(a) (1) An individual may transfer service credit from a contributory system to the State Alternate Contributory Employees’ Pension System, the State Alternate Contributory Teachers’ Pension System, the State Contributory Employees’ Pension System, the State Contributory Law Enforcement Officers’ Pension System, the State Contributory Teachers’ Pension System, the State Reformed Contributory Employees’ Pension System, or the State Reformed Contributory Teachers’ Pension System if, within 1 year after becoming a member of the pension system, the individual:
(i) completes a claim for the service credit and files it with the Board of Trustees of the State Retirement and Pension System on a form that the Board of Trustees provides; and
(ii) deposits in the annuity savings fund of:
1. the Employees’ Pension System or Teachers’ Pension System member contributions at the rate applicable for the period of service if the member had earned the transferred service credit in the new system, including regular interest on the contributions at the rate of 5% per year compounded annually; or
2. the Law Enforcement Officers’ Pension System member contributions at the rate applicable for the period of service if the member had earned the transferred service credit in the new system, including regular interest on the contributions at the rate of 5% per year compounded annually.
(2) Subject to § 414(h) of the Internal Revenue Code, the contributory system shall refund the individual’s accumulated contributions in excess of the amount determined under paragraph (1) of this subsection on request.
(b) (1) Subject to paragraph (2) of this subsection, an individual may transfer service credit from a noncontributory system to the State Alternate Contributory Employees’ Pension System, the State Alternate Contributory Teachers’ Pension System, the State Contributory Employees’ Pension System, the State Contributory Law Enforcement Officers’ Pension System, the State Contributory Teachers’ Pension System, the State Reformed Contributory Employees’ Pension System, or the State Reformed Contributory Teachers’ Pension System if, within 1 year after becoming a member of the pension system, the individual completes a claim for the service credit and files it with the Board of Trustees for the State Retirement and Pension System on a form that the Board of Trustees provides.
(2) The noncontributory system may not refund the individual’s accumulated contributions.
(3) (i) 1. This subparagraph applies only to an individual who transferred service credit from a noncontributory system to the State Alternate Contributory Employees’ Pension System, the State Alternate Contributory Teachers’ Pension System, the State Contributory Employees’ Pension System, the State Contributory Teachers’ Pension System, the State Reformed Contributory Employees’ Pension System, or the State Reformed Contributory Teachers’ Pension System and earned any portion of the transferred service credit in a noncontributory system after June 30, 1998.
2. On retirement, the individual’s retirement allowance shall be reduced by the actuarial equivalent of the member contributions that would have been deducted during the period after June 30, 1998, when the individual was a member of the noncontributory system, if the individual had earned the transferred service credit under the new system, including regular interest on those contributions at the rate of 5% per year compounded annually.
(ii) 1. This subparagraph applies only to an individual who transferred service credit from a noncontributory system to the State Contributory Law Enforcement Officers’ Pension System and earned any portion of the transferred service credit in a noncontributory system after June 30, 2000.
2. Upon retirement the individual’s retirement allowance shall be reduced by the actuarial equivalent of the member contributions that would have been deducted during the period after June 30, 2000, when the individual was a member of the noncontributory system, if the individual had earned the transferred service credit under the State Contributory Law Enforcement Officers’ Pension System, including regular interest on those contributions at the rate of 5% per year compounded annually.
(c) (1) An individual may transfer service credit from the State Alternate Contributory Employees’ Pension System, the State Alternate Contributory Teachers’ Pension System, the State Contributory Employees’ Pension System, the State Contributory Law Enforcement Officers’ Pension System, the State Contributory Teachers’ Pension System, the State Reformed Contributory Employees’ Pension System, or the State Reformed Contributory Teachers’ Pension System to a noncontributory system if, within 1 year after becoming a member of the noncontributory system, the individual completes a claim for the service credit and files it with the administrator of the noncontributory system on a form that the administrator provides.
(2) Subject to § 414(h) of the Internal Revenue Code, the previous system shall refund the individual’s total accumulated contributions to the individual on request.
(d) (1) An individual may transfer service credit from the State Alternate Contributory Employees’ Pension System, the State Alternate Contributory Teachers’ Pension System, the State Contributory Employees’ Pension System, the State Contributory Law Enforcement Officers’ Pension System, the State Contributory Teachers’ Pension System, the State Reformed Contributory Employees’ Pension System, or the State Reformed Contributory Teachers’ Pension System to a contributory system if, within 1 year after becoming a member of the contributory system, the individual:
(i) completes a claim for the service credit and files it with the administrator of the contributory system on a form that the administrator provides; and
(ii) deposits in the annuity savings fund or other corresponding fund of the contributory system the sum of:
1. the total accumulated contributions to the individual’s credit in the annuity savings fund of the previous system;
2. the difference, if any, between the member contributions at the rate provided for in the contributory system, including interest on those contributions, and the total accumulated contributions to the individual’s credit in the annuity savings fund of the previous system; and
3. the accumulated contributions that would have been deducted during the period the individual was a member of the State system while it was a noncontributory system if the individual had earned the transferred service credit under the contributory system, including interest on those contributions.
(2) On retirement from the contributory system, the individual’s retirement allowance shall be reduced by the actuarial equivalent of the amounts determined under paragraph (1)(ii)2 and 3 of this subsection if the member elects not to deposit those amounts in the annuity savings fund or other corresponding fund of the contributory system.
(e) Except as provided in § 37–204 of this subtitle, an individual who transfers service credit under this title shall receive service credit in the new system in the amount of service credit accumulated under the previous system.
(f) On verification of the service credit, the previous system may not provide any benefit for service credit transferred from the previous system to a new system under this title.
(g) Except as otherwise provided in this subsection, after an individual transfers service credit to a new system under this title, the individual:
(1) shall pay the rate of contribution applicable to a member of the new system; and
(2) is eligible for a pension and annuity as provided under the new system, determined by taking into account the transferred service credit.