§ 20-204

(a) (1) This subsection applies only to an individual who is a member of:

(i) the Employees’ Retirement System; or

(ii) the Teachers’ Retirement System.

(2) Except as provided in paragraph (3) of this subsection, the average final compensation of a member equals the average annual earnable compensation of the member for:

(i) the 3 years of employment as a member during which the member’s earnable compensation was highest, if the member was employed at least 3 years as a member; or

(ii) the member’s total period of employment, if the member was employed less than 3 years as a member.

(3) Except as provided in paragraph (4) of this subsection, the member’s average final compensation does not include a salary increase in the last 3 years of employment if it is an extraordinary salary increase according to regulations that the Board of Trustees adopts.

(4) A salary increase may not be considered an extraordinary salary increase under paragraph (3) of this subsection if the salary increase is:

(i) because of a member’s promotion; or

(ii) subject to paragraph (5) of this subsection, related to a review and adjustment to the compensation for a position classification to:

1. address inequities in compensation among employees in the same position classification; or

2. increase the compensation for the position classification to be more consistent with market compensation for the position.

(5) (i) At the time of retirement, a member who has received a salary increase in accordance with paragraph (4)(ii) of this subsection shall file with the State Retirement Agency a form provided by the State Retirement Agency that:

1. is completed by the member’s employer; and

2. certifies that the member received a salary increase in accordance with paragraph (4)(ii) of this subsection.

(ii) A member shall submit to the State Retirement Agency the completed form required under subparagraph (i) of this paragraph within 30 days from the date of the State Retirement Agency’s written notice that the member has received an extraordinary salary increase.

(b) (1) This subsection applies only to an individual who on or before June 30, 2011, is a member of:

(i) the Correctional Officers’ Retirement System; or

(ii) the State Police Retirement System.

(2) Except as provided in paragraph (3) of this subsection, the average final compensation of a member equals the average annual earnable compensation of the member for:

(i) the 3 years of employment as a member during which the member’s earnable compensation was highest, if the member was employed at least 3 years as a member; or

(ii) the member’s total period of employment, if the member was employed less than 3 years as a member.

(3) (i) Except as provided in paragraph (4) of this subsection, the member’s average final compensation does not include a salary increase in the last 3 years of employment if it is an extraordinary salary increase according to regulations that the Board of Trustees adopts.

(ii) 1. This subparagraph applies only to a member of the State Police Retirement System.

2. If a member of the State Police Retirement System who transferred from another actuarial retirement system in the State retires after less than 3 years of employment as a member of the State Police Retirement System, the earnable compensation as a member in the other system shall be used in the determination of average final compensation.

(4) A salary increase may not be considered an extraordinary salary increase under paragraph (3)(i) of this subsection if the salary increase is:

(i) because of a member’s promotion; or

(ii) subject to paragraph (5) of this subsection, related to a review and adjustment to the compensation for a position classification to:

1. address inequities in compensation among employees in the same position classification; or

2. increase the compensation for the position classification to be more consistent with market compensation for the position.

(5) (i) At the time of retirement, a member who has received a salary increase in accordance with paragraph (4)(ii) of this subsection shall file with the State Retirement Agency a form provided by the State Retirement Agency that:

1. is completed by the member’s employer; and

2. certifies that the member received a salary increase in accordance with paragraph (4)(ii) of this subsection.

(ii) A member shall submit to the State Retirement Agency the completed form required under subparagraph (i) of this paragraph within 30 days from the date of the State Retirement Agency’s written notice that the member has received an extraordinary salary increase.

(c) (1) This subsection applies only to an individual who on or after July 1, 2011, becomes a member of:

(i) the Correctional Officers’ Retirement System; or

(ii) the State Police Retirement System.

(2) Except as provided in paragraph (3) of this subsection, the average final compensation of a member equals the average annual earnable compensation of the member for:

(i) the 5 years of employment as a member during which the member’s earnable compensation was highest, if the member was employed at least 5 years as a member; or

(ii) the member’s total period of employment, if the member was employed less than 5 years as a member.

(3) (i) Except as provided in paragraph (4) of this subsection, the member’s average final compensation does not include a salary increase in the last 5 years of employment if it is an extraordinary salary increase according to regulations that the Board of Trustees adopts.

(ii) 1. This subparagraph applies only to a member of the State Police Retirement System.

2. If a member of the State Police Retirement System who transferred from another actuarial retirement system in the State retires after less than 5 years of employment as a member of the State Police Retirement System, the earnable compensation as a member in the other system shall be used in the determination of average final compensation.

(4) A salary increase may not be considered an extraordinary salary increase under paragraph (3)(i) of this subsection if the salary increase is:

(i) because of a member’s promotion; or

(ii) subject to paragraph (5) of this subsection, related to a review and adjustment to the compensation for a position classification to:

1. address inequities in compensation among employees in the same position classification; or

2. increase the compensation for the position classification to be more consistent with market compensation for the position.

(5) (i) At the time of retirement, a member who has received a salary increase in accordance with paragraph (4)(ii) of this subsection shall file with the State Retirement Agency a form provided by the State Retirement Agency that:

1. is completed by the member’s employer; and

2. certifies that the member received a salary increase in accordance with paragraph (4)(ii) of this subsection.

(ii) A member shall submit to the State Retirement Agency the completed form required under subparagraph (i) of this paragraph within 30 days from the date of the State Retirement Agency’s written notice that the member has received an extraordinary salary increase.