PARRIS N. GLENDENING, Governor

Ch. 736

1. 0.8% of the member's average final compensation that is not
in excess of the Social Security integration level; and

2. 1.5% 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 eligibility service, not
including the credit described in paragraph (4) of this section of this Act, 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;

(7) The Board of Trustees:

(i) May adopt regulations to carry out this section of this Act; and

(ii) May not accept an application for retirement under this section of
this Act that is filed with the State Retirement Agency after 5:00 p.m. on June 30, 1997;

(8) A member who retires under this section of this Act may not receive a
basic allowance that exceeds the member's average final compensation; and

(9) If the member dies prior to the effective date of retirement, an
application to retire in accordance with the provisions of this section of this Act shall be
void and of no effect, and the benefits payable on the. member's account shall be
computed as if the application had not been filed.

SECTION 3. AND BE IT FURTHER ENACTED, That:

(1) A retiree who retires under this Act may not become reemployed in a
temporary or contractual position with the State, unless the reemployment is approved by
the Board of Public Works;

(2) If a retiree who retires under this Act is reemployed in a permanent,
temporary, or contractual position with a participating employer, the retiree's retirement
allowance shall be reduced by the amount that the sum of the retiree's annual
compensation and the retiree's annual basic allowance at the time of retirement,
including the incentive provided by this Act, exceeds the average final compensation used
to compute the basic allowance;

(3) No more than 2% of the total number of employees retiring under this
Act may be reemployed in a contractual or temporary position in any branch of State
government;

(4) The Board of Public Works may not approve the reemployment in a
temporary or contractual position of an employee who retires under this Act, if that

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