Maryland Code, STATE PERSONNEL AND PENSIONS 21-404
Terms Used In Maryland Code, STATE PERSONNEL AND PENSIONS 21-404
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Rescission: The cancellation of budget authority previously provided by Congress. The Impoundment Control Act of 1974 specifies that the President may propose to Congress that funds be rescinded. If both Houses have not approved a rescission proposal (by passing legislation) within 45 days of continuous session, any funds being withheld must be made available for obligation.
- state: means :
(1) a state, possession, territory, or commonwealth of the United States; or
(2) the District of Columbia. See
(b) To change a designated beneficiary, a retiree shall:
(1) complete the appropriate form that the Board of Trustees provides; and
(2) file the form with the Board of Trustees.
(c) Subject to subsections (d) and (e) of this section, if a retiree changes a designated beneficiary, the Board of Trustees shall recompute the allowance for the election based on the value of the balance in the retiree’s annuity reserve and pension reserve when the change is made.
(d) (1) This subsection applies only to a retiree who elected the optional form of allowance payable under § 21-403(b) (Option 2), § 21-403(c) (Option 3), § 21-403(e) (Option 5), or § 21-403(f) (Option 6) of this subtitle.
(2) A retiree may rescind a request to change the designated beneficiary and restore the retiree’s prior designation of beneficiary by sending written notice to the State Retirement Agency that is received by the State Retirement Agency before the second allowance payment normally becomes due after the change of beneficiary.
(3) A retiree who rescinds a change of designated beneficiary in a timely manner under paragraph (2) of this subsection shall receive, after the rescission, the allowance payable prior to the change of designated beneficiary, without retroactive adjustment of any allowance payment made while the rescinded designation of beneficiary was in effect.
(e) (1) This subsection applies to a retiree if:
(i) the retiree elected the optional form of allowance payable under § 21-403(e) (Option 5) or § 21-403(f) (Option 6) of this subtitle;
(ii) the retiree’s designated beneficiary dies before the retiree; and
(iii) after the death of the designated beneficiary, the retiree elects to change the designated beneficiary.
(2) The Board of Trustees shall recompute the reduced allowance payable to a retiree and the retiree’s new designated beneficiary using:
(i) the retiree’s basic allowance at the time of the new beneficiary designation;
(ii) the retiree’s age at the time of the new beneficiary designation; and
(iii) the age of the new designated beneficiary.