Md. Code, State Personnel and Pensions § 24-403

(a) This section applies only to a retiree who has retired with a service retirement allowance or a disability retirement allowance or a former member who has retired with a deferred vested allowance.

(b) On the death of a retiree or former member, the Board of Trustees shall pay 80% of the retiree’s retirement allowance:

(1) to the surviving spouse; or

(2) if there is no surviving spouse or if the surviving spouse dies, to any children of the deceased retiree who are under 18 years of age or disabled, as defined under § 72(m)(7) of the Internal Revenue Code, in accordance with subsection (c) of this section.

(c) (1) Except as provided in paragraphs (2) and (3) of this subsection, if the Board of Trustees pays an allowance to more than one child, the Board of Trustees shall divide the allowance among the children in a manner that provides for payments to continue until:

(i) each child has died; or

(ii) each child becomes 18 years old.

(2) Notwithstanding paragraph (1)(ii) of this subsection, a surviving child who is disabled shall continue to receive an allowance under paragraph (1) of this subsection past the age of 18 years, if the child continues to be disabled.

(3) (i) If a surviving child receiving an allowance under paragraph (1) of this subsection is disabled, as defined under § 72(m)(7) of the Internal Revenue Code, the Board of Trustees shall pay to the disabled surviving child an allowance equal to the total of the allowances paid under paragraph (1) of this subsection after:

1. all other nondisabled surviving children have died; or

2. the youngest nondisabled surviving child becomes 18 years old.

(ii) If more than one surviving child is disabled, as defined under § 72(m)(7) of the Internal Revenue Code, the allowance payable under this paragraph shall be divided equally among the disabled children.