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As previously indicated, petitioner elected to transfer from
the Retirement System to the Pension System on October 6, 1989.
On the application to transfer, petitioner specifically opted to
receive, in a lump sum, the distribution to which he was entitled
upon transferring from the Retirement System to the Pension
System.
As a result of the election to transfer, petitioner received
a distribution (the Transfer Refund) from the Retirement System
in the amount of $244,151.04. Petitioner received the Transfer
Refund in the form of a check dated October 31, 1989, from
Maryland State Retirement Systems.
Petitioner's Transfer Refund consisted of $16,338.93 in
previously taxed contributions made by petitioner during his
employment tenure with the State, $1,005.11 of employer "pick-up
contributions",9 and $226,807 of earnings in the form of
interest. The earnings and "pick-up contributions", which total
$227,812.11, constitute the taxable portion of the Transfer
Refund.
At the time that petitioner transferred from the Retirement
System to the Pension System and received the Transfer Refund, he
had attained the age of 52. If petitioner had not transferred to
the Pension System but had remained a member of the Retirement
System, he would have been entitled to retire and receive a
9 See sec. 414(h)(2).
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