§ 21-313
222 words·~1 min read·
/md/state-personnel-and-pensions/21-313·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§21–313.
(a)In this section, “approved employer” means a participating employer who adopts a resolution and follows procedures as prescribed by the Board of Trustees for an employer pickup program in accordance with § 414(h)(2) of the Internal Revenue Code.
(b)The State or other approved employer of a member shall pick up, within the meaning of § 414(h)(2) of the Internal Revenue Code, the member contributions required by this Division II.
(c)The member contributions under subsection
(b)of this section:
(1)are designated as employee contributions to be picked up by the employing unit within the meaning of § 414(h)(2) of the Internal Revenue Code and shall be treated as employer contributions in determining tax treatment under that section;
(2)shall reduce the compensation of the member in an amount that equals the member contribution picked up by the employer;
(3)may not be included as gross income of the member until the pickup amounts are distributed or made available to the member;
(4)shall be paid by the State or other approved employer from the same source of funds that is used to pay compensation to the member; and
(5)for purposes of this Division II, shall be treated in the same manner and to the same extent as member contributions made before establishment of the employer pickup program.