FAQs - Transferring Pension Service Credit from Maryland Government Employees to AAC
Q. Can I transfer credited service earned from the State of Maryland or other local jurisdiction to Anne Arundel County Retirement Plan?
A. Yes, members of the Employees’ and the Detention Officers’ and Deputy Sheriffs’ Retirement Plans may apply for transferred service credit from the State of Maryland or another local jurisdiction in conjunction with Title 37 of the State Personnel and Pensions of the Annotated Code of Maryland.
Q. Who qualifies for transfer of credit?
A. To qualify for a transfer of credit you must:
- Submit a claim form within one year of employment with Anne Arundel County
- Be hired in a position that no longer allows participation in your former system
- No longer be permitted to accrue benefits in the previous system
- Begin employment immediately following termination of previous employment (no break between employment periods)
Q. What is the process, once I submit my request to transfer service?
A. First, we verify your prior service with your previous employer. When verification is received, the Benefits Office will send you a letter notifying you of the outcome of your request for transferred service.
Q. Will my transferred service be counted towards vesting in Anne Arundel County’s Retirement Plan?
A. Yes, transferred service counts towards vesting. However, your retirement benefits may be reduced if you work for Anne Arundel County for less than five years.
Q. Are there different types of service which can be transferred?
A. Yes, there are two types of service which can be transferred, non-contributory and contributory credited service. Plans which have contributory service require employee contributions; whereas, plans which have non-contributory service do not. Anne Arundel County’s Employees’ Retirement Plan has a contributory TIER 1 plan and a non-contributory TIER 2 plan. The Detention Officers’ and Deputy Sheriffs’ Plan is a contributory plan.
Q. If I wish to transfer combined service (contributory and non-contributory) how will this be handled?
A. If you are transferring contributory service into our contributory plan, a complete withdrawal of contributions and accrued interest you made in your previous system is required to be transferred into out plan. You must close your account with your previous employer, as you may receive service credit under both plans
If you are transferring contributory service into our non-contributory plan (TIER 2 of the Employees’ Retirement Plan), a complete withdrawal from your previous plan is required. You must close out your account and receive a refund of your contributions from the previous system. We will only accept your service; no transfer of funds from the prior system will be accepted into our non-contributory plan. You cannot receive credited service under both plans.
If you are transferring non-contributory service into our contributory plan, your non-contributory service will be reduced by the actuarial equivalent of the accumulated contributions that you would have made if this service had been contributory. You must close your account with the previous employer, as you cannot receive service credit under both plans.
If you are transferring service non-contributory service into our non-contributory plan (Tier 2 of the Employees’ Retirement Plan), it will be accepted as a non-contributory service and you will be required to close your account with the previous employer, as you cannot receive service credit under both plans.
Q. What would happen to my benefits if I retire shortly after I transfer my credited service?
A. If an individual retires within five years after transferring into a new system, the benefits payable with respect to the transferred service credit may not be greater than the benefits that would have been payable by the previous system. Therefore, if you retire prior to have five years of service with Anne Arundel County, your transferred service may be reduced to reflect the lesser of you prior plan’s or the County’s formula.