Expedited Bill No.
23-14
Concerning: Retirement
Plans
Definitions
Administration
Amendments
Revised: April 15, 2014 Draft No. _5_
Introduced:
May 5, 2014
Enacted:
June 17, 2014
Executive: _ _ _ _ _ _ _ __
Effective: _______________
Sunset Date:
_N~o!O:!.ne!!:::_
________
Ch. _ _, Laws of Mont
Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council President at the Request ofthe County Executive
AN EXPEDITED ACT
to:
(l)
(2)
(3)
(4)
ptovide that sick leave is used for vesting purposes in the Employees' Retirement
Plan;
provide that months of service are included for vesting purposes in the Guaranteed
Retirement Income Plan and the Retirement Savings Plan;
permit the Chief Administrative Officer to authorize a designee to receive a
beneficiary form;
clarify
that
a participant continues to participate in the same retirement plan after
changing employment from the County directly to a participating agency or from a
participating agency directly to the County;
clarify that a part-time employee
hired
before 1994 who
has
not participated in either
the Retirement Savings Plan or the Guaranteed Retirement Income Plan may elect to
participate in either plan;
clarify that a DRSPIDROP account balance must not be distributed until the final
decision on a disability application;
delete outdated references to Internal Revenue Code Section 415, which limits
contributions and benefits;
delete the requirement that the Disability Panel meet to review applications;
define a "direct rollover" and an "eligible retirement plan"; and
generally amend the law regarding the Employees' Retirement System and the
Retirement Savings Plan.
(5)
(6)
(7)
(8)
(9)
(10)
By amending
Montgomery County Code
Chapter 33, Personnel and Human Resources
Sections 33-37, 33-38A, 33-41, 33-42, 33-43, 33-44, 33-46, 33-115,33-119, and 33-120
Boldface
Underlining
[Single boldface brackets]
QQuble 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 zmaffected by bill.
The
County Council for Montgomery County, Maryland approves thefollowing Act.'
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ExPEDllED BILL
No. 23-14
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Sec. 1. Sections 33-37, 33-38A, 33-41,33-42,33-43,33-44,33-46,33-115, (
33-119 and 33-120 are amended as follows:
33-37. Membership requirements and membership groups.
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(k)
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Election to join the guaranteed retirement income plan.
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(4)
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An
eligible part time [or temporary] employee [hired on or after
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October 1, 1994] who does not participate in the retirement
savings plan may make a one-time irrevocable election to
participate in the guaranteed retirement income plan after the
employee completes at least 150 days of employment.
Participation must begin on the first full pay period beginning
30 days after the employee makes the election.
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or from
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(7)
An
individual who changes employment from the County
government to
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participating
participating
agency to the County government must continue to participate in
his or her retirement plan and is not eligible to make an election.
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33-38A.
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Deferred Retirement Option Plans.
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(a)
DROP Plan/or Group F members.
(7)
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Disability retirement.
An
employee may apply for disability
retirement prior to the termination of the employee's
participation in the program.
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ExPEDITED BILL
No. 23-14
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(C)
If
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DRSP participant ends participation in the program
before
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fmal decision is made on the disability
retirement application, the DRSP account must not be
distributed until
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final decision is made.
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(b)
DROP Planfor Group G members.
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(7)
Disability retirement.
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(E)
before
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If
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DROP participant ends participation in the program
final decision is made on the disability
retirement application, the DROP account must not be
distributed until
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fmal decision is made.
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33-41.
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Credited service.
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(f)
Use ofsick leave for credited service.
An
employee must receive credit
toward retirement for any accumulated sick leave, up to a maximum of
4,224 hours. Each 176 hours of accumulated sick leave is equal to 1
month of credited service. Accumulated sick leave totaling less than 11
days must not be credited for retirement purposes. Accumulated sick
leave totaling 11 to 22 days must be credited as 1 month of service for
retirement purposes.
A member must have sick leave credited for
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vesting purposes under Section 33-45.
An
employee who transfers to
the Retirement Savings Plan must receive credit toward retirement
under the optional plan or integrated plan under Section 33-37(i) for the
employee's accumulated sick leave.
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ExPEDITED
Bu No. 23-14
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For the guaranteed retirement income plan, subsections (a)-(o) do not
apply and credited service must be determined only under this
subsection.
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(l)
Credited servIce includes the total County servIce the
participant rendered under the guaranteed retirement income
plan, the retirement savings plan, the optional retirement plan,
the integrated plan, and the elected officials' plan.
Each
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participant must receive one year of credited service for each
year of County service and one month of credited service for
each month of County service [while participating in one of the
County's retirement plans.] during which the participant
contributed to
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County retirement plan. Each year of County
"
service ends on the anniversary of the participant's date of (
participation.
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33-42. Amount of pension at normal retirement date or early retirement date.
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(g)
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Maximum annual contribution to elected officials' plan.
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(2)
For purposes of this subsection (g), the annual addition must be
comprised of:
(A)
(B)
County elected officials' contributions; [and]
required elected officials' participant contributions; [The
lesser of:
(i)
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One-half of the total of required and voluntary
elected officials' participant contributions allocated (.
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ExPEDITED BILL
No. 23-14
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to the elected officials' participant's required and
voluntary
elected
officials'
participant
contributions accounts; or
(ii) All of the required and voluntary elected officials'
participant contributions allocated to the required
and
voluntary
elected
officials'
participant
contributions accounts in excess of six (6) percent
of
the
elected
officials'
participant's
compensation. ]
(Q
voluntary elected officials' participant contributions; and
forfeitures used to reduce the County elected officials'
contributions in accordance with Section 33-40(d)(2)(D).
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[(4) County elected officials' contributions that would be allocated
to county elected officials' contributions accounts of elected
officials' participants but for the limitations of this subsection
(g), must be carried over to subsequent years and allocated in
order of time to the county elected officials' contributions
accounts which would have received such contributions but for
the limitations set forth in this subsection (g). Amounts carried
over must be allocated by the chief administrative officer to a
suspense account that must be invested in a fixed income fund.
Any earnings of the suspense account must be allocated ratably
among the county elected officials' contributions accounts of all
the elected officials' participants except as otherwise provided
in this subsection (g).]
[(5)]
(i}
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ExPEDITED BILL
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[(6)]
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33-43. Disability retirement.
(d)
Disability retirement procedures.
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(4)
Before the Panel [meets to review] discusses an application for
a member other than a member of the FirefighterlRescuer
Bargaining Unit, the Panel must advise each party of the
deadline date for submitting information to the Panel:
The
Panel must allow a reasonable amount of time for the parties to
submit additional information, and may extend the deadline at
the request of either party for good cause shown.
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(6)
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The Panel must [meet in person, by telephone conference, or by
video conference, and] review and consider all evidence
submitted to it no later than 60 days after the application is
filed. A Panel must include either 2 or 3 members. At least 2
members must vote in favor of a decision to take any action
under this Section.
(7)
Within 30 calendar days after the Panel's [last meeting] final
discussion at which the application was considered, the Panel
must
issue
a
written
recommendation
to
the
Chief
Administrative Officer regarding whether the applicant meets
the criteria for disability retirement benefits for non-service­
connected disability in accordance with subsections (e)(2), (3)
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ExPEDITED BILL
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and (4) or service-connected disability in accordance with
subsection
(f).
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33-44.
Pension payment options and cost-or-living adjustments.
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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 retirement plan
specified by the member.] A member may not elect a direct rollover if
the eligible rollover distribution is less than $200.00.
As
used in this
subsection:
(
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ill
direct rollover
means
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payment from the retirement system to
the eligible retirement plan specified
Qy
the member; and
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eligible retirement plan
means:
(A)
an individual retirement account described in Internal
Revenue Code Section 408(a);
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an individual retirement annuity described in Internal
Revenue Code Section 408{b) (other than an endowment
contract);
(Q
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qualified trust;
ill)
an annuity plan described m Internal Revenue Code
Section 403(a);
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an eligible deferred compensation plan described in
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ExPEDITED Bill
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Internal Revenue Code Section 4S7(b) which is maintained (
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an eligible employer described in Internal Revenue
Code Section 4S7(e)(1)(A); or
CD
an annuity contract described in Internal Revenue Code
Section 403(b).
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(h)
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33-46. Death benefits and designation
of beneficiaries.
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Guaranteed retirement income plan.
Subsections (a)-(g) do not apply to
the guaranteed retirement income plan. If a participant dies before
receiving the participant's guaranteed retirement income plan account,
the guaranteed retirement income plan account balance must be
distributed to the participant's designated beneficiary in a lump sum as
soon as practicable after the participant's death, but not later than the (
December 31 st of the year containing the
fifth
anniversary of the
participant's death.
(1 )
A participant may name a primary beneficiary or beneficiaries
and contingent beneficiary or beneficiaries on a designation of
beneficiaries form filed with the Office of [human] Human
Resources.1 or designee of the Chief Administrative Officer. If a
participant names 2 or more persons as beneficiaries, the persons
are cOnsidered co-beneficiaries and share the benefit equally
unless the participant specifies otherwise on the designation of
beneficiaries form.
A participant may change any named
beneficiary by completing a new designation of beneficiaries
form.
The consent of the beneficiary or beneficiaries is not
required
to
name or change a beneficiary. The designation is (
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ExPEDITED BILL
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effective when the participant signs the fonn even if the
participant is not living when the Office.t or designee of the Chief
Administrative Officer, receives the request, but without
prejudice for any payments made before the Office.t or designee
ofthe Chief Administrative Officer, received the request.
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(a)
Participant Requirements.
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33-115. Participant requirements and participant groups.
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(6)
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IS
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not an active member of a County
An
employee who
retirement plan but is eligible for membership in the integrated
retirement plan may become a member ofthe Retirement Savings
Plan or the guaranteed retirement income plan. The employee
must remain a member of the Retirement Savings Plan or the
guaranteed retirement income plan until the employee becomes
ineligible for membership [in Group I or
II].
(7)
Election to participate in the guaranteed retirement income plan.
(A)
A full time employee hired or rehired on or after July 1,
2009 and a part time and temporary employee who
becomes full time after July 1, 2009 may participate in the
guaranteed retirement income plan.
An
eligible employee
must make a one-time irrevocable election during the first
150 days of employment. If an eligible employee elects
to
participate, participation must begin on the first pay period
after an employee has completed 180 days of full time
employment. A
full
time employee who does not elect to
participate in the guaranteed retirement income plan must
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exPEDITED BILL
No. 23-14
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(b)
(B)
participate in the retirement savings plan beginning on the
first pay period after the employee
has
completed 180 days
of full time employment.
A participant who changes
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employment from the County directly to
agency or from
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participating
participating agency directly to the
County must continue to participate in his or her retirement
plan and is not eligible to make an election.
A part time [or temporary] employee [hired on or after
October 1, 1994] who is not a participant in the retirement
savings plan may make a one-time irrevocable election to
participate in the guaranteed retirement income plan any
time after the employee
has
completed 150 days of
employment.
Participants groups and eligibility.
(1)
Group
I.
Except as provided in the last sentence of Section 33­
37(e)(2), any full-time or career part-time employee meeting the
criteria in paragraphs (A) or (B) must participate in the retirement
savings plan ifthe employee begins, or returns to, County service
on or after October 1, 1994.
An
employee hired on or after July
1, 2009 must be employed on a full time or part time basis with
the County for 180 days before participating in the retirement
savings plan.
An
individual who changes employment from the
County government directly to
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participating agency or from
!!
participating agency directly to the County government must
continue to participate in the same retirement plan. Participation
must begin on the first payroll after an employee has completed
180 days of employment ifthe employee:
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ExPEDITED BilL NO.
23-14
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(
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33-119. Credited service.
(a)
A participant's credited service is the total years and months of County
service the participant rendered under the Retirement Savings Plan, the
optional retirement plan, the integrated plan, and the guaranteed
retirement income plan. A participant must receive credited service for
any period when the participant was a part-time employee contributing
to an employer-supported savings program provided by a participating
agency.
An
employee hired before July 1,2009 must receive 1 year of
credited service for each year of County service. Each year of County
service ends on the anniversary of the date the participant [starting]
started working for the County. A participant must also receive one
month of credited service for each month during which the participant
worked at least one hour for the County.
An
employee hired on or after
July 1, 2009 must receive one year of credited service for each year of
participation in a County retirement plan and one month of credited
service for each month during which the employee participated in
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County retirement plan. A person who transferred to the Retirement
Savings Plan under Section 115(a)(3) or (4) must receive credit for
County service for creditable State service earned as a State employee
of the County Department of Social Services. A person who does not
transfer to the Retirement Savings Plan under Section 115(a)(3) or (4)
must not receive credit for County service for this State service.
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33-120. Distribution
of Benefit.
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(c)
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Death benefits.
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ExPEDITED BILL
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Sec. 2.
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(3)
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A participant may name a primary beneficiary or beneficiaries
and contingent beneficiary or beneficiaries on a designation of
beneficiaries form filed with the Office of Human Resources.1 or
designee of the Chief Administrative Officer. If a participant
names 2 or more persons as beneficiaries, the persons are
considered co-beneficiaries and share the benefit equally unless
the participant specifies otherwise on the designation of
beneficiaries form.
A participant may change any named
beneficiary by completing a new designation of beneficiaries
form.
The consent of the beneficiary or beneficiaries is not
required to name or change a beneficiary. The designation is
effective when the participant signs the form even if the
participant is not alive when the Office.1 or designee of the Chief (
Administrative Officer, receives the request, but without
prejudice for any payments made before the Officer.1 or designee
ofthe Chief Administrative Officer, received the request.
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*
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Expedited Effective Date.
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. 23-14
295
Approved:
296
Craig
L.
Rice,
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Approved:
Date
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Isiah Leggett, County Executive
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This is a correct copy ofCouncil action.
Date
300
Linda M. Lauer, Clerk ofthe Council
Date
(
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