Expedited Bill No. _ _-'-7--=1.=2_ _ __
Concerning: Employees'
Retirement
System - Automatic Distributions
Revised: March 1,2012 Draft No. _2_ _
Introduced:
March 6, 2012
Enacted:
May 1,2012
Executive:
May 10, 2012
Effective:
May 10, 2012
Sunset Date: . . ,N. .: . :o: ;.:. n=e_ _ _ _ _ __
Ch.~,
Laws of Mont. Co.
2012
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council President at the Request of the County Executive
AN EXPEDITED ACT
to:
(1) provide for an automatic distribution for account balances of $1,000 or less in the
Optional and Integrated Plans and the Elected Officials' Plan of the Employees'
Retirement System; and
(5) generally amend the law regarding the employees' retirement system.
By amending
Montgomery County Code
Chapter 33, Personnel and Human Resources
Sections 33-39, 33-44 and 33-45
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
*
*
*
Heading or defined term.
Added to existing law by original bill.
Deletedfrom existing law by original bill.
Added by amendment.
Deletedfrom existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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EXPEDITED BILL No. 7-12
1
Sec.
1.
Sections 33-39,33-44, and 33-45 are amended as follows:
33-39. Member contributions and credited interest.
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3
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*
*
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5
(c)
Return ofmember contributions.
(1) Refund after employee's separation under the optional and
integrated plans.
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7
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*
*
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[Q}
Notwithstanding any other provision, if the member's
contributions and interest are $1,000 or less, the amount
must be distributed in
f!
lump sum as soon as
administratively feasible after termination of employment
even if the member does not submit an application. If the
distribution cannot be made because the member cannot
be located, the member will forfeit the amount. If the
member later contacts the County, the member will
receive the forfeited amount.
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*
(h)
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33-44. Pension payment options and cost-of-living adjustments.
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*
ill
Required commencement of benefit payments.
The distribution
of an elected officials' participant's retirement benefits must be
made no later than April 1 of the calendar year following the
later of the calendar year in which the elected officials'
participant attains age seventy and one-half (70
1/2)
or the
calendar year in which the elected officials' participant retires.
In the alternative, the payment of benefits to an elected officials'
participant must begin not later than such April 1 under a
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EXPEDITED BILL
No. 7-12
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method of payment that, in accordance with the applicable
United States Treasury Regulations, provides for distribution of
the elected officials' participant's benefits over:
[(1)]
tAl
The life of the elected official's participant;
The lives of the elected officials' participant and
[(2)] (ID
the elected officials' participant's designated beneficiary;
[(3)]
(Q
A period not extending beyond the life expectancy
of the elected officials' participant; or
[( 4)]
ill1
A period not extending beyond the life expectancy
of the elected officials' participant and the elected
officials' participant's designated beneficiary.
ill
Notwithstanding any other provision, an elected official's
account balance of $1,000 or less must be automatically
distributed in
~
lump sum as soon as administratively feasible
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after termination of employment without
request from the
elected officiaL If the distribution cannot be made because the
elected official cannot be located, the elected official will forfeit
the amount. If the elected official later contacts the County, the
elected official will receive the forfeited amount.
*
(q)
*
*
Direct rollover distributions.
A member or beneficiary may elect, in
any manner prescribed by the Chief Administrative Officer at any
time, to have any portion of eligible rollover distribution (as defined
in the Internal Revenue Code) paid directly to an eligible retirement
plan (as defined in the Internal Revenue Code) specified by the
member in a direct rollover. For purposes of this subsection, a direct
rollover is a payment from the retirement system to the eligible
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EXPEDITED BILL NO.7-12
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retirement plan specified by the member. A member may not elect !!
direct rollover if the eligible rollover distribution is less than $200.
*
*
*
33-45. Vested benefits
and withdrawal of contributions.
*
(b)
(1)
*
*
Withdrawal ofcontributions for optional and integrated plans.
[If a member complies] In accordance with paragraph (2), the
County must refund a member's contributions with credited
interest to:
(A)
a member whose County service ends before the member
is eligible to vest; and
(B)
a member eligible to vest whose County service ends and
who voluntarily elects to withdraw, thus ceasing to be a
member.
(2)
(A)
If!! member's contributions and interest are more than
$1,000, to obtain a refund of contributions, a member
must properly complete and submit an application for a
refund.
(B)
If a [member] member's contributions and interest are
more than $1,000, and the member does not properly
complete and submit an application for a refund, the
County must refund the contributions with credited
interest under the minimum distribution requirements of
the
Internal
Revenue
Code
and
corresponding
regulations.
(Q
Notwithstanding any other provision, if the member's
contributions and interest is $1,000 or less. the amount
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ExPEDITED BILL
No. 7-12
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must be distributed in
~
lump sum as soon as
administratively feasible after termination of employment
even if the member does not submit an application.
If
the
distribution cannot be made because the member cannot
be located, the member will forfeit the amount. If the
member later contacts the County, the member will
receive the forfeited amount.
(3)
If
a vested member dies before the normal retirement date, the
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County must pay the designated beneficiary a lump sum death
benefit equal to the member's contributions plus credited
interest.
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*
*
*
Sec. 2. Expedited Effective Date.
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The Council declares that this legislation is necessary for the immediate
protection of the public interest. This Act takes effect on the date on which it
becomes law.
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ExPEDITED BILL
No. 7-12
98
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Approved:
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Rog
Date
102
Approved:
103
}
pate
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This is a correct copy ofCouncil action.
\05
b,.2h.
~
s-
/;1
/1:2.
Date
Linda M. Lauer, Clerk of the Council
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