EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. Underlining indicates amendments to bill. Strike out indicates matter stricken from the bill by amendment or deleted from the law by amendment. *hb0966* HOUSE BILL 966 P6 4lr2086 CF SB 706 By: Delegate Forbes (Chair, Joint Committee on Pensions) Introduced and read first time: February 2, 2024 Assigned to: Appropriations Committee Report: Favorable with amendments House action: Adopted Read second time: March 1, 2024 CHAPTER ______ AN ACT concerning 1 Law Enforcement Officers’ Pension System – Reemployment as Sheriff 2 FOR the purpose of requiring the Board of Trustees for the State Retirement and Pension 3 System to suspend the retirement benefit of a retiree of the Law Enforcement 4 Officers’ Pension System who is elected as a sheriff within a certain period of time 5 after the date of retirement; providing for the reinstatement of a benefit; providing 6 that a suspension of a benefit does not affect survivor benefits; and generally relating 7 to reemployment of retirees of the Law Enforcement Officers’ Pension System. 8 BY repealing and reenacting, with amendments, 9 Article – State Personnel and Pensions 10 Section 26–403 11 Annotated Code of Maryland 12 (2015 Replacement Volume and 2023 Supplement) 13 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 14 That the Laws of Maryland read as follows: 15 Article – State Personnel and Pensions 16 26–403. 17 (a) Except as provided in [subsection (f)] SUBSECTIONS (F) AND (G) of this 18 section, a retiree who is receiving a service retirement allowance may accept employment 19 2 HOUSE BILL 966 with a participating employer on a permanent, temporary, or contractual basis, without 1 any reduction in retirement allowance. 2 (b) A reemployed retiree who is receiving a service retirement allowance may not 3 receive creditable service or eligibility service during the period of reemployment. 4 (c) The retiree’s compensation during the period of reemployment may not be 5 subject to the employer pickup provisions of § 21–303 of this article or any reduction or 6 deduction as a member contribution for pension or retirement purposes. 7 (d) The State Retirement Agency shall institute appropriate reporting procedures 8 with the affected payroll systems to ensure compliance with this section. 9 (e) (1) Immediately on the employment of any retiree, a participating 10 employer shall notify the State Retirement Agency of the type of employment and the 11 anticipated earnings of the retiree. 12 (2) At least once each year, in a format specified by the State Retirement 13 Agency, each participating employer shall provide the State Retirement Agency with a list 14 of all employees included on any payroll of the employer, the Social Security numbers of 15 the employees, and their earnings for that year. 16 (f) An individual who is receiving a service retirement allowance under this title 17 may not be employed within 45 days of the date the individual retired, on a permanent, 18 temporary, or contractual basis, by: 19 (1) the State or other participating employer; or 20 (2) a withdrawn participating governmental unit, if the retiree was an 21 employee of the withdrawn participating governmental unit while the withdrawn 22 governmental unit was a participating employer. 23 (G) (1) THIS SECTION APPLIES TO A RETIREE WHO IS ELECTED AS A 24 SHERIFF LESS THAN 5 YEARS 1 YEAR AFTER THE RETIREE ’S DATE OF RETIREMENT . 25 (2) THE BOARD OF TRUSTEES SHALL , AFTER GIVING NOTICE , 26 TEMPORARILY SUSPEND THE RETIREE’S ALLOWANCE AS OF TH E DATE THE RETIREE 27 BEGINS SERVING AS A SHERIFF. 28 (3) (I) ON RECEIVING SATISFAC TORY DOCUMENTATION T HAT THE 29 INDIVIDUAL IS NO LON GER SERVING AS A SHE RIFF, THE BOARD OF TRUSTEES 30 SHALL REINSTATE THE RETIREE’S ALLOWANCE WITH ACC UMULATED 31 COST–OF–LIVING ADJUSTMENTS F ROM THE DATE THE ALL OWANCE WAS 32 TEMPORARILY SUSP ENDED. 33 HOUSE BILL 966 3 (II) THE RETIREE’S ALLOWANCE WILL BE REINSTATED ON THE 1 FIRST DAY OF THE MON TH FOLLOWING THE MON TH IN WHICH THE RETI REE CEASED 2 SERVING AS A SHERIFF . 3 (4) IF A RETIREE WHOSE AL LOWANCE IS TEMPORARI LY SUSPENDED 4 DIES WHILE SERVING A S A SHERIFF, SURVIVORSHIP BENEFIT S SELECTED BY THE 5 MEMBER AT THE TIME O F RETIREMENT SHALL B E PAID TO: 6 (I) THE SURVIVING SPOUSE OR CHILD, IN ACCORDANCE WITH § 7 26–402 OF THIS SUBTITLE ; OR 8 (II) IF THERE IS NO SURVI VING SPOUSE OR CHILD , THE 9 DESIGNATED BENEFICIA RY IN ACCORDANCE WITH § 21–403 OF THIS ARTICLE. 10 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall be construed to 11 apply only prospectively and may not be applied or interpreted to have any effect on or 12 application to any individual who retires before the effective date of this Act. 13 SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 14 July 1, 2024. 15 Approved: ________________________________________________________________________________ Governor. ________________________________________________________________________________ Speaker of the House of Delegates. ________________________________________________________________________________ President of the Senate.