Maryland Code, STATE PERSONNEL AND PENSIONS 21-305
Terms Used In Maryland Code, STATE PERSONNEL AND PENSIONS 21-305
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- state: means :
(1) a state, possession, territory, or commonwealth of the United States; or
(2) the District of Columbia. See
(b) (1) Each fiscal year, on behalf of its employees who are members of one of the employees’ systems, a participating governmental unit shall pay an amount equal to or greater than the product of multiplying:
(i) the aggregate annual earnable compensation of those members; and
(ii) the sum of the normal contribution rate and the accrued liability contribution rate, as determined under §§ 21-305.1 and 21-305.2 of this subtitle.
(2) Each fiscal year, in addition to the amounts required to be paid under paragraph (1) of this subsection, a participating governmental unit shall pay:
(i) the special accrued liability contribution required by § 21-305.3 of this subtitle;
(ii) any withdrawal liability contribution required by § 21-305.5 of this subtitle;
(iii) an amount equal to 5% of the aggregate earnable compensation of its employees who are members of the Employees’ Retirement System; and
(iv) any annual deficit payment required under § 21-305.4(c) of this subtitle.
(3) Each fiscal year, a participating governmental unit shall reduce the amounts required to be paid under paragraphs (1) and (2) of this subsection by any annual credit allowed to the participating governmental unit under § 21-305.4(b) of this subtitle.
(c) (1) The amount determined under subsection (b) of this section for the employees’ systems shall be based on an actuarial determination of the amounts that are required to preserve the integrity of the accumulation fund of the employees’ systems, using:
(i) the entry-age actuarial cost method;
(ii) actuarial assumptions adopted by the Board of Trustees; and
(iii) the asset valuation method recommended by the actuary and adopted by the Board of Trustees.
(2) Except as provided in subsection (b)(2)(iii) of this section, for the purpose of making the determinations required under this section, the Employees’ Retirement System and the Employees’ Pension System shall be considered together as one State system.
(d) The actuary shall compute the contributions payable under this section.
(e) The amounts computed under this section are a charge against the participating governmental unit to be paid in accordance with § 21-309 of this subtitle.