EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *sb0700* SENATE BILL 700 P6 4lr2741 SB 822/22 – B&T CF 4lr2751 By: Senator Carozza Introduced and read first time: January 30, 2024 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 2023 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 2023 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 700 (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) “Emergency medical technician” means a paid emergency medical 4 technician, as determined by the eligible governmental unit. 5 (2) “Emergency medical technician” does not include a volunteer 6 emergency medical technician. 7 (e) (1) “Firefighter” means: 8 (i) a paid firefighter, as determined by the eligible governmental 9 unit; or 10 (ii) a paid paramedic, as determined by the eligible governmental 11 unit. 12 (2) “Firefighter” does not include: 13 (i) a volunteer firefighter; or 14 (ii) a volunteer paramedic. 15 (f) “Law enforcement officer” means an individual certified by the Maryland 16 Police Training and Standards Commission as a law enforcement officer. 17 (g) (1) “Local plan” means a plan or any other arrangement of an eligible 18 governmental unit that is described in § 219(g)(5) of the Internal Revenue Code. 19 (2) “Local plan” does not include a plan established under § 457 of the 20 Internal Revenue Code. 21 (h) “9–1–1 SPECIALIST” MEANS AN INDIVIDUAL WHO IS: 22 (1) EMPLOYED AS A 9–1–1 SPECIALIST; AND 23 (2) CERTIFIED BY THE MARYLAND POLICE TRAINING AND 24 STANDARDS COMMISSION AS A LAW E NFORCEMENT OFFICER . 25 (I) “State system” has the meaning stated in § 20–101(pp) of this article. 26 31–2A–02. 27 Subject to § 31–2A–03 of this subtitle, the governmental units that are eligible to 28 participate in the Law Enforcement Officers’ Pension System are: 29 SENATE BILL 700 3 (1) counties; and 1 (2) municipal corporations. 2 31–2A–03. 3 (a) Subject to subsection (b) of this section, the legislative body of an eligible 4 governmental unit may approve participation by its law enforcement officers, firefighters, 5 [or] emergency medical technicians, OR 9–1–1 SPECIALISTS in the Law Enforcement 6 Officers’ Pension System if: 7 (1) the legislative body adopts a resolution in the form prescribed by the 8 Board of Trustees; and 9 (2) the eligible governmental unit participates in a State system or 10 operates a local plan, only if: 11 (i) at least 60% of the law enforcement officers, firefighters, [or] 12 emergency medical technicians, OR 9–1–1 SPECIALISTS of the eligible governmental unit 13 petition to become members of the Law Enforcement Officers’ Pension System; 14 (ii) the eligible governmental unit satisfies the requirements in 15 subsection (b) of this section; and 16 (iii) the legislative body approves participation of its law enforcement 17 officers, firefighters, [or] emergency medical technicians, OR 9–1–1 SPECIALISTS in lieu 18 of participation in the State system or local plan. 19 (b) An eligible governmental unit that operates a local plan or participates in a 20 State system may approve participation of its law enforcement officers, firefighters, [or] 21 emergency medical technicians, OR 9–1–1 SPECIALISTS in the Law Enforcement Officers’ 22 Pension System only if: 23 (1) the State system or local plan of the eligible governmental unit requires 24 member contributions at the same rate as the member contribution rate that would be 25 applicable to the law enforcement officers, firefighters, [or] emergency medical technicians, 26 OR 9–1–1 SPECIALISTS of the eligible governmental unit in the Law Enforcement Officers’ 27 Pension System; or 28 (2) the eligible governmental unit: 29 (i) does not provide for the employer pickup of member 30 contributions to the State system or local plan within the meaning of § 414(h)(2) of the 31 Internal Revenue Code; and 32 4 SENATE BILL 700 (ii) certifies that it will not become an approved employer under § 1 21–313 of this article on or after the effective date of participation. 2 (c) (1) If an eligible governmental unit does not satisfy the requirements 3 under subsection (b) of this section, the eligible governmental unit may submit a request to 4 the Board of Trustees to participate in the Law Enforcement Officers’ Pension System. 5 (2) The Board of Trustees shall consider a request made under paragraph 6 (1) of this subsection and determine whether any legislation is necessary to allow the 7 eligible governmental unit to participate in the Law Enforcement Officers’ Pension System. 8 (3) The Board of Trustees shall make recommendations to the Joint 9 Committee on Pensions regarding any legislation that it determines is necessary to allow 10 the eligible governmental unit to participate in the Law Enforcement Officers’ Pension 11 System. 12 31–2A–03.1. 13 (a) Except as provided in subsection (b) of this section, the effective date of 14 participation for an eligible governmental unit is July 1 of the year following the fiscal year 15 in which the eligible governmental unit elects to participate in the Law Enforcement 16 Officers’ Pension System. 17 (b) If an eligible governmental unit does not provide the Board of Trustees with 18 the necessary documentation to join the Law Enforcement Officers’ Pension System on or 19 before the effective date for the eligible governmental unit, the effective date shall be 20 postponed until July 1 of the second year following the fiscal year in which the eligible 21 governmental unit elects to participate in the Law Enforcement Officers’ Pension System. 22 31–2A–04. 23 If a law enforcement officer, firefighter, emergency medical technician, 9–1–1 24 SPECIALIST, or paramedic joins the Law Enforcement Officers’ Pension System on the 25 effective date, the member is entitled to credit for employment with the participating 26 governmental unit before the effective date. 27 31–2A–05. 28 (a) This section applies only to a local plan that is a qualified plan under § 401(a) 29 of the Internal Revenue Code and provides a defined benefit to its participants. 30 (b) If an eligible governmental unit approves participation in the Law 31 Enforcement Officers’ Pension System, the operation of the local plan or State system with 32 respect to the law enforcement officers, firefighters, emergency medical technicians, 33 9–1–1 SPECIALISTS, or paramedics terminates on the effective date. 34 (c) (1) On the effective date: 35 SENATE BILL 700 5 (i) the assets to the credit of the local plan or State system that 1 relate to the law enforcement officers, firefighters, emergency medical technicians, 9–1–1 2 SPECIALISTS, or paramedics who elect to become members shall be transferred to the Law 3 Enforcement Officers’ Pension System; and 4 (ii) the trustee or other administrative head of the local plan or State 5 system shall certify the proportion of the funds of the local plan or State system that 6 represents the accumulated contributions of the members as of that date. 7 (2) The accumulated contributions shall be credited to the respective 8 annuity savings accounts of the members in the Law Enforcement Officers’ Pension 9 System. 10 (3) The balance of the funds transferred to the Law Enforcement Officers’ 11 Pension System shall be offset against the special accrued liability to be funded by the 12 participating governmental unit as provided by § 21–306.1(d) of this article. 13 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 14 1, 2024. 15