1. (a) This section does not apply to a disability retiree:

   1. (1)

      1. (i) who is a retiree of:

         1. 1. the State Police Retirement System;
         2. 2. the Law Enforcement Officers' Pension System;
         3. 3. the Local Fire and Police System; or
         4. 4. the Employees' Retirement System or the Employees' Pension System, if at the time of retirement the retiree was a law enforcement officer for a participating employer under § 26-201(a) of this article; and
      2. (ii) who is reemployed by a participating employer in any position other than a probationary status law enforcement officer, a law enforcement officer, as defined in § 1-101 of the Public Safety Article, or chief; or

   2. (2)

      1. (i) whose average final compensation was less than the minimum annual salary on the standard State pay scale as of January 1 of the preceding calendar year; and
      2. (ii) who is reemployed by a participating employer.

2. (b) The Board of Trustees shall reduce the pension of a retiree on ordinary disability if:

   1. (1) the retiree is under normal retirement age;

   2. (2) the medical board certifies in a report to the Board of Trustees that the retiree is employed by a participating employer at an annual compensation that is greater than the difference between:

      1. (i) the retiree's retirement allowance at retirement; and

      2. (ii) the sum of:

         1. 1. the retiree's average final compensation; and
         2. 2. $5,000, which shall be adjusted annually by the percentage growth in the Consumer Price Index, as defined in § 29-401 of this title, in the calendar year preceding the fiscal year, and each subsequent adjustment shall be made on the amount calculated in the prior fiscal year;
   3. (3) the Board of Trustees agrees with the medical board's report; and
   4. (4) the retiree's allowance has not been temporarily suspended as provided in § 29-115 of this subtitle.

3. (c) The Board of Trustees shall reduce the pension of a retiree who has been receiving an ordinary disability retirement allowance for:

   1. (1) less than 10 years, by $1 for every $2 that the retiree's current compensation exceeds the limit under subsection (b) of this section; or
   2. (2) at least 10 years, by $1 for every $5 that the retiree's current compensation exceeds the limit under subsection (b) of this section.
4. (d) The pension to be reduced under this section is the pension at retirement without any cost-of-living adjustment.

Added by Acts 1994, c. 6, § 2, eff. Oct. 1, 1994. Amended by Acts 1996, c. 620, § 1, eff. July 1, 1996; Acts 1998, c. 469, § 1, eff. July 1, 1998; Acts 2002, c. 363, § 1, eff. July 1, 2002; Acts 2005, c. 489, § 1, eff. July 1, 2005; Acts 2005, c. 518, § 1, eff. July 1, 2005; Acts 2006, c. 479, § 1, eff. July 1, 2006; Acts 2016, c. 212, § 1, eff. July 1, 2016; Acts 2017, c. 279, § 1, eff. July 1, 2017; Acts 2023, c. 49, § 2, eff. April 11, 2023; Acts 2025, c. 774, § 1, eff. July 1, 2025; Acts 2025, c. 775, § 1, eff. July 1, 2025.

Formerly Art. 73B, §§ 2-404, 3-404, 4-404, 5-404, 6-403, 7-404, 8-402, 10-218.