EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0329*
SENATE BILL 329
P6 5lr1864
By: Senator Jackson
Introduced and read first time: January 15, 2025
Assigned to: Budget and Taxation
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 service retirement 7
allowance that certain retirees of the Law Enforcement Officers’ Pension System 8
may receive; clarifying the eligibility requirement of certain Law Enforcement 9
Officers’ Pension System members in the Deferred Retirement Option Program; and 10
generally relating to the Law Enforcement Officers’ Pension System. 11
BY repealing and reenacting, with amendments, 12
Article – State Personnel and Pensions 13
Section 26–204(a), 26–401(b), and 26–401.1(a), (c), and (d) 14
Annotated Code of Maryland 15
(2024 Replacement Volume and 2024 Supplement) 16
BY repealing and reenacting, without amendments, 17
Article – State Personnel and Pensions 18
Section 26–401.1(b) 19
Annotated Code of Maryland 20
(2024 Replacement Volume and 2024 Supplement) 21
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 22
That the Laws of Maryland read as follows: 23
Article – State Personnel and Pensions 24
26–204. 25
2 SENATE BILL 329
(a) (1) Except as provided in subsection (b) of this section, a member’s 1
contribution rate is: 2
(i) 4% of the member’s earnable compensation received before July 3
1, 2011; 4
(ii) 6% of the member’s earnable compensation received from July 1, 5
2011, to June 30, 2012, both inclusive; and 6
(iii) 7% of the member’s earnable compensation received on or after 7
July 1, 2012. 8
(2) Notwithstanding paragraph (1) of this subsection, [after 32 years and 9
6 months of service as a member,] a member does not make any further contributions 10
AFTER ACCRUING THE A MOUNT OF SERVICE CRE DIT THAT WOULD PROVIDE T HE 11
MAXIMUM NORMAL SERVI CE RETIREMENT ALLOWA NCE ALLOWED UNDER § 12
26–401(B) OF THIS TITLE. 13
26–401. 14
(b) (1) Except as provided in paragraphs (2), (3), and (4) of this subsection, on 15
retirement under this section, a member is entitled to receive a normal service retirement 16
allowance that equals: 17
(I) the number of years of the member’s creditable service ON OR 18
BEFORE JUNE 30, 2025, multiplied by 2% of the member’s average final compensation; 19
AND 20
(II) THE NUMBER OF YEARS OF THE MEMBER ’S CREDITABLE 21
SERVICE ON OR AFTER JULY 1, 2025, MULTIPLIED BY 2.5% OF THE MEMBER ’S 22
AVERAGE FINAL COMPEN SATION. 23
(2) A member’s normal service retirement allowance under paragraph (1) 24
of this subsection may not exceed [65%] 70% of the member’s average final compensation. 25
(3) (i) This paragraph applies only to a member who is not subject to 26
the Law Enforcement Officers’ Modified Pension Benefit under Subtitle 2, Part II of this 27
title. 28
(ii) Except as provided in paragraph (4) of this subsection, on 29
retirement under this paragraph, the member is entitled to receive a normal service 30
retirement allowance that equals: 31
1. 2.3% of the member’s average final compensation 32
multiplied by each year of the member’s first 30 years of creditable service; and 33
SENATE BILL 329 3
2. 1% of the member’s average final compensation multiplied 1
by each year of creditable service in excess of 30 years. 2
(4) Subject to paragraph (2) of this subsection, on retirement under this 3
section, if a member’s annuity is greater than the member’s normal service retirement 4
allowance calculated under paragraph (1) or (3) of this subsection, the member’s normal 5
service retirement allowance shall equal the member’s annuity. 6
26–401.1. 7
(a) (1) In this section the following words have the meanings indicated. 8
(2) “DROP” means the Deferred Retirement Option Program established 9
under this section. 10
(3) “DROP member” means a member of the Law Enforcement Officers’ 11
Pension System who: 12
(i) is eligible to participate in the DROP as provided in subsection 13
(c) of this section; and 14
(ii) elects to participate in the DROP as provided in subsection (e) of 15
this section. 16
(4) “EMPLOYMENT ” MEANS EMPLOYMENT IN A POSITION ELIGIBLE 17
FOR MEMBERSHIP IN TH E LAW ENFORCEMENT OFFICERS’ PENSION SYSTEM. 18
(b) There is a DROP for eligible members of the Law Enforcement Officers’ 19
Pension System. 20
(c) (1) In this subsection, [“creditable service”] “EMPLOYMENT ” does not 21
include credit for unused sick leave as provided in § 20–206 of this article. 22
(2) A member of the Law Enforcement Officers’ Pension System is eligible 23
to participate in the DROP if the member has at least 25 and less than 32 years of 24
[creditable service] EMPLOYMENT . 25
(d) (1) In this subsection, [“creditable service”] “EMPLOYMENT ” does not 26
include credit for unused sick leave as provided in § 20–206 of this article. 27
(2) An eligible member may elect to participate in the DROP for a period 28
not to exceed the lesser of: 29
(i) 7 years; 30
4 SENATE BILL 329
(ii) the difference between 32 years and the member’s [creditable 1
service] EMPLOYMENT as of the date of the member’s election to participate in the DROP 2
and retire from the Law Enforcement Officers’ Pension System; or 3
(iii) a term selected by the member. 4
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 5
1, 2025. 6