(a) This section applies only to a local plan that is a qualified plan under § 401(a) of the Internal Revenue Code and provides a defined benefit to its participants.
(b) Except as provided in subsection (c) of this section, the operation of the local plan of an eligible governmental unit terminates on the effective date.
(c) (1) An eligible governmental unit may elect to continue to operate a local plan after the effective date of participation in the Employees’ Pension System to provide benefits to an individual who:
(i) is receiving benefits from the local plan;
(ii) is eligible to receive benefits from the local plan on account of the individual’s previous employment by the eligible governmental unit; or
(iii) did not elect to join the Employees’ Pension System under § 23–204(a) of this article.
(2) An individual may not be enrolled in the local plan of a participating governmental unit electing to continue to operate its local plan under paragraph (1) of this subsection if the individual becomes employed or is rehired by the participating governmental unit on or after the effective date of participation of the participating governmental unit in the Employees’ Pension System.
(d) The liability for the continuation of benefits under subsection (c) of this section shall be included in the computation of the special accrued liability as provided by § 21–305.3 of this article.
(e) (1) On the effective date:
(i) the assets to the credit of the local plan of the participating governmental unit that are attributable to the employees of the participating governmental unit who elect to become members of the Employees’ Pension System under § 23–204(a) of this article shall be transferred to the Employees’ Pension System; and
(ii) the trustee or other administrative head of the local plan shall certify the proportion of the funds of the local plan that represents the accumulated contributions of the members as of that date.
(2) The accumulated contributions shall be credited to the respective annuity savings accounts of the members in the Employees’ Pension System.
(3) Any balance of the funds transferred to the Employees’ Pension System shall be offset against the special accrued liability to be funded by the participating governmental unit as provided by § 21–305.3 of this article.
Structure Maryland Statutes
Title 31 - Participating Governmental Units
Subtitle 1 - Participation in Employees' Systems
Section 31-102 - Eligible Governmental Units
Section 31-103 - Limitation on Number of Eligible Community Action Agencies
Section 31-104 - Eligible Employees of Baltimore Metropolitan Council
Section 31-105 - Eligible Employees of Canal Place Preservation and Development Authority
Section 31-106 - Eligible Employees of Maryland Stadium Authority
Section 31-106.1 - Eligible Employees of Maryland African American Museum Corporation
Section 31-106.2 - Eligible Employees of St. Mary's Nursing Center, Inc
Section 31-107 - Eligible Employees of University of Maryland Medical System Corporation
Section 31-108 - Employees of Worcester County
Section 31-109 - Approval of Participation; Request to Permit Participation
Section 31-109.1 - Effective Date of Participation
Section 31-110 - Membership in Employees' Retirement System
Section 31-111 - Credit for Service Before the Effective Date
Section 31-111.1 - Supportive Service Employee -- Kent County Board of Education
Section 31-111.2 - Employees -- Town of Oakland
Section 31-111.3 - Employees -- City of Frostburg
Section 31-111.4 - Employees -- Town of Berwyn Heights
Section 31-111.5 - Employees -- Town of Sykesville
Section 31-111.6 - Employees -- Town of University Park
Section 31-111.7 - Employees -- Somerset County Economic Development Commission
Section 31-111.8 - Employees -- City of College Park
Section 31-112 - Benefits of Members
Section 31-113 - Effect of Participation
Section 31-114 - Duties of Fiscal Officer
Section 31-115 - Interim or Supplemental Allowances
Section 31-116 - Contributory Pension Benefit