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