Sec. 22.01.09.02. Crediting Interest

A. Except as provided in §B or C of this regulation, the Retirement Agency shall credit regular interest to each member’s individual account in the annuity savings fund of the appropriate State system on June 30 of each fiscal year in an amount equal to the sum of:

(1) 1/2 of the regular interest multiplied by the balance of the member's individual account at the beginning of the fiscal year; and

(2) 1/2 of the regular interest multiplied by the balance of the member’s individual account at the earlier of the end of the fiscal year or the last day of the month in which membership ends.

B. Regular Interest on Retirement or Refund of Member’s Accumulated Contributions.

(1) In the fiscal year of a member’s retirement, the Retirement Agency shall credit regular interest on the balance of the member’s individual account in the annuity savings fund during the period:

(a) Beginning on July 1 of the fiscal year in which the member retires; and

(b) Ending on the day preceding the member’s date of retirement.

(2) For a refund of a member’s accumulated contributions to a member, the Retirement Agency shall credit regular interest on the balance of the member’s individual account in the annuity savings fund during the period:

(a) Beginning on July 1 of the fiscal year in which the member retires; and

(b) Ending on the date of payment.

C. Regular Interest on the Death of a Member.

(1) Scope. This section applies only to the regular interest payable on a deceased member's accumulated contributions held by the Retirement Agency in the deceased member's individual account in the annuity savings fund. Interest does not accrue on any other amounts payable by the Retirement Agency on the death of a member.

(2) On the death of a member, the Retirement Agency shall credit regular interest on the balance of the deceased member’s individual account in the annuity savings fund during the period:

(a) Beginning on July 1 of the fiscal year; and

(b) Ending on the date of death.

D. Regular Interest on Member Contributions.

(1) Except as provided in §D(2) of this regulation, interest shall be paid on member contributions after membership ends only if a former member is eligible to receive a vested allowance under State Personnel and Pensions Article, Title 29, Subtitle 3, Annotated Code of Maryland.

(2) Regular Interest on Reenrollment of Certain Nonvested Former Members.

(a) This subsection applies to a former member who is not eligible to receive a vested allowance but is eligible to resume receipt of regular interest under provisions of the State Personnel and Pensions Article, §23-213(c), Annotated Code of Maryland, or a similar provision.

(b) The Retirement Agency shall credit regular interest to the nonvested former member’s account in the annuity savings fund of the appropriate State system on June 30 of each fiscal year in an amount equal to the sum of:

(i) 1/2 of the regular interest multiplied by the balance of the nonvested former member’s individual account at the date of reenrollment; and

(ii) 1/2 of the regular interest multiplied by the balance of the nonvested former member’s individual account at the earlier of the end of the fiscal year, or the last day of the calendar month in which employment ends.