§ 5-1-305. DEFERRED RETIREMENT OPTION PROGRAM — CORRECTIONAL OFFICERS AND DEPUTY SHERIFFS.

(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 for each full year, and prorated for each half year, if applicable, of the DROP period.

(3)

"DROP period" means the period of time selected in accordance with subsection (c) of this section for participation in the DROP program.

(4)

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

(5)

"DROP service" means:

(i)

Qualifying service;

(ii)

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

(iii)

Minus the length of the DROP period selected by a member.

(6)

(i)

"Member" means a member as defined in §§ 5-1-218(a) and 5-1-219(a) of this title.

(ii)

"Member" does not include a member who begins service on or after July 1, 2007.

(7)

(i)

"Qualifying service" means:

1.

Membership service on pay schedule I-C, VI, or XIII of the classification and compensation plan;

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 has 27 or more years of qualifying service and selects a DROP period provided for in this section.

(c)

Selection of DROP period. Subject to the time limitations in subsection (d) of this section, a member may select from the following DROP periods:

(1)

3 years if the member has 27 years of qualifying service;

(2)

3, 3 , or 4 years if the member has 28 years or more of qualifying service; or

(3)

3, 3 , 4, 4 , or 5 years if the member has 29 years or more of qualifying service.

(d)

Retirement dates. Retirements under the DROP program may begin on or after:

(1)

July 1, 2010 for not more than a 3-year DROP period;

(2)

July 1, 2011 for not more than a 4-year DROP period; or

(3)

July 1, 2012 for up to a 5-year DROP period.

(e)

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

(1)

The member's DROP allowance for each year and prorated half year, if applicable, of the DROP period selected by the retiring member adjusted in accordance with subsections (g), (h), and (i) of this section;

(2)

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

(3)

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

(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 as if the member had retired at the beginning of the DROP period.

(h)

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

(1)

Based upon the member's DROP service; and

(2)

Determined as if the member had retired at the beginning of the DROP period.

(i)

DROP allowance. Notwithstanding any other provision of law, the DROP allowance shall be 64% of the member's average final compensation for 24 years DROP service plus 2% for each full year of DROP service over 24 years.

(j)

Annual retirement 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 (k) of this section.

(k)

Allowance subject to reduction.

(1)

The retirement allowances provided under this section shall be equal to the DROP allowance, increased for applicable retirement system cost of living adjustment, 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. 48-07, § 1, 7-1-2007; Bill No. 30-10, § 2, 7-1-2010)

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 1 of Bill No. 48-07 provided that the language in this section was to be added to the code as § 5-1-304; however, § 5-1-304 was added to the code by section 1 of Bill No. 47-07, so this language was renumbered as § 5-1-305.