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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
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Strike out indicates matter stricken from the bill by amendment or deleted from the law by
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*sb0654*
SENATE BILL 654
P6 6lr3352
CF HB 1020
By: Senator Augustine
Introduced and read first time: February 6, 2026
Assigned to: Budget and Taxation
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: February 28, 2026
CHAPTER ______
AN ACT concerning 1
State Police Retirement System – Mandatory Retirement Age – Alteration 2
FOR the purpose of increasing the age at which certain members of the State Police 3
Retirement System are required to retire; increasing the age at which certain 4
retirees must end participation in the Deferred Retirement Option Program; 5
authorizing certain individuals, subject to certain limitations and requirements, to 6
elect to extend their participation in the Deferred Retirement Option Program; and 7
generally relating to the mandatory retirement age for certain members of the State 8
Police Retirement System and participation in the Deferred Retirement O ption 9
Program. 10
BY repealing and reenacting, with amendments, 11
Article – State Personnel and Pensions 12
Section 24–401 and 24–401.1(c), (d), and (g) 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 24–401.1(a) and (b) 18
Annotated Code of Maryland 19
(2024 Replacement Volume and 2025 Supplement) 20
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
That the Laws of Maryland read as follows: 22
2 SENATE BILL 654
Article – State Personnel and Pensions 1
24–401. 2
(a) (1) (i) This paragraph applies to an individual who is a member on or 3
before June 30, 2011. 4
(ii) A member may retire with a normal service retirement allowance 5
if: 6
1. on or before the date of retirement, the member: 7
A. has at least 22 years of eligibility service; or 8
B. is at least 50 years old; and 9
2. the member completes and submits a written application 10
to the Board of Trustees, on the form that the Board of Trustees provides, stating the date 11
when the member desires to retire. 12
(2) (i) This paragraph applies to an individual who becomes a member 13
on or after July 1, 2011. 14
(ii) A member may retire with a normal service retirement allowance 15
if: 16
1. on or before the date of retirement, the member: 17
A. has at least 25 years of eligibility service; or 18
B. is at least 50 years old; and 19
2. the member completes and submits a written application 20
to the Board of Trustees, on the form that the Board of Trustees provides, stating the date 21
when the member desires to retire. 22
(b) (1) Subject to the approval of the Board of Trustees, the Secretary of State 23
Police may order a member who is at least 50 years old to retire on the first day of the 24
month after the member is notified of the Secretary’s order. 25
(2) Before approving the Secretary’s order, the Board of Trustees shall give 26
the member at least 30 days’ notice and an opportunity to be heard. 27
(c) Except for the Secretary of State Police, a member shall retire with a normal 28
service retirement allowance not later than the first day of the month after the member 29
becomes [60] 62 years old. 30
SENATE BILL 654 3
(d) (1) Except as provided in paragraphs (2) and (3) of this subsection, on 1
retirement under this section, a member is entitled to receive a normal service retirement 2
allowance that equals 2.55% of the member’s average final compensation multiplied by each 3
year of the member’s years of creditable service. 4
(2) A member’s normal service retirement allowance may not exceed 71.4% 5
of the member’s average final compensation. 6
(3) Subject to paragraph (2) of this subsection, on retirement under this 7
section, if a member’s annuity is greater than the member’s normal service retirement 8
allowance calculated under paragraph (1) of this subsection, the member’s normal service 9
retirement allowance shall equal the member’s annuity. 10
(e) Subject to §§ 29 –401, 29 –402, and 29 –403 of this article, a retiree, or a 11
beneficiary of a retiree, who retires on or before June 30, 1999 wi th a service retirement 12
allowance, shall receive an annual retirement allowance adjustment as of July 1, 1999, as 13
follows: 14
(1) for a retiree who has been retired not more than 5 years, $1,200; 15
(2) for a retiree who has been retired more than 5 years but not more than 16
10 years, $1,500; 17
(3) for a retiree who has been retired more than 10 years but not more than 18
15 years, $1,800; and 19
(4) for a retiree who has been retired more than 15 years, $2,100. 20
24–401.1. 21
(a) (1) In this section the following words have the meanings indicated. 22
(2) “DROP” means the Deferred Retirement Option Program established 23
under this section. 24
(3) “DROP member” means a member of the State Police Retirement 25
System who: 26
(i) is eligible to participate in the DROP as provided in subsection 27
(c) of this section; and 28
(ii) elects to participate in the DROP as provided in subsection (e) of 29
this section. 30
(b) There is a DROP for eligible members of the State Police Retirement System. 31
4 SENATE BILL 654
(c) (1) (i) This paragraph applies to an individual who is a member of the 1
State Police Retirement System on or before June 30, 2011. 2
(ii) Except for the Secretary of State Police, a member of the State 3
Police Retirement System is eligible to participate in the DROP if the member: 4
1. has at least 22 and less than 32 years of employment in a 5
position eligible for membership in the State Police Retirement System; and 6
2. is less than [60] 62 years old. 7
(iii) The Secretary of State Police is eligible to participate in the 8
DROP if the Secretary has at least 22 years of employment in a position eligible for 9
membership in the State Police Retirement System. 10
(2) (i) This paragraph applies to an individual who becomes a member 11
of the State Police Retirement System on or after July 1, 2011. 12
(ii) Except for the Secretary of State Police, a member of the State 13
Police Retirement System is eligible to participate in the DROP if the member: 14
1. has at least 25 years and less than 32 years of employment 15
in a position eligible for membership in the State Police Retirement System; and 16
2. is less than [60] 62 years old. 17
(iii) The Secretary of State Police is eligible to participate in the 18
DROP if the Secretary has at least 25 years of employment in a position eli gible for 19
membership in the State Police Retirement System. 20
(d) An eligible member may elect to participate in the DROP for a period not to 21
exceed the lesser of: 22
(1) 7 years; 23
(2) the difference between 32 years and the member’s years of employment 24
in a position eligible for membership in the State Police Retirement System as of the date 25
of the member’s election to participate in the DROP and retire from the State Police 26
Retirement System; 27
(3) the difference between age [60] 62 and the member’s age as of the date 28
of the member’s election to participate in the DROP and retire from the State Police 29
Retirement System; or 30
(4) a term selected by the member. 31
(g) Participation in the DROP ends if the DROP participant: 32
SENATE BILL 654 5
(1) separates from employment in accordance with the binding letter of 1
resignation submitted with the member’s election form; 2
(2) except for the Secretary of State Police, attains age [60] 62; 3
(3) dies; 4
(4) is terminated from employment by the Maryland State Police at any 5
time before the date specified on the member’s election form; 6
(5) shortens the time period for participation in the DROP by delivering to 7
the Maryland State Police and the Board of Trustees written notice of the intent of the 8
DROP member to terminate employment; or 9
(6) accepts a special disability retirement allowance as provided in 10
subsection (k) of this section. 11
SECTION 2. AND BE IT FURTHER ENACTED, That: 12
(a) Section 1 of this Act applies to any individual who began participation in the 13
Deferred Retirement Option Program (DROP) under § 24–401.1 or § 26–401.1 of the State 14
Personnel and Pensions Article before June 1, 2026, and continues to participate in the 15
DROP on or after June 1, 2026. 16
(b) (1) Except as provided in paragraph (2) of this subsec tion, an individual 17
described in subsection (a) of this section may elect to extend participation in the DROP by 18
the lesser of: 19
(i) the difference between 7 years and the number of years the 20
individual elected to participate in the DROP at the time the individual joined the DROP; 21
or 22
(ii) the difference between 32 years of eligibility service and the total 23
amount of eligibility service the individual had accrued at the time the individual joined 24
the DROP. 25
(2) An individual may not elect to extend participation in the DROP by a 26
number of years that will result in the individual terminating the DROP at an age older 27
than age 62. 28
(c) (1) An individual who elects to extend participation in the DROP shall do 29
so on or before the earlier of: 30
(i) the end of the term of participation in the DROP originally 31
selected by the individual; or 32
6 SENATE BILL 654
(ii) December 31, 2026, by completing a form provided by the Board 1
of Trustees for the State Retirement and Pension System. 2
(2) The form submitted by the individu al in paragraph (1) of this 3
subsection shall include a signed acknowledgment by the individual’s Director of Human 4
Resources within the Department of State Police that the individual’s employment with the 5
Department of State Police and participation in the DROP will be extended by the time 6
period specified on that form. 7
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect June 8
1, 2026. 9
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.