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09.32.02 - Unemployment Insurance - Final Regulations

FINAL ACTION ON REGULATIONS
MARYLAND REGISTER, VOLUME 44, ISSUE 8,
FRIDAY, APRIL 14, 2017

Subtitle 32 UNEMPLOYMENT INSURANCE

09.32.02 Claims for Benefits

Labor and Employment Article, §§8-101, 8-305, and 8-1008, Annotated Code of Maryland

Notice of Final Action
[17-074-F]

On March 30, 2017, the Secretary of Labor, Licensing, and Regulation adopted amendments to Regulation .14 under COMAR 09.32.02 Claims for Benefits. This action, which was proposed for adoption in 44:3 Md. R. 199—200 (February 3, 2017), has been adopted as proposed.

Effective Date: April 24, 2017.

KELLY M. SCHULZ
Secretary of Labor, Licensing, and Regulation

.14 [Pension] Retirement Payments.
  A. Definitions.
    (1) “Contributory [pension] retirement plan” means a plan providing a retirement payment under which an employing unit pays or has paid some, but not all, of the premiums or contributions, and the claimant has paid some, but not all, of the premiums or contributions.
    (2) “Lump-sum [pension] retirement payment” means the gross amount of a [pension] retirement payment that is paid in one payment. Any retirement payment [pension] paid in more than one payment is not a lump-sum [pension] retirement payment, even if the installments are paid irregularly.
    (3) “Noncontributory [pension] retirement payment” means a plan providing a retirement payment under which an employing unit pays or has paid all premiums or contributions and the claimant pays or has paid none.
    [(4) “Pension payment” means the gross amount payable to a claimant from a pension plan or system which is based on the previously insured work of that claimant. Payment from a plan to a claimant who did not perform the work, for example, spouse, child, or parent, is not a pension payment.]
    [(5)](4) “Periodic [pension payment] retirement payment” means the gross amount of a retirement payment payable on a recurring basis.
  B. Deductible [Pension] Retirement Payments.
    (1) [Pension] Retirement payments shall be deducted from benefits if the payments are made under a plan maintained or contributed to by a base period employer.
    (2) Deductible [pension] retirement payments include but are not limited to:
      (a)—(k) (text unchanged)
  C. Nondeductible [Pension] Retirement Payments. [Pension] Retirement payments may not be deducted from benefits if the payments derive from:
    (1)—(5) (text unchanged)
  D. Method of Deduction.
    (1) Verification.
      (a) A claimant shall provide documentary proof of any [pension] retirement payment. When the claimant cannot provide the verification, the Secretary shall request verification from the employer.
      (b) When a claimant cannot provide documentary proof of the [pension] retirement payment, the claimant’s sworn statement shall be accepted subject to employer verification and may not affect payment of claims.
    (2) Calculation. Deductible [pension] retirement payments shall be deducted from benefits payable to the claimant as follows:
      (a) 100 percent of each noncontributory [pension] retirement payment paid by or originating from a base period employer shall be fully deducted from basic weekly benefit amounts payable throughout the claimant’s benefit year;
      (b) 50 percent of each contributory [pension] retirement payment paid by or originating from a base period employer shall be deducted from basic weekly benefit amounts payable throughout the claimant’s benefit year;
      (c) A periodic contributory or noncontributory [pension] retirement payment prorated by week shall be deducted from the claimant’s basic weekly benefit amount beginning with the first week in which the effective date of the [pension] retirement payment falls and for which the claimant has filed a continued claim.
    (3) Dependents’ Allowance. The deduction of [pension] retirement payments from benefits paid does not affect the weekly benefit amount for purposes of calculating the dependents’ allowance, except that if no benefit payment is due after the deduction, the dependents’ allowance is not payable.
    (4) Duration of Benefit Payments. Benefits reduced as a result of a [pension] retirement payment deduction are payable until the maximum benefit amount is exhausted for the claimant’s benefit year, provided all of the eligibility requirements of the Unemployment Insurance Law are met.
    (5) Effect on Partial Earnings. If a claimant has partial earnings in any week for which the claimant’s weekly benefit amount is to be reduced by a deductible [pension]retirement payment amount, the partial benefits are computed first, and the [deduction for pensions]retirement payment is deducted from the remainder, if any.
  E. Lump Sum [Pensions] Retirement Payments.
    (1) Deductible Lump Sum [Pension] Retirement Payments.
      (a) Except as otherwise provided, a lump sum [pension] retirement payment shall be deducted from benefits if the payment is made under a plan maintained or contributed to [in whole or in part]by a base period employer.
      (b) A deductible lump sum [pension] retirement payment shall be deducted from benefits payable to the claimant only if the payment is actually received within the claimant’s first benefit year.
      (c) A deductible lump sum [pension] retirement payment shall be deducted from benefits payable to the claimant as follows: A lump sum [pension] retirement payment shall be allocated by week, beginning with the week the claimant was separated from employment, according to the claimant’s last weekly rate of pay.
      (d) The allocation in §E(1)(c) of this regulation extends for as long as the [contributing] employer maintaining or contributing to the plan is a base period employer.
      (e) Other calculations concerning deductible lump sum [pension] retirement payments shall be made pursuant to §D of this regulation.
    (2) Nondeductible Lump Sum [Pension] Retirement Payments.
      (a) A lump sum [pension] retirement payment or lump sum profit-sharing payment may not be deducted from benefits if the:
        (i)—(iii) (text unchanged)
      (b) With regard to §E(2)(a)(iii) of this regulation, the:
        (i) Claimant shall provide documentation to the Secretary that states that the lump sum [pension] retirement payment has been placed in a qualified retirement plan, and gives the name of the institution or fund in which the payment was placed;
        (ii) Lump sum [pension] retirement payment shall be verified as set forth in §D(1) of this regulation.