| 1 | 1 | | |
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| 2 | 2 | | |
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| 3 | 3 | | EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. |
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| 4 | 4 | | [Brackets] indicate matter deleted from existing law. |
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| 5 | 5 | | *sb1121* |
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| 6 | 6 | | |
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| 7 | 7 | | SENATE BILL 1121 |
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| 8 | 8 | | P6 4lr3388 |
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| 9 | 9 | | SB 264/23 – B&T |
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| 10 | 10 | | By: Senator Jackson |
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| 11 | 11 | | Introduced and read first time: February 9, 2024 |
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| 12 | 12 | | Assigned to: Rules |
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| 13 | 13 | | |
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| 14 | 14 | | A BILL ENTITLED |
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| 15 | 15 | | |
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| 16 | 16 | | AN ACT concerning 1 |
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| 17 | 17 | | |
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| 18 | 18 | | Law Enforcement Officers’ Pension System – Benefits 2 |
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| 19 | 19 | | |
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| 20 | 20 | | FOR the purpose of clarifying that a member of the Law Enforcement Officers’ Pension 3 |
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| 21 | 21 | | System is not required to make member contributions after accruing a certain 4 |
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| 22 | 22 | | amount of service credit; altering the method for calculating the retirement 5 |
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| 23 | 23 | | allowance for certain retirees of the Law Enforcement Officers’ Pension System for 6 |
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| 24 | 24 | | service earned on or after a certain date; altering the maximum benefit that certain 7 |
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| 25 | 25 | | retirees of the Law Enforcement Officers’ Pension System may receive; and generally 8 |
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| 26 | 26 | | relating to the Law Enforcement Officers’ Pension System. 9 |
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| 27 | 27 | | |
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| 28 | 28 | | BY repealing and reenacting, with amendments, 10 |
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| 29 | 29 | | Article – State Personnel and Pensions 11 |
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| 30 | 30 | | Section 26–204(a) and 26–401(b) 12 |
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| 31 | 31 | | Annotated Code of Maryland 13 |
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| 32 | 32 | | (2015 Replacement Volume and 2023 Supplement) 14 |
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| 33 | 33 | | |
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| 34 | 34 | | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15 |
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| 35 | 35 | | That the Laws of Maryland read as follows: 16 |
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| 36 | 36 | | |
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| 37 | 37 | | Article – State Personnel and Pensions 17 |
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| 38 | 38 | | |
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| 39 | 39 | | 26–204. 18 |
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| 40 | 40 | | |
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| 41 | 41 | | (a) (1) Except as provided in subsection (b) of this section, a member’s 19 |
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| 42 | 42 | | contribution rate is: 20 |
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| 43 | 43 | | |
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| 44 | 44 | | (i) 4% of the member’s earnable compensation received before July 21 |
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| 45 | 45 | | 1, 2011; 22 |
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| 46 | 46 | | |
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| 47 | 47 | | (ii) 6% of the member’s earnable compensation received from July 1, 23 |
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| 48 | 48 | | 2011 to June 30, 2012, both inclusive; and 24 2 SENATE BILL 1121 |
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| 49 | 49 | | |
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| 50 | 50 | | |
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| 51 | 51 | | |
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| 52 | 52 | | (iii) 7% of the member’s earnable compensation received on or after 1 |
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| 53 | 53 | | July 1, 2012. 2 |
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| 54 | 54 | | |
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| 55 | 55 | | (2) Notwithstanding paragraph (1) of this subsection, [after 32 years and 3 |
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| 56 | 56 | | 6 months of service as a member,] a member does not make any further contributions 4 |
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| 57 | 57 | | AFTER ACCRUING THE MAXIMUM AMOUNT OF SE RVICE CREDIT ALLOWED UNDER § 5 |
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| 58 | 58 | | 26–401(B) OF THIS TITLE. 6 |
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| 59 | 59 | | |
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| 60 | 60 | | 26–401. 7 |
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| 61 | 61 | | |
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| 62 | 62 | | (b) (1) Except as provided in paragraphs (2), (3), and (4) of this subsection, on 8 |
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| 63 | 63 | | retirement under this section, a member is entitled to receive a normal service retirement 9 |
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| 64 | 64 | | allowance that equals: 10 |
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| 65 | 65 | | |
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| 66 | 66 | | (I) the number of years of the member’s creditable service ON OR 11 |
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| 67 | 67 | | BEFORE JUNE 30, 2024, multiplied by 2% of the member’s average final compensation; 12 |
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| 68 | 68 | | AND 13 |
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| 69 | 69 | | |
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| 70 | 70 | | (II) THE NUMBER OF YEARS OF THE MEMBER ’S CREDITABLE 14 |
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| 71 | 71 | | SERVICE ON OR AFTER JULY 1, 2024, MULTIPLIED BY 2.5% OF THE MEMBER ’S 15 |
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| 72 | 72 | | AVERAGE FINAL COMPEN SATION. 16 |
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| 73 | 73 | | |
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| 74 | 74 | | (2) A member’s normal service retirement allowance under paragraph (1) 17 |
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| 75 | 75 | | of this subsection may not exceed [65%] 70% of the member’s average final compensation. 18 |
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| 76 | 76 | | |
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| 77 | 77 | | (3) (i) This paragraph applies only to a member who is not subject to 19 |
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| 78 | 78 | | the Law Enforcement Officers’ Modified Pension Benefit under Subtitle 2, Part II of this 20 |
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| 79 | 79 | | title. 21 |
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| 80 | 80 | | |
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| 81 | 81 | | (ii) Except as provided in paragraph (4) of this subsection, on 22 |
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| 82 | 82 | | retirement under this paragraph, the member is entitled to receive a normal service 23 |
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| 83 | 83 | | retirement allowance that equals: 24 |
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| 84 | 84 | | |
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| 85 | 85 | | 1. 2.3% of the member’s average final compensation 25 |
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| 86 | 86 | | multiplied by each year of the member’s first 30 years of creditable service; and 26 |
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| 87 | 87 | | |
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| 88 | 88 | | 2. 1% of the member’s average final compensation multiplied 27 |
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| 89 | 89 | | by each year of creditable service in excess of 30 years. 28 |
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| 90 | 90 | | |
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| 91 | 91 | | (4) Subject to paragraph (2) of this subsection, on retirement under this 29 |
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| 92 | 92 | | section, if a member’s annuity is greater than the member’s normal service retirement 30 |
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| 93 | 93 | | allowance calculated under paragraph (1) or (3) of this subsection, the member’s normal 31 |
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| 94 | 94 | | service retirement allowance shall equal the member’s annuity. 32 |
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| 95 | 95 | | |
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| 96 | 96 | | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 33 SENATE BILL 1121 3 |
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| 97 | 97 | | |
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| 98 | 98 | | |
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| 99 | 99 | | 1, 2024. 1 |
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