Md. Code Regs. 22.02.01.04

Current through Register Vol. 51, No. 24, December 2, 2024

Section 22.02.01.04 - Option and Annuity Factors on or After January 1, 2022

A. This regulation applies to an effective date of retirement on or after January 1, 2022.

B. Employee option factors and annuity values, which are established by the System's actuary and are based on the actuarial assumptions adopted by the Board of Trustees as set forth in § 1 of this regulation, shall be applicable to the Employees' Pension System and Employees' Retirement System.

C. Judicial option factors and annuity values, which are established by the System's actuary and based on the actuarial assumptions adopted by the Board of Trustees as set forth in § 1 of this regulation, shall be applicable to the Judges' Retirement System.

D. Legislator option factors and annuity values, which are established by the System's actuary and based on the actuarial assumptions adopted by the Board of Trustees as set forth in § 1 of this regulation, shall be applicable to the Legislative Pension Plan.

E. Public safety option factors and annuity values, which are established by the System's actuary and based on the actuarial assumptions adopted by the Board of Trustees as set forth in § 1 of this regulation, shall be applicable to the Correctional Officers' Retirement System, Law Enforcement Officers' Pension System, Local Fire and Police System, and State Police Retirement System.

F. Teacher option factors and annuity values, which are established by the System's actuary and based on the actuarial assumptions adopted by the Board of Trustees as set forth in § 1 of this regulation, shall be applicable to the Teachers' Pension System and Teachers' Retirement System.

G. For mortality and disabled mortality table assumptions, the base table rates (with scaling) are projected from the year 2010 using the MP-2018 generational mortality projection scales and birth year based on age in 2023.

H. Upon request, the Retirement Agency shall make the option factors and annuity values established by the System's actuary available to a participant.

I. Actuarial Assumptions.

	Interest Rate	Pre-reform COLA Rate	Post-reform COLA Rate	Mortality	Disabled Mortality	Unisex Mix
Employee Option Factors and Annuity Values	5.85%	2.19%	1.42%	PubG-2010 Healthy Mortality (for General Employees), sex distinct, with rates scaled by 111% for males and 109% for females	PubG-2010 Disabled Mortality (for General Employees), sex distinct, with rates scaled by 134% for males and 99% for females	50%/50% Male /Female
Judicial Option Factors and Annuity Values	5.85%	3.10%	3.10%	PubG-2010 Healthy Above Median Mortality (for General Employees), sex distinct, with rates scaled by 97% for males and 99% for females	PubG-2010 Healthy Above Median Mortality (for General Employees), sex distinct, with rates scaled by 97% for males and 99% for females	75%/25% Male /Female
Legislator Option Factors and Annuity Values	5.85%	3.10%	3.10%	PubG-2010 Healthy Mortality (for General Employees), sex distinct, with rates scaled by 111% for males and 109% for females	PubG-2010 Disabled Mortality (for General Employees), sex distinct, with rates scaled by 134% for males and 99% for females	75%/25% Male /Female
Public Safety Option Factors and Annuity Values	5.85%	2.60%	1.42%	PubS-2010 Healthy Mortality (for Safety Employees), sex distinct, with rates scaled by 108% for males and 103% for females	PubS-2010 Disabled Mortality (for Safety Employees), sex distinct, with rates scaled by 122% for males and 121 %for females	85%/15% Male /Female
Teacher Option Factors and Annuity Values	5.85%	2.19%	1.42%	PubT-2010 Healthy Mortality (for Teachers), sex distinct, with rates scaled by 105% for males and 110% for females	PubT-2010 Disabled Mortality (for Teachers), sex distinct, with rates scaled by 105% for males and 113% for females	25%,/75%, Male /Female

Md. Code Regs. 22.02.01.04

Regulation .04 amended effective 43:16 Md. R. 901, eff. 8/15/2016; adopted effective 48:3 Md. R. 94, eff. 2/8/2021