EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0008*
SENATE BILL 8
P6 4lr1123
(PRE–FILED)
By: Senator Watson
Requested: October 24, 2023
Introduced and read first time: January 10, 2024
Assigned to: Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
State and Local Retirement and Pension System s – Service Credit – Returned 2
Peace Corps Volunteers 3
FOR the purpose of authorizing members of a State or local retirement and pension system 4
to receive certain service credit for volunteer service in the Peace Corps; and 5
generally relating to service credit in a State or local retirement or pension system 6
for Peace Corps volunteer service. 7
BY adding to 8
Article – State Personnel and Pensions 9
Section 38–301 through 38–305 to be under the new subtitle “Subtitle 3. Returned 10
Peace Corps Volunteer Service Credit” 11
Annotated Code of Maryland 12
(2015 Replacement Volume and 2023 Supplement) 13
SECTION 1. BE IT ENACTED BY TH E GENERAL ASSEMBLY OF MARYLAND, 14
That the Laws of Maryland read as follows: 15
Article – State Personnel and Pensions 16
SUBTITLE 3. RETURNED PEACE CORPS VOLUNTEER SERVICE CREDIT. 17
38–301. 18
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 19
INDICATED. 20
(B) “ACCUMULATED CONTRIBUT IONS”: 21
2 SENATE BILL 8
(1) WHEN USED IN RELATIO N TO A STATE SYSTEM, HAS THE MEANING 1
STATED IN § 20–101 OF THIS ARTICLE; AND 2
(2) WHEN USED IN RELATIO N TO A LOCAL RETIREM ENT OR PENSION 3
SYSTEM, HAS THE MEANING MOST CLOSELY ANALOGOUS TO THE MEANING STATED 4
IN § 20–101 OF THIS ARTICLE WITH IN THE CONTEXT OF TH E LOCAL RETIREMENT O R 5
PENSION SYSTEM . 6
(C) “MEMBER”: 7
(1) WHEN USED IN RELATIO N TO A STATE SYSTEM, HAS THE MEANING 8
STATED IN § 20–101 OF THIS ARTICLE; AND 9
(2) WHEN USED IN RELATIO N TO A LOCAL RETIREMENT O R PENSION 10
SYSTEM, HAS THE MEANING MOST CLOSELY ANALOGOUS TO THE MEANING STATED 11
IN § 20–101 OF THIS ARTICLE WITH IN THE CONTEXT OF TH E LOCAL RETIREMENT O R 12
PENSION SYSTEM . 13
(D) (1) “PEACE CORPS VOLUNTEER SERVICE” MEANS TIME A RETURNED 14
PEACE CORPS VOLUNTEER SPENT TRAINING TO BE, OR VOLUNTEERING A S, A PEACE 15
CORPS VOLUNTEER OR PEACE CORPS RESPONSE VOLUNTEER. 16
(2) “PEACE CORPS VOLUNTEER SERVI CE” DOES NOT INCLUDE TIM E 17
SPENT TRAINING TO BE, VOLUNTEERING AS , WORKING AS, OR OTHERWISE BEING : 18
(I) AN EMPLOYEE OF THE PEACE CORPS; 19
(II) A FELLOW RECEIVING TUI TION ASSISTANCE OR O THER 20
ACADEMIC SUPPORT FRO M THE PEACE CORPS; OR 21
(III) A RECRUITER FOR THE PEACE CORPS, INCLUDING A 22
CAMPUS AMBASSADOR . 23
(E) “REGULAR INTEREST ”: 24
(1) WHEN USED IN RE LATION TO A STATE SYSTEM, HAS THE MEANING 25
STATED IN § 20–101 OF THIS ARTICLE; AND 26
(2) WHEN USED IN RELATIO N TO A LOCAL RETIREM ENT OR PENSION 27
SYSTEM, HAS THE MEANING MOST CLOSELY ANALOGOUS TO THE MEANING STATED 28
IN § 20–101 OF THIS ARTICLE WITH IN THE CONTEXT OF THE LOCAL RET IREMENT OR 29
PENSION SYSTEM . 30
SENATE BILL 8 3
(F) (1) “RETURNED PEACE CORPS VOLUNTEER ” MEANS AN INDIVIDUAL 1
WHO HAS BEEN CERTIFI ED BY THE DIRECTOR OF THE PEACE CORPS AS HAVING 2
SERVED SATISFACTORIL Y AS A PEACE CORPS VOLUNTEER . 3
(2) “RETURNED PEACE CORPS VOLUNTEER ” INCLUDES A N 4
INDIVIDUAL WHO SERVE D AS A PEACE CORPS VOLUNTEER FOR M ORE THAN A YEAR 5
BEFORE DISCONTINUING SERVICE DUE TO MEDICAL HARDSHIP OR PERSONAL 6
HARDSHIP. 7
(3) “RETURNED PEACE CORPS VOLUNTEER ” DOES NOT INCLUDE AN 8
INDIVIDUAL WHO WAS I NVOLUNTARILY DISMISSED FRO M THE PEACE CORPS. 9
(G) “STATE OR LOCAL RETIRE MENT OR PENSION SYST EM” MEANS A 10
RETIREMENT OR PENSIO N SYSTEM OPERATED UN DER THE LAWS OF THE STATE OR 11
A POLITICAL SUBDIVIS ION OF THE STATE. 12
(H) “STATE SYSTEM” MEANS A RETIREMENT O R PENSION SYSTEM THAT IS 13
INCLUDED IN THE STATE RETIREMENT AND PENSION SYSTEM UNDER § 21–102 OF 14
THIS ARTICLE OTHER T HAN THE LEGISLATIVE PENSION PLAN EXCEPT TO THE 15
EXTENT PROVIDED BY T HE JOINT RESOLUTION SUBMITTED TO THE GENERAL 16
ASSEMBLY BY THE GENERAL ASSEMBLY COMPENSATION COMMISSION UNDER 17
ARTICLE III, § 15 OF THE MARYLAND CONSTITUTION. 18
38–302. 19
DURING A PERIOD THAT A MEMB ER OF A STATE OR LOCAL RETIRE MENT OR 20
PENSION SYSTEM IS AB SENT FROM EMPLOYMENT FOR PEACE CORPS VOLUNTEER 21
SERVICE, THE MEMBER OR THE ME MBER’S ESTATE, UNDER A STATE OR LOCAL 22
RETIREMENT OR PENSIO N SYSTEM, IS NOT ENTITLED TO : 23
(1) ORDINARY DISABILITY BENEFITS; 24
(2) ACCIDENTAL DISABILIT Y BENEFITS; 25
(3) DEATH BENEFITS ; 26
(4) OPTIONAL ALLOWANCES ; OR 27
(5) OTHER DISABILITY OR D EATH BENEFITS . 28
38–303. 29
4 SENATE BILL 8
(A) THIS SECTION APPLIES ONLY TO A MEMBER OF A STATE OR LOCAL 1
RETIREMENT OR PENSIO N SYSTEM WHO : 2
(1) DOES NOT WITHDRAW AN Y OF THE MEMBER ’S ACCUMULATED 3
CONTRIBUTIONS , UNLESS THE MEMBER RE DEPOSITS THE SUM WIT HDRAWN AS 4
PROVIDED UNDER SUBSE CTION (B) OF THIS SECTION; 5
(2) WITHIN 1 YEAR AFTER THE MEMBE R LEAVES PEACE CORPS 6
VOLUNTEER SERVICE, IS EMPLOYED BY THE STATE OR A POLITICAL SUBDIVISION 7
OF THE STATE; 8
(3) DOES NOT TAKE ANY EM PLOYMENT OTHER THAN THE 9
EMPLOYME NT DESCRIBED IN ITEM (2) OF THIS SUBSECTION , EXCEPT FOR 10
TEMPORARY EMPLOYMENT AFTER THE MEMBER : 11
(I) APPLIED FOR REEMPLOY MENT IN THE MEMBER ’S FORMER 12
CLASSIFICATION OR PO SITION IN THE STATE SERVICE; AND 13
(II) WAS REFUSED IMMEDIAT E REEMPLOYMENT FOR CAUSES 14
BEYOND THE MEMBER ’S CONTROL; AND 15
(4) APPLIES FOR SERVICE CREDIT WITH THE STATE OR LOCAL 16
RETIREMENT OR PENSIO N SYSTEM IN WHICH TH E MEMBER HELD MEMBER SHIP 17
BEFORE THE MEMBER ’S PEACE CORPS VOLUNTEER SERVI CE BEGAN. 18
(B) IF A MEMBER OF A STATE OR LOCA L RETIREMENT OR PENS ION SYSTEM 19
WHO IS ABSENT FROM E MPLOYMENT FOR PEACE CORPS VOLUNTEER SERVICE 20
WITHDRAWS ANY OF THE MEMBER’S ACCUMULATED CONTRI BUTIONS AND 21
REDEPOSITS THE SUM W ITHDRAWN WITH REGULA R INTEREST INTO THE STATE OR 22
LOCAL RETIREMENT OR PENSION SYST EM, THE MEMBER , IF OTHERWISE QUALIFI ED, 23
IS ENTITLED TO THE B ENEFITS UNDER THIS SECTION AS IF T HE WITHDRAWAL HAD 24
NOT BEEN MADE . 25
(C) EXCEPT AS OTHERWISE P ROVIDED IN THIS SUBT ITLE, A MEMBER OF A 26
STATE OR LOCAL RETIRE MENT OR PENSION SYST EM WHO IS ACTIVELY 27
REEMPLOYED UNDER SUBSE CTION (A)(2) OF THIS SECTION RETA INS THE STATUS 28
AND RIGHTS AS A MEMB ER DURING A PERIOD O F ABSENCE FROM EMPLO YMENT FOR 29
PEACE CORPS VOLUNTEER SERVICE. 30
(D) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , A MEMBER OF 31
A STATE OR LOCAL RETIRE MENT OR PENSION SYST EM SHALL RECEIVE SER VICE 32
CREDIT FOR A PERIOD OF ABSENCE FROM EMPL OYMENT WHILE IN PEACE CORPS 33
VOLUNTEER SERVICE IF: 34 SENATE BILL 8 5
(I) THE EMPLOYMENT OF TH E MEMBER UNDE R SUBSECTION 1
(A)(2) OF THIS SECTION IS A CTIVE OR THE EMPLOYE E IS REINSTATED AS A REGULAR 2
EMPLOYEE ON A LEAVE OF ABSENCE; AND 3
(II) MEMBERSHIP IN A STATE OR LOCAL RETIRE MENT OR 4
PENSION SYSTEM IS A REQUIREMENT OF EMPLO YMENT. 5
(2) FOR AN ABSENCE FOR PEACE CORPS VOLUNTEER SERVICE, 6
SERVICE CREDIT FOR T HE PEACE CORPS VOLUNTEER SERVICE MAY NOT EXCE ED 5 7
YEARS. 8
(E) A MEMBER OF A STATE OR LOCAL RETIRE MENT OR PENSION SYST EM 9
WHO RECEIVES SERVICE CREDIT FOR PEACE CORPS VOLUNTEER SERVICE UNDER 10
THIS SECTION MAY TRA NSFER THE CREDIT TO ANOTHER STATE OR LOCAL 11
RETIREMENT OR PENSIO N SYSTEM. 12
(F) THE SERVICE CREDIT FO R PEACE CORPS VOLUNTEER SERVICE THAT A 13
MEMBER OF A STATE SYSTEM RECEIVES UNDER THIS SECTION S HALL BE APPLIED 14
TO THE INDIVIDUAL ’S RETIREMENT ALLOWAN CE USING THE ACCRUAL RATE AT THE 15
TIME THE INDIVIDUAL RETIRES FROM A STATE SYSTEM. 16
38–304. 17
(A) (1) THIS SECTION APPLIES TO AN INDIVIDUAL WHO IS: 18
(I) A MEMBER OF A STATE SYSTEM; OR 19
(II) A FORMER MEMBER OF A STATE SYSTEM WHO IS E LIGIBLE 20
TO RECEIVE A BENEFIT UNDER § 29–302 OR § 29–303 OF THIS ARTICLE. 21
(2) THIS SECTION DOES NOT APPLY TO A RETIREE O F A STATE 22
SYSTEM. 23
(B) EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS SECTION , AN 24
INDIVIDUAL DESCRIBED IN SUBSECTION (A) OF THIS SECTION WHO HAS NOT MET 25
THE CONDIT IONS SET FORTH IN § 38–303(A)(2) THROUGH (4) OF THIS SUBTITLE IS 26
ENTITLED TO RECEIVE SERVICE CREDIT FOR PEACE CORPS VOLUNTEER SERVICE 27
ONLY ON THE ATTAINME NT OF 10 YEARS OF SERVICE CRE DIT EARNED THROUGH 28
EMPLOYMENT AS A MEMB ER OF A STATE SYSTEM. 29
(C) (1) AN INDIVIDUAL DESCRIB ED IN SUBSECTION (A) OF THIS SECTION 30
MAY NOT RECEIVE CRED IT FOR THAT PEACE CORPS VOLUNTEER SERVICE IF THE 31 6 SENATE BILL 8
INDIVIDUAL RECEIVES CREDIT FOR PEACE CORPS VOLUNTEER SERVICE FROM 1
ANOTHER RETIREMENT S YSTEM FOR WHICH RETI REMENT BENEFITS HAVE BEEN OR 2
WILL BE RECEIVED BY THE INDIVIDUAL . 3
(2) PARAGRAPH (1) OF THIS SUBSECTION D OES NOT APPLY TO : 4
(I) CREDIT FOR PEACE CORPS VOLUNTEER SERVICE 5
PROVIDED UNDER : 6
1. THE SOCIAL SECURITY ACT; OR 7
2. THE NATIONAL RAILROAD RETIREMENT ACT; OR 8
(II) DISABILITY PAYMENTS FROM A PENSION OR RE TIREMENT 9
SYSTEM. 10
(3) PEACE CORPS VOLUNTEER SERVICE CREDIT UNDER THIS 11
SECTION MAY NOT EXCE ED 5 YEARS. 12
(D) THE SERVICE CREDIT FOR PEACE CORPS VOLUNTEER SERVICE THAT 13
THE INDIVIDUAL RECEI VES UNDER THIS SECTI ON SHALL BE APPLIED TO T HE 14
INDIVIDUAL’S RETIREMENT ALLOWAN CE USING THE ACCRUAL RATE IN EFFECT AT 15
THE TIME THE INDIVID UAL SUBMITS AN APPLI CATION FOR PEACE CORPS 16
VOLUNTEER SERVICE CREDIT TO TH E STATE RETIREMENT AGENCY. 17
38–305. 18
A GOVERNMENTAL UNIT AU THORIZED T O ADMINISTER A STATE OR LOCAL 19
RETIREMENT OR PENSIO N SYSTEM MAY ADOPT R EGULATIONS TO CARRY OUT THIS 20
SUBTITLE. 21
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 22
1, 2024. 23