Harold L. and Gladys M. Humberson - Page 12

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          System is calculated by taking into account petitioner's "average           
          final compensation" and petitioner's years of "creditable                   
          service".  Md. Ann. Code, art. 73B, sec. 145(2) (1988).  Because            
          section 402(e)(4)(C) requires that we treat the Retirement System           
          and the Pension System as a single pension plan, we conclude                
          that, by transferring from the Retirement System to the Pension             
          System, petitioner did not forfeit his right to a future monthly            
          annuity, but simply elected to receive an initial single payment            
          to be followed by a reduced monthly annuity.  Effectively,                  
          petitioner's transfer allowed him to receive the "balance to the            
          credit" in two parts, an initial single payment to be followed by           
          a reduced monthly annuity, based on all of his years of                     
          creditable service, and on his salary during those years.  See              
          Green v. Commissioner, T.C. Memo. 1994-340.                                 
               The testimony of petitioner at trial reflects the foregoing.           
                    Q:  * * *  And you transferred to that Pension                    
               System from the Retirement System in 1990; is that                     
                    A:  Yes, sir.                                                     
                    Q:  Okay.  Do you know how your pension annuity is                
               currently calculated?                                                  
                    A:  It's calculated on your number of years in                    
               service and what your salary was.                                      
                    Q:  Okay.  And do you know that your annuity was                  
               calculated based on all of the years of service that                   
               you had, the entire time you've been employed with the                 
               State of Maryland?                                                     

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