EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *sb0822* SENATE BILL 822 P6 2lr2739 CF 2lr2740 By: Senator Carozza Introduced and read first time: February 7, 2022 Assigned to: Budget and Taxation A BILL ENTITLED AN ACT concerning 1 Law Enforcement Officers’ Pension System – Membership – 9–1–1 Specialists 2 FOR the purpose of authorizing certain 9–1–1 specialists to become members of the Law 3 Enforcement Officers’ Pension System as employees of a participating governmental 4 unit; and generally relating to membership in the Law Enforcement Officers’ Pension 5 System. 6 BY repealing and reenacting, with amendments, 7 Article – State Personnel and Pensions 8 Section 31–2A–01, 31–2A–03, 31–2A–04, and 31–2A–05 9 Annotated Code of Maryland 10 (2015 Replacement Volume and 2021 Supplement) 11 BY repealing and reenacting, without amendments, 12 Article – State Personnel and Pensions 13 Section 31–2A–02 and 31–2A–03.1 14 Annotated Code of Maryland 15 (2015 Replacement Volume and 2021 Supplement) 16 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17 That the Laws of Maryland read as follows: 18 Article – State Personnel and Pensions 19 31–2A–01. 20 (a) In this subtitle the following words have the meanings indicated. 21 (b) “Effective date” means the date that an eligible governmental unit commenced 22 or commences participation in the Law Enforcement Officers’ Pension System. 23 2 SENATE BILL 822 (c) “Eligible governmental unit” means a governmental unit that is eligible to 1 participate in the Law Enforcement Officers’ Pension System under § 31–2A–02 of this 2 subtitle. 3 (d) (1) “Firefighter” means: 4 (i) a paid firefighter, as determined by the eligible governmental 5 unit; or 6 (ii) a paid paramedic, as determined by the eligible governmental 7 unit. 8 (2) “Firefighter” does not include: 9 (i) a volunteer firefighter; or 10 (ii) a volunteer paramedic. 11 (e) “Law enforcement officer” means an individual certified by the Maryland 12 Police Training and Standards Commission as a law enforcement officer. 13 (f) (1) “Local plan” means a plan or any other arrangement of an eligible 14 governmental unit that is described in § 219(g)(5) of the Internal Revenue Code. 15 (2) “Local plan” does not include a plan established under § 457 of the 16 Internal Revenue Code. 17 (g) “9–1–1 SPECIALIST” MEANS AN INDIVIDUAL WHO IS: 18 (1) EMPLOYED AS A 9–1–1 SPECIALIST; AND 19 (2) CERTIFIED BY THE MARYLAND POLICE TRAINING AND 20 STANDARDS COMMISSION AS A LAW E NFORCEMENT OFFICER . 21 (H) “State system” has the meaning stated in § 20–101(pp) of this article. 22 31–2A–02. 23 Subject to § 31–2A–03 of this subtitle, the governmental units that are eligible to 24 participate in the Law Enforcement Officers’ Pension System are: 25 (1) counties; and 26 (2) municipal corporations. 27 31–2A–03. 28 SENATE BILL 822 3 (a) Subject to subsection (b) of this section, the legislative body of an eligible 1 governmental unit may approve participation by its law enforcement officers, 9–1–1 2 SPECIALISTS, or firefighters in the Law Enforcement Officers’ Pension System if: 3 (1) the legislative body adopts a resolution in the form prescribed by the 4 Board of Trustees; and 5 (2) the eligible governmental unit participates in a State system or 6 operates a local plan, only if: 7 (i) at least 60% of the law enforcement offi cers, 9–1–1 8 SPECIALISTS, or firefighters of the eligible governmental unit petition to become members 9 of the Law Enforcement Officers’ Pension System; 10 (ii) the eligible governmental unit satisfies the requirements in 11 subsection (b) of this section; and 12 (iii) the legislative body approves participation of its law enforcement 13 officers, 9–1–1 SPECIALISTS, or firefighters in lieu of participation in the State system or 14 local plan. 15 (b) An eligible governmental unit that operates a local plan or participates in a 16 State system may approve participation of its law enforcement officers , 9–1–1 17 SPECIALISTS, or firefighters in the Law Enforcement Officers’ Pension System only if: 18 (1) the State system or local plan of the eligible governmental unit requires 19 member contributions at the same rate as the member contribution rate that would be 20 applicable to the law enforcement officers, 9–1–1 SPECIALISTS, or firefighters of the 21 eligible governmental unit in the Law Enforcement Officers’ Pension System; or 22 (2) the eligible governmental unit: 23 (i) does not provide for the employer pickup of member 24 contributions to the State system or local plan within the meaning of § 414(h)(2) of the 25 Internal Revenue Code; and 26 (ii) certifies that it will not become an approved employer under § 27 21–313 of this article on or after the effective date of participation. 28 (c) (1) If an eligible governmental unit does not satisfy the requirements 29 under subsection (b) of this section, the eligible governmental unit may submit a request to 30 the Board of Trustees to participate in the Law Enforcement Officers’ Pension System. 31 4 SENATE BILL 822 (2) The Board of Trustees shall consider a request made under paragraph 1 (1) of this subsection and determine whether any legislation is necessary to allow the 2 eligible governmental unit to participate in the Law Enforcement Officers’ Pension System. 3 (3) The Board of Trustees shall make recommendations to the Joint 4 Committee on Pensions regarding any legislation that it determines is necessary to allow 5 the eligible governmental unit to participate in the Law Enforcement Officers’ Pension 6 System. 7 31–2A–03.1. 8 (a) Except as provided in subsection (b) of this section, the effective date of 9 participation for an eligible governmental unit is July 1 of the year following the fiscal year 10 in which the eligible governmental unit elects to participate in the Law Enforcement 11 Officers’ Pension System. 12 (b) If an eligible governmental unit does not provide the Board of Trustees with 13 the necessary documentation to join the Law Enforcement Officers’ Pension System on or 14 before the effective date for the eligible governmental unit, the effective date shall be 15 postponed until July 1 of the second year following the fiscal year in which the eligible 16 governmental unit elects to participate in the Law Enforcement Officers’ Pension System. 17 31–2A–04. 18 If a law enforcement officer, firefighter, 9–1–1 SPECIALIST, or paramedic joins the 19 Law Enforcement Officers’ Pension System on the effective date, the member is entitled to 20 credit for employment with the participating governmental unit before the effective date. 21 31–2A–05. 22 (a) This section applies only to a local plan that is a qualified plan under § 401(a) 23 of the Internal Revenue Code and provides a defined benefit to its participants. 24 (b) If an eligible governmental unit approves participation in the Law 25 Enforcement Officers’ Pension System, the operation of the local plan or State system with 26 respect to the law enforcement officers, firefighters, 9–1–1 SPECIALISTS, or paramedics 27 terminates on the effective date. 28 (c) (1) On the effective date: 29 (i) the assets to the credit of the local plan or State system that 30 relate to the law enforcement officers, firefighters, 9–1–1 SPECIALISTS, or paramedics who 31 elect to become members shall be transferred to the Law Enforcement Officers’ Pension 32 System; and 33 SENATE BILL 822 5 (ii) the trustee or other administrative head of the local plan or State 1 system shall certify the proportion of the funds of the local plan or State system that 2 represents the accumulated contributions of the members as of that date. 3 (2) The accumulated contributions shall be credited to the respective 4 annuity savings accounts of the members in the Law Enforcement Officers’ Pension 5 System. 6 (3) The balance of the funds transferred to the Law Enforcement Officers’ 7 Pension System shall be offset against the special accrued liability to be funded by the 8 participating governmental unit as provided by § 21–306.1(d) of this article. 9 SECTION 2. AND BE IT FURTHER EN ACTED, That this Act shall take effect July 10 1, 2022. 11