§ 5-1-236. LIMITATIONS ON BENEFITS.

(a)

Notwithstanding anything to the contrary in this subtitle, the limitations on benefits shall apply as provided in this section.

(b)

For years beginning after 1988, the earnable compensation, for purposes of computing benefits may not exceed the maximum dollar limitation specified in § 401(a)(17) of the Internal Revenue Code as adjusted from time to time by the Secretary of the Treasury in accordance with § 401(a)(17)(B) of the Internal Revenue Code; provided however for a member who first established membership before July 1, 1996, the compensation for computing benefits shall be determined in accordance with § 13212(d)(3) of the Omnibus Budget Reconciliation Act of 1993.

(c)

(1)

(i) 1. In addition to other limitations set forth in this subtitle, the aggregate annual benefit to which a member is entitled under this subtitle and Subtitle 3 of this title may not, in any calendar year, which shall be the "limitation year," exceed the applicable limitations of § 415 of the Internal Revenue Code and the regulations adopted under § 415 of the Internal Revenue Code.

2.

As applicable, the Board of Trustees shall determine an amortization schedule for the benefit paid under Subtitle 3 of this title for the purposes of this subsection.

(ii)

If the benefit payable under this subtitle and Subtitle 3 of this title would, but for subparagraph (i) of this paragraph, exceed the limitations of § 415 of the Internal Revenue Code by reason of a benefit payable under another defined benefit plan aggregated with the retirement plan under § 414(f) of the Internal Revenue Code, the benefit under the retirement system shall be reduced only after all reductions have been made under the other plan.

(iii)

As of January 1 of each calendar year commencing on or after January 1, 2009, the dollar limitation as determined by the Commissioner of Internal Revenue for that calendar year shall become effective as the maximum permissible dollar amount of benefit payable under the retirement system during that calendar year.

(2)

(i)

The compensation to be used for purposes of applying the applicable limitations under § 415 of the Internal Revenue Code with respect to any member shall mean compensation from the employer and all affiliated employers required to be aggregated with the employer under § 414(f) of the Internal Revenue Code as defined in U.S. Treasury Department Regulation § 1.415(c)-2(d)(4) (i.e., information to required to be reported under § 6041, 6051 and 6052 ("W-2 pay") of the Internal Revenue Code plus amounts that would be included in wages but for an election under § 125(a), § 132(f)(4), § 402(e)(3), § 402(h)(1)(B), § 402(k), § 403(b), or § 457(b) of the Internal Revenue Code.

(ii)

For limitation years beginning on or after July 1, 2007, the preceding definition of compensation shall be modified as required under the provisions of U.S. Treasury Department Regulation § 1.415(c)-2(e) and shall include all amounts permitted to be recognized under the provisions of U.S. Treasury Regulation § 1.415(c)-2(e)(3).

(iii)

Compensation may not exceed the limitation on compensation under § 401(a)(17) of the Internal Revenue Code.

(d)

A beneficiary of a service retirement benefit under this subtitle who returns to active service with the county may receive the service retirement benefit during the time in which the beneficiary remains in the active service if the beneficiary is employed by the board of education as a school bus driver.

(e)

(1)

Subject to paragraphs (2) and (3) of this subsection, a retired county police officer who is a beneficiary of a service retirement benefit under this subtitle who returns to active service with the county as a uniformed security officer to provide security for county owned, rented, occupied or leased buildings and properties may receive the service retirement benefit during the time in which the beneficiary remains in the active service of the county.

(2)

A beneficiary who returns to active service with the county under this paragraph shall at all times be a special police officer in good standing as defined in Title 3, Subtitle 3 of the Public Safety Article of the Annotated Code of Maryland.

(3)

A beneficiary who returns to active service with the county under this paragraph may not credit any uniformed security officer active service time to an existing service retirement benefit and may not claim an additional service retirement benefit for this active service time.

(f)

(1)

Subject to paragraphs (2), (3), (4), and (5) of this subsection, a beneficiary of a service retirement benefit under this subtitle who returns to active service with the county may receive the service retirement benefit during the time in which the beneficiary remains in active service if the beneficiary is employed by the county or Revenue Authority as a seasonal or part-time employee.

(2)

An eligible beneficiary may be selected for active service by the chief, director, or superintendent of the requesting agency, and may initially be employed as a part-time employee for up to six months pursuant to Section 4-8-101, Rule 8.01 of the Code.

(3)

At the conclusion of the six month period, if the agency and the beneficiary desire to continue the part-time employment, the beneficiary may enter into an agreement with the county not to exceed one year outlining the terms of continued part-time employment.

(4)

The members of the county council shall be notified in writing that an agency intends to continue the part-time employment, including any renewals of the initial one year term. The notification shall include a list of the names of the part-time employees, the job title, the number of hours to be worked per week, and a description of the job duties. The employment agreement may be approved unless within 14 days after receipt of the notification, the county council requests in writing that the agreement, and any renewals thereof, be forwarded to the county council for approval or disapproval at a legislative session.

(5)

(i)

A beneficiary who returns to active service with the county under this subsection is not eligible for benefits afforded classified and exempt employees, and may not credit any part-time active service time to an existing service retirement benefit and may not claim an additional service retirement benefit for this active service time.

(ii)

Except for a person selected under this subsection prior to the effective date of this act, a beneficiary who returns to active service must have been retired from the county for a period of not less than six months.

(1988 Code, § 23-66) (Bill No. 90-99, § 1, 11-5-1999; Bill No. 73-01, § 1, 9-10-2001; Bill No. 32-03, § 1, 6-30-2002, 7-1-2004; Bill No. 114-04, 1, 11-28-2004; Bill No. 30-10, § 2, 7-1-2010; Bill No. 50-17 , § 1, 9-18-2017)