§ 17A. Definitions.
(1) Retirement System.
"Retirement System" shall mean the Elected Officials' Retirement System of the City of Baltimore as defined in § 18 of this subtitle.
(2) Elected official.
"Elected official" shall mean the Mayor, the Comptroller, the President of the City Council and the members of the City Council.
(3) Member.
"Member" shall mean any person included in the membership of the system as provided in § 19 of this subtitle.
(4) Board of Trustees.
"Board of Trustees" shall mean the Board provided in § 21 of this subtitle, to administer the retirement system.
(5) Service.
"Service" shall mean service as an elected official as described in paragraph (2) of this section, and paid for by the City of Baltimore, while a member of the Elected Officials' Retirement System; and any service purchased, or repurchased or transferred, by appropriate deposit or redeposit of funds, plus interest, to cover such period, or any service credited under any other section of this subtitle and under Maryland State Law, including any past service rendered as a member of the General Assembly of Maryland.
(6) Beneficiary.
"Beneficiary" shall mean any person in receipt of a pension, an annuity, a retirement allowance, or other benefit as provided by this subtitle.
(7) Regular interest.
(i) "Regular interest" for the accumulation of member contributions means:
(A) effective on or before December 31, 2016, interest at 5.25% per year, compounded annually; and
(B) effective on or after January 1, 2017, interest at 3.0% per year, compounded annually.
(ii) "Regular interest" for valuation purposes means:
(A) for fiscal years beginning on or before July 1, 2015, interest at 7.25% per year, compounded annually;
(B) for fiscal years beginning on July 1, 2016, and on July 1, 2017, interest at 7.0% per year, compounded annually; and
(C) for fiscal years beginning on or after July 1, 2018, interest at 6.75% per year, compounded annually.
(iii) "Regular interest" for the purposes of determining actuarial equivalents means interest at 4½% per year, compounded annually.
(8) Accumulated contributions.
"Accumulated contributions" means the sum of all the amounts deducted from the compensation of a member, together with regular interest as provided in paragraph (7) of this section and pursuant to the provisions of §§ 23 and 24 of this subtitle.
(9) Annual earnable compensation.
"Annual earnable compensation" means the annual salary authorized for the highest-paying elected position held by the member.
(10) Annuity.
"Annuity" shall mean payments for life derived from the "accumulated contributions" of a member.
(11) Pensions.
"Pensions" shall mean payments for life derived from money provided by the City of Baltimore.
(12) Payments; Retirement dates.
All retirement allowances or other benefits that are calculated on an annual basis shall be payable for each month in a year. Payments shall be made in periodic installments, as determined from time to time by the Board of Trustees, and the monthly allowance shall be computed by dividing the annual allowance by 12. All retirement dates shall fall on the 1st day of a month.
(13) Retirement.
"Retirement" shall mean withdrawal from active service with a retirement allowance or pension granted or deferred under the provisions of this subtitle. However, the deferment of the receipt of the retirement allowance or pension must be at the option of the member and said member must not be on "continued membership".
(14) Retirement allowance.
"Retirement allowance" shall mean the sum of the "annuity" and the "pensions".
(15) Annuity reserve.
"Annuity reserve" shall mean the present value of all payments to be made on account of any annuity or benefit in lieu of any annuity computed upon the basis of such mortality tables as shall be adopted by the Board of Trustees, and regular interest.
(16) Pension reserve.
"Pension reserve" shall mean the present value of all payments to be made on account of any pension or benefit in lieu of any pension, computed upon the basis of such mortality tables as shall be adopted by the Board of Trustees, and regular interest.
(17) {Vacant}
(18) Actuarial equivalent.
"Actuarial equivalent", for purposes of determining the amount of an optional retirement benefit under this subtitle, means a benefit of equivalent value when calculated using:
(i) regular interest for actuarial equivalent purposes; and
(ii) mortality assumptions based on the following tables:
(A) for retirements effective on or before June 30, 2016, the UP-84 mortality table with no set forward, except that in the case of disability retirements under this subtitle, the table is set forward 9 years; and
(B) for retirements effective on or after July 1, 2016, the RP-2000 mortality tables for males and females set forward 2 years and projected 15 years using 50% of Scale AA and then blended 50% for males and females.
(19) Actuary.
"Actuary" shall mean the person or persons designated as hereinafter provided.
(20) Pronouns.
The male pronoun shall include the female pronoun or vice versa.
(21) Actuarial reserve.
"Actuarial reserve" shall mean the present value of a benefit due the member, based on such interest and mortality tables as are adopted by the Board of Trustees upon advice of the actuary for the Retirement System.
(22) Minor child.
"Minor child" means the child of a member, former member, or retiree who has not attained age 22.
(23) Fiscal year.
"Fiscal year" shall be the 12-month period beginning on July 1 of each year and ending on June 30 of the following year, both these dates included therein, or such alternate dates as shall be mandated by law for the Mayor and City Council.
(24) Present value.
"Present value" means the amount determined using:
(i) regular interest for valuation purposes under paragraph (7)(ii) of this section; and
(ii) mortality assumptions based on the table in effect under the definition of "actuarial equivalent" in paragraph (18) of this section.