Maryland Code § SP-22-406

Section SP-22-406
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(a) In this section, "area of critical shortage" means an academic field
identified by the State Department of Education in accordance with the provisions of
§ 18-703(g)(1) of the Education Article as having projected employment vacancies
that substantially exceed projected qualified graduates.
(b) Except as provided in subsection (d) of this section, an individual who is
receiving a service retirement allowance or vested allowance may accept employment
with a participating employer on a permanent, temporary, or contractual basis, if:
(1) the individual immediately notifies the Board of Trustees of the
individual's intention to accept this employment; and
(2) the individual specifies the compensation to be received.
(c) (1) Except as provided in § 22-407 of this subtitle, the Board of
Trustees shall reduce the allowance of an individual who accepts employment as
provided under subsection (b) of this section if:
(i) the individual's current employer is a participating
employer other than the State and is the same participating employer that employed
the individual at the time of the individual's last separation from employment with a
participating employer before the individual commenced receiving a service
retirement allowance or vested allowance;

(ii) 1. the individual's current employer is any unit of State
government; and
2. the individual's employer at the time of the
individual's last separation from employment with the State before the individual
commenced receiving a service retirement allowance or vested allowance was also a
unit of State government; or
(iii) the individual becomes reemployed within 12 months of
receiving an early service retirement allowance under § 22-402 of this subtitle.
(2) (i) Except as provided in subparagraph (ii) of this paragraph
and subject to subparagraphs (iii) and (iv) of this paragraph, the reduction required
under paragraph (1) of this subsection shall equal:
1. the amount by which the sum of the individual's
initial annual basic allowance and the individual's annual compensation exceeds the
average final compensation used to compute the basic allowance; or
2. for a retiree who retired under the Workforce
Reduction Act (Chapter 353 of the Acts of 1996), the amount by which 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 the Workforce Reduction Act, exceeds
the average final compensation used to compute the basic allowance.
(ii) 1. This subparagraph applies to a retiree of the
Teachers' Retirement System who as faculty received a 10-month salary and retired
directly from:
A. the University System of Maryland;
B. Morgan State University;
C. St. Mary's College; or
D. a community college established or operating under
Title 16 of the Education Article.
2. The reduction required under paragraph (1) of this
subsection shall equal the amount by which the sum of the retiree's initial annual
basic allowance and the retiree's annual compensation, as calculated in
subsubparagraph 3 of this subparagraph, exceeds the average final compensation of
the retiree used to compute the basic allowance.

3. The calculation of the retiree's annual compensation
in subsubparagraph 2 of this subparagraph does not include any of the following
earnings the retiree received during the previous calendar year from the employer
with whom the retiree is reemployed:
A. bonuses;
B. overtime;
C. summer school salaries;
D. adult education salary;
E. additional temporary payments from special
research projects;
F. honorariums; and
G. vehicle stipends.
(iii) Any reduction taken under this subsection may not reduce
the retiree's allowance to an amount less than the required deduction for:
1. if the retiree retired from any unit of State
government, the retiree's monthly State-approved medical insurance premiums; or
2. if the retiree retired from a participating employer
other than the State, the approved monthly medical insurance premiums required by
the participating employer that employed the retiree at the time of the retiree's
retirement.
(iv) The Board of Trustees shall recover from the retiree any
difference between the reduction required under subparagraph (i) of this paragraph
and the reduction taken under subparagraph (iii) of this paragraph.
(3) A reduction of an early service retirement allowance under
paragraph (1)(iii) of this subsection shall be applied only until the individual has
received an allowance for 12 months.
(4) Except for an individual whose allowance is subject to a reduction
as provided under paragraphs (1)(iii) and (3) of this subsection, the reduction of an
allowance under this subsection does not apply to:

(i) an individual who has been retired for 5 years, beginning
on January 1 after the date the individual retires;
(ii) an individual whose average final compensation was less
than the minimum annual salary on the standard State pay scale as of January 1 of
the preceding calendar year and who is reemployed on a permanent, temporary, or
contractual basis;
(iii) an individual 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;
(iv) a retiree of the Teachers' Retirement System:
1. who retired and was reemployed by a participating
employer other than the State on or before September 30, 1994; and
2. whose employment compensation does not derive, in
whole or in part, from State funds;
(v) a retiree of the Teachers' Retirement System who:
1. is or has been certified to teach in the State;
2. has verification of satisfactory or better performance
in the last assignment prior to retirement;
3. based on the retired teacher's qualifications, has
been appointed in accordance with § 4-103 of the Education Article; and
4. receives verification of satisfactory or better
performance each year the teacher is employed under paragraph (5) of this
subsection;
(vi) a retiree of the Teachers' Retirement System who:
1. A. was employed as a principal within 5 years of
retirement; or
B. was employed as a principal not more than 10 years
before retirement and was employed in a position supervising principals in the
retiree's last assignment prior to retirement;

2. has verification of satisfactory performance for each
year as a principal and, if applicable, in a position supervising principals prior to
retirement;
3. based on the retiree's qualifications, has been hired
as a principal; and
4. receives verification of satisfactory performance
each year the retiree is employed as a principal under paragraph (6) of this
subsection;
(vii) a former employee of the Domestic Relations Division of
Anne Arundel County Circuit Court who transfers into the State Employees'
Personnel System under § 2-510 of the Courts Article;
(viii) a retiree of the Employees' Retirement System who is
reemployed on a contractual basis by the Maryland Department of Health as a health
care practitioner, as defined in § 1-301 of the Health Occupations Article, in:
1. a State residential center as defined in § 7-101 of the
Health - General Article;
2. a chronic disease center subject to Title 19, Subtitle
5 of the Health - General Article;
3. a State facility as defined in § 10-101 of the Health
- General Article; or
4. a local health department subject to Title 3, Subtitle
2 of the Health - General Article;
(ix) a retiree of the Employees' Retirement System and the
Judges' Retirement System who is temporarily assigned to sit in a court of this State
under the authority of Article IV, § 3A of the Maryland Constitution;
(x) a retiree of the Employees' Retirement System who is
reemployed on a contractual basis for not more than 4 years as a parole and probation
employee in a position authorized under Title 6, Subtitle 1 of the Correctional
Services Article; or
(xi) a retiree of the Teachers' Retirement System who is
reemployed by a local school system or the Maryland School for the Deaf and is
rehired in accordance with paragraph (8) of this subsection.

(5) (i) An individual who is rehired under paragraph (4)(v) of this
subsection shall be employed as a classroom teacher, substitute classroom teacher, or
teacher mentor in:
1. a public school that:
A. is a school in need of improvement as defined under
the federal Elementary and Secondary Education Act and as implemented by the
State Department of Education;
B. is receiving funds under Title 1 of the federal
Elementary and Secondary Education Act;
C. has more than 50% of the students attending that
school who are eligible for free and reduced-price meals established by the United
States Department of Agriculture; or
D. provides an alternative education program for
adjudicated youths or students who have been expelled, suspended, or identified for
suspension or expulsion from a public school; or
2. the Maryland School for the Deaf.
(ii) An individual rehired at a school described under
subparagraph (i) of this paragraph shall teach:
1. in an area of critical shortage;
2. a special education class for students with special
needs; or
3. a class for students with limited English proficiency.
(6) An individual who is rehired under paragraph (4)(vi) of this
subsection shall be employed as a principal at:
(i) a public school that:
1. is a school in need of improvement as defined under
the federal Elementary and Secondary Education Act and as implemented by the
State Department of Education;
2. is receiving funds under Title 1 of the federal
Elementary and Secondary Education Act;

3. has more than 50% of the students attending that
school who are eligible for free and reduced-price meals established by the United
States Department of Agriculture; or
4. provides an alternative education program for
adjudicated youths or students who have been expelled, suspended, or identified for
suspension or expulsion from a public school; or
(ii) the Maryland School for the Deaf.
(7) An individual who is reemployed under paragraph (4)(v) or (vi) of
this subsection at a school described under paragraph (5) or (6) of this subsection may
not continue that reemployment for more than 5 consecutive years.
(8) (i) In addition to any individuals rehired in accordance with
paragraph (5) of this subsection, and subject to subparagraph (ii) of this paragraph,
each superintendent of a local school system and the superintendent of the Maryland
School for the Deaf may rehire a maximum of five individuals who are retirees of the
Teachers' Retirement System in any position in the superintendent's local school
system or the Maryland School for the Deaf.
(ii) The number of individuals rehired under subparagraph (i)
of this paragraph for each local school system or the Maryland School for the Deaf
may not exceed a total of five retirees at any one time when added to the number of
individuals rehired under § 23-407(c)(8)(i) of this article for that same local school
system or the Maryland School for the Deaf.
(9) (i) The superintendent of the local school system or the
superintendent of the Maryland School for the Deaf rehiring an individual under
paragraph (4)(v) or (vi) of this subsection shall:
1. approve the rehiring of that individual; and
2. determine the school where the individual is to be
reemployed.
(ii) Within 30 days after rehiring an individual under
paragraph (4)(v) or (vi) of this subsection, the superintendent of a local school system
or the superintendent of the Maryland School for the Deaf shall complete and file
with the Board of Trustees and the State Department of Education a form provided
by the Board of Trustees that certifies that the individual rehired by the local school
system or the Maryland School for the Deaf under paragraph (4)(v) or (vi) of this
subsection:

1. satisfied the criteria provided in paragraph (4)(v) or
(vi) of this subsection;
2. was reemployed at a school described under
paragraph (5)(i) or (6) of this subsection; and
3. if rehired under paragraph (4)(v) of this subsection,
was teaching in an area specified in paragraph (5)(ii) of this subsection.
(iii) Within 30 days after rehiring an individual under
paragraph (8) of this subsection, the superintendent of a local school system or the
superintendent of the Maryland School for the Deaf shall complete and file with the
Board of Trustees and the State Department of Education a form provided by the
Board of Trustees that certifies that the individual rehired by the local school system
or the Maryland School for the Deaf under paragraph (8) of this subsection satisfied
the criteria provided in paragraph (8) of this subsection.
(iv) 1. On or before April 1 of each year, the Board of
Trustees and the State Department of Education shall jointly review any forms filed
by a superintendent of a local school system or the superintendent of the Maryland
School for the Deaf under subparagraph (ii) of this paragraph during the previous
calendar year.
2. If the Board of Trustees and the State Department
of Education agree that a superintendent of a local school system or the Maryland
School for the Deaf has rehired an individual that does not satisfy the criteria
provided in paragraphs (4)(v) and (5), paragraphs (4)(vi) and (6), or paragraph (8) of
this subsection:
A. on or before July 1 of the year of the finding, the
Board of Trustees shall notify the superintendent of the local school system or the
Maryland School for the Deaf of this individual; and
B. the local school system or the Maryland School for
the Deaf shall reimburse the Board of Trustees the amount equal to the reduction to
the individual's retirement allowance that would have been made in paragraph (2) of
this subsection.
(v) If a superintendent of a local school system or the
superintendent of the Maryland School for the Deaf rehires an individual that
satisfies the criteria provided in paragraphs (4)(v) or (vi) and (5), (6), or (8) of this
subsection and the Board of Trustees and the State Department of Education do not

receive certification from the superintendent in the time required under
subparagraph (ii) of this paragraph:
1. on or before July 1 of the year of the finding, the
Board of Trustees shall notify the superintendent of the local school system or the
superintendent of the Maryland School for the Deaf of this individual; and
2. the local school system or the Maryland School for
the Deaf shall pay the Board of Trustees $50 for each month the superintendent fails
to submit the certification under subparagraph (ii) of this paragraph in the time
required, not to exceed a total of $1,000 for each individual whose certification is not
submitted in the time required.
(vi) The local school system or the Maryland School for the Deaf
shall make the reimbursement on or before December 31 of the year the local school
system or the Maryland School for the Deaf receives notice from the Board of Trustees
under subparagraph (iv)2A of this paragraph.
(10) On or before August 1 of each year, the local superintendent and
the superintendent of the Maryland School for the Deaf shall report to the State
Department of Education for the previous school year:
(i) the number of individuals rehired under paragraph (4)(v)
or (vi) or (8) of this subsection;
(ii) 1. the school and school system where each individual
was rehired; and
2. whether the school:
A. was a school in need of improvement as defined
under the federal Elementary and Secondary Education Act and as implemented by
the State Department of Education;
B. was receiving funds under Title 1 of the federal
Elementary and Secondary Education Act;
C. has more than 50% of the students attending that
school who are eligible for free and reduced-price meals established by the United
States Department of Agriculture; or
D. provided an alternative education program for
adjudicated youths or students who have been expelled, suspended, or identified for
suspension or expulsion from a public school;

(iii) the original date of rehire for each individual;
(iv) the subject matter taught by each individual;
(v) if hired under paragraph (8) of this subsection, the position
title of each individual;
(vi) the annual salary of each individual; and
(vii) the percentage of student population composed of children
in poverty that is required to be present in a school in that school system in order for
that school to qualify as a Title 1 school.
(d) An individual who is receiving a service retirement allowance under this
title may not be employed within 45 days of the date the individual retired, on a
permanent, temporary, or contractual basis, by:
(1) the State or other participating employer; or
(2) a withdrawn participating governmental unit, if the retiree was
an employee of the withdrawn participating governmental unit while the withdrawn
governmental unit was a participating employer.
(e) An individual who is receiving a service retirement allowance or a vested
allowance and who is reemployed by a participating employer may not receive
creditable service or eligibility service during the period of reemployment.
(f) The individual'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.
(g) The State Retirement Agency shall institute appropriate reporting
procedures with the affected payroll systems to ensure compliance with this section.
(h) (1) Immediately on the employment of any individual receiving a
service retirement allowance or a vested allowance, a participating employer shall
notify the State Retirement Agency of the type of employment and the anticipated
earnings of the individual.
(2) At least once each year, in a format specified by the State
Retirement Agency, each participating employer shall provide the State Retirement
Agency with a list of all employees included on any payroll of the employer, the Social
Security numbers of the employees, and their earnings for that year.

(i) The State Department of Education shall adopt regulations to carry out
this section.
(j) At the request of the State Retirement Agency:
(1) a participating employer shall certify to the State Retirement
Agency that it is not the same participating employer that employed an individual at
the time of the individual's last separation from employment before the individual
commenced receiving a service retirement allowance or a vested allowance; or
(2) a unit of State government shall certify to the State Retirement
Agency that the individual was not employed by any unit of State government at the
time of the individual's last separation from employment before the individual
commenced receiving a service retirement allowance or a vested allowance.
(k) The Maryland Department of Health shall notify the State Retirement
Agency of any retirees who qualify under subsection (c)(4)(viii) of this section.
(l) On or before September 1 of each year, the Secretary of Health shall
submit a report in accordance with § 2-1257 of the State Government Article to the
Joint Committee on Pensions that provides:
(1) the number of rehired retirees under subsection (c)(4)(viii) of this
section;
(2) the annual salary of each rehired retiree at the time of retirement
and the current annual salary of each rehired retiree;
(3) the number of health care practitioners hired who are not
retirees; and
(4) the annual salary of each health care practitioner who is hired.
(m) On or before October 1 of each year, the State Superintendent of Schools
shall submit a report for the previous school year, to the Joint Committee on
Pensions, in accordance with § 2-1257 of the State Government Article, that provides:
(1) (i) the number of rehired retirees under subsection (c)(4)(v)
and (vi) and (8) of this section;
(ii) 1. the school and school system where each retiree was
rehired; and

2. whether the school:
A. was not making adequate yearly progress or was a
school in need of improvement as defined under the federal Elementary and
Secondary Education Act and as implemented by the State Department of Education;
B. was receiving funds under Title 1 of the federal
Elementary and Secondary Education Act;
C. has more than 50% of the students attending that
school who are eligible for free and reduced-price meals established by the United
States Department of Agriculture; or
D. provided an alternative education program for
adjudicated youths or students who have been expelled, suspended, or identified for
suspension or expulsion from a public school;
(iii) a copy of the annual staffing report generated by the State
Superintendent of Schools in accordance with § 18-703(g)(1) of the Education Article
certifying areas of critical shortage for the previous school year as evidenced by
projected employment vacancies substantially exceeding projected qualified
graduates;
(iv) the subject matter that each rehired retiree was teaching;
(v) the salary of each rehired retiree;
(vi) the total number of years each retiree has been reemployed
at the school where the retiree was rehired for the previous school year; and
(vii) the percentage of student population composed of children
in poverty that is required to be present in a school in that school system in order for
that school to qualify as a Title 1 school; and
(2) the number of retirees rehired under subsection (c)(8) of this
section.
(n) On or before September 1 of each year, the Secretary of Public Safety
and Correctional Services shall submit a report in accordance with § 2-1257 of the
State Government Article to the Joint Committee on Pensions that provides:
(1) the number of rehired retirees under subsection (c)(4)(x) of this
section;

(2) the annual salary of each rehired retiree at the time of retirement
and the current annual salary of each rehired retiree;
(3) the number of parole and probation employees hired who are not
retirees; and
(4) the annual salary of each parole and probation employee who is
hired.

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