EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0864*
SENATE BILL 864
P6 5lr3039
CF 5lr3036
By: Senator Muse
Introduced and read first time: January 28, 2025
Assigned to: Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
Employees’ Pension System – Town of Forest Heights Employees – Membership 2
FOR the purpose of authorizing certain employees of the Town of Forest Heights to 3
participate in the Employees’ Pension System; providing that membership in the 4
Employees’ Pension System is optional for certain employees of the Town of Forest 5
Heights; requiring certain employees of the Town of Forest Heights to make a certain 6
election on a certain date; providing for certain employees of the Town of Forest 7
Heights to receive service credit for certain prior service; providing that certain 8
employees of the Town of Forest Heights who become members of the Employees’ 9
Pension System after a certain date may not receive certain service credit; and 10
generally relating to employees of the Town of Forest Heights participating in the 11
Employees’ Pension System. 12
BY repealing and reenacting, without amendments, 13
Article – State Personnel and Pensions 14
Section 23–204(a)(1)(vi), (3), (4), and (5) and 31–109 15
Annotated Code of Maryland 16
(2024 Replacement Volume and 2024 Supplement) 17
BY repealing and reenacting, with amendments, 18
Article – State Personnel and Pensions 19
Section 31–111 20
Annotated Code of Maryland 21
(2024 Replacement Volume and 2024 Supplement) 22
BY adding to 23
Article – State Personnel and Pensions 24
Section 31–111.9 25
Annotated Code of Maryland 26
(2024 Replacement Volume and 2024 Supplement) 27
2 SENATE BILL 864
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – State Personnel and Pensions 3
23–204. 4
(a) (1) Membership in the Employees’ Pension System is optional for an 5
individual who is: 6
(vi) except as provided in subsection (g) of this section, an employee 7
of a participating governmental unit who is employed by the participating governmental 8
unit before the effective date of participation and who remains an employee of the 9
participating governmental unit through the effective date of participation. 10
(3) An individual described under paragraph (1)(vi) of this subsection who 11
elects to join the Employees’ Pension System shall make the election prior to the effective 12
date of participation by filing a written application with the Board of Trustees on a form 13
that the Board of Trustees provides. 14
(4) An election to join the Employees’ Pension System under this 15
subsection is a one–time, irrevocable election. 16
(5) If an election to join the Employees’ Pension System is not received by 17
the Board of Trustees within the period of time described in paragraph (2) or (3) of this 18
subsection, the individual may not elect to join the Employees’ Pension System while 19
employed in that position. 20
31–109. 21
(a) Subject to subsection (b) of this section, the legislative body of an eligible 22
governmental unit may approve participation by its employees in the Employees’ Pension 23
System if: 24
(1) the legislative body adopts a resolution in the form prescribed by the 25
Board of Trustees; and 26
(2) the eligible governmental unit operates a local plan, only if: 27
(i) at least 60% of the members of the local plan petition to become 28
members of the Employees’ Pension System; 29
(ii) the eligible governmental unit satisfies the requirements in 30
subsection (b) of this section; and 31
SENATE BILL 864 3
(iii) the legislative body approves participation of the eligible 1
governmental unit in the Employees’ Pension System as though the local plan were not in 2
operation. 3
(b) An eligible governmental unit that operates a local plan may approve 4
participation by its employees in the Employees’ Pension System only if: 5
(1) the local plan of the eligible governmental unit requires member 6
contributions at the same rate as the member contribution rate that would be applicable to 7
employees of the eligible governmental unit in the Employees’ Pension System; or 8
(2) the eligible governmental unit: 9
(i) does not provide for the employer pickup of member 10
contributions to the local plan within the meaning of § 414(h)(2) of the Internal Revenue 11
Code; and 12
(ii) certifies that it will not become an approved employer under § 13
21–313 of this article on or after the effective date of participation. 14
(c) (1) If an eligible governmental unit does not satisfy the requirements 15
under subsection (b) of this section, the eligible governmental unit may submit a request to 16
the Board of Trustees to participate in the Employees’ Pension System. 17
(2) The Board of Trustees shall consider a request made under paragraph 18
(1) of this subsection and determine whether any legislation is necessary to allow the 19
eligible governmental unit to participate in the Employees’ Pension System. 20
(3) The Board of Trustees shall make recommendations to the Joint 21
Committee on Pensions regarding any legislation that it determines is necessary to allow 22
the eligible governmental unit to participate in the Employees’ Pension System. 23
31–111. 24
(a) Except as provided in subsection (b) of this section and §§ 31–111.1, 31–111.3, 25
31–111.4, 31–111.5, 31–111.6, 31–111.7, [and] 31–111.8, AND 31–111.9 of this subtitle, if 26
an employee of a participating governmental unit joins the Employees’ Pension System on 27
the effective date, the employee is entitled to service credit for employment with the 28
participating governmental unit before the effective date. 29
(b) If an employee of the Baltimore Metropolitan Council elects to become a 30
member of the Employees’ Retirement System or the Employees’ Pension System, the 31
employee may not receive credit for service from July 1, 1992, to the effective date unless 32
the employee pays to the Board of Trustees the amount of the member contributions the 33
employee would have made during that period, plus regular interest. 34
31–111.9. 35 4 SENATE BILL 864
(A) AN EMPLOYEE OF THE TOWN OF FOREST HEIGHTS WHO ELECTS 1
MEMBERSHIP IN THE EMPLOYEES’ PENSION SYSTEM IN ACCORDANCE WITH § 2
23–204(A) OF THIS ARTICLE AND IS AN EMPLOYE E OF THE TOWN OF FOREST 3
HEIGHTS ON THE EFFECT IVE DATE SHALL RECEI VE ELIGIBILITY SERVI CE AND 4
CREDITABLE SERVICE I N THE EMPLOYEES’ PENSION SYSTEM EQUAL TO 50% OF THE 5
INDIVIDUAL’S PERIOD OF EMPLOYME NT WITH THE TOWN OF FOREST HEIGHTS 6
BEFORE THE EFFECTIVE DATE AS CERTIFIED BY THE TOWN OF FOREST HEIGHTS AS 7
OF THE EFFECTIVE DAT E. 8
(B) IF AN EMPLOYEE OR A F ORMER EMPLOYEE OF TH E TOWN OF FOREST 9
HEIGHTS BECOMES A MEM BER OF THE EMPLOYEES’ PENSION SYSTEM AT ANY TIME 10
AFTER THE EFFECTIVE DATE, THE EMPLOYEE MAY NOT RECEIVE SERVICE CREDIT 11
FOR EMPLOYMENT WITH THE TOWN OF FOREST HEIGHTS BEFORE THE EF FECTIVE 12
DATE. 13
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 14
1, 2025. 15