§ 5-1-304. DEFERRED RETIREMENT OPTION PROGRAM — GENERAL COUNTY EMPLOYEES.

(a)

Definitions.

(1)

In this section the following words have the meanings indicated.

(2)

"DROP allowance" means the annual pension contributed to the DROP account.

(3)

"DROP period" means the period of time the member serves in the DROP program.

(4)

"DROP program" means the deferred retirement option program for members.

(5)

"DROP service" means:

(i)

Qualifying service; and

(ii)

Transfer service within the county government subject to rules adopted by the Board of Trustees under § 5-1-301 of this subtitle.

(6)

(i)

"Member" means a Group 3 member in active service.

(ii)

"Member" does not include:

1.

A Group 3 member who begins service on or after July 1, 2007;

2.

An elected official;

3.

A member as defined in § 5-1-218 or § 5-1-219 of this title; or

4.

An appointed department head.

(7)

(i)

"Qualifying service" means:

1.

Membership service;

2.

Retirement system membership credit for accumulated unused sick leave; and

3.

Creditable military service.

(ii)

"Qualifying service" does not include other jurisdictional service outside Baltimore County.

(b)

Participation. A member may elect to participate in the DROP program if the member is at least fifty-five (55) years old and whose years of qualifying service when added to the member's age equals at least eighty-five (85) (Rule-of-85).

(c)

DROP period.

(1)

A member may be in service for a DROP period of not less than five (5) years and not more than ten (10) years.

(2)

A member is not required to commit to a future retirement date at the date of election.

(3)

(i)

A member may opt out of the DROP at any time.

(ii)

If the member opts out of the DROP, the member's retirement benefit shall be treated as if the member had not elected to enter the DROP.

(4)

(i)

If a member in the DROP dies before completing five (5) years of service in the DROP, the member's retirement benefit shall be treated as if the member had not elected to enter the DROP.

(ii)

If a member in the DROP dies after completing at least five (5) years of service in the DROP, the member's beneficiary may:

1.

Receive the DROP benefits as provided in this section; or

2.

Be treated as if the member had not elected to enter the DROP.

(d)

Retirement dates. Retirements under the DROP program may begin on or after July 1, 2012.

(e)

DROP account.

(1)

A DROP account for a member shall be established as of the member's election to participate in the DROP program, and shall consist of the following:

(i)

The member's DROP allowance for each year adjusted in accordance with subsections (g), (h), and (i) of this section;

(ii)

Contributions to the retirement system made by a member during the DROP period;

(iii)

A one-time credit of unused sick time earned while in the DROP program over the member's benefit basis times the member's average final compensation; and

(iv)

Five (5) percent interest earned on both the member's DROP allowance and the member's accumulated contributions during the DROP period, based on the administrative procedures currently used to determine the member's accumulated contributions.

(2)

A member who was eligible to participate in the DROP as provided in subsection (b) of this section by July 1, 2007 may elect to begin the DROP period retroactive to July 1, 2007.

(f)

DROP account options. A member may choose to:

(1)

Receive the DROP account accumulation in a single lump sum; or

(2)

Roll the DROP account over into an eligible retirement plan as defined in § 402(C)(8)(b) of the Internal Revenue Code.

(g)

Cost-of-living adjustment. On the date that a post-retirement increase is granted under § 5-1-235 of this title that is at least twelve (12) months after the beginning date of the DROP period, DROP allowances credited to the DROP account and paid on actual retirement shall be increased for retirement system cost of living adjustments.

(h)

Average final compensation. For the purpose of calculating the member's DROP and retirement allowances under this section, average final compensation shall be based upon the member's DROP service.

(i)

DROP allowance. In addition to the proceeds of the DROP account, a member who retires under the DROP program will receive an annualized retirement allowance, paid monthly, equal to the member's annual DROP allowance, adjusted as provided for in subsection (j) of this section.

(j)

Retirement allowance.

(1)

The retirement allowances provided under this section shall be equal to the DROP allowance, increased for applicable retirement system cost of living adjustments, and subject to reduction based upon the option selected by the retiring member under § 5-1-231 of this title.

(2)

The reduction under § 5-1-231 of this title shall be based on the ages of the member and the designated beneficiary, if any, on the actual retirement date.

(Bill No. 47-07, § 1, 7-1-2007; Bill No. 30-10, § 2, 7-1-2010; Bill No. 43-11, § 1, 8-14-2011)

Editor's note:
  Section 5 of Bill No. 42-07 provides that this act does not apply to members of the Employees retirement system on pay schedule II of the classification and compensation plan.
  Section 2 of Bill No. 43-11 provides that this Act shall take effect August 14, 2011 retroactive to July 1, 2011.