§ 21-402
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/md/state-personnel-and-pensions/21-402·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§21–402.
(a)Each optional form of allowance shall be the actuarial equivalent of the basic allowance under the State system of a member.
(1)Subject to paragraph
(2)of this subsection, for an optional form of allowance providing for payment to a designated beneficiary for life, the designated beneficiary must be an individual.
(2)If the designated beneficiary is a minor or an individual with a disability, the allowance may be paid into a trust for the benefit of the individual.
(3)A member who elects to receive a reduced optional allowance under § 21-403 of this subtitle may designate an individual other than the member’s child as the member’s designated beneficiary.
(1)This subsection applies to a member who selects an optional form of allowance as provided in § 21-403(b) or
(e)of this subtitle.
(2)If a member designates a beneficiary other than the member’s spouse or disabled child as defined under § 72(m)(7) of the Internal Revenue Code, a member may not designate a beneficiary who is more than 10 years younger than the member.