Maryland Code § SP-29-116

Section SP-29-116
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(a) This section does not apply to a disability retiree:
(1) (i) who is a retiree of:

1. the State Police Retirement System;
2. the Law Enforcement Officers' Pension System;
3. the Local Fire and Police System; or
4. the Employees' Retirement System or the
Employees' Pension System, if at the time of retirement the retiree was a law
enforcement officer for a participating employer under § 26-201(a) of this article; and
(ii) who is reemployed by a participating employer in any
position other than a probationary status law enforcement officer, a law enforcement
officer, as defined in § 1-101 of the Public Safety Article, or chief; or
(2) (i) 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
(ii) who is reemployed by a participating employer.
(b) The Board of Trustees shall reduce the pension of a retiree on ordinary
disability if:
(1) the retiree is under normal retirement age;
(2) the medical board certifies in a report to the Board of Trustees
that the retiree is employed by a participating employer at an annual compensation
that is greater than the difference between:
(i) the retiree's retirement allowance at retirement; and
(ii) the sum of:
1. the retiree's average final compensation; and
2. $5,000, which shall be adjusted annually by the
percentage growth in the Consumer Price Index, as defined in § 29-401 of this title,
in the calendar year preceding the fiscal year, and each subsequent adjustment shall
be made on the amount calculated in the prior fiscal year;
(3) the Board of Trustees agrees with the medical board's report; and

(4) the retiree's allowance has not been temporarily suspended as
provided in § 29-115 of this subtitle.
(c) The Board of Trustees shall reduce the pension of a retiree who has been
receiving an ordinary disability retirement allowance for:
(1) less than 10 years, by $1 for every $2 that the retiree's current
compensation exceeds the limit under subsection (b) of this section; or
(2) at least 10 years, by $1 for every $5 that the retiree's current
compensation exceeds the limit under subsection (b) of this section.
(d) The pension to be reduced under this section is the pension at retirement
without any cost-of-living adjustment.

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