State Retirement and Pension System - Administration and Clarification

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING 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.
Italics indicate opposite chamber/conference committee amendments.
*hb1139*

HOUSE BILL 1139
P6 (6lr2466)
ENROLLED BILL
— Appropriations/Budget and Taxation —
Introduced by Delegate Forbes (Chair, Joint Committee on Pensions)

Read and Examined by Proofreaders:

_______________________________________________
Proofreader.
_______________________________________________
Proofreader.

Sealed with the Great Seal and presented to the Governor, for his approval this

_______ day of _________ ______ at ________________________ o’clock, ________M.

______________________________________________
Speaker.

CHAPTER ______

AN ACT concerning 1

State Retirement and Pension System – Eligible Governmental Units 2
Administration and Clarification 3

FOR the purpose of altering the dates by which certain local employers are required to pay 4
the State Retirement and Pension System a certain amount of the charges certified to 5
the local employer; clarifying the interest rate a county government is charged for 6
certain delinquent amounts owed to the State Retirement and Pension System; 7
clarifying that an eligible governmental unit of the Employees’ Pension System, the 8
Law Enforcement Officers’ Pension System, and the Correctional Officers’ 9
Retirement System that satisfies certain requirements is eligible to participate in a 10
certain system of the State Retirement and Pension System only if all employees of 11
the eligible governmental unit participate in the certain system; clarifying the list of 12
positions that ha ve immediate vesting rights in the State Retirement and Pension 13
System; clarifying that certain documentation by an eligible governmental unit 14
electing to participate in the Employees’ Pension System, the Law Enforcement 15
2 HOUSE BILL 1139

Officers’ Pension System, or the Co rrectional Officers’ Retirement System shall 1
include certain properly completed election forms; and generally relating to 2
participating governmental units in the State Retirement and Pension System. 3

BY repealing and reenacting, with amendments, 4
Article – State Personnel and Pensions 5
Section 21–309.1, 21–309.2, 23–204(a), 29–304(20) through (23), 31–109, 31–109.1, 6
31–111, 31 –2A–03, 31 –2A–03.1, 31 –2A–04, 31 –2B–03, 31 –2B–03.1, and 7
31–2B–04 8
Annotated Code of Maryland 9
(2024 Replacement Volume and 2025 Supplement) 10

BY repealing 11
Article – State Personnel and Pensions 12
Section 29–304(19) 13
Annotated Code of Maryland 14
(2024 Replacement Volume and 2025 Supplement) 15

BY repealing and reenacting, without amendments, 16
Article – State Personnel and Pensions 17
Section 31–101(a), (d), and (e), 31–102, 31–2A–01(a) and (c), 31–2A–02, 31–2B–01(a) 18
and (c), and 31–2B–02 19
Annotated Code of Maryland 20
(2024 Replacement Volume and 2025 Supplement) 21

BY repealing and reenacting, with amendments, 22
Article – State Personnel and Pensions 23
Section 31–109, 31–109.1, 31–2A–03, 31–2A–03.1, 31–2B–03, and 31–2B–03.1 24
Annotated Code of Maryland 25
(2024 Replacement Volume and 2025 Supplement) 26

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 27
That the Laws of Maryland read as follows: 28

Article – State Personnel and Pensions 29

21–309.1. 30

(a) (1) In this section the following words have the meanings indicated. 31

(2) “Local employee” has the meaning stated in § 21–304 of this subtitle. 32

(3) “Local employer” has the meaning stated in § 21–304 of this subtitle. 33

(b) On or before December 1 of each year, the Board of Trustees shall determine 34
and certify the amounts payable by each local employer under § 21–304(b)(4) of this subtitle 35
for the next fiscal year. 36
HOUSE BILL 1139 3

(c) On or before October 1 , January 1, [April 1] APRIL 16, and June 1 of each 1
fiscal year, each local employer shall pay to the Board of Trustees 25% of the amount of the 2
charges certified to the local employer by the Board of Trustees under subsection (b) of this 3
section. 4

(d) (1) The Secretary of the Board of Trustees may allow a grace period not to 5
exceed 10 calendar days for payment of the amounts certified under this section. 6

(2) If a local employer does not pay the amounts required under this section 7
within the time requir ed, on notification by the Secretary of the Board of Trustees that a 8
delinquency exists, the State Comptroller immediately: 9

(i) shall withhold the delinquent amounts, including interest on the 10
delinquent amounts at a rate of 7.75% a year, from any installment due the local employer 11
from the General State School Fund; and 12

(ii) shall pay to the Board of Trustees the delinquent amounts, 13
including interest, withheld under this paragraph. 14

(e) On receipt of the payments from each local employer or the State Comptroller, 15
the Board of Trustees shall credit these amounts to the accumulation fund of the 16
appropriate State system. 17

21–309.2. 18

(a) For purposes of making determinations under this section, the Teachers’ 19
Pension System and the Teachers’ Retirement System shall be considered together as one 20
State system. 21

(b) (1) For fiscal year 2026, each county government shall pay to the Board of 22
Trustees on or before January 1, 2026, the amount specified for that county government 23
under § 21–304(b)(6) of this subtitle. 24

(2) Beginning in fiscal year 2027, each county government shall pay to the 25
Board of Trustees on or before each September 1 the amount specified for that county 26
government under § 21–304(b)(6) of this subtitle. 27

(c) (1) The Secretary of the Board of Trustees may allow a grace period not to 28
exceed 10 calendar days for payment of the amounts certified under this section. 29

(2) If a county government does not pay the amounts required under this 30
section within the time required, on notification by the Secretary of the Board of Trustees 31
that a delinquency exists, the State Comptroller immediately shall: 32

(i) exercise the right of setoff against any money due or coming due 33
to the delinquent county government; and 34
4 HOUSE BILL 1139

(ii) pay to the Board of Tru stees the delinquent amounts, including 1
interest ON THE DELINQUENT AM OUNTS AT A RATE OF 7.75% A YEAR , withheld in 2
accordance with this paragraph. 3

(d) On receipt of the payments from each county government or the State 4
Comptroller, the Board of Trustees s hall credit the amounts received to the accumulation 5
funds of the Teachers’ Pension System and the Teachers’ Retirement System. 6

23–204. 7

(a) (1) Membership in the Employees’ Pension System is optional for an 8
individual who is: 9

(i) an official, elected or appointed for a fixed term; 10

(ii) an employee of the Governor’s office; 11

(iii) an employee of the Senate or House of Delegates; 12

(iv) a member of the Prince George’s County Board of License 13
Commissioners; 14

(v) an employee of Dorchester Cou nty who is not and has not 15
previously been a member of the county’s general pension and retirement program or any 16
other plan sponsored by Dorchester County; or 17

(vi) except as provided in subsection (g) of this section, an employee 18
of a participating go vernmental unit who is employed by the participating governmental 19
unit before the effective date of participation and who remains an employee of the 20
participating governmental unit through the effective date of participation. 21

(2) An individual described under paragraph (1)(i) through (v) of this 22
subsection who elects to join the Employees’ Pension System shall make the election at 23
commencement of employment by filing a written application with the Board of Trustees 24
on a form that the Board of Trustees provides. 25

(3) An individual described under paragraph (1)(vi) of this subsection who 26
elects to join the Employees’ Pension System shall make the election prior to the effective 27
date of participation by filing a written application with the Board of Trustees on a form 28
that the Board of Trustees provides. 29

(4) An election to join the Employees’ Pension System under this 30
subsection is a one–time, irrevocable election. 31

HOUSE BILL 1139 5

(5) (I) THIS PARAGRAPH APPLIES TO AN INDIVIDUAL D ESCRIBED 1
UNDER PARAGRAPH (1)(I) THROUGH (V) OF THIS SUBSECTION. 2

(II) If an election to join the Employees’ Pension System is not 3
received by the Board of Trustees within the period of time described in paragraph (2) or 4
(3) of this subsection, the individual may not elect to join the Employees’ Pension System 5
while employed in that position. 6

(6) (I) THIS PARAGRAPH APPLIES TO AN INDIVIDUAL D ESCRIBED 7
UNDER PARAGRAPH (1)(VI) OF THIS SUBSECTION. 8

(II) IF AN ELECTION TO JOI N THE EMPLOYEES’ PENSION 9
SYSTEM IS NOT RECEIVE D BY THE BOARD OF TRUSTEES WITHIN THE P ERIOD OF 10
TIME DESCRIBED IN PA RAGRAPH (3) OF THIS SUBSECTION , THE INDIVIDUAL IS 11
DEEMED TO HAVE ELECTED TO PARTICIPATE IN THE EMPLOYEES’ PENSION SYSTEM 12
WHILE EMPLOYED IN THAT POSITION. 13

[(6)] (7) The Board of Trustees shall adopt regulations to implement this 14
subsection. 15

29–304. 16

An individual shall have immediate vesting rights on taking office in the State system 17
in which the individual is a member if the individual is the: 18

[(19) Special Secretary of the Office of Small, Minority, and Women Business 19
Affairs;] 20

[(20)] (19) Special Secretary of the Governor’s Office for Children; 21

[(21)] (20) State Archivist; 22

[(22)] (21) State Prosecutor of the State Prosecutor’s Office; or 23

[(23)] (22) State Superintendent of Schools. 24

31–101. 25

(a) In this subtitle the following words have the meanings indicated. 26

(d) “Eligible governmental unit” means a governmental unit that is eligible to 27
participate in the employees’ systems under § 31–102 of this subtitle. 28

(e) (1) “Employee” means a regular employee of an eligible governmental unit. 29

6 HOUSE BILL 1139

(2) “Employee” includes an officer of an eligible governmental unit. 1

(3) “Employee” does not include a contractual, emergency, or temporary 2
extra employee. 3

31–102. 4

Subject to § 22–202(b) of this article and § 31–109 of this subtitle, the governmental 5
units that are eligible to participate in the employees’ systems are: 6

(1) a political subdivision of the State, including: 7

(i) a county; 8

(ii) a municipal corporation; and 9

(iii) a special taxing area; and 10

(2) the following governmental units: 11

(i) an agency on aging, as designated by the legislative body of the 12
agency on aging; 13

(ii) the Allegany County Transit Authority; 14

(iii) subject to § 31 –104 of this subtitle, the Baltimore Metropolitan 15
Council; 16

(iv) a board or commission created by an Act of the General Assembly 17
for public purpose and not for the profit of a private person; 18

(v) subject to § 31–105 of this subtitle, the Canal Place Preservation 19
and Development Authority; 20

(vi) the Chesapeake Bay Commission; 21

(vii) a cooperative library commission; 22

(viii) subject to § 31 –103 of this subtitle, a community action agency, 23
as designated by the legislative body of the community action agency; 24

(ix) a fire department that receives any of its funds from or through 25
a county, municipal corporation, special taxing area, or other political subdivision of the 26
State; 27

(x) the Health Planning Council of Appalachia; 28

HOUSE BILL 1139 7

(xi) the Howard County Economic Development Authority; 1

(xii) the Interstate Commission on the Potomac River Basin; 2

(xiii) the Lower Shore Private Industry Council, Inc.; 3

(xiv) the Maryland Environmental Service; 4

(xv) subject to § 31 –106 of this subtitle, the Maryland Stadium 5
Authority; 6

(xvi) a public library association or organization; 7

(xvii) subject to § 31 –106.2 of this subtitle, the St. Mary’s Nursing 8
Center, Inc.; 9

(xviii) the Tri–County Council for Western Maryland, Inc.; 10

(xix) the Tri–County Council for Southern Maryland; 11

(xx) subject to § 31 –107 of this subtitle, the University of Maryland 12
Medical System Corporation; 13

(xxi) the Upper Potomac River Commission; 14

(xxii) subject to § 31 –106.1 of this subtitle, the Maryland African 15
American Museum Corporation; 16

(xxiii) the Garrett County Office for Children, Youth and Families; 17

(xxiv) the Somerset County Economic Development Commission; and 18

(xxv) the Dorchester County Sanitary Commission. 19

31–109. 20

(a) Subject to subsectio n (b) of this section, the legislative body of an eligible 21
governmental unit may approve participation by its employees in the Employees’ Pension 22
System if: 23

(1) the legislative body adopts a resolution in the form prescribed by the 24
Board of Trustees; and 25

(2) the eligible governmental unit operates a local plan, only if: 26

(i) at least 60% of the members of the local plan petition to become 27
members of the Employees’ Pension System; 28
8 HOUSE BILL 1139

(ii) the eligible governmental unit satisfies the requirements in 1
subsection (b) of this section; and 2

(iii) the legislative body approves participation of the eligible 3
governmental unit in the Employees’ Pension System as though the local plan were not in 4
operation. 5

(b) An eligible governmental unit that operates a local plan may approve 6
participation by its employees in the Employees’ Pension System only if: 7

(1) the local plan of the eligible governmental unit requires member 8
contributions at the same rate as the member contribution rate that would be applicable to 9
employees of the eligible governmental unit in the Employees’ Pension System; or 10

(2) the eligible governmental unit: 11

(i) does not provide for the employer pickup of member 12
contributions to the local plan within the meaning of § 414(h)( 2) of the Internal Revenue 13
Code; and 14

(ii) certifies that it will not become an approved employer under § 15
21–313 of this article on or after the effective date of participation. 16

(c) (1) If an eligible governmental unit does not satisfy the requirement s 17
under subsection (b) of this section, the eligible governmental unit may submit a request to 18
the Board of Trustees to participate in the Employees’ Pension System. 19

(2) The Board of Trustees shall consider a request made under paragraph 20
(1) of this sub section and determine whether any legislation is necessary to allow the 21
eligible governmental unit to participate in the Employees’ Pension System. 22

(3) The Board of Trustees shall make recommendations to the Joint 23
Committee on Pensions regarding any leg islation that it determines is necessary to allow 24
the eligible governmental unit to participate in the Employees’ Pension System. 25

(D) AN ELIGIBLE GOVERNMEN TAL UNIT THAT SATISF IES THE 26
REQUIREMENTS UNDER S UBSECTION (B) OF THIS SECTION IS E LIGIBLE TO 27
PARTICIPATE IN THE EMPLOYEES’ PENSION SYSTEM ONLY IF THE ELIGIBLE 28
GOVERNMENTAL UNIT MA KES ENROLLMENT AVAIL ABLE TO ALL ELIGIBLE 29
EMPLOYEES OF THE ELI GIBLE GOVERNMENTAL U NIT PARTICIPATE IN THE 30
EMPLOYEES’ PENSION SYSTEM. 31

31–109.1. 32

HOUSE BILL 1139 9

(a) Except as provided in subsection (b) of this section, the effective date of 1
participation for an eligible governmental unit is July 1 of the year following the fiscal year 2
in which the eligible governmental unit elects to participate in the Employees’ Pension 3
System. 4

(b) (1) If an eligible governmental unit does not provide the Board of Trustees 5
with the necessary documentation to join the Employees’ Pension System on or before the 6
effective date for the eligible governmental unit, the effective date shall be postponed until 7
July 1 of the second year following the fiscal year in which the eligible governmental unit 8
elects to participate in the Employees’ Pension System. 9

(2) (I) AN ELIGIBLE GOVERNMENTAL UNIT SHALL CERTIFY TO THE 10
STATE RETIREMENT AGENCY THAT THE ELIGIBLE GOVERNMENTAL UNIT PROVIDED 11
EACH OF ITS EMPLOYEES WHO ARE ELIGIBLE TO ELECT OPTIONAL MEMBERSHIP IN 12
THE EMPLOYEES’ PENSION SYSTEM WITH THE NECES SARY DOCUMENTATION 13
REQUIRED BY THE STATE RETIREMENT AGENCY TO MAKE THAT ELECTION. 14

(II) FOR ANY EMPLOYEE OF AN ELIGIBLE GOVERNMENTAL UNIT 15
WHO IS ELIGIBLE FOR OPTIONAL MEMBERSHIP TO ELECT TO PARTICIP ATE IN THE 16
EMPLOYEES’ PENSION SYSTEM, THE NECESSARY DOCUME NTATION UNDER 17
SUBPARAGRAPH (I) OF THIS PARAGRAPH PARAGRAPH (1) OF THIS SUBSECTION 18
SHALL INCLUDE PROPER LY COMPLETED ELECTIO N FORMS INDICATING E ITHER 19
THAT: 20

1. (I) THE EMPLOYEE INTENDS TO PARTICIPATE IN TH E 21
EMPLOYEES’ PENSION SYSTEM; OR 22

2. (II) THE EMPLOYEE INTENDS TO OPT OUT OF 23
PARTICIPATION IN THE EMPLOYEES’ PENSION SYSTEM. 24

(3) (I) AN EMPLOYEE THAT DOES NOT COMPLETE THE NECESSARY 25
DOCUMENTATION INDICATING WHETHER THE EMPLOYEE INTENDS TO PARTICIPATE 26
IN OR OPT OUT OF PAR TICIPATION IN THE EMPLOYEES’ PENSION SYSTEM IS 27
DEEMED TO HAVE ELECT ED TO PARTICIPATE IN THE EMPLOYEES’ PENSION 28
SYSTEM. 29

(II) THE APPOINTING AUTHORITY FOR THE EMPLOYEE OF THE 30
ELIGIBLE GOVERNMENTA L UNIT THAT DOES NOT COMPLETE THE NECESSA RY 31
DOCUMENTATION INDICATING WHETHER THE EMPLOYEE INTENDS TO PARTICIPATE 32
IN OR OPT OUT OF PAR TICIPATION IN THE EMPLOYEES’ PENSION SYSTEM SHALL 33
EXECUTE AND SUBMIT A N AFFIDAVIT TO THE STATE RETIREMENT AGENCY 34
STATING: 35

10 HOUSE BILL 1139

1. THE NAME OF THE EMPL OYEE WHO DID NOT SUB MIT 1
THE NECESSARY DOCUMENTATION; AND 2

2. THE DATE WHEN THE AP POINTING AUTHORITY 3
PROVIDED THE EMPLOYEE WITH THE ELECTION FORM TO BE COMPLETED. 4

(III) AN AFFIDAVIT UNDER TH IS PARAGRAPH IS NECE SSARY 5
DOCUMENTATION THAT A N ELIGIBLE GOVERNMEN TAL UNIT IS REQUIRED TO 6
SUBMIT UNDER THIS SUBSECTION TO JOIN THE EMPLOYEES’ PENSION SYSTEM. 7

31–111. 8

(a) Except as provided in subsection (b) of this section and §§ 31–111.1, 31–111.3, 9
31–111.4, 31–111.5, 31–111.6, 31–111.7, and 31–111.8 of this subtitle, if an employee of a 10
participating governmental unit joins the Employees’ Pension System on the effective date, 11
the employee [is entitled to] SHALL RECEIVE 100% service credit for THE EMPLOYEE’S 12
employment with the participating governmental unit before the effective date. 13

(b) If an employee of the Baltimore Metropolitan Council elects to become a 14
member of the Employees’ Retirement System or the Employees’ Pension System, the 15
employee may not receive credit for service from July 1, 1992, to the effective date unless 16
the employee pays to the Board of Trustees the amount of the member contributions the 17
employee would have made during that period, plus regular interest. 18

31–2A–01. 19

(a) In this subtitle the following words have the meanings indicated. 20

(c) “Eligible governmental unit” means a governmental unit that is eligible to 21
participate in the Law Enforcement Officers’ P ension System under § 31 –2A–02 of this 22
subtitle. 23

31–2A–02. 24

Subject to § 31 –2A–03 of this subtitle, the governmental units that are eligible to 25
participate in the Law Enforcement Officers’ Pension System are: 26

(1) counties; and 27

(2) municipal corporations. 28

31–2A–03. 29

(a) Subject to subsection (b) of this section, the legislative body of an eligible 30
governmental unit may approve participation by its law enforcement officers, firefighters, 31
or emergency medical technicians in the Law Enforcement Officers’ Pension System if: 32
HOUSE BILL 1139 11

(1) the legislative body adopts a resolution in the form prescribed by the 1
Board of Trustees; and 2

(2) the eligible governmental unit participates in a State system or 3
operates a local plan, only if: 4

(i) at least 60% of the law enforcement officers, firefighters, or 5
emergency medical technicians of the eligible governmental unit petition to become 6
members of the Law Enforcement Officers’ Pension System; 7

(ii) the eligible governmental unit satisfies the requirements in 8
subsection (b) of this section; and 9

(iii) the legislative body approves participation of its law enforcement 10
officers, firefighters, or emergency medical technicians in lieu of participation in the State 11
system or local plan. 12

(b) An eligible gove rnmental unit that operates a local plan or participates in a 13
State system may approve participation of its law enforcement officers, firefighters, or 14
emergency medical technicians in the Law Enforcement Officers’ Pension System only if: 15

(1) the State system or local plan of the eligible governmental unit requires 16
member contributions at the same rate as the member contribution rate that would be 17
applicable to the law enforcement officers, firefighters, or emergency medical technicians 18
of the eligible governmental unit in the Law Enforcement Officers’ Pension System; or 19

(2) the eligible governmental unit: 20

(i) does not provide for the employer pickup of member 21
contributions to the State system or local plan within the meaning of § 414(h)(2) of the 22
Internal Revenue Code; and 23

(ii) certifies that it will not become an approved employer under § 24
21–313 of this article on or after the effective date of participation. 25

(c) (1) If an eligible governmental unit does not satisfy the requirements 26
under subsection (b) of this section, the eligible governmental unit may submit a request to 27
the Board of Trustees to participate in the Law Enforcement Officers’ Pension System. 28

(2) The Board of Trustees shall consider a request made under paragraph 29
(1) of this subsection and determine whether any legislation is necessary to allow the 30
eligible governmental unit to participate in the Law Enforcement Officers’ Pension System. 31

(3) The Board of Trustees shall make recommendations to the Joint 32
Committee on Pensions regarding any legislation that it determines is necessary to allow 33
12 HOUSE BILL 1139

the eligible governmental unit to participate in the Law Enforcement Officers’ Pension 1
System. 2

(D) AN ELIGIBLE GOVERNMEN TAL UNIT THAT SATISF IES THE 3
REQUIREMENTS UNDER S UBSECTION (B) OF THIS SECTION IS ELIG IBLE TO 4
PARTICIPATE IN THE LAW ENFORCEMENT OFFICERS’ PENSION SYSTEM ONLY IF 5
THE ELIGIBLE GOVERNM ENTAL UNIT MAKES ENR OLLMENT AVAILABLE TO ALL 6
ELIGIBLE LAW ENFORCEMENT OFFICERS, FIREFIGHTERS, OR EMERGENCY MEDICAL 7
TECHNICIANS OF THE E LIGIBLE GOVERNMENTAL UNIT PARTICIPATE IN THE LAW 8
ENFORCEMENT OFFICERS’ PENSION SYSTEM. 9

31–2A–03.1. 10

(a) Except as provided in subsection (b) of this section, the effective date of 11
participation for an eligible governmental unit is July 1 of the year following the fiscal year 12
in which the eligible governmental unit elects to participate in the Law Enforcement 13
Officers’ Pension System. 14

(b) (1) If an eligible governmental unit does not provide the Board of Trustees 15
with the necessary documentation to join the L aw Enforcement Officers’ Pension System 16
on or before the effective date for the eligible governmental unit, the effective date shall be 17
postponed until July 1 of the second year following the fiscal year in which the eligible 18
governmental unit elects to participate in the Law Enforcement Officers’ Pension System. 19

(2) (I) AN ELIGIBLE GOVERNMENTAL UNIT SHALL CERTIFY TO THE 20
STATE RETIREMENT AGENCY THAT THE ELIGIBLE GOVERNMENTAL UNIT PROVIDED 21
EACH OF ITS EMPLOYEES WHO ARE ELIGIBLE TO ELECT OPTIONAL MEMBERSHIP IN 22
THE LAW ENFORCEMENT OFFICERS’ PENSION SYSTEM WITH THE NECES SARY 23
DOCUMENTATION REQUIRED BY THE STATE RETIREMENT AGENCY TO MAKE THAT 24
ELECTION. 25

(II) FOR ANY EMPLOYEE OF AN ELIGIBLE GOVERNMENTAL UNIT 26
WHO IS ELIGIBLE FOR OPTIONAL MEMBERSHIP TO ELECT TO PARTICIPATE IN THE 27
LAW ENFORCEMENT OFFICERS’ PENSION SYSTEM, THE NECESSARY 28
DOCUMENTATION UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH PARAGRAPH (1) 29
OF THIS SUBSECTION SHALL INCLUDE PROPER LY COMPLETED ELECTIO N FORMS 30
INDICATING EITHER THAT: 31

1. (I) THE EMPLOYEE INTENDS TO PARTICIPATE IN TH E 32
LAW ENFORCEMENT OFFICERS’ PENSION SYSTEM; OR 33

2. (II) THE EMPLOYEE INTENDS TO OPT OUT OF 34
PARTICIPATION IN THE LAW ENFORCEMENT OFFICERS’ PENSION SYSTEM. 35

HOUSE BILL 1139 13

(3) (I) AN EMPLOYEE THAT DOES NOT COMPLETE THE NECESSARY 1
DOCUMENTATION INDICATING WHETHER THE EMPLOYEE INTENDS TO PARTICIPATE 2
IN OR OPT OUT OF PARTICIPATION IN THE LAW ENFORCEMENT OFFICERS’ PENSION 3
SYSTEM IS DEEMED TO HAVE ELECTED TO PARTICIPATE IN THE LAW ENFORCEMENT 4
OFFICERS’ PENSION SYSTEM. 5

(II) THE APPOINTING AUTHORITY FOR THE EMPLOYEE OF THE 6
ELIGIBLE GOVERNMENTA L UNIT THAT DOES NOT COMPLETE THE NECESSA RY 7
DOCUMENTATION INDICATING WHETHER THE EMPLOYEE INTENDS TO PARTICIPATE 8
IN OR OPT OUT OF PARTICIPATION IN THE LAW ENFORCEMENT OFFICERS’ PENSION 9
SYSTEM SHALL EXECUTE AND SUBMIT AN AFFIDA VIT TO THE STATE RETIREMENT 10
AGENCY STATING: 11

1. THE NAME OF THE EMPL OYEE WHO DID NOT SUB MIT 12
THE NECESSARY DOCUMENTATION; AND 13

2. THE DATE WHEN THE AP POINTING AUTHORITY 14
PROVIDED THE EMPLOYEE WITH THE ELECTION FORM TO BE COMPLETED. 15

(III) AN AFFIDAVIT UNDER TH IS PARAGRAPH IS NECE SSARY 16
DOCUMENTATION THAT A N ELIGIBLE GOVERNMEN TAL UNIT IS REQUIRED TO 17
SUBMIT UNDER THIS SU BSECTION TO JOIN THE LAW ENFORCEMENT OFFICERS’ 18
PENSION SYSTEM. 19

31–2A–04. 20

If a law enforcement officer, firefighter, emergency medical technician, or paramedic 21
joins the Law Enforcement Officers’ Pension System on the effective date, the member [is 22
entitled to] SHALL RECEIVE 100% SERVICE credit for THE MEMBER’S employment with 23
the participating governmental unit before the effective date. 24

31–2B–01. 25

(a) In this subtitle the following words have the meanings indicated. 26

(c) “Eligible governmental unit” means a governmental unit that is eligible to 27
participate in the Correctional Officers’ Retirement System under § 31 –2B–02 of this 28
subtitle. 29

31–2B–02. 30

Subject to § 31 –2B–03 of this subtitle, the governmental units that are eligible to 31
participate in the Correctional Officers’ Retirement System are: 32

(1) counties; and 33
14 HOUSE BILL 1139

(2) municipal corporations. 1

31–2B–03. 2

(a) Subject to subsection (b) of this section, the legislative body of an eligible 3
governmental unit may approve participation by its local detention center officers in the 4
Correctional Officers’ Retirement System if: 5

(1) the legislative body adopts a resolution in the form prescribed by the 6
Board of Trustees; and 7

(2) the eligible governmental unit participates in a State system or 8
operates a local plan for its local detention center officers, only if: 9

(i) at least 60% of t he local detention center officers of the eligible 10
governmental unit petition to become members of the Correctional Officers’ Retirement 11
System; 12

(ii) the eligible governmental unit satisfies the requirements in 13
subsection (b) of this section; and 14

(iii) the legislative body approves participation of its local detention 15
center officers in lieu of participation in the State system or local plan. 16

(b) An eligible governmental unit that operates a local plan or participates in a 17
State system may approve participation of its local detention center officers in the 18
Correctional Officers’ Retirement System only if: 19

(1) the State system or local plan of the eligible governmental unit requires 20
member contributions at the same rate as the member contribution rate that would be 21
applicable to the local detention center officers of the eligible governmental unit in the 22
Correctional Officers’ Retirement System; or 23

(2) the eligible governmental unit: 24

(i) does not provide for the employer pickup of member 25
contributions to the State system or local plan within the meaning of § 414(h)(2) of the 26
Internal Revenue Code; and 27

(ii) certifies that it will not become an approved employer under § 28
21–313 of this article on or after the effective date of participation. 29

(c) (1) If an eligible governmental unit does not satisfy the requirements 30
under subsection (b) of this section, the eligible governmental unit may submit a request to 31
the Board of Trustees to participate in the Correctional Officers’ Retirement System. 32

HOUSE BILL 1139 15

(2) The Board of Trustees shall consider a request made under paragraph 1
(1) of this subsection and determine whether any legislation is necessary to allow the 2
eligible governmental unit to participate in the Correctional Officers’ Retirement System. 3

(3) The Board of Trustees shall make recommendations to the Joint 4
Committee on Pensions regarding any legislation that it determines is necessary to allow 5
the eligible governmental unit to participate in the Correctional Officers’ Retirement 6
System. 7

(D) AN ELIGIBLE GOVERNMEN TAL UNIT THAT SATISF IES THE 8
REQUIREMENTS UNDER S UBSECTION (B) OF THIS SECTION IS E LIGIBLE TO 9
PARTICIPATE IN THE CORRECTIONAL OFFICERS’ RETIREMENT SYSTEM ONLY IF 10
THE ELIGIBLE GOVERNM ENTAL UNIT MAKES ENR OLLMENT AVAILABLE TO ALL 11
ELIGIBLE LOCAL DETENTION CENTER OFFICERS OF THE ELIGIBLE GOVERNMENTAL 12
UNIT PARTICIPATE IN THE CORRECTIONAL OFFICERS’ RETIREMENT SYSTEM. 13

31–2B–03.1. 14

(a) Except as provided in subsection (b) of this section, the effective date of 15
participation for an eligible governmental unit is July 1 of the year following the fiscal year 16
in which the eligible governmental unit elects to participate in the Correctional Officers’ 17
Retirement System. 18

(b) (1) If an eligible governmental unit does not provide the Board of Trustees 19
with the necessary documentation to join the Correctional Officers’ Retirement System on 20
or before the effective date for the eligible governmental unit, the effective date shall be 21
postponed until July 1 of the second year following the fiscal ye ar in which the eligible 22
governmental unit elects to participate in the Correctional Officers’ Retirement System. 23

(2) (I) AN ELIGIBLE GOVERNMENTAL UNIT SHALL CERTIFY TO THE 24
STATE RETIREMENT AGENCY THAT THE ELIGIBLE GOVERNMENTAL UNIT PROVIDED 25
EACH OF ITS EMPLOYEES WHO ARE ELIGIBLE TO ELECT OPTIONAL MEMBERSHIP IN 26
THE CORRECTIONAL OFFICERS’ RETIREMENT SYSTEM WITH THE NECES SARY 27
DOCUMENTATION REQUIRED BY THE STATE RETIREMENT AGENCY TO MAKE THAT 28
ELECTION. 29

(II) FOR ANY EMPLOYEE OF AN ELIGIBLE GOVERNMENTAL UNIT 30
WHO IS ELIGIBLE FOR OPTIONAL MEMBERSHIP TO ELECT TO PARTICIP ATE IN THE 31
CORRECTIONAL OFFICERS’ RETIREMENT SYSTEM, THE NECESSARY 32
DOCUMENTATION UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH PARAGRAPH (1) 33
OF THIS SUBSECTION SHALL INCLUDE PROPER LY COMPLETED ELEC TION FORMS 34
INDICATING EITHER THAT: 35

1. (I) THE EMPLOYEE INTENDS TO PARTICIPATE IN TH E 36
CORRECTIONAL OFFICERS’ RETIREMENT SYSTEM; OR 37
16 HOUSE BILL 1139

2. (II) THE EMPLOYEE INTENDS TO OPT OUT OF 1
PARTICIPATION IN THE CORRECTIONAL OFFICERS’ RETIREMENT SYSTEM. 2

(3) (I) AN EMPLOYEE THAT DOES NOT COMPLETE THE NEC ESSARY 3
DOCUMENTATION INDICATING WHETHER THE EMPLOYEE INTENDS TO PARTICIPATE 4
IN OR OPT OUT OF PARTICIPATION IN THE CORRECTIONAL OFFICERS’ RETIREMENT 5
SYSTEM IS DEEMED TO H AVE ELECTED TO PARTI CIPATE IN THE CORRECTIONAL 6
OFFICERS’ RETIREMENT SYSTEM. 7

(II) THE APPOINTING AUTHORITY FOR THE EMPLOYEE OF THE 8
ELIGIBLE GOVERNMENTA L UNIT THAT DOES NOT COMPLETE THE NECESSA RY 9
DOCUMENTATION INDICATING WHETHER THE EMPLOYEE INTENDS TO PARTICIPATE 10
IN OR OPT OUT OF PARTICIPATION IN THE CORRECTIONAL OFFICERS’ RETIREMENT 11
SYSTEM SHALL EXECUTE AND SUBMIT AN AFFIDA VIT TO THE STATE RETIREMENT 12
AGENCY STATING: 13

1. THE NAME OF THE EMPL OYEE WHO DID NOT SUB MIT 14
THE NECESSARY DOCUMENTATION; AND 15

2. THE DATE WHEN THE AP POINTING AUTHORITY 16
PROVIDED THE EMPLOYEE WITH THE ELECTION FORM TO BE COMPLETED. 17

(III) AN AFFIDAVIT UNDER TH IS PARAGRAPH IS NECE SSARY 18
DOCUMENTATION THAT A N ELIGIBLE GOVERNMEN TAL UNIT IS REQUIRED TO 19
SUBMIT UNDER THIS SU BSECTION TO JOIN THE CORRECTIONAL OFFICERS’ 20
RETIREMENT SYSTEM. 21

31–2B–04. 22

If a local detention center officer joins the Correctional Officers’ Retirement System 23
on the effective date, the member [is entitled to] SHALL RECEIVE 100% SERVICE credit 24
for THE MEMBER ’S employment with the participating governmen tal unit before the 25
effective date. 26

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 27
1, 2026. 28