EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb0692*
SENATE BILL 692
P6 5lr2229
CF HB 1034
By: Senator M. Jackson (Chair, Joint Committee on Pensions)
Introduced and read first time: January 26, 2025
Assigned to: Budget and Taxation
Committee Report: Favorable
Senate action: Adopted
Read second time: February 25, 2025
CHAPTER ______
AN ACT concerning 1
State Retirement and Pension System – Alterations and Clarifications 2
FOR the purpose of altering certain due dates of certain reports issued by the State 3
Retirement and Pension System; clarifying the eligibility requirement of State Police 4
Retirement System members in the Deferred Retirement Option Program; and 5
generally relating to the administration of the State Retirement and Pension 6
System. 7
BY repealing and reenacting, with amendments, 8
Article – State Personnel and Pensions 9
Section 21–116(d)(4), 21–123.2(f)(1), and 24–401.1(c) and (d) 10
Annotated Code of Maryland 11
(2024 Replacement Volume and 2024 Supplement) 12
BY repealing and reenacting, without amendments, 13
Article – State Personnel and Pensions 14
Section 24–401.1(a) and (b) 15
Annotated Code of Maryland 16
(2024 Replacement Volume and 2024 Supplement) 17
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
That the Laws of Maryland read as follows: 19
Article – State Personnel and Pensions 20
2 SENATE BILL 692
21–116. 1
(d) (4) On or before [September 1] NOVEMBER 1 each year, the Investment 2
Committee shall submit a report to the Board of Trustees, the Governor’s Office of Small, 3
Minority, and Women Business Affairs and, subject to § 2–1257 of the State Government 4
Article, the General Assembly on: 5
(i) the identity of the minority business enterprise brokerage and 6
investment management services firms used by the Investment Committee in the 7
immediately preceding fiscal year; 8
(ii) the percentage and dollar value of the assets that are under the 9
control of the Investment Committee that are under the investment control of minority 10
business enterprise brokerage and investment management services firms for each 11
allocated asset class; and 12
(iii) the measures the Investment Committee undertook in the 13
immediately preceding fiscal year in accordance with paragraph (2)(ii) of this subsection. 14
21–123.2. 15
(f) (1) On or before [December 1] DECEMBER 31 each year, the Board of 16
Trustees shall submit a report to the Senate Budget and Taxation Committee, the House 17
Appropriations Committee, and the Joint Committee on Pensions, in accordance with § 18
2–1257 of the State Government Article, and subject to § 4–335 of the General Provisions 19
Article, that includes a detailed description of: 20
(i) the investments, if any, made under this section; 21
(ii) the recommendations, if any, made under this section; 22
(iii) the actions, if any, taken by the Board of Trustees on the 23
recommendations made under this section; 24
(iv) the investment performance of any investments made under this 25
section; 26
(v) to the extent possible, an accounting of the fees and expenses 27
incurred under this section; and 28
(vi) to the extent possible, the ratio of funds invested in projects 29
under this section to the total percentage of venture capital funds raised in the State by all 30
sources. 31
24–401.1. 32
(a) (1) In this section the following words have the meanings indicated. 33 SENATE BILL 692 3
(2) “DROP” means the Deferred Retirement Option Program established 1
under this section. 2
(3) “DROP member” means a member of the State Police Retirement 3
System who: 4
(i) is eligible to participate in the DROP as provided in subsection 5
(c) of this section; and 6
(ii) elects to participate in the DROP as provided in subsection (e) of 7
this section. 8
(b) There is a DROP for eligible members of the State Police Retirement System. 9
(c) (1) (i) This paragraph applies to an individual who is a member of the 10
State Police Retirement System on or before June 30, 2011. 11
(ii) Except for the Secretary of State Police, a member of the State 12
Police Retirement System is eligible to participate in the DROP if the member: 13
1. has at least 22 and less than 32 years of [eligibility 14
service] EMPLOYMENT IN A POSITION ELIGIBLE FOR MEMBERSHIP IN THE STATE 15
POLICE RETIREMENT SYSTEM; and 16
2. is less than 60 years old. 17
(iii) The Secretary of State Police is eligible to participate in the 18
DROP if the Secretary has at least 22 years of [eligibility service] EMPLOYMENT IN A 19
POSITION ELIGIBLE FO R MEMBERSHIP IN THE STATE POLICE RETIREMENT 20
SYSTEM. 21
(2) (i) This paragraph applies to an individual who becomes a member 22
of the State Police Retirement System on or after July 1, 2011. 23
(ii) Except for the Secretary of State Police, a member of the State 24
Police Retirement System is eligible to participate in the DROP if the member: 25
1. has at least 25 years and less than 32 years of [eligibility 26
service] EMPLOYMENT IN A POSI TION ELIGIBLE FOR ME MBERSHIP IN THE STATE 27
POLICE RETIREMENT SYSTEM; and 28
2. is less than 60 years old. 29
(iii) The Secretary of State Police is eligible to participate in the 30
DROP if the Secretary has at least 25 years of [eligibility service] EMPLOYMENT IN A 31 4 SENATE BILL 692
POSITION ELIGIBLE FO R MEMBERSHIP IN THE STATE POLICE RETIREMENT 1
SYSTEM. 2
(d) An eligible member may elect to participate in the DROP for a period not to 3
exceed the lesser of: 4
(1) 7 years; 5
(2) the difference between 32 years and the member’s [eligibility service] 6
YEARS OF EMPLOYMENT IN A POSI TION ELIGIBLE FOR ME MBERSHIP IN THE STATE 7
POLICE RETIREMENT SYSTEM as of the date of the member’s election to participate in 8
the DROP and retire from the State Police Retirement System; 9
(3) the difference between age 60 and the member’s age as of the date of 10
the member’s election to participate in the DROP and retire from the State Police 11
Retirement System; or 12
(4) a term selected by the member. 13
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 14
1, 2025. 15
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.