§ 9. Class C membership.

(a) General provisions.

(1) "(An)other City retirement plan" defined.

In this section, "(an)other City retirement plan" means:

(i) the Fire and Police Employees' Retirement System of the City of Baltimore; or

(ii) the Elected Officials' Retirement System of the City of Baltimore.

(2) Commencement of membership.

(i) In general.

Except as provided in §§ 9.1 and 9.2 of this subtitle, an employee whose employment with the City begins on or after July 1, 1979, with the exception of an employee who is required to join another City retirement plan, will become a Class C member of this System on the 1st annual anniversary of the date on which his or her employment began.

(ii) Transfers.

An employee who, on or after July 1, 2014, transfers, without a break in employment, from a position with the City covered under another City retirement plan to a position with the City covered under this System:

(A) will become a Class C member on the 1^st annual anniversary of the transfer; and

(B) will be credited with his or prior service under the other City retirement plan in accordance with subsection (c)(4) of this section.

(3) Non-participation in other City retirement plans – General.

Except as provided in paragraph (4) of this subsection, a Class C member may not make contributions to, receive any pension or retirement income from, or accrue any service credit in another City retirement plan while at the same time accruing service credit in this System.

(4) Non-participation in other City plans – Exception.

Notwithstanding paragraph (3) of this subsection, and pursuant to § 48 of this article, the following may become Class C members of this System and accrue service credit in this System while an employee covered by this System:

(i) members of another City retirement plan who were eligible to begin receiving retirement benefits from that other plan but who, on transferring to a position covered by this System, postponed receipt of those benefits; or

(ii) retirees who were receiving retirement benefits from another City retirement plan but who, on reemployment in a position covered by this System, suspended receipt of those benefits.

(b) Forms.

A Class C member shall execute the form or forms and provide the supporting evidence that may be required from time to time, and must answer truthfully all questions pertinent to administration of this System.

(1) Termination on or before April 30, 1996.

(i) In general.

For any Class C member who terminates employment on or before April 30, 1996, all service in a fiscal year after the date of becoming a Class C member shall be credited as provided in this paragraph.

(ii) Job requiring more than 1,000 hours per year.

(A) Any Class C member employed by the City in a job classification that requires 1,000 or more hours of work in a fiscal year shall receive credit for 1 year of service, if that member was in pay status for each and every payroll period in the fiscal year.

(B) If the member was not in pay status for each and every payroll period in the fiscal year, service for that fiscal year shall be credited pro rata, calculated as follows:

1. 1 year's service credit, multiplied by

2. a fraction, the numerator of which is the number of payroll periods in the fiscal year that the member was in pay status, and the denominator of which is the total number of payroll periods in the fiscal year for that member's job classification.

(iii) Job requiring 500-1,000 hours per year.

(A) Any Class C member employed by the City in a job classification that requires not less than 500 nor more than 1,000 hours of work in a fiscal year shall receive credit for ½ of a year of service, if that member was in pay status for each and every payroll period in the fiscal year.

(B) If the member was not in pay status for each and every payroll period in the fiscal year, service for that fiscal year shall be credited pro rata, calculated as follows:

1. ½ year's service credit, multiplied by

(iv) Job requiring less than 500 hours per year.

Any Class C member employed by the City in a job classification that requires less than 500 hours of work in a fiscal year is not eligible to receive any service credit for that employment. However, the member is considered an active Class C member.

(2) Termination on or after May 1, 1996.

(i) In general.

For a Class C member who terminates employment on or after May 1, 1996, all service in a fiscal year after the date of becoming a Class C member shall be credited as provided in this paragraph.

(ii) Job requiring more than 1,000 hours per year.

(A) A Class C member who is employed by the City in a job classification that requires more than 1,000 hours of work in a fiscal year shall receive credit for 1 year of service.

(B) If, however, during the 1^st or final fiscal year of the member's service, the member was not in pay status for every payroll period in the fiscal year, or for any other fiscal year in which the member was out of pay status for 7 or more bi-weekly payroll periods (or an equivalent number of weekly or monthly payroll periods), service for that fiscal year shall be credited pro rata, calculated as follows:

1. 1 year's service credit, multiplied by

(iii) Job requiring 500-1,000 hours per year.

(A) A Class C member who is employed by the City in a job classification that requires not less than 500 nor more than 1,000 hours of work in a fiscal year shall receive credit for ½ of a year of service.

(B) If, however, during the 1^st or final fiscal year of a member's service, the member was not in pay status for every payroll period in the fiscal year, or for any other fiscal year in which the member was out of pay status for 7 or more bi-weekly payroll periods (or an equivalent number of weekly or monthly payroll periods), service for that fiscal year shall be credited pro rata, calculated as follows:

1. ½ year's service credit, multiplied by

(iv) Job requiring less than 500 hours per year.

A Class C member who is employed by the City in a job classification that requires less than 500 hours of work in a fiscal year is not eligible to receive any service credit for that employment. However, the member will be considered an active Class C member.

(v) Pay based on less than 12-month basis.

The service of a Class C member who is paid on other than a uniform, 12-month basis (e.g., a 10-month employee of the Baltimore City Public School System) may not be pro rated under this paragraph because of the member's being out of pay status during the period that the member ordinarily would not be paid.

(3) Additional opportunity to purchase credit for service with City.

(i) Prior City service.

A Class C member is entitled to purchase service credit for any City employment regardless of retirement plan membership, as long as:

(A) the employment did not result in the member's being entitled to any current or future benefits for that employment in any other City retirement plan; and

(B) the Class C member pays to this System, by a single payment, an amount equal to:

1. the current salary of the employee in the year of purchase, multiplied by

2. the sum of the employer rate for the normal cost and the employee contribution rate under § 8(d)(1) of this subtitle for the year of purchase, multiplied by

3. the number of years or part of a year being purchased.

(ii) 1st year of service.

In addition, a Class C member is entitled to purchase service credit for the member's 1^st year of service with the City, under the same conditions as provided in subparagraph (i)(B) of this paragraph.

(iii) Lump-sum option.

If a member purchases service credit under this paragraph and later dies or leaves City employment for any reason, with or without any vested benefit due to the member or the member's beneficiary under this subtitle, the member or the beneficiary is entitled to receive, in lieu of any other benefit under this System, a lump-sum cash payment equal to the total amount paid by the member for the purchase, plus interest at the rate of 5½% per year through June 30, 2013, and, effective July 1, 2013, at a rate equal to regular interest (as defined in § 1(9)(i)(B) of this subtitle).

(4) Transfer of service.

(i) Eligibility.

A Class C member who satisfies the applicable requirements of the State Personnel and Pensions Article may transfer service from a State or local retirement or pension system within Maryland.

(ii) Service credit.

The service so transferred will be credited as service under this System.

(d) Military personnel – Credit for military service during City employment.

(1) Definitions.

(i) In general.

In this subsection, the following terms have the meanings indicated.

(ii) Military service.

(A) In general.

"Military service" means any:

1. "service in the uniformed services", as defined by and interpreted under 38 U.S.C. § 4303(13); or

2. "military service", as defined by and interpreted under State Personnel and Pensions Article § 38-101(d).

(B) Inclusions.

"Military service" includes active duty, active duty for training, initial active duty for training, and inactive duty training (such as drills), under competent authority, on a voluntary or involuntary basis, in the Army, Navy, Marine Corps, Air Force, Coast Guard, Public Health Service Commissioned Corps, the Army National Guard, the Air National Guard, the Maryland National Guard, as well as the reserve components of each of these services, and any other category of persons designated by the President or the Governor of the State of Maryland in time of war or national or state emergency.

(iii) USERRA.

"USERRA" means the Uniformed Services Employment and Reemployment Rights Act of 1994, 38 U.S.C. §§ 4301-4344, as amended.

(2) Scope of subsection.

This subsection applies only to a member of this System who:

(i) on account of military service, is on leave of absence from City employment;

(ii) is eligible for reemployment with the City under USERRA;

(iii) is reemployed by the City as an employee; and

(iv) applies for service credit with this System.

(3) Service credit.

(i) Period covered.

A member of this System shall receive service credit for the period of absence while in military service as though he or she remained continuously employed as an employee.

(ii) USERRA-required inclusion.

To the extent required by USERRA, this service credit shall include the period, if any, between the date the member completes military service and the date of reemployment.

(4) Transfer of service credit.

A member of this System who receives service credit for military service under this subsection may transfer the credit to another State or local retirement or pension system within Maryland.

(5) Benefits unavailable during absence.

A member of this System, the member's beneficiary, or the member's estate is not entitled to line-of-duty disability benefits or line-of-duty death benefits arising from the member's death or disability during a period that the member is absent from employment for military service.

(6) City funding of member contributions.

(i) In general.

Except as otherwise provided in subparagraph (ii) of this paragraph, a member of this System who is reemployed under paragraph (2) of this subsection shall be credited with, at the City's sole expense, the contributions that the member otherwise would have made under § 8(d)(1) of this subtitle had the member not been absent, plus regular interest (as defined in § 1(9)(i)(B) of this subtitle) on those contributions.

(ii) Exception for termination before benefit eligibility.

(A) If a member terminates City employment, other than by reason of death, before becoming eligible for a retirement benefit or for a deferred vested pension benefit under this section, the member is not entitled to receive any part of the contributions made on his or her behalf under subparagraph (i) of this paragraph.

(B) However, the contributions made on behalf of a member will be used to fund a retirement benefit or a deferred vested pension benefit payable to the member under this section.

1. will be used to fund a periodic death benefit payable to the member's beneficiary under this section; or

2. if the member's beneficiary is entitled to receive a lump-sum death benefit under this section, will be paid to the beneficiary.

(iii) Refunds.

The Board of Trustees shall refund to a member any contributions made to this System during a period of absence from employment for military service while the member is otherwise exempted under this paragraph from paying contributions into this System.

(d-1) Military personnel – Credit for military service before employment.

(1) Eligibility requirements.

Subject to paragraph (2) of this subsection, but notwithstanding any other provision of this subtitle, on proper application to this System, up to 3 years of credit shall be granted for military service, as defined in subsection (d) of this section, to any Class C member who has served in the military prior to employment with the City and who satisfies one of the following:

(i) for a member who terminates employment on or before June 28, 1993, the member:

(A) has acquired at least 10 years of service (disregarding the military service credit) and has attained at least age 65; or

(B) has acquired 35 years of service (disregarding the military service credit) and has attained at least age 62;

(ii) for a member who terminates employment on or after June 29, 1993, and on or before December 31, 1995, the member:

(A) has acquired at least 10 years of service (disregarding the military service credit) and has attained at least age 62; or

(B) has acquired 30 or more years of service (disregarding the military service credit), regardless of age; or

(iii) for a member who terminates employment on or after January 1, 1996, the member:

(A) has acquired at least 10 years of service (disregarding the military service credit) and has attained at least age 62; or

(B) has acquired 20 or more years of service (disregarding the military service credit), regardless of age.

(2) Exclusion for period credited under another system.

(i) Except as provided in subparagraph (ii) of this paragraph, the member may not receive credit for a period of military service if, under any other retirement system (whether a City retirement plan or otherwise), the member has received credit for the same period of military service for which retirement benefits have been or will be received by him or her.

(ii) The exclusion in subparagraph (i) of this paragraph does not apply to:

(A) any credit for military service provided by the federal Social Security System; or

(B) any benefit provided under Title 10, Chapter 1223, § 12731 through § 12741 of the U.S. Code.

(d-2) Service retirement benefits.

(1) Types.

The following types of service retirement benefits are available to a Class C member under this System:

(i) normal retirement benefits, as described in subsection (e) of this section;

(ii) early retirement benefits, as described in subsection (f) of this section; and

(iii) deferred vested pension benefits, as described in subsection (l) of this section.

(2) Application and filing period.

A Class C member in service may retire under subsection (e), (f), or (l) of this section if:

(i) the member files the appropriate application with the Board of Trustees, in the form and containing the information that the Board requires;

(ii) the member specifies on the form the date on which the member desires his or her benefits to commence;

(iii) the date so specified is not less than 30 days nor more than 90 days after the date of filing the application; and

(iv) as of the date so specified, the member will have complied with the applicable conditions of the retirement benefit applied for.

(e) Normal retirement.

(1) Normal retirement for any Class C member employed on or after June 29, 1989, and who terminates employment on or before June 28, 1993.

This § 9(e)(1) shall not apply to Class C members who became employees after June 27, 1991. Any Class C member, who has acquired at least 5 years of service at the normal retirement date of age 65, shall have a nonforfeitable right to receive a maximum pension commencing at the normal retirement date, age 65, or an optional pension which shall be the actuarial equivalent of the maximum pension as provided in § 9(m). In addition, any Class C member who has not attained the normal retirement date of age 65, but who has acquired 30 years of service and has attained the age of at least 62, shall be entitled to receive a maximum pension calculated as if the member had attained his normal retirement date, age 65. The maximum pension shall be equal to 1.85% of the member's average final compensation multiplied by his years of service (and fractions thereof) reduced by 1.33% of the member's Primary Social Security Benefit multiplied by his years of service (and fractions thereof) not to exceed 30. However, for members who terminate employment with the City before June 29, 1990, the preceding sentence shall be read by substituting "1.84%" for "1.85%", and by substituting "1.37%" for "1.33%".

Effective June 28, 1992, the maximum pension for any Class C member who was an employee on or after June 28, 1991, and who is eligible to retire under the above paragraph shall be the greater of the retirement benefit provided in § 9(e)(1) or § 9(e)(4).

(2) Normal retirement for any Class C member employed on or after July 1, 1987, and who terminated employment on or before June 28, 1989.

Any Class C member, who has acquired at least 5 years of service at the normal retirement date of age 65, shall have a nonforfeitable right to receive a maximum pension commencing at the normal retirement date, age 65, or an optional pension which shall be the actuarial equivalent of the maximum pension as provided in § 9(m). In addition, any Class C member who has not attained the normal retirement date of age 65, but who has acquired 30 years of service and has attained the age of at least 62, shall be entitled to receive a maximum pension calculated as if the member had attained his normal retirement date, age 65. The maximum pension shall be equal to 1.70% of the member's average final compensation multiplied by his years of service (and fractions thereof), reduced by 1.5% of the member's Primary Social Security Benefit multiplied by his years of service (and fractions thereof) not to exceed 30.

(3) {Vacant}

(4) Normal retirement for any Class C member employed on or after June 28, 1991, and who terminates employment on or before June 28, 1993.

Members who became employees on or after June 28, 1991, and who terminate employment on or before June 28, 1993, shall have their retirement benefit determined under this § 9(e)(4) without regard to § 9(e)(1). Any Class C member, who has acquired at least 5 years of service at the normal retirement date of age 65, shall have a nonforfeitable right to receive a maximum pension commencing at the normal retirement date, age 65, or an optional pension which shall be the actuarial equivalent of the maximum pension as provided in § 9(m). In addition, any Class C member who has not attained the normal retirement date of age 65, but acquired 30 years of service and has attained the age of at least 62, shall be entitled to receive a maximum pension calculated as if the member had attained his normal retirement date, age 65. The maximum pension shall be equal to: (a) 1.425% of the member's average final compensation plus 0.425% of the member's average final compensation in excess of his covered compensation, multiplied by his years of service (and fractions thereof) not in excess of 30, plus (b) 1.85% of the member's average final compensation multiplied by his years of service (and fractions thereof) in excess of 30. For members who retire on or after June 28, 1991, and before June 28, 1992, the preceding sentence shall read by substituting "1.40%" for "1.425%" and by substituting "0.45%" for "0.425%". The maximum pension benefit provided by this § 9(e)(4) shall be taken into account when determining the benefit to which a member is entitled under § 9(f) (early retirement), § 9(h) (postponed retirement), § 9(i) (ordinary disability retirement) and § 9(l) (termination of employment). This § 9(e)(4) is subject to the offset set forth in § 9(e)(3) above.

Effective June 28, 1992, the maximum pension for any Class C member who was an employee on or after June 28, 1991, and who is eligible to retire under § 9(e)(1) shall be the greater of the retirement benefit provided in § 9(e)(1) or § 9(e)(4).

(5) Normal retirement for Class C member who was an employee on or after June 29, 1993, and who terminates employment on or before March 31, 2001.

Notwithstanding anything to the contrary, any Class C member, who has acquired at least 5 years of service at the normal retirement date of age 65, shall have a nonforfeitable right to receive a maximum pension commencing at the normal retirement date, age 65, or an optional pension as provided in § 9(m), which shall be the actuarial equivalent of the maximum pension. In addition, any Class C member who has not attained the normal retirement age 65, but who has acquired 30 years or more of service, regardless of age, shall be entitled to receive a maximum or optional pension calculated as if the member had attained his normal retirement date, age 65. The maximum pension shall be equal to: (a) 1.50% of the member's average final compensation, plus 0.35% of the member's average final compensation in excess of his covered compensation, multiplied by his years of service (and fractions thereof) not in excess of 30, plus (b) 1.85% of the member's average final compensation multiplied by his years of service (and fractions thereof) in excess of 30. The benefit provided by this § 9(e)(5) is subject to the offset set forth in § 9(e)(3) above.

(6) Normal retirement for Class C member who was an employee on or after April 1, 2001.

(i) Eligibility requirements.

Notwithstanding any other provision of this subtitle, a Class C member is entitled to receive a normal retirement benefit, calculated as provided in subparagraph (ii) of this paragraph, if the member retires:

(A) at or after age 65, with at least 5 years of service; or

(B) regardless of age, with at least 30 years of service.

(ii) Benefit calculation.

The normal retirement benefit is equal to:

(A) 1.60% of the member's average final compensation, plus 0.25% of the member's average final compensation in excess of his or her covered compensation, multiplied by his or her years of service (and fractions of those years of service), not in excess of 30, plus

(B) 1.85% of the member's average final compensation multiplied by his or her years of service (and fractions of those years of service) in excess of 30.

(iii) Payment.

Payment of the benefit commences on the 1^st day of the month immediately following the member's retirement.

(f) Early retirement.

(1) In general.

(i) Eligibility requirements.

A Class C member is entitled to receive an early retirement benefit, calculated as provided in subparagraph (ii) of this paragraph, if the member terminates employment with the City:

(A) on or before June 28, 1993, with at least 30 years of service; or

(B) at any time, at or after age 55, with at least 5 years of service.

(ii) Benefit calculation.

The early retirement benefit shall be determined as provided in subsection (e)(6)(ii) of this section based on the member's average final compensation and years of service (and fractions of those years of service) as of the date the member terminates employment.

(iii) Payment.

Except as provided in paragraph (2) of this subsection, payment of the benefit commences on the 1^st day of the month immediately following the member's 65^th birthday.

(2) Reduction for early commencement.

If a member described in paragraph (1) of this subsection elects to have his or her early retirement benefit commence before the 1^st day of the month immediately following his or her 65^th birthday, the amount of the benefit shall be reduced as follows:

(i) 30 or more years of service and employed on or after July 1, 1987.

(a) If a member who was an employee on or after July 1, 1987, but not after June 28, 1989, has at least 30 years of service as of the date he ceased being an employee, the amount of his pension shall be reduced by 0.25% for each full month (or fraction thereof) by which the commencement of his pension precedes his normal retirement date, age 65.

(b) If a member who was an employee on or after June 29, 1989, but not after June 27, 1991, has at least 30 years of service as of the date he ceased being an employee, the amount of his pension shall be reduced by 0.17% for each full month (or fraction thereof) by which the commencement of his pension precedes his normal retirement date, age 65. However, for members who terminate employment with the City before June 29, 1990, the preceding sentence shall be read by substituting "0.21%" for "0.17%".

(c) If a member who was an employee on or after June 28, 1991, and who terminates employment on or before June 28, 1993, has at least 30 years of service as of the date he ceased being an employee, the amount of his pension shall be reduced by 0.17% for each full month (or fraction thereof) by which the commencement of his pension precedes his 62^nd birthday. The provisions of this § 9(f)(2)(i)(c) become effective June 28, 1992.

(ii) Less than 30 years of service and employed on or after July 1, 1987.

If a member who was an employee on or after July 1, 1987, has less than 30 years of service as of his or her termination of employment date and elects to have his or her pension commence before the 1^st day of the month immediately following his or her 65^th birthday, the amount of his or her benefit shall be reduced by:

(A) 1/180 for each of the first 60 months (or fraction of a month) by which commencement of the member's pension precedes the 1^st day of the month immediately following his or her 65^th birthday; and

(B) 1/360 for each additional month (or fraction of a month) by which commencement of the member's pension precedes the 1^st day of the month immediately following his or her 65^th birthday.

(iii) Employed prior to July 1, 1987.

A member who ceased being an employee prior to July 1, 1987, shall have his maximum or optional pension calculated according to Ordinance 79-1055. If said member elects to have his maximum or optional pension commence prior to normal retirement date, age 65, his maximum or optional pension shall be actuarially reduced based upon the unisex table approved by the Board of Trustees and known as "The Actuarial Reduction for Early Payment Class C Members Only Table, effective August 1, 1983."

(3) Retirement on account of job removal.

(i) Scope of paragraph.

(A) This paragraph will be applied exclusively upon receipt by the system of a written determination from the agency head of a member of this system, which is countersigned by an appropriate designee of: (1) the Office of the Mayor, (2) the Director of Human Resources, or (3) the Department of Law, confirming consultation by the agency head with each of the three designees and certifying one of the following criteria for a job removal retirement benefit:

1. the member is being laid off without fault on his or her part due to a reduction in force or diminished need for the services performed by the holder of such position and is not being removed for poor performance in the job,

2. in the case of an exempt member working in an "at will" position not covered by civil service, the member is being removed from his or her position without fault on his or her part, at the initiation of the agency and pursuant to its absolute discretion, and is not being removed for poor performance in the job,

3. the member is being removed from his or her position without fault on his or her part due to physical or mental incapacity,

4. the member is being removed from his or her position without fault on his or her part and the mutual best interests of the agency and the member would be served through the removal insofar as the removal will resolve a personnel or disciplinary dispute between the agency and the member, or

5. the member is being removed from his or her position without fault on his or her part and the mutual best interests of the agency and the member would be served through the removal, the agency head so certifies in good faith, and the member represents in writing to the agency and to the system that, as of the date of the certification, he or she has not been offered, has not accepted, and has not been given assurances of other employment.

(B) An agency head's determination and a member's representations under this paragraph shall be maintained as public records, open to public inspection, and are not confidential personnel or retirement records.

(ii) Job removal retirement benefit.

A Class C member who satisfies the requirements of subparagraph (i) of this paragraph before age 65 and with at least 20 years of service is entitled to receive a retirement benefit based on his or her actual years of service credit and equal to the benefit the member would receive if he or she had attained age 65. Accordingly, the reduction described in paragraph (2) of this subsection does not apply.

(g) - (h) {Vacant}

(i) Non-line-of-duty disability retirement benefit.

(1) Eligibility requirements.

A Class C member is entitled to retire on a non-line-of-duty disability retirement if:

(i) the member has acquired at least 5 years of service, as determined by the Board of Trustees; and

(ii) a hearing examiner determines that:

(A) the member is mentally or physically incapacitated from the further performance of the duties of her or his job classification; and

(B) the incapacity is likely to be permanent.

(2) Application and filing deadline.

To retire under this subsection, the member must:

(i) complete the appropriate application, in the form and containing the information required by subsection (p)(4) of this section; and

(ii) submit the application to the Board no later than 1 year following the member's last day of City employment.

(3) Effective date of retirement.

A non-line-of-duty disability retirement takes effect as follows:

(i) if the member applied for disability retirement before terminating City employment, the retirement is effective as of the 1^st day of the month immediately following the member's last day of City employment; and

(ii) if the member applied for disability retirement after terminating City employment, the retirement is effective as of the 1^st day of the month immediately following the 30^th day after the date on which the Board received a completed application.

(4) Benefit – Retirement on or before October 15, 1992.

(i) Upon retirement for non-line-of-duty disability on or before October 15, 1992, a member who has not attained the age of 60 is entitled to receive a maximum pension equal to the pension determined in accordance with § 9(e) as if he or she remained employed by the City until the normal retirement date, age 65, multiplied by the greater of:

(A) a fraction, the numerator of which is the number of years (and fractions thereof) of the member's service prior to the time he or she ceased to be employed by the City, and the denominator of which is the number of years (and fractions thereof) of service that the member would have had if he or she had continued to be employed by the City until normal retirement date, age 65; or

(B) ½.

(ii) However, the non-line-of-duty disability benefit provided for by this subsection may not be greater than the early retirement benefit a member would be entitled to receive at age 60, as if he or she remained employed until that time, and based upon the assumption that there would be no change in his or her average final compensation.

(5) Benefit – Retirement on or after October 16, 1992.

On retirement on or after October 16, 1992, the Class C member is entitled to receive a pension equal to the greater of:

(i) the member's accrued service retirement benefit, calculated as provided in subsection (e)(6)(ii) of this section; or

(ii) 15% of the member's average final compensation.

(6) Offsets for Worker's Compensation benefits.

(i) On or before March 31, 2001.

Effective with the date beginning 5 years prior to the date of the member's retirement on non-line-of-duty disability, the full amount of any past or future benefit or payment that may be paid or payable by the City of Baltimore under any Workers' Compensation or similar law for any permanent disability, whether partial or total, or for death shall be offset from any non-line-of-duty disability retirement benefit payable by the City on or before March 31, 2001. The benefits under the Workers' Compensation or similar law shall be offset dollar-for-dollar, pro tanto, from the benefits otherwise payable from funds provided by the City under this subtitle, and the benefits so reduced shall be payable under this subtitle.

(ii) On or after April 1, 2001.

Workers' Compensation benefits shall be offset against non-line-of-duty disability benefits paid on or after April 1, 2001, in accordance with subsection (o-4) of this section.

(j) Line-of-duty disability retirement benefit.

(1) Eligibility requirements.

A Class C member is entitled to retire on a line-of-duty disability retirement if a hearing examiner determines that:

(i) the member is permanently incapacitated from the further performance of the duties of his or her City job classification due to 1 or more of the impairments described in paragraph (5) of this subsection; and

(ii) the member's impairment:

(A) is, independent of all other causes and independent of any preexisting physical or medical conditions, whether job-related or otherwise, the direct result of bodily injury arising through an accident; and

(B) the accident occurred:

1. while the member was in the actual performance of his or her City duties at some definite time and place; and

2. without willful negligence on the member's part.

(2) Application and filing deadline.

To retire under this subsection, the member must:

(i) complete the appropriate application, in the form and containing the information required by subsection (p)(4) of this section; and

(ii) submit the application to the Board:

(A) no later than 1 year following the member's last day of City employment; and

(B) within 5 years of the date of the accident resulting in the member's impairment.

(3) Effective date of retirement.

A line-of-duty disability retirement takes effect as follows:

(4) Benefit on retirement.

(i) On retirement, the Class C member is entitled to receive a pension equal to 66⅔% of the member's average final compensation.

(ii) If a Class C member is not eligible for line-of-duty disability benefits solely because the degree of impairment does not meet the conditions of paragraph (5) of this subsection, a non-line-of-duty benefit will be paid under subsection (i) of this section, regardless of the member's years of service, as long as the member otherwise qualifies for non-line-of-duty disability retirement under that subsection.

(5) Disability loss requirements.

(i) Awards on or before March 31, 2001.

The award of a line-of-duty disability retirement benefit on or before March 31, 2001, requires:

(A) a 75% or more anatomical loss of the use of any 1 of the impaired items listed in subparagraph (iii) of this paragraph; or

(B) a 50% or more anatomical loss of the use of each of 2 or more of the impaired items listed in subparagraph (iii) of this paragraph.

(ii) Awards on or after April 1, 2001.

The award of a line-of-duty disability retirement benefit on or after April 1, 2001, requires:

(A) a 50% or more anatomical loss of the use of any 1 of the impaired items listed in subparagraph (iii) of this paragraph; or

(B) a 25% or more anatomical loss of the use of each of 2 or more of the impaired items listed in subparagraph (iii) of this paragraph.

(iii) Schedule of impaired items.

The schedule of impaired items is as follows:

(1) speech

(2) sight

(3) neck

(4) back

(5) vital bodily organ

(6) a part of the central nervous system

(7) arm

(8) leg

(9) shoulder

(10) hearing

(11) mental incapacitation for which a member has been granted a disability benefit under the federal Social Security System.

(6) Offsets for Workers' Compensation benefits.

(i) On or before March 31, 2001.

Effective with the date beginning 5 years prior to the date of the accident that qualified the member for line-of-duty disability retirement benefits under this section, the full amount of any past or future benefit or payment that may be paid or payable by the City of Baltimore under any Workers' Compensation or similar law for any permanent disability, whether partial or total, or for death shall be offset from any line-of-duty disability retirement benefit payable by the City on or before March 31, 2001. The benefits under the Workers' Compensation or similar law shall be offset dollar-for-dollar, pro tanto, from the benefits otherwise payable from funds provided by the City under this subtitle, and the benefits so reduced shall be payable under this subtitle.

(ii) On or after April 1, 2001.

Workers' Compensation benefits shall be offset against line-of-duty disability benefits paid on or after April 1, 2001, in accordance with subsection (o-4) of this section.

(k) Dismemberment disability retirement benefits.

(1) Eligibility requirements.

A Class C member is entitled to retire on a dismemberment disability retirement if a hearing examiner determines that:

(i) the member sustained any 1 of the losses listed in paragraph (5) of this subsection;

(ii) the member sustained the loss, independent of all other causes, as the direct result of bodily injury arising through an accident; and

(iii) the accident occurred:

(A) while the member was in the actual performance of his or her City duties at some definite time and place;

(B) without willful negligence on the member's part; and

(2) Application and filing deadline.

To retire under this subsection, the member must:

(i) complete the appropriate application, in the form and containing the information required by subsection (p)(4) of this section; and

(ii) submit the application to the Board:

(A) no later than 1 year following the member's last day of City employment; and

(B) within 5 years of the date of the accident resulting in the member's loss.

(3) Effective date of retirement.

A dismemberment disability retirement takes effect as follows:

(4) Benefit on retirement.

On retirement, the Class C member is entitled to receive a pension equal to 100% of the member's average final compensation. In no event, however, will more than 100% of average final compensation be paid for all losses sustained by a member as the result of any one accident.

(5) Schedule of losses.

(i) Both hands or both feet

(ii) 1 hand and 1 foot

(iii) 1 hand and sight of 1 eye

(iv) 1 foot and sight of 1 eye

(v) Sight of both eyes

(6) Definitions.

(i) With respect to hands or feet, "loss" means dismemberment by severance at or above the wrist or ankle joint.

(ii) With respect to "sight of 1 eye", loss means central visual acuity of 20/200 or less in 1 eye with the use of correcting lenses, or visual acuity of greater than 20/200 if accompanied by a limitation in the field of vision such that the widest diameter of the visual field subtends an angle no greater than 20 degrees.

(iii) With respect to"sight of both eyes", loss means central acuity of 20/200 or less in the better eye with the use of correcting lenses, or visual acuity greater than 20/200 if accompanied by a limitation in the field of vision such that the widest diameter of the visual field subtends an angle no greater than 20 degrees.

(7) Offsets for Workers' Compensation benefits.

(i) On or before March 31, 2001.

Effective with the date beginning 5 years prior to the date of the accident that qualified the member for dismemberment disability retirement benefits under this section, the full amount of any past or future benefit or payment that may be paid or payable by the City of Baltimore under any Workers' Compensation or similar law for any permanent disability, whether partial or total, or death shall be offset from any dismemberment disability retirement benefit payable by the City on or before March 31, 2001. The benefits under the Workers' Compensation or similar law shall be offset dollar-for-dollar, pro tanto, from the benefits otherwise payable from funds provided by the City under this subtitle, and the benefits so reduced shall be payable under this subtitle.

(ii) On or after April 1, 2001.

Workers' Compensation benefits shall be offset against dismemberment disability benefits paid on or after April 1, 2001, in accordance with subsection (o-4) of this section.

(l) Deferred vested pension.

(1) Eligibility requirements; Benefit calculations.

(i) This paragraph (1) applies to any Class C member who terminates City employment:

(A) before attaining age 55 and after acquiring 10 years of service; or

(B) after attaining age 55 and acquiring 5 years of service, but without having elected an immediate early retirement benefit under subsection (f) of this section.

(ii) A member described in subparagraph (i) of this paragraph is entitled to receive, commencing on the 1^st day of the month immediately following his or her 65^th birthday, a deferred vested pension benefit calculated in accordance with the following rules:

(A) The pension shall be calculated as provided in subsection (e)(6)(ii) of this section based on the member's average final compensation and years of service (and fractions of years of service) as of the date the member terminated employment.

(B) The member may elect to have payment of this benefit commence at any time after the member has attained age 55 and before the 1^st day of the month immediately following the member's 65^th birthday. If the member does so:

1. the benefit shall be actuarially reduced in accordance with the same rules applicable to early retirement benefits under subsection (f)(2) of this section; and

2. if the member dies before the deferred vested benefit commences, then no benefits are payable except for the return of the member's accumulated contributions, if any.

(2) Exception for job removal.

(i) This paragraph (2) applies to any Class C member who, before attaining age 55 and after acquiring 5 years of service, satisfies the conditions set forth in subsection (f)(3)(i)(A) of this section.

(ii) A member described in subparagraph (i) of this paragraph (2) is entitled to receive, commencing on the 1^st day of the month immediately following his or her 65^th birthday, a deferred vested pension benefit calculated in accordance with sub-subparagraphs (A) and (B) of paragraph (1)(ii) of this subsection.

(m) Method of payment.

(1) Maximum retirement allowance.

(i) In general.

A Class C member who is eligible to receive a retirement benefit under this subtitle is entitled to receive, without actuarial modification, the full benefit for which she or he is qualified, payable in periodic payments during the retired member's lifetime (the "maximum retirement allowance").

(ii) Retired member's death – In general.

As of the 1^st day of the month immediately after the death of a retired member who is receiving this maximum retirement allowance, the following beneficiaries are entitled to receive periodic payments in an amount equal to 40% of the periodic payment that the retired member was receiving at the time of her or his death:

(A) if the retired member is survived by a spouse to whom the retired member was married for at least 1 year immediately before the member's retirement date, the benefit shall be paid to the surviving spouse, to continue for the spouse's lifetime or until the spouse remarries before age 70; or

(B) if there is no qualifying surviving spouse or if the surviving spouse remarries before age 70 or dies, then the benefit shall be paid to the surviving spouse's minor children, in equal shares, to continue until the children are no longer minors, as defined in § 1(5) of this article.

(iii) Retired member's death – Share of minor child who attains majority.

For purposes of subparagraph (ii)(B) of this paragraph, when a retired member's child is no longer a minor and consequently ceases to receive benefits, each remaining minor child shall begin to receive, in addition to his or her existing benefit, an equal share of the benefit formerly paid to the other child. This process continues until the youngest child is no longer a minor.

(iv) Retired member's death – Before contributions recovered.

If a retired member who is receiving the maximum retirement allowance dies before the member has received benefit payments in a sum equal to the amount of his or her accumulated contributions at the time of retirement, and if there is no surviving spouse or minor child entitled to receive benefits on the member's death, the difference between the amount of the deceased member's accumulated contributions and the sum of the benefit payments shall be paid in the form of a lump-sum cash payment as follows:

(A) to the deceased member's designated beneficiary; or

(B) if no beneficiary has been designated or if the designated beneficiary predeceases the retired member, to the deceased member's estate.

(2) Benefit options.

(i) In general.

(A) Instead of the maximum retirement allowance provided for in paragraph (1) of this subsection, a Class C member who is entitled to receive a retirement benefit from this System may elect to receive the benefit in the form of 1 of the options set forth in subparagraphs (ii) through (v) of this paragraph.

(B) A member who elects to receive 1 of these options will receive his or her benefit in the form of periodic payments during her or his lifetime.

(C) The member's benefit shall be in an amount that, when combined with the corresponding survivorship benefit under the option elected, will equal the actuarial equivalent of the retired member's maximum retirement allowance, computed as of his or her retirement date.

(ii) Reserve guarantee option.

(A) As soon as administratively practicable after the death of a retired member who elected this reserve guarantee option, the balance of the present value of the retired member's benefit at retirement, after deducting the total amount of periodic payments received by the retired member during his or her lifetime, shall be paid in the form of a lump-sum cash payment as follows:

1. to the retired member's designated beneficiary; or

2. if no beneficiary has been designated or if the designated beneficiary predeceases the retired member, to the retired member's estate.

(B) A member who elects this option may change his or her designated beneficiary at any time throughout the member's retirement.

(iii) Joint-and-survivor option.

(A) As of the 1^st day of the month immediately after the death of a retired member who elected this joint-and-survivor option, the member's designated beneficiary is entitled to receive periodic payments during the beneficiary's lifetime in either of the following amounts, as elected by the member:

1. 100% of the periodic payment that the retired member was receiving at the time of his or her death; or

2. 50% of the periodic payment that the retired member was receiving at the time of his or her death.

(B) A member who elects this option may change her or his designated beneficiary within 30 days after the member's retirement date.

(C) If the designated beneficiary predeceases the retired member within 30 days after the retirement date, the retired member may designate a new beneficiary within 30 days of the designated beneficiary's death.

(D) If the designated beneficiary predeceases the retired member within 30 days after the retirement date and the retired member does not designate a new beneficiary within 30 days after the designated beneficiary's death or if the designated beneficiary dies on or after the 31^st day following the retirement date:

1. the retired member continues during his or her lifetime to receive periodic payments in the same amount that the member has been receiving;

2. no other beneficiary may be designated; and

3. on the retired member's death, no survivorship benefit is payable.

(iv) "Pop-up" joint-and-survivor option.

(A) As of the 1^st day of the month immediately after the death of a retired member who elected this "pop-up" joint-and-survivor option, the member's designated beneficiary is entitled to receive periodic payments during the beneficiary's lifetime in either of the following amounts, as elected by the member:

1. 100% of the periodic payment that the retired member was receiving at the time of his or her death; or

2. 50% of the periodic payment that the retired member was receiving at the time of his or her death.

(B) A member who elects this option may change her or his designated beneficiary within 30 days after the member's retirement date.

(C) If the designated beneficiary predeceases the retired member within 30 days after the retirement date, the retired member may designate a new beneficiary within 30 days after the designated beneficiary's death.

1. the retired member commences, as of the 1^st day of the month immediately following the designated beneficiary's death, to receive the maximum retirement allowance, payable in periodic payments during the retired member's lifetime;

2. no other beneficiary may be designated; and

3. on the retired member's death, no survivorship benefit is payable, whether under this option or the maximum retirement allowance.

(v) Specific benefit option.

(A) Subject to the approval required by sub-subparagraph (B) of this subparagraph, on the death of a retired member who elected this specific benefit option, the member's designated beneficiary is entitled to receive the following, as elected by the member before the member's retirement date:

1. a specific lump-sum cash payment, payable as soon as administratively practicable after the retired member's death; or

2. a specific periodic benefit, payable to the designated beneficiary during his or her lifetime, effective as of the 1^st day of the month immediately after the retired member's death.

(B) This benefit option must be approved, at the time of the member's retirement, by the Board of Trustees pursuant to the recommendation of this System's actuary.

(C) A member who elects this option may change her or his designated beneficiary within 30 days after the member's retirement date.

(D) If the designated beneficiary predeceases the retired member within 30 days after the retirement date, the retired member may designate a new beneficiary within 30 days after the designated beneficiary's death.

(E) If the designated beneficiary predeceases the retired member within 30 days after the retirement date and the retired member does not designate a new beneficiary within 30 days after the designated beneficiary's death or if the designated beneficiary dies on or after the 31^st day after the retirement date:

1. the retired member continues during his or her lifetime to receive periodic payments in the same amount that the member has been receiving;

2. no other beneficiary may be designated; and

3. on the retired member's death, no survivorship benefit is payable.

(3) Change of election within 30 days.

(i) A retired member may elect to make the changes authorized in this paragraph on or before the later of:

(A) the 30^th day after the retired member's retirement date; or

(B) if the retired member's designated beneficiary predeceases the retired member within 30 days after the retirement date, the 30^th day after the designated beneficiary's death.

(ii) Within the periods specified, the retired member may elect to change:

(A) the retired member's maximum retirement allowance under paragraph (1) of this subsection to any one of the benefit options under paragraph (2) of this subsection;

(B) the retired member's election of a benefit option under paragraph (2) of this subsection to the maximum retirement allowance under paragraph (1) of this subsection; or

(C) the retired member's election of a benefit option under paragraph (2) of this subsection to any other benefit option under paragraph (2) of this subsection.

(iii) Any payments made to a retired member under the original election shall be taken into account in computing the benefit to be paid under the subsequent election.

(4) {Vacant}

(5) Election to receive lump-sum payment.

(i) A Class C member who terminates City employment may elect to receive the present value of the member's total pension benefit, in a lump-sum cash payment, if:

(A) the member is entitled to a service retirement benefit under subsection (d-2)(1) of this section; and

(B) the present value of the total pension benefit is no more than the greater of:

1. $12,500; or

2. an amount that is calculated by this System's actuary to reflect any increases in the average salary of active members and that is approved by the Board of Trustees.

(ii) A member who receives a lump-sum cash payment under this paragraph ceases to be entitled to any other benefits from this System.

(iii) If a Class C member is entitled to receive both a service retirement benefit under subsection (d-2)(1) of this section and a disability retirement benefit under subsections (i), (j), or (k) of this section, the member may waive his or her rights to the disability benefit and elect to receive a lump-sum cash payment under this paragraph.

(iv) The present value of the benefit payable under this paragraph shall be calculated as of the date the member terminates City employment, using actuarial assumptions as of that date approved by the Board of Trustees pursuant to the recommendation of this System's actuary.

(6) {Vacant}

(7) Return of accumulated contributions.

(i) Termination of employment - General.

(A) If a Class C member terminates employment with the City for more than 30 consecutive days, other than by reason of death, before becoming eligible for a retirement benefit or a deferred vested pension benefit under this section, the member may elect to receive the value of his or her accumulated contributions (with regular interest credited through the date of termination), payable in the form of a lump-sum cash payment.

(B) Notwithstanding sub-subparagraph (A) of this subparagraph, if the value of a terminating member's accumulated contributions (with regular interest credited through the date of termination) is $1,000 or less and the member does not elect to have the accumulated contributions paid in a direct rollover, the accumulated contributions will be paid directly to the member in a lump-sum cash payment as soon as administratively practicable following the expiration of the time period for making a direct rollover election.

(ii) Termination of employment – Death.

If a Class C member dies while actively employed, his or her accumulated contributions will be used to fund a periodic death benefit payable to the member's beneficiary under subsections (o-1) or (o-2) of this section or will be paid to the member's beneficiary if the beneficiary is entitled to receive a lump-sum death benefit under subsections (o-1) or (o-2) of this section.

(n) Reemployment.

(1) After becoming eligible for certain benefits.

(i) Reemployment on or before June 30, 2014.

If a Class C member terminates City employment on or after July 1, 1979, after becoming eligible for a retirement benefit or a deferred vested pension benefit under this section, and is subsequently reemployed as an employee on or before June 30, 2014, the employee:

(A) must, as of his or her reemployment with the City, cease or postpone receiving any retirement benefits from this System; and

(B) immediately on reemployment:

1. will again become a Class C member; and

2. will be credited with his or her prior Class C service.

(ii) Reemployment on or after July 1, 2014.

The status of a Class C member who terminates City employment on or after July 1, 1979, after becoming eligible for a retirement benefit or a deferred vested pension benefit under this section, and who is subsequently reemployed as an employee on or after July 1, 2014, is determined in accordance with § 9.2(l)(2)(i) and (ii) of this article.

(2) Before becoming eligible for certain benefits – Class C members.

(i) Reemployment on or before June 30, 2014.

A Class C member who terminates City employment for more than 30 consecutive days on or after July 1, 1979, before becoming eligible for a retirement benefit or a deferred vested pension benefit under this section, and who is subsequently reemployed as an employee on or before June 30, 2014, and before the expiration of a time period equal to the parity time period defined in § 1(28) of this article:

(A) will again, on the 1^st annual anniversary of his or her reemployment, become a Class C member; and

(B) immediately on reemployment, will be credited with his or her prior Class C service.

(ii) Reemployment on or after July 1, 2014.

The status of a Class C member who terminates City employment on or after July 1, 1979, before becoming eligible for a retirement benefit or a deferred vested pension benefit under this section, and who is subsequently reemployed as an employee on or after July 1, 2014, is determined in accordance with § 9.2(l)(2)(iii)-(vi) of this article.

(3) Before becoming eligible for certain benefits – Class A and B members.

A Class A or Class B member who terminates City employment for more than 30 consecutive days and who is subsequently reemployed as an employee on or after July 1, 1979, and before the expiration of a time period equal to the parity time period defined in § 1(28) of this article:

(i) will, on the 1^st annual anniversary of his or her reemployment, become a Class C member; and

(ii) immediately on reemployment, will be credited with his or her prior Class A or Class B service credit and the service credit he or she would have been eligible to receive on reemployment, whether by purchase or repurchase or by transfer of applicable funds, had he or she continued his or her previous City employment and Class A or Class B membership.

(o-1) Non-line-of-duty death benefits.

(1) Scope of subsection.

This subsection (o-1) applies to a member who dies while actively employed, but whose death does not qualify under subsection (o-2) as a line-of-duty death benefit.

(2) Lump-sum death benefit.

(i) "Beneficiary" defined.

In this paragraph, "beneficiary" means the member's designated beneficiary or surviving spouse, children, or parents, as qualified and prioritized under subparagraph (v)(A)-(D) of this paragraph.

(ii) Eligibility requirements.

The beneficiary is entitled to a lump-sum benefit under this paragraph only if:

(A) the member had acquired 1 or more years of service; and

(B) no benefits are paid under paragraphs (3) or (4) of this subsection.

(iii) Application and filing deadline.

To receive this benefit, the beneficiary must:

(A) complete the appropriate application in the form and containing the information, including proof of death, that the Board requires; and

(B) submit the application to the Board on or before the 60^th day after the Board has provided a post-death notice of this benefit to the beneficiary.

(iv) Amount of benefit.

The lump-sum amount shall equal:

(A) any accumulated contributions of the deceased member; and

(B) 50% of the greater of the member's current annual compensation or the member's average final compensation on the date of the member's death.

(v) Qualifications and priorities of potential beneficiaries.

The lump-sum amount shall be paid as follows:

(A) to the member's designated beneficiary;

(B) if there is no designated beneficiary or if the designated beneficiary predeceases the member, to the member's surviving spouse;

(D) if there is no designated beneficiary, surviving spouse, or surviving child, to the member's surviving parents, in equal shares; and

(E) otherwise, to the member's estate.

(3) 100% survivorship death benefit.

(i) Definitions.

(A) In general.

In this paragraph, the following terms have the meanings indicated.

(B) Beneficiary.

"Beneficiary" means the member's surviving spouse or parents, as qualified and prioritized under subparagraph (v) of this paragraph.

"Surviving spouse" means a surviving spouse to whom the member was married for at least 5 years immediately before the date of the member's death.

(ii) Eligibility requirements.

The beneficiary is entitled to a 100% survivorship death benefit only if the member would have been eligible for a normal service or early service retirement benefit before his or her death or within 90 days after the date of his or her death.

(iii) Application and filing deadline.

To receive this benefit, the beneficiary must:

(A) complete the appropriate application in the form and containing the information, including proof of death, that the Board requires; and

(B) submit the application to the Board on or before the 60^th day after the Board has provided a post-death notice of this benefit to the beneficiary.

(iv) Amount of benefit.

The benefit shall be equal to that which would have been paid to a surviving beneficiary under the joint-and-survivor 100% benefit option provided for in subsection (m)(2)(iii)(A)1. of this section had the member elected that option, designated that beneficiary, and retired as of the date of death.

(v) Qualifications and priorities of potential beneficiaries.

(A) The benefit shall be paid as follows:

1. to the member's designated beneficiary, to continue during his or her lifetime, if that designated beneficiary is:

A. the member's surviving spouse; or

B. one of the member's surviving parents; or

2. if the designated beneficiary is not one of the persons listed in item 1. of this sub-subparagraph and that beneficiary predeceases the member, or if there is no designated beneficiary, then to the member's surviving spouse, to continue for his or her lifetime.

(B) If a member designates a beneficiary other than one of the persons listed in sub-subparagraph (A)1. of this subparagraph, and if that beneficiary does not predecease the member, the benefit provided by this paragraph is not payable.

(vi) Benefit instead of all others under subsection.

The benefit provided by this paragraph is in place of all benefits provided under paragraphs (2) and (4) of this subsection.

(4) 40% survivorship death benefit.

(i) Definitions.

(A) In general.

In this paragraph, the following terms have the meanings indicated.

(B) Beneficiary.

"Beneficiary" means the member's surviving spouse or minor children, as qualified and prioritized under subparagraph (v) of this paragraph.

"Surviving spouse" means a surviving spouse to whom the member was married for at least 1 year immediately before the date of the member's death.

(ii) Eligibility requirements.

Effective April 1, 2001, the beneficiary is entitled to a 40% survivorship death benefit only if the member had at least 20 years of service as of the date of his or her death.

(iii) Application and filing deadline.

To receive this benefit, the beneficiary must:

(A) complete the appropriate application in the form and containing the information, including proof of death, that the Board requires; and

(B) submit the application to the Board on or before the 60^th day after the Board has provided a post-death notice of this benefit to the beneficiary.

(iv) Amount of benefit.

(A) The benefit shall be equal to 40% of the member's accrued service retirement benefit, calculated as provided in subsection (e)(6)(ii) of this section based on the member's average final compensation and years of service (and fractions of those years) as of the date of the member's death.

(B) The calculation required by sub-subparagraph (A) of this subparagraph shall be made with the assumption that the member had attained age 65 as of the date of his or her death. Accordingly, the reduction described in subsection (f)(2) of this section does not apply.

(v) Qualifications and priorities of potential beneficiaries.

(A) The benefit shall be paid as follows:

1. to the member's designated beneficiary, if that designated beneficiary is:

A. the member's surviving spouse, to continue for the spouse's lifetime or until the spouse remarries before age 70; or

B. the member's minor children, to be paid to each child, in equal shares, until that child is no longer a minor, as defined in § 1(5) of this article;

3. if there is no qualifying surviving spouse under item 1. or 2. of this sub-subparagraph, or if the surviving spouse remarries before age 70 or dies, then to the member's minor children, to be paid to each child in equal shares until that child is no longer a minor, as defined in § 1(5) of this article.

(vi) Allocations among children.

For purposes of this paragraph, when a member's child is no longer a minor and, consequently, ceases to receive benefits under this paragraph, each remaining minor child shall then begin to receive, in addition to his or her existing benefit, an equal share of the benefit formerly paid to the other child. This process continues until the member's youngest child is no longer a minor.

(vii) Benefit in place of all others under subsection.

The benefit provided by this paragraph is in place of all benefits provided under paragraphs (2) and (3) of this subsection.

(viii) Rules dealing with 1st year of employment.

For purposes of this paragraph, the deceased member's 1^st year of employment:

(A) is included in computing the minimum 20 years of service credit needed to be eligible to receive this death benefit; but

(B) may not be counted as service credit for purpose of calculating the amount of the death benefit, unless purchased as service credit in accordance with subsection (c)(3) of this section.

(5) Death without beneficiaries or estate.

The amounts that would have been paid under this subsection, excluding accumulated contributions, forever remain assets of this System if:

(i) a member dies without designating a beneficiary;

(ii) that member has no beneficiaries, as enumerated in paragraphs 2(v), 3(v), and 4(v) of this subsection; and

(iii) no estate for that member is opened within 2 years of the member's death.

(6) Death of retired member within 30 days of retirement.

(i) Scope of paragraph.

Except as specified in subparagraph (B), this paragraph applies to:

A. a retired member who:

1. has been granted a service or disability retirement allowance; and

2. dies within 30 days of his or her retirement date; or

B. a retired member who:

1. retires before reaching age 65;

2. when applying for retirement, elects to postpone receipt of his or her retirement allowance until age 65; and

3. dies within 30 days after reaching age 65.

(ii) Exception.

This paragraph does not apply to a former member who terminates employment before reaching age 65 without immediate entitlement to retirement benefits.

(iii) Death deemed to be during active service.

A retired member or vested former member described in subparagraph (i) of this paragraph (6) is deemed to have died while still employed by the City and, instead of any other service or disability benefits under this System , a non-line-of-duty death benefit will be paid as if he or she died during active service.

(iv) Offset of payments received.

Any pension benefits paid by this System and received by the retired member or former member before he or she died shall be offset against the death benefits payable under this paragraph.

(o-2) Line-of-duty death benefit.

(1) "Beneficiary" defined.

In this subsection, "beneficiary" means the member's designated beneficiary or surviving spouse, children, or parents, as qualified and prioritized under paragraph (4)(i)(A)-(D) or paragraph (4)(ii) of this subsection, as the case may be.

(2) Eligibility requirements.

This subsection applies only:

(i) to an individual who dies while a member of this System; and

(ii) if a hearing examiner determines that:

(A) the member's death was, independent of all other causes and independent of any preexisting physical or medical conditions, whether job-related or otherwise, the direct result of bodily injury arising through an accident; and

(B) the accident occurred:

1. while the member was in the actual performance of his or her City duties at some definite time and place; and

2. without willful negligence on the member's part.

(3) Application and filing deadline.

To receive this benefit, the beneficiary must:

(i) complete the appropriate application in the form and containing the information required by subsection (p)(6) of this section; and

(ii) submit the application to the Board on or before the 60^th day after the Board has provided a post-death notice of this benefit to the beneficiary.

(4) Amount of benefit; Qualifications and priorities of potential beneficiaries.

On an award by the hearing examiner, the Board of Trustees shall pay:

(i) any accumulated contributions of the deceased member to:

(A) the member's designated beneficiary;

(B) if there is no designated beneficiary, or if the designated beneficiary predeceases the member, to the member's surviving spouse;

(D) if there is no designated beneficiary, surviving spouse, or surviving child, to the member's surviving parents, in equal shares; and

(E) otherwise, to the member's estate; and

(ii) a pension of 100% of the member's current compensation to:

(A) the member's surviving spouse, to continue for the spouse's lifetime or until the spouse remarries before age 70, unless the member has designated his or her children as beneficiaries;

(B) the member's minor children, to be paid to each child, in equal shares, until that child is no longer a minor, as defined in § 1(5) of this article, if:

1. the member designated his or her children as beneficiaries;

2. there is no surviving spouse on the date of the member's death; or

3. the surviving spouse, after having received benefits payments under sub-item (A) of this item (ii), has remarried before age 70 or has died; or

1. the member has not designated his or her children as beneficiaries;

2. there is no surviving spouse on the date of the member's death; and

3. the member has no minor children at the date of his or her death.

(5) Allocations among children or between parents.

(i) For purposes of paragraph (4) of this subsection, when a member's child is no longer a minor and, consequently, ceases to receive a benefit under that paragraph, each remaining minor child shall then begin to receive, in addition to his or her existing benefit, an equal share of the benefit formerly paid to the other child. This process continues until the member's youngest child is no longer a minor.

(ii) For purposes of paragraph (4) of this subsection, if a member's line-of-duty death benefit is paid to both of the member's surviving parents and one parent dies, the remaining parent shall then begin to receive, in addition to his or her existing benefit, the benefit formerly paid to the deceased parent.

(6) If no beneficiary eligible.

If no beneficiary is eligible for a line-of-duty death benefit under this subsection, a non-line-of-duty death benefit will be paid under either subsections (o-1)(2), (o-1)(3), or (o-1)(4) of this section as long as the member's beneficiary qualifies for a non-line-of-duty death benefit under 1 of those subsections.

(7) Death without beneficiaries or estate.

The amounts that would have been paid under this subsection, excluding accumulated contributions, forever remain assets of this System if:

(i) a member dies without designating a beneficiary;

(ii) that member has no beneficiaries, as enumerated in paragraph (4) of this subsection; and

(iii) no estate for that member is opened within 2 years of the member's death.

(o-3) Workers' Compensation benefits offset against benefits paid on or before March 31, 2001.

Effective with the date beginning 5 years prior to the date of death of the member, the full amount of any past or future benefit or payment that may be paid or payable by the City of Baltimore under any Workers' Compensation or similar law for any permanent disability, whether partial or total, or for death shall be offset against and payable in lieu of any disability, dismemberment, or death benefits payable on or before March 31, 2001, out of funds provided by the City under this subtitle. The benefits under the Workers' Compensation or similar law shall be offset dollar-for-dollar, pro tanto, from the benefits otherwise payable from funds provided by the City under this subtitle, and the benefits so reduced shall be payable under this subtitle.

(o-4) Workers' Compensation benefits offset against disability and death benefits paid on or after April 1, 2001.

(1) Scope of subsection.

This subsection applies to a member or beneficiaries of a member:

(i) the payment of whose retirement benefit commences on or after April 1, 2001, either:

A. on account of a non-line-of-duty disability under subsection (i),

B. On account of a line-of-duty disability under subsection (j), or

C. on account of a dismemberment disability under subsection (k); or

(ii) who dies on or after April 1, 2001, and is awarded either:

A. a non-line-of-duty death benefit under subsection (o-1), or

B. a line-of-duty death benefit under subsection (o-2).

(2) Offset for Workers' Compensation payments.

The Board of Trustees shall offset the amount of a member's Workers' Compensation award paid or payable by the City against any disability or death benefits paid or payable by the System to a member or a member's beneficiaries, if:

(i) the member or any beneficiary of a member was awarded Workers' Compensation benefits under the State's Workers' Compensation Law to be paid or payable by the City;

(ii) the Workers' Compensation award was for permanent partial or permanent total disability or for death;

(iii) the Workers' Compensation award was awarded on account of the same disability or death that resulted in the System's payment of disability or death benefits; and

(iv) the Workers' Compensation award was awarded by the Workers' Compensation Commission no more than 5 years before:

A. the effective date of the member's retirement on account of non-line-of-duty disability,

B. the date of the accident qualifying the member for line-of-duty disability or dismemberment benefits, or

C. the date of the member's death qualifying the member's beneficiaries to receive a System death benefit.

(3) Amounts not included in offset.

The amount of Workers' Compensation benefits to be offset does not include amounts allocated for the payment of legal fees, medical expenses, or other payments authorized by the Workers' Compensation Commission to be made directly to third parties and not to the member or the member's beneficiary.

(4) Method of offset.

(i) Non-actuarial method for lump-sum payments.

A. The Board of Trustees shall offset the amount of a member's Workers' Compensation award, reduced by the amounts described in paragraph (3), against any lump-sum disability, dismemberment, or death benefits paid or payable by the System to a member or a member's beneficiaries in the following manner.

B. The offset shall be made on a non-actuarial, dollar-for-dollar basis against any lump-sum benefit until the total amount of the Workers' Compensation benefits has been recovered.

C. If the amount of the Workers' Compensation benefits exceeds the lump-sum disability, dismemberment, or death benefit, then no disability, dismemberment, or death benefit may be paid, except for the return of the member's accumulated contributions, if any.

(ii) Actuarial method for periodic payments.

A. The Board of Trustees shall offset the amount of a member's Workers' Compensation award, reduced by the amounts described in paragraph (3), against any periodic disability, dismemberment, or death benefits paid or payable by the System to a member or a member's beneficiaries in the following manner.

B. This offset shall be calculated on an actuarial basis by annuitizing the member's Workers' Compensation award, reduced by the amounts described in paragraph (3), and reducing the member's periodic disability, dismemberment, or death benefit by the annuitized amount until the total amount of the Workers' Compensation benefits have been recovered.

C. The actuarial amount shall be calculated using an actuarial method and appropriate annuity factors recommended by the System's actuary and approved by the Board of Trustees.

D. If the annuitized amount of the Workers' Compensation benefits exceeds the System's periodic disability, dismemberment, or death benefit payment, then no disability, dismemberment, or death benefit may be paid, except for the return of the member's accumulated contributions, if any.

(5) Restoration of offset amount against retirement benefits.

(i) On recovering the full amount of the member's Workers' Compensation benefits, the reduced disability, dismemberment, or death benefits payable to the member or the member's beneficiaries shall be restored to the unreduced amount of the disability, dismemberment, or death benefits payable to the member or beneficiaries prior to the offset for Workers' Compensation.

(ii) The amount by which a reduced disability, dismemberment, or death benefit is restored under subparagraph (i) does not include any post-retirement increases that the member or the member's beneficiaries would have been eligible to receive had the member's disability, dismemberment, or death benefits not been reduced.

(6) Transitional rule for those receiving reduced benefits prior to April 1, 2001.

(i) The Board of Trustees shall implement the method of offset described in paragraph (4) of this subsection (o-4) for any member or beneficiary of a member:

A. whose disability, dismemberment, or death benefits were reduced by Workers' Compensation benefits on or before March 31, 2001; and

B. whose Workers' Compensation benefits were not fully recovered as of April 1, 2001.

(ii) For members or beneficiaries whose disability, dismemberment, or death benefits have been offset on account of Workers' Compensation benefits on or before March 31, 2001, and whose Workers' Compensation benefits are found to have been recovered under the method described in paragraph (4), all Workers' Compensation offsets shall be terminated.

(p) Panel of hearing examiners.

(1) Panel established.

There is a panel of hearing examiners, to be composed of persons with a demonstrated knowledge and competence in disability claims evaluation.

(2) Appointment of panel members.

(i) The hearing examiners shall be appointed on a contract basis by the Board of Estimates.

(ii) The Board of Estimates may determine, in its sole discretion:

(A) the number and composition of the panel; and

(B) the fees and other conditions of the hearing examiners' contracts.

(iii) Whenever a vacancy occurs on the panel, the Board of Trustees has the right to submit to the Board of Estimates a list of recommended candidates to fill the vacancy.

(iv) In all events, however, the Board of Estimates may make its selection of hearing examiners without regard to the Board of Trustees' recommendations.

(3) Compensation of panel members; expenses.

The compensation of the panel members, the compensation of all persons engaged by the panel, and all other expenses of the panel shall be paid at the rates and in the amounts that the Board of Estimates approves.

(4) Claims for disability benefit – Applications.

(i) Application to Board.

A person who seeks a non-line-of-duty disability benefit, a line-of-duty disability benefit, or a dismemberment disability benefit must first apply to the Board of Trustees.

(ii) Required contents .

The application must include, in the form that the Board prescribes:

(A) a medical certification of disability;

(B) all supporting medical documentation;

(C) a consent form that authorizes the Board to obtain all medical records pertaining to any accidents or illnesses that the member might have suffered at any time in the past; and

(D) a statement in which the member:

1. states that he or she has suffered a disability;

2. states that the disability prevents him or her from further performance of the duties of his or her job classification;

3. states that the incapacity is likely to be permanent; and

4. states, in the manner and detail that the Board requires, the relevant facts and circumstances under which the member claims to be eligible for the applicable benefit.

(5) Claims for disability benefits – Medical examination.

(i) Board to refer.

On receipt of a completed application and required supporting documentation, the Board of Trustees shall have the member medically examined by a physician selected by the Board.

(ii) Scope of examination.

The examination shall include whatever tests and additional examinations the physician finds necessary or appropriate.

(iii) Report to Board.

Upon completion of the examination, the physician shall submit a written report to the Board of Trustees.

(6) Claims for line-of-duty death benefits.

(i) Application to Board.

A person who seeks a line-of-duty death benefit, must first apply to the Board of Trustees.

(ii) Required contents .

The application must include, in the form that the Board prescribes:

(A) a consent form that authorizes the Board to obtain all medical records pertaining to the member's death and to any accidents or illnesses that the member might have suffered at any time in the past; and

(B) a statement in which the claimant:

1. states that the member suffered a line-of-duty death; and

2. describes, in the manner and detail that the Board requires, the relevant facts and circumstances under which the member's death occurred.

(7) Hearings – In general.

A hearing examiner shall conduct hearings on all matters involving non-line-of-duty disability claims, dismemberment disability claims, line-of-duty disability claims, line-of-duty death benefit claims, and any related matters arising out of these claims.

(8) Hearings - Nature and conduct.

(i) Each hearing is in the nature of an adversary proceeding.

(ii) 1 hearing examiner from the panel shall hear a particular claim for benefits.

(iii) The hearing examiner shall conduct the hearing:

(A) in an informal manner;

(B) with sufficient latitude to provide a fair and impartial hearing to all of the parties; and

(iv) Testimony at the hearing shall be under oath and recorded.

(v) The hearing examiner has the power to subpoena and require the attendance of witnesses and the production of papers and documents to secure information pertinent to the hearing, and to examine them.

(9) Hearings - Counsel.

At the hearing:

(i) the Board of Trustees shall be represented by an attorney from the City Solicitor's Office or from the System's Office of Legal Affairs; and

(ii) the member has the right to counsel of his or her own choosing.

(10) Hearings – Burden of proof.

(i) Disability benefit.

At the hearing on a claim for a disability benefit, the member has the burden of proving, by a preponderance of the evidence:

(A) the nature and extent of her or his disability;

(B) that the disability prevents her or him from the further performance of the duties of her or his job classification; and

(C) that, under the relevant facts and circumstances, she or he otherwise meets all of the eligibility requirements to qualify for the applicable benefit.

(ii) Line-of-duty death benefit.

At the hearing on a claim for a line-of-duty death benefit, the applicant has the burden of proving, by a preponderance of the evidence:

(A) that the member's death occurred under facts and circumstances required to qualify for the benefit under the applicable provisions of this section; and

(B) that the applicant otherwise meets all other requirements to qualify for the benefit.

(11) Hearings – Examiner's determination.

(i) In general.

The hearing examiner shall:

(A) make the determinations specified in this paragraph; and

(B) issue written findings of fact that set forth the reasons for his or her determination.

(ii) Non-line-of-duty disability benefit.

(A) If the claim is for non-line-of-duty disability benefits under this System, the hearing examiner shall determine whether the member's disability qualifies under subsection (i) of this section.

(B) If the claim is for non-line-of-duty disability benefits under the Elected Officials' Retirement System, the hearing examiner shall determine whether the member's disability qualifies under § 22(b) of this article.

(iii) Dismemberment disability benefit.

If the claim is for dismemberment disability benefits, the hearing examiner shall determine whether the member's disability qualifies under subsection (k) of this section.

(iv) Line-of-duty disability benefit.

(A) If the claim is for line-of-duty disability benefits under this System, the hearing examiner shall determine whether the member's disability qualifies under subsection (j) of this section.

(B) If the claim is for line-of-duty disability benefits under the Elected Officials' Retirement System, the hearing examiner shall determine whether the member's disability qualifies under § 22(c) of this article.

(v) Line-of-duty death benefit.

(A) If the claim is for line-of-duty death benefits under this System, the hearing examiner shall determine whether the member's death qualifies under subsection (o-2) of this section.

(B) If the claim is for line-of-duty death benefits under the Elected Officials' Retirement System, the hearing examiner shall determine whether the member's death qualifies under § 22(g) of this article.

(12) Judicial and appellate review.

(i) If either party to the hearing is aggrieved by the hearing examiner's determination, that party may seek judicial review of that determination by petition to the Circuit Court for Baltimore City.

(ii) The review shall be sought and heard as provided in the Maryland Rules of Procedure, except that the review shall be heard on the record only, on a right-of-way basis.

(iii) The determination of the hearing examiner is presumptively correct and may not be disturbed on review unless it is arbitrary, illegal, capricious, or discriminatory.

(iv) A party to the judicial review may appeal the court's final judgment to the Court of Special Appeals in accordance with the Maryland Rules of Procedure.

(v) Judicial review under this paragraph (12) does not stay or hold in abeyance any payment awarded by the hearing examiner. If a court reverses an award of benefits, the court's decision operates to stop payment of any benefits being made to the claimant, pending any further appeal.

(13) Finality of decision.

If neither party seeks judicial review within 30 days after mailing of the hearing examiner's written finding of fact, the hearing examiner's determination is final and binding.

(q) Compliance with Internal Revenue Code § 415.

Notwithstanding any other provision of this subtitle, no benefits are provided under this subtitle to the extent that they exceed the limitations applicable to governmental plans in Internal Revenue Code § 415 and the regulations adopted under it.

(r) Compliance with Internal Revenue Code § 401(a)(9).

(1) Distributions under this subtitle shall be made in accordance with a reasonable good faith interpretation of Internal Revenue Code § 401(a)(9), as applicable to this System. This subsection is intended to comply with a reasonable good faith interpretation of Internal Revenue Code § 401(a)(9) to the extent applicable to this System, and may not be interpreted to impose any requirements on this System or on any member or beneficiary of this System beyond those required to comply with a reasonable good faith interpretation of § 401(a)(9). This subsection only specifies the latest permissible time by which distributions must begin and the longest permissible period over which distributions may be made, and in no way precludes any earlier commencement or more rapid distribution provided for in this subtitle.

(2) Distribution of a member's retirement benefit shall begin no later than the April 1 following the calendar year during which the member both has reached age 70½ and has terminated employment with the City. Distribution shall be made over a period not extending beyond the life of the member or the joint lives of the member and his or her beneficiary.

(3) If a member dies before distribution of his or her retirement benefit begins, the member's entire benefit shall be distributed within 5 years after death. This requirement is deemed satisfied by any distribution of the member's benefit payable to his or her designated beneficiary over a period not extending beyond the life or life expectancy of the beneficiary, as long as those distributions begin no later than December 31 of the calendar year following the calendar year of the member's death. However, if the designated beneficiary is the member's surviving spouse, the date on which the distributions are required to begin is December 31 of the calendar year in which the member would have attained age 70½. This paragraph (3) does not apply if distribution of the member's benefit began before his or her death and the remaining portion of the member's benefit is distributed at least as rapidly as under the method of distribution being used at the date of the member's death. Any amount paid to a child is treated as if it had been paid to a surviving spouse if that amount is paid to the surviving spouse when that child reaches the age of majority.

(s) Compensation limit.

(1) General rule.

The annual compensation of each member taken into account under this subtitle shall not exceed the federal Omnibus Budget Reconciliation Act of 1993 ("OBRA '93") annual compensation limit. The OBRA '93 annual compensation limit is $150,000, adjusted for cost of living increases under Internal Revenue Code § 401(a)(17)(B) and subject to the fresh start provisions set forth in paragraph (2) of this subsection. The cost of living adjustment in effect for a calendar year applies to any period not exceeding 12 months over which compensation is determined (the "determination period") beginning in that calendar year. If a determination period consists of fewer than 12 months, the annual compensation limit will be multiplied by a fraction, the numerator of which is the number of months in the short determination period and the denominator of which is 12. If compensation for any prior determination period is taken into account in determining a member's retirement benefit in the current year, the compensation for that prior determination period is subject to the OBRA '93 annual compensation limit for that prior determination period. For this purpose, for determination periods beginning before July 1, 1994, the OBRA '93 annual compensation limit is $150,000.

(2) Special rule.

(A) In this paragraph, "§ 401(a)(17) member" means any member on or after July 1, 1994, whose annual compensation for any year before 1994 exceeded $150,000.

(B) This paragraph (2) applies to determine the retirement benefit of a § 401(a)(17) member.

(i) the member's retirement benefit on June 30, 1994, determined as though the member terminated service with the City on that date, without regard to any amendments to this subtitle enacted after that date and taking into account annual compensation up to the applicable § 401(a)(17) limitation for each year before July 1, 1994; or

(ii) the member's retirement benefit, determined without regard to this paragraph (2).

(t) Eligible rollover distribution.

(1) Definitions.

(A) In this subsection, the following terms have the meanings indicated:

(B)(i) "Eligible rollover distribution" means any distribution of all or any portion of the balance to the credit of the distributee.

(ii) "Eligible rollover distribution" does not include:

1. any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee's designated beneficiary, or for a specified period of 10 years or more;

2. any distribution to the extent that it is required under Internal Revenue Code § 401(a)(9); and

3. the portion of any distribution that is not includible in gross income, determined without regard to the exclusion for net unrealized appreciation with respect to employer securities.

(iii) Eligible rollover distribution; After-tax employee contributions.

1. A portion of a distribution does not fail to be an "eligible rollover distribution" merely because the portion consists of after-tax employee contributions that are not includible in gross income.

2. However, the portion may be transferred only to:

i. an individual retirement account or annuity described in Internal Revenue Code § 408(a) or (b);

ii. for taxable years beginning after December 31, 2001, and before January 1, 2007, to a qualified trust that is part of a defined contribution plan that agrees to separately account for amounts so transferred, including separately accounting for the portion of the distribution that is includible in gross income and the portion of the distribution that is not so includible; or

iii. for taxable years beginning after December 31, 2006, to a qualified trust or to an annuity contract described in Internal Revenue Code § 403(B), if the trust or contract provides for separate accounting for amounts so transferred (including interest on those amounts), including separately accounting for the portion of the distribution that is includible in gross income and the portion of the distribution that is not so includible.

(i) an individual retirement account described in Internal Revenue Code § 408(a);

(ii) an individual retirement annuity described in Internal Revenue Code § 408(b);

(iii) an annuity plan described in Internal Revenue Code § 403(a);

(iv) a qualified trust described in Internal Revenue Code § 401(a);

(v) an annuity contract described in Internal Revenue Code § 403(b);

(vi) an eligible plan described in Internal Revenue Code § 457(b), if it is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and it agrees to separately account for amounts transferred into that plan from this System; or

(vii) for distributions made on or after January 1, 2008, a Roth IRA described in Internal Revenue Code § 408A, subject to the restrictions that apply to rollovers to a Roth IRA.

(D)(i) "Distributee" means an employee or former employee.

(ii) In addition, the employee's or former employee's surviving spouse and the employee's or former employee's spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in Internal Revenue Code § 414(p), are "distributees" with regard to the interest of the spouse or former spouse.

(iii) Effective July 1, 2010, a "distributee" also includes the employee's or former employee's nonspouse designated beneficiary. In the case of a nonspouse beneficiary, the direct rollover may be made only to an individual retirement account or annuity described in Internal Revenue Code § 408(a) or (B) ("IRA") that is established on behalf of the designated beneficiary and that will be treated as an inherited IRA under § 402(c)(11).

(E) "Direct rollover" means a payment under this subtitle to the eligible retirement plan specified by the distributee.

(2) Direct rollovers.

Notwithstanding any provision of this subtitle that would otherwise limit a distributee's election under this section, a distributee may elect, at the time and in the manner prescribed by the Board of Trustees, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover.

(u) Vesting on System termination.

Notwithstanding any other provision of this subtitle, on the effective date of a termination or partial termination of this System, as determined under applicable Internal Revenue Service regulations and rulings, all affected members who are not already vested in their accrued benefits become immediately vested in those benefits, to the extent the benefits are funded.

(Ord. 20-459; Ord. 16-576; Ord. 16-503; Ord. 1620-459-488; Ord. 13-191; Ord. 13-144; Ord. 12-043; Ord. 11-520; Ord. 07-584; Ord. 07-422; Ord. 05-173; Ord. 04-822; Ord. 04-672; Ord. 01-189; Ord. 99-587; Ord. 98-290A; Ord. 97-168; Ord. 96-051; Ord. 96-006; Ord. 95-632; Ord. 95-525; Ord. 93-263; Ord. 93-250; Ord. 93-163; Ord. 92-086; Ord. 91-829; Ord. 91-777; Ord. 91-725; Ord. 90-557; Ord. 89-275; Ord. 88-005; Ord. 87-1156; Ord. 87-1152; Ord. 87-988; Ord. 786-067; Ord. 86-663; Ord. 85-504; Ord. 85-494; Ord. 84-114; Ord. 81-552; Ord. 79-1055.)