Md. Code, State Personnel and Pensions § 20-208
This is the official text of Md. Code, State Personnel and Pensions § 20-208, part of Maryland’s Code, State Personnel and Pensions — governs state employees and public pensions.
Not legal advice. This page reproduces the official text of a government statute for reference only. Laws change, and how a statute applies depends on your specific facts. For advice about your situation, consult a licensed attorney in your state.
§20–208.
Official statutory text
(a) Notwithstanding any other provision of law, the Board of Trustees may not pay an allowance that exceeds the limit on benefit accruals established from time to time under § 415 of the Internal Revenue Code.
(b) Subject to subsections (c) and (d) of this section, the Agency shall reduce:
(1) an allowance to the extent that it exceeds the dollar limit on an annual benefit established from time to time under § 415(b) of the Internal Revenue Code and the regulations adopted thereunder; and
(2) the contributions and other additions to any defined contribution plan maintained by the Board of Trustees to the extent that they exceed the limit on annual additions established from time to time under § 415(c) of the Internal Revenue Code and the regulations adopted thereunder.
(c) (1) The dollar limit on an annual benefit is the amount set forth in § 415(b) of the Internal Revenue Code, as adjusted by the Commissioner of Internal Revenue under § 415(d) of the Internal Revenue Code as of January 1 of each calendar year.
(2) The dollar limit for a calendar year applies to a State system’s fiscal year ending within that calendar year.
(d) (1) Except as provided in paragraph (2) of this subsection, the Agency shall pay a participant whose allowance was reduced under subsection (b) of this section any postretirement adjustment if payment of the postretirement adjustment does not exceed the dollar limit on benefits.
(2) The postretirement adjustment may not exceed a participant’s basic allowance as increased by any postretirement adjustments allowable under the applicable State system.
(e) If an individual participates in any other retirement or pension system that must be aggregated with the State system administered by the Board of Trustees, the individual’s annual benefit accrual or annual addition shall first be reduced by the other retirement or pension system to the extent necessary to comply with the requirements of § 415 of the Internal Revenue Code and the regulations adopted thereunder before any reduction is made by the Board of Trustees.
(f) (1) This subsection does not apply to an individual who is a member of a State system on or before June 30, 1999.
(2) Notwithstanding any other provision of law, the Agency may not allow a member to purchase prior service credit other than in accordance with the limitations and conditions set forth in § 415(n) of the Internal Revenue Code.
(g) A member may purchase prior service credit using funds from any fund source that is not specifically prohibited by the Internal Revenue Code.
(b) Subject to subsections (c) and (d) of this section, the Agency shall reduce:
(1) an allowance to the extent that it exceeds the dollar limit on an annual benefit established from time to time under § 415(b) of the Internal Revenue Code and the regulations adopted thereunder; and
(2) the contributions and other additions to any defined contribution plan maintained by the Board of Trustees to the extent that they exceed the limit on annual additions established from time to time under § 415(c) of the Internal Revenue Code and the regulations adopted thereunder.
(c) (1) The dollar limit on an annual benefit is the amount set forth in § 415(b) of the Internal Revenue Code, as adjusted by the Commissioner of Internal Revenue under § 415(d) of the Internal Revenue Code as of January 1 of each calendar year.
(2) The dollar limit for a calendar year applies to a State system’s fiscal year ending within that calendar year.
(d) (1) Except as provided in paragraph (2) of this subsection, the Agency shall pay a participant whose allowance was reduced under subsection (b) of this section any postretirement adjustment if payment of the postretirement adjustment does not exceed the dollar limit on benefits.
(2) The postretirement adjustment may not exceed a participant’s basic allowance as increased by any postretirement adjustments allowable under the applicable State system.
(e) If an individual participates in any other retirement or pension system that must be aggregated with the State system administered by the Board of Trustees, the individual’s annual benefit accrual or annual addition shall first be reduced by the other retirement or pension system to the extent necessary to comply with the requirements of § 415 of the Internal Revenue Code and the regulations adopted thereunder before any reduction is made by the Board of Trustees.
(f) (1) This subsection does not apply to an individual who is a member of a State system on or before June 30, 1999.
(2) Notwithstanding any other provision of law, the Agency may not allow a member to purchase prior service credit other than in accordance with the limitations and conditions set forth in § 415(n) of the Internal Revenue Code.
(g) A member may purchase prior service credit using funds from any fund source that is not specifically prohibited by the Internal Revenue Code.
Status: in_force · Read it on the official government site
Need a lawyer in Maryland?
Find a Maryland lawyer
About this page: Statute text is reproduced from official government publishers via the
Open US Law dataset
(Vaquill AI, snapshot v2026.08, CC BY 4.0). Primary legislative text like this is public domain under the government-edicts doctrine
(Georgia v. Public.Resource.Org, 2020). We link every section back to its official source so you can verify it independently.