Retirement

• Accidental—Immediate upon membership, resulting from an injury sustained in the performance of duties, which renders a member totally and permanently disabled from performing the job duties of the position.
• Ordinary—10 years of CS, resulting from personal illness, which renders a member totally and permanently disabled from performing the job duties of the position.

• Monthly Vested Benefit—10 years of CS in ERS. Employees leave money in ERS and collect pension at normal service retirement age.
• Return of Contributions—Non-taxable direct rollover to an IRS approved plan (IRA, etc.). Taxable cash payment is subject to mandatory Federal and Maryland State taxes.

The death benefit can be effective after five years of CS.

• Beneficiary Designations—Retirement beneficiaries are designated on the initial Retirement Membership Application. As life changes occur, update your retirement beneficiaries. Designation of beneficiaries for life insurance will not update your retirement beneficiaries as they are independent.
• Occupational (Line of Duty) Death Benefit—Immediate upon membership, resulting from an injury sustained in the performance of duties.

Non-Occupational Death Benefit:

• 100 percent of annual salary—Five years of creditable service
• 100 percent of annual salary—One year of CS (Fire and Police)
• Refund of contributions and interest—All members

The military credit can be effective after 10 years of CS. Employees receive up to four years of prior active duty military service (DD-214 required) and are prohibited from receiving benefits elsewhere for the same period of active duty service, unless receiving a military pension.

Retirement Credit—Unused earned sick leave balances at retirement will be prorated and converted to months and used in the benefit calculation, increasing the amount of the monthly retirement benefit.

Sick Leave Conversion:

• General County employees—22 days equals one month of credit.
• Sworn Fire, Sworn Police (Pay Schedule VII) and members on Pay Schedule 1E —16 days equals one month of credit.

View or download a copy of the Notification of Settlement.

This Notice concerns the settlement of the certified Class by the Circuit Court for Harford County in a class action lawsuit entitled Brian J. Rowe, et al v. Baltimore County, MD, et al. Case No. 12-C-10-002273 OC (the “Lawsuit”). The certified Class includes certain retirees and members of the Employees Retirement System for Baltimore County (“BCERS”) who previously transferred service credit to BCERS from another noncontributory retirement plan or system. You are receiving this Court-approved Notice because you have been identified as a member of the certified Class.

Please read this notice carefully as it affects your legal rights.

What is the Lawsuit about? 

The Plaintiffs in the Lawsuit, like the members of the Class, all transferred service credit from a non-contributory retirement system to BCERS’ contributory retirement system when they became employed by Baltimore County. The Lawsuit claims that Baltimore County has adopted and utilized an illegal method for calculating a reduction (known as a “Deficiency”) to the past and future retirement benefits of persons who transferred service credit from a non-contributory retirement system to BCERS. The Plaintiffs allege that the method used by Baltimore County to calculate that “Deficiency” improperly utilizes a “valuation rate” of interest and not the “regular rate of interest” applied by BCERS to member contributions, which significantly reduces Class members’ retirement benefits and vested rights in a manner which the Plaintiffs contend violates State law. The Plaintiffs seek payment of all underpaid retirement benefits to those Class Members who have or will have retired by the time the Lawsuit concludes, as well as declaratory and injunctive relief requiring the Defendants to calculate and pay future retirement benefits to all Class Members consistent with State law. BCERS and the other Defendants in the Lawsuit dispute the Plaintiffs’ claims and contend that their “valuation rate” method for reducing retirement benefits for persons who transferred service credit from a non-contributory retirement system to BCERS is legal.

The Court has determined that the BCERS’s valuation rate calculation was in contravention with state law and has directed the BCERS to recalculate the Deficiency using the regular rate of interest compounded annually.

Why did I get this Notice?

You received this Notice because the Court has designated the Lawsuit a Class Action suit and certified a Class therein of which you are an identified Member. This Notice is intended to generally describe the nature of the Lawsuit, and your rights as a Member of the certified Class to the Settlement.

Who is part of the Class?

The certified Class includes those persons who transferred service credit to BCERS from a noncontributory retirement plan or system whose deficiency under Section 37-203(F)(2) of the State Personnel and Pension Article of the Maryland Annotated Code (or its predecessor statutes) was calculated or under County law will be calculated based on the “valuation rate” established by BCERS and not the “regular rate of interest” applied by BCERS to member contributions. The Class excludes those persons: (i) who withdrew their contributions from BCERS and did not later return to county service and repurchase service credit earned by them; (ii) who after becoming a member in BCERS, transferred their retirement service credit to another jurisdiction and did not subsequently transfer it back to BCERS; and (iii) who timely opt-out of the class;

• The Class has been divided into the following three groups or subclasses:
  Subclass 1: A subclass consisting of Class Members who transferred service credit to BCERS from a non-contributory retirement plan or system and retired from BCERS prior to July 1, 2007;
• Subclass 2: A subclass consisting of Class Members who transferred service credit to BCERS from a non-contributory retirement plan or system and retired from BCERS on or after July 1, 2007 but prior to July 1, 2010; and
• Subclass 3: A subclass consisting of Class Members who transferred service credit to BCERS from a non-contributory retirement plan or system and have retired or will retire on or after July 1, 2010.

You are receiving this notice because you have been identified as a member of the Class. You do not need to submit a claim to receive settlement benefits under the Settlement.

IF YOU WANT TO REMAIN A CLASS MEMBER AND BE ENTITLED TO ANY RELIEF OR BENEFIT AWARDED BY COURT, YOU DO NOT NEED TO DO ANYTHING

If you want to remain a member of the Class, you do not need to do anything. As a Class member, you will be entitled to any relief or settlement benefit awarded by Court relating to your Subclass and subject to any final judgment in the Lawsuit.

IF YOU WISH TO OBJECT TO THE SETTLEMENT, YOU MUST FILE YOUR WRITTEN OBJECTION WITH THE COURT AND MAIL IT TO COUNSEL IN THIS CASE NO LATER THAN SEPTEMBER 30, 2024

If you object to the settlement of this Lawsuit, you may write to the Court about why you object to the settlement. To do so, you must follow the procedure for objections described in Section 9 below and file your written objection with the Circuit Court for Harford County no later than September 30, 2024. You must also mail your written objection to the addresses for Class Counsel and BCERS’s Counsel set forth in Section 9 below, postmarked no later than September 30, 2024.

These Rights and Options are explained in more detail below. If you have questions concerning this Notice, the Lawsuit or your rights as a Class Member, you may contact the Court-appointed attorney for the Class, Sarah E. Meyer of Womble Bond Dickinson (US) LLP.

More Information

1. What is a Class Action?
   In a class action lawsuit, one or more people called Plaintiffs sue on behalf of others who may have similar claims. A court can certify a class to resolve the claims of persons with similar claims as a group.
    
2. Who represents the Class?
   The Class is represented by Court appointed Class Representatives. The appointed Class Representatives in the Lawsuit are Baltimore County retirees: Brian J. Rowe, David Willis, Joanne Wachter and Patrick Roddy. The Court has also appointed the Plaintiffs’ Counsel to serve as Class Counsel for the Class. Class Counsel is Sarah E. Meyer of Womble Bond Dickinson (US) LLP. Class Counsel may be contacted by telephone to 410-545-5807; by email to Sarah.Meyer@wbd-us.com or by mail to Sarah E. Meyer, Esquire, Womble Bond Dickinson (US) LLP. 100 Light Street, 26th Floor, Baltimore, Maryland 21201. If you want to be represented by your own lawyer, you may hire one at your own cost.
    
3. Why is there a Settlement?
   To avoid the costs and uncertainty of litigation on the remaining issues in the Lawsuit, including but not limited to interest on the underpaid benefits, the Plaintiffs, their attorneys and the County Defendants have agreed to resolve the remaining disputed issues involving the calculation of retirement benefits based on the “valuation method,” compounded monthly, the use of age 60, and the use of a single life annuity to calculate the monthly retirement benefit.
    
4. What relief does the Settlement provide to Class Members?
   The Settlement (along with prior Court Orders obtained by the Class Representatives) provides for the following benefits:
   In accordance with the recalculation of the Deficiency using the regular rate of interest compounded annually, and the class member’s age at retirement to determine the monthly deduction to be taken to account for the Deficiency, BCERS has revised the gross monthly benefits effective as of February 1, 2024 and paid February 29, 2024 and has since calculated the total amount each class member was underpaid from the date of retirement. This respective underpayment for each class member will be paid in the aggregate into a common fund with five (5%) percent interest from the date of retirement. Class members who were underpaid based on the BCERS’s revised calculations are entitled to reimbursement of these underpayments.
   
   Certain class members were not impacted by the recalculation or were impacted in a way that reduced the gross monthly benefit. The BCERS has agreed to and is now enjoined from seeking reimbursement from any class member or from reducing any gross monthly benefit as a result of the recalculation of the Deficiency.
   
   The aggregate amount of underpayments will be funded by the County Defendants through a fund (the “Common Fund”) administered by a Court appointed Settlement Administrator. The total potential value of the Common Fund is estimated to be approximately $4 million.
    
5. Will the Class Representatives receive any compensation for their efforts in bringing this Lawsuit?
   The Class Representatives will request a service award of between $15,000.00 and $25,000.00 each for their services as class representatives and their efforts in bringing the Lawsuit. The Court will make the final determination as to the amount to be paid to the Class Representatives at or after the Final Fairness Hearing. The service awards will be paid out of the common fund of settlement benefits.
    
6. How will Class Counsel be Paid?
   Class Counsel will ask the Court to give final approval of the Settlement at the Final Fairness Hearing and will also ask the Court for an award of attorneys’ fees, costs, and expenses up to a maximum of 30% of the Settlement Benefits. The Court will make the final determination as to the amounts to be paid to Class Counsel at or after the Final Fairness Hearing. The attorneys’ fees and expenses will be paid out of the common fund of settlement benefits.
    
7. How do I get paid Settlement Benefits under the Settlement?
   If you are a member of the Class, you (or your beneficiary) will be paid your respective Underpayment described above, by the Settlement Administrator from the Common Fund approximately 30 days after the Settlement obtains Final Approval and the approval of the Settlement is upheld on appeal (if any appeals are filed).
    
8. What do I give up to obtain relief under the Settlement?
   You are giving up the right to challenge the methodology used by BCERS to calculate the Deficiency and the monthly deduction relating thereto.
   This Lawsuit did not include any individualized considerations regarding your retirement benefit, including but not limited to, the amount of service credit transferred, the calculation of average final compensation, any drop or other service benefits, buyback of time, etc. Except with respect to the calculation of the Deficiency, this Lawsuit and settlement does not impact your rights to examine, question or challenge your retirement benefit.
    
9. How can I tell the Court that I do not like (object to) the Settlement?
   If you wish to object to the Settlement, you must file with the Court at 20 West Courtland Street, Bel Air, Maryland 21014, and also mail to both Class Counsel, Sarah E. Meyer, Esquire, Womble Bond Dickinson (US) LLP. 100 Light Street, 26th Floor, Baltimore, Maryland 21201 and to Defendants’ counsel, Glenn Marrow, County Attorney and Bambi Glenn, Assistant County Attorney, Baltimore County Office of Law, 400 Washington Avenue, 2nd Floor, Towson, Maryland 21204, a written Objection by the Objection Deadline of September 30, 2024 that complies with the following requirements. All Objections must be signed by the person(s) making the objection, or an attorney or legal guardian authorized to act on their behalf, and must set forth in detail what they object to about the certification of the Class and/or their Subclass, the reasons for each such objection, and any legal authority that they wish the Court to consider in support thereof. Objections must also include the objector’s full name, current address, email address and telephone number, and the full name, address, email and telephone number of their attorney (if any) and must indicate whether the objector or their counsel (if any) intends to appear in court to present argument or evidence regarding their Objection. The Court will schedule a hearing to consider timely Objections (if any). Objectors will be notified of the scheduling of such hearing by notice from the Clerk of the Court mailed to the address for an objector set forth in their Objection.
   
   You may, but need not, submit your written objection through an attorney of your choice. If you do make your objection through an attorney, you will be responsible for your own attorney’s fees and costs. Objections filed by an attorney must be filed through the Court’s electronic court filing system (“MDEC”).
   
   If you do not timely and properly make your objection, you will be deemed to have waived all objections to the settlement.
    
10. When and where will the Final Fairness Hearing Occur?
    The Court has preliminarily approved the Settlement and will hold a hearing to decide whether to give final approval to the Settlement. The purpose of the Final Fairness Hearing will be for the Court to determine whether the Settlement should be approved as fair, reasonable, adequate and in the best interests of the Class, to consider the award of attorneys’ fees and expenses to Class Counsel, and to consider the request for a service award to the Class Representatives.
    
    The Final Fairness Hearing will take place on December 20, 2024 at 9:30 a.m. in the Circuit Court for Harford County, 20 West Courtland Street, Bel Air, Maryland 21014. You may speak at the Final Fairness Hearing only if you have timely filed your written objection with the Court and mailed your written object to Class Counsel and Counsel for the County Defendants, and followed the procedures for letting the Court know that you intend to speak at the Final Fairness Hearing.

GETTING MORE INFORMATION ABOUT THE LAWSUIT

The above description of the Lawsuit is general and does not cover all of the issues and proceedings that have occurred in the Lawsuit. In order to see the history or file for the Lawsuit, you may visit the Court or access the docket of the Lawsuit at Maryland Judiciary Case Search Online (https://casesearch.courts.state.md.us) by inserting Case No. 12-C-10-002273 OC and the Court in the search screen. You may also contact Class Counsel using the information set forth in Section 2 of this Notice.

Do not address any questions about this notice to the Court.

By: Order of the Circuit Court for Harford County, Maryland

Affecting certain retirees and members of the Employees' Retirement System of Baltimore County. 

This Notice concerns the certification of a Class by the Circuit Court for Harford County in a class action lawsuit entitled Brian J. Rowe, et al v. Baltimore County, MD, et al. Case No. 12-C-10-002273 OC (the “Lawsuit”). The certified Class includes certain retirees and members of the Employees Retirement System for Baltimore County (“BCERS”) who previously transferred service credit to BCERS from another noncontributory retirement plan or system.

BACKGROUND

The Plaintiffs in the Lawsuit, like the members of the Class, all transferred service credit from a non-contributory retirement system to BCERS’ contributory retirement system when they became employed by Baltimore County. The Lawsuit claims that Baltimore County has adopted and utilized an illegal method for calculating a reduction (known as a “Deficiency”) to the past and future retirement benefits of persons who transferred service credit from a non-contributory retirement system to BCERS. The Plaintiffs allege that the method used by Baltimore County to calculate that “Deficiency” improperly utilizes a “valuation rate” of interest and not the “regular rate of interest” applied by BCERS to member contributions, which significantly reduces Class members’ retirement benefits and vested rights in a manner which the Plaintiffs contend violates State law. The Plaintiffs seek payment of all underpaid retirement benefits to those Class Members who have or will have retired by the time the Lawsuit concludes, as well as declaratory and injunctive relief requiring the Defendants to calculate and pay future retirement benefits to all Class Members consistent with State law. BCERS and the other Defendants in the Lawsuit dispute the Plaintiffs’ claims and contend that their “valuation rate” method for reducing retirement benefits for persons who transferred service credit from a non-contributory retirement system to BCERS is legal. The Court has not made any judgment or other determination of the Defendant’s liability in the Lawsuit.

FOR CLASS MEMBERS

The certified Class includes those persons who transferred service credit to BCERS from a noncontributory retirement plan or system whose deficiency under Section 37-203(F)(2) of the State Personnel and Pension Article of the Maryland Annotated Code (or its predecessor statutes) was calculated or under County law will be calculated based on the “valuation rate” established by BCERS and not the “regular rate of interest” applied by BCERS to member contributions. The Class excludes those persons: (i) who withdrew their contributions from BCERS and did not later return to county service and repurchase service credit earned by them; (ii) who after becoming a member in BCERS, transferred their retirement service credit to another jurisdiction and did not subsequently transfer it back to BCERS; and (iii) who timely opt-out of the class.

If you are a member of the Class described above, carefully review the Court-approved Notices for mailing to Class Members, as it provides important information and deadlines affecting the rights of Class members.

CONTACT INFORMATION

If you are not sure whether you fall within the Class or want more information about the lawsuit, contact the Court-appointed attorney for the Class:

Virginia W. Barnhart of Womble Bond Dickinson (US) LLP
100 Light Street, Floor 26
Baltimore, Maryland 21201
Phone: 410-545-5803
Email: Virginia.Barnhart@wbd-us.com