD OR 42%; AND

B. INCREASED BY THE LESSER OF 18% OR THE AMOUNT OF
THE REDUCTION UNDER ITEM A OF THIS ITEM;

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall be construed
retroactively and shall be applied to and interpreted to affect the computation of a
retirement allowance for any member of the Employees' Pension System whose
retirement was deferred under Chapter 353, § 8 or § 9, of the Acts of 1996.

SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect
June 1, 1997.

Approved April 29, 1997.

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