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.
*sb0734*

SENATE BILL 734
P6 (6lr2465)
ENROLLED BILL
— Budget and Taxation/Appropriations —
Introduced by Senator Lewis Young (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.

______________________________________________
President.

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 h ave 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 SENATE BILL 734

Officers’ Pension System, or the C orrectional 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 31–109, 31–109.1, 31–2A–03, 31–2A–03.1, 31–2B–03, and 31–2B–03.1 6
Section 21–309.1, 21–309.2, 23–204(a), 29–304(20) through (23), 31–109, 31–109.1, 7
31–111, 31 –2A–03, 31 –2A–03.1, 31 –2A–04, 31 –2B–03, 31 –2B–03.1, and 8
31–2B–04 9
Annotated Code of Maryland 10
(2024 Replacement Volume and 2025 Supplement) 11

BY repealing 12
Article – State Personnel and Pensions 13
Section 29–304(19) 14
Annotated Code of Maryland 15
(2024 Replacement Volume and 2025 Supplement) 16

BY repealing and reenacting, without amendments, 17
Article – State Personnel and Pensions 18
Section 31–101(a), (d), and (e), 31–102, 31–2A–01(a) and (c), 31–2A–02, 31–2B–01(a) 19
and (c), and 31–2B–02 20
Annotated Code of Maryland 21
(2024 Replacement Volume and 2025 Supplement) 22

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 23
That the Laws of Maryland read as follows: 24

Article – State Personnel and Pensions 25

21–309.1. 26

(a) (1) In this section the following words have the meanings indicated. 27

(2) “Local employee” has the meaning stated in § 21–304 of this subtitle. 28

(3) “Local employer” has the meaning stated in § 21–304 of this subtitle. 29

(b) On or before December 1 of each year, the Board of Trustees shall determine 30
and certify the amounts payable by each local employer under § 21–304(b)(4) of this subtitle 31
for the next fiscal year. 32

(c) On or before October 1, January 1, [April 1] APRIL 16, and June 1 of each 33
fiscal year, each local employer shall pay to the Board of Trustees 25% of the amount of the 34
charges certified to the local employer by the Board of Trustees under subsection (b) of this 35
section. 36
SENATE BILL 734 3

(d) (1) The Secretary of the Board of Trustees may allow a grace period not to 1
exceed 10 calendar days for payment of the amounts certified under this section. 2

(2) If a local employer does not pay the amounts required under this section 3
within the time required, on notification by the Secretary of the Board of Trustees that a 4
delinquency exists, the State Comptroller immediately: 5

(i) shall withhold the delinquent amounts, including interest on the 6
delinquent amounts at a rate of 7.75% a year, from any installment due the local employer 7
from the General State School Fund; and 8

(ii) shall pay to the Board of Trustees the delinquent amounts, 9
including interest, withheld under this paragraph. 10

(e) On receipt of the payments from each local employer or the State Comptroller, 11
the Board of Trustees shall credit these amounts to the accumulation fund of the 12
appropriate State system. 13

21–309.2. 14

(a) For purpose s of making determinations under this section, the Teachers’ 15
Pension System and the Teachers’ Retirement System shall be considered together as one 16
State system. 17

(b) (1) For fiscal year 2026, each county government shall pay to the Board of 18
Trustees on o r before January 1, 2026, the amount specified for that county government 19
under § 21–304(b)(6) of this subtitle. 20

(2) Beginning in fiscal year 2027, each county government shall pay to the 21
Board of Trustees on or before each September 1 the amount specif ied for that county 22
government under § 21–304(b)(6) of this subtitle. 23

(c) (1) The Secretary of the Board of Trustees may allow a grace period not to 24
exceed 10 calendar days for payment of the amounts certified under this section. 25

(2) If a county gover nment does not pay the amounts required under this 26
section within the time required, on notification by the Secretary of the Board of Trustees 27
that a delinquency exists, the State Comptroller immediately shall: 28

(i) exercise the right of setoff against any money due or coming due 29
to the delinquent county government; and 30

(ii) pay to the Board of Trustees the delinquent amounts, including 31
interest ON THE DELINQUENT AM OUNTS AT A RATE OF 7.75% A YEAR , withheld in 32
accordance with this paragraph. 33

4 SENATE BILL 734

(d) On receipt of the payments from each county government or the State 1
Comptroller, the Board of Trustees shall credit the amounts received to the accumulation 2
funds of the Teachers’ Pension System and the Teachers’ Retirement System. 3

23–204. 4

(a) (1) Membership in the Employees’ Pension System is optional for an 5
individual who is: 6

(i) an official, elected or appointed for a fixed term; 7

(ii) an employee of the Governor’s office; 8

(iii) an employee of the Senate or House of Delegates; 9

(iv) a membe r of the Prince George’s County Board of License 10
Commissioners; 11

(v) an employee of Dorchester County who is not and has not 12
previously been a member of the county’s general pension and retirement program or any 13
other plan sponsored by Dorchester County; or 14

(vi) except as provided in subsection (g) of this section, an employee 15
of a participating governmental unit who is employed by the participating governmental 16
unit before the effective date of participation and who remains an employee of the 17
participating governmental unit through the effective date of participation. 18

(2) An individual described under paragraph (1)(i) through (v) of this 19
subsection who elects to join the Employees’ Pension System shall make the election at 20
commencement of employment by filing a written application with the Board of Trustees 21
on a form that the Board of Trustees provides. 22

(3) An individual described under paragraph (1)(vi) of this subsection who 23
elects to join the Employees’ Pension System shall make the election prior to the effective 24
date of participation by filing a written application with the Board of Trustees on a form 25
that the Board of Trustees provides. 26

(4) An election to join the Employees’ Pension System under this 27
subsection is a one–time, irrevocable election. 28

(5) (I) THIS PARAGRAPH APPLIES TO AN INDIVIDUAL D ESCRIBED 29
UNDER PARAGRAPH (1)(I) THROUGH (V) OF THIS SUBSECTION. 30

(II) If an election to join the Employees’ Pension System is not 31
received by the Board of Trustees within the period of time described in paragraph (2) or 32
SENATE BILL 734 5

(3) of this subsection, the individual may not elect to join the Employees’ Pension System 1
while employed in that position. 2

(6) (I) THIS PARAGRAPH APPLIES TO AN INDIVIDUAL D ESCRIBED 3
UNDER PARAGRAPH (1)(VI) OF THIS SUBSECTION. 4

(II) IF AN ELECTION TO JOI N THE EMPLOYEES’ PENSION 5
SYSTEM IS NOT RECEIVE D BY THE BOARD OF TRUSTEES WITHIN THE P ERIOD OF 6
TIME DESC RIBED IN PARAGRAPH (3) OF THIS SUBSECTION , THE INDIVIDUAL IS 7
DEEMED TO HAVE ELECTED TO PARTICIPATE IN THE EMPLOYEES’ PENSION SYSTEM 8
WHILE EMPLOYED IN THAT POSITION. 9

[(6)] (7) The Board of Trustees shall adopt regulations to implement this 10
subsection. 11

29–304. 12

An individual shall have immediate vesting rights on taking office in the State system 13
in which the individual is a member if the individual is the: 14

[(19) Special Secretary of the Office of Small, Minority, and Women Business 15
Affairs;] 16

[(20)] (19) Special Secretary of the Governor’s Office for Children; 17

[(21)] (20) State Archivist; 18

[(22)] (21) State Prosecutor of the State Prosecutor’s Office; or 19

[(23)] (22) State Superintendent of Schools. 20

31–101. 21

(a) In this subtitle the following words have the meanings indicated. 22

(d) “Eligible governmental unit” means a governmental unit that is eligible to 23
participate in the employees’ systems under § 31–102 of this subtitle. 24

(e) (1) “Employee” means a regular employee of an eligible governmental unit. 25

(2) “Employee” includes an officer of an eligible governmental unit. 26

(3) “Employee” does not include a contractual, emergency, or temporary 27
extra employee. 28

31–102. 29
6 SENATE BILL 734

Subject to § 22–202(b) of this article and § 31–109 of this subtitle, the governmental 1
units that are eligible to participate in the employees’ systems are: 2

(1) a political subdivision of the State, including: 3

(i) a county; 4

(ii) a municipal corporation; and 5

(iii) a special taxing area; and 6

(2) the following governmental units: 7

(i) an agency on aging, as designated by the legislative body of the 8
agency on aging; 9

(ii) the Allegany County Transit Authority; 10

(iii) subject to § 31 –104 of this subtitle, the Baltimore Metropolitan 11
Council; 12

(iv) a board or commission created by an Act of the General Assembly 13
for public purpose and not for the profit of a private person; 14

(v) subject to § 31–105 of this subtitle, the Canal Place Preservation 15
and Development Authority; 16

(vi) the Chesapeake Bay Commission; 17

(vii) a cooperative library commission; 18

(viii) subject to § 31 –103 of this subtitle, a community action agency, 19
as designated by the legislative body of the community action agency; 20

(ix) a fire department that receives any of its funds from or through 21
a county, municipal corporation, special taxing area, or other political subdivision of the 22
State; 23

(x) the Health Planning Council of Appalachia; 24

(xi) the Howard County Economic Development Authority; 25

(xii) the Interstate Commission on the Potomac River Basin; 26

(xiii) the Lower Shore Private Industry Council, Inc.; 27

SENATE BILL 734 7

(xiv) the Maryland Environmental Service; 1

(xv) subject to § 31 –106 of this subtitle, the Maryland Stadium 2
Authority; 3

(xvi) a public library association or organization; 4

(xvii) subject to § 31 –106.2 of this subtitle, the St. Mary’s Nursing 5
Center, Inc.; 6

(xviii) the Tri–County Council for Western Maryland, Inc.; 7

(xix) the Tri–County Council for Southern Maryland; 8

(xx) subject to § 31–107 of this subtitle, the University of Maryland 9
Medical System Corporation; 10

(xxi) the Upper Potomac River Commission; 11

(xxii) subject to § 31 –106.1 of this subtitle, the Maryland African 12
American Museum Corporation; 13

(xxiii) the Garrett County Office for Children, Youth and Families; 14

(xxiv) the Somerset County Economic Development Commission; and 15

(xxv) the Dorchester County Sanitary Commission. 16

31–109. 17

(a) Subject to subsection (b) of this section, the legislative body of an eligibl e 18
governmental unit may approve participation by its employees in the Employees’ Pension 19
System if: 20

(1) the legislative body adopts a resolution in the form prescribed by the 21
Board of Trustees; and 22

(2) the eligible governmental unit operates a local plan, only if: 23

(i) at least 60% of the members of the local plan petition to become 24
members of the Employees’ Pension System; 25

(ii) the eligible governmental unit satisfies the requirements in 26
subsection (b) of this section; and 27

8 SENATE BILL 734

(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 t o 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

(D) AN ELIGIBLE GOVERNMEN TAL UNIT THAT SATISF IES THE 24
REQUIREMENTS UNDER S UBSECTION (B) OF THIS SECTION IS E LIGIBLE TO 25
PARTICIPATE IN THE EMPLOYEES’ PENSION SYSTEM ONLY IF THE ELIGIBLE 26
GOVERNMENTAL UNIT MA KES ENROLLMENT AVAIL ABLE TO ALL ELIGIBLE 27
EMPLOYEES OF THE ELI GIBLE GOVERNMENTAL U NIT PARTICIPATE IN THE 28
EMPLOYEES’ PENSION SYSTEM. 29

31–109.1. 30

(a) Except as provided in subsection (b) of this section, the effective date of 31
participation for an eligible governmental unit is July 1 of the year following the fiscal year 32
in which the eligible governmental unit elects to participate in the Employees’ Pension 33
System. 34

SENATE BILL 734 9

(b) (1) If an eligible governmental unit does not provide the Board of Trustees 1
with the necessary documentation to join the Employees’ Pension System on or before the 2
effective date for the eligible governmental unit, the effective date shall be postponed until 3
July 1 of the second year following the fiscal year in which the eligible governmental unit 4
elects to participate in the Employees’ Pension System. 5

(2) (I) AN ELIGIBLE GOVERNMENTAL UNIT SHALL CERTIFY TO THE 6
STATE RETIREMENT AGENCY THAT THE ELIGIBLE GOVERNMENTAL UNIT PROVIDED 7
EACH OF ITS EMPLOYEES WHO ARE ELIGIBLE TO ELECT OPTIONAL MEMBERSHIP IN 8
THE EMPLOYEES’ PENSION SYSTEM WITH THE NECES SARY DOCUMENTATION 9
REQUIRED BY THE STATE RETIREMENT AGENCY TO MAKE THAT ELECTION. 10

(II) FOR ANY EMPLOYEE OF AN ELIGIBLE GOVERNMENTAL UNIT 11
WHO IS ELIGIBLE FOR OPTIONAL MEMBERSHIP TO ELECT TO PARTICIPA TE IN THE 12
EMPLOYEES’ PENSION SYSTEM, THE NECESSARY DOCUME NTATION UNDER 13
SUBPARAGRAPH (I) OF THIS PARAGRAPH PARAGRAPH (1) OF THIS SUBSECTION 14
SHALL INCLUDE PROPER LY COMPLETED ELECTIO N FORMS INDICATING E ITHER 15
THAT: 16

1. (I) THE EMPLOYEE INTENDS TO PARTICIPATE IN TH E 17
EMPLOYEES’ PENSION SYSTEM; OR 18

2. (II) THE EMPLOYEE INTENDS TO OPT OUT OF 19
PARTICIPATION IN THE EMPLOYEES’ PENSION SYSTEM. 20

(3) (I) AN EMPLOYEE THAT DOES NOT COMPLETE THE NECESSARY 21
DOCUMENTATION INDICATING WHETHER THE EMPLOYEE INTENDS TO PARTICIPATE 22
IN OR OPT OUT OF PAR TICIPATION IN THE EMPLOYEES’ PENSION SYSTEM IS 23
DEEMED TO HAVE ELECT ED TO PARTICIPATE IN THE EMPLOYEES’ PENSION 24
SYSTEM. 25

(II) THE APPOINTING AUTHORITY FOR THE EMPLOYEE OF THE 26
ELIGIBLE GOVERNM ENTAL UNIT THAT DOES NOT COMPLETE THE NEC ESSARY 27
DOCUMENTATION INDICATING WHETHER THE EMPLOYEE INTENDS TO PARTICIPATE 28
IN OR OPT OUT OF PAR TICIPATION IN THE EMPLOYEES’ PENSION SYSTEM SHALL 29
EXECUTE AND SUBMIT A N AFFIDAVIT TO THE STATE RETIREMENT AGENCY 30
STATING: 31

1. THE NAME OF THE EMPL OYEE WHO DID NOT SUB MIT 32
THE NECESSARY DOCUMENTATION; AND 33

2. THE DATE WHEN THE AP POINTING AUTHORITY 34
PROVIDED THE EMPLOYEE WITH THE ELECTION FORM TO BE COMPLETED. 35

10 SENATE BILL 734

(III) AN AFFIDAVIT UNDER TH IS PARAGRAPH IS NECE SSARY 1
DOCUMENTATION THAT A N ELIGIBLE GOVERNMEN TAL UNIT IS REQUIRED TO 2
SUBMIT UNDER THIS SUBSECTION TO JOIN THE EMPLOYEES’ PENSION SYSTEM. 3

31–111. 4

(a) Except as provided in subsection (b) of this section and §§ 31–111.1, 31–111.3, 5
31–111.4, 31–111.5, 31–111.6, 31–111.7, and 31–111.8 of this subtitle, if an employee of a 6
participating governmental unit joins the Employees’ Pension System on the effective date, 7
the employee [is entitled to] SHALL RECEIVE 100% service credit for THE EMPLOYEE’S 8
employment with the participating governmental unit before the effective date. 9

(b) If an employee of the Baltimore Metropolitan Council elects to become a 10
member of the Employees’ Retirement System or the Employees’ Pension System, the 11
employee may not receive credit for se rvice from July 1, 1992, to the effective date unless 12
the employee pays to the Board of Trustees the amount of the member contributions the 13
employee would have made during that period, plus regular interest. 14

31–2A–01. 15

(a) In this subtitle the following words have the meanings indicated. 16

(c) “Eligible governmental unit” means a governmental unit that is eligible to 17
participate in the Law Enforcement Officers’ Pension System under § 31 –2A–02 of this 18
subtitle. 19

31–2A–02. 20

Subject to § 31 –2A–03 of this subtitle, the governmental units that are eligible to 21
participate in the Law Enforcement Officers’ Pension System are: 22

(1) counties; and 23

(2) municipal corporations. 24

31–2A–03. 25

(a) Subject to subsection (b) of this section, the legislative body of a n eligible 26
governmental unit may approve participation by its law enforcement officers, firefighters, 27
or emergency medical technicians in the Law Enforcement Officers’ Pension System if: 28

(1) the legislative body adopts a resolution in the form prescribe d by the 29
Board of Trustees; and 30

(2) the eligible governmental unit participates in a State system or 31
operates a local plan, only if: 32
SENATE BILL 734 11

(i) at least 60% of the law enforcement officers, firefighters, or 1
emergency medical technicians of the eligible gov ernmental unit petition to become 2
members of the Law Enforcement Officers’ Pension System; 3

(ii) the eligible governmental unit satisfies the requirements in 4
subsection (b) of this section; and 5

(iii) the legislative body approves participation of its law enforcement 6
officers, firefighters, or emergency medical technicians in lieu of participation in the State 7
system or local plan. 8

(b) An eligible governmental unit that operates a local plan or participates in a 9
State system may approve participation of its law enforcement officers, firefighters, or 10
emergency medical technicians in the Law Enforcement Officers’ Pension System only if: 11

(1) the State system or local plan of the eligible governmental unit requires 12
member contributions at the same rate as the member contribution rate that would be 13
applicable to the law enforcement officers, firefighters, or emergency medical technicians 14
of the eligible governmental unit in the Law Enforcement Officers’ Pension System; or 15

(2) the eligible governmental unit: 16

(i) does not provide for the employer pickup of member 17
contributions to the State system or local plan within the meaning of § 414(h)(2) of the 18
Internal Revenue Code; and 19

(ii) certifies that it will not become an approved employ er under § 20
21–313 of this article on or after the effective date of participation. 21

(c) (1) If an eligible governmental unit does not satisfy the requirements 22
under subsection (b) of this section, the eligible governmental unit may submit a request to 23
the Board of Trustees to participate in the Law Enforcement Officers’ Pension System. 24

(2) The Board of Trustees shall consider a request made under paragraph 25
(1) of this subsection and determine whether any legislation is necessary to allow the 26
eligible governmental unit to participate in the Law Enforcement Officers’ Pension System. 27

(3) The Board of Trustees shall make recommendations to the Joint 28
Committee on Pensions regarding any legislation that it determines is necessary to allow 29
the eligible gover nmental unit to participate in the Law Enforcement Officers’ Pension 30
System. 31

(D) AN ELIGIBLE GOVERNMEN TAL UNIT THAT SATISF IES THE 32
REQUIREMENTS UNDER S UBSECTION (B) OF THIS SECTION IS E LIGIBLE TO 33
PARTICIPATE IN THE LAW ENFORCEMENT OFFICERS’ PENSION SYSTEM ONLY IF 34
12 SENATE BILL 734

THE ELIGIBLE GOVERNM ENTAL UNIT MAKES ENR OLLMENT AVAILABLE TO ALL 1
ELIGIBLE LAW ENFORCEMENT OFFICERS, FIREFIGHTERS, OR EMERGENCY MEDICAL 2
TECHNICIANS OF THE E LIGIBLE GOVERNMENTAL UNIT PARTICIPATE IN THE LAW 3
ENFORCEMENT OFFICERS’ PENSION SYSTEM. 4

31–2A–03.1. 5

(a) Except as provided in subsection (b) of this section, the effective date of 6
participation for an eligible governmental unit is July 1 of the year following the fiscal year 7
in which the eligible governmental unit elects to participate in the L aw Enforcement 8
Officers’ Pension System. 9

(b) (1) If an eligible governmental unit does not provide the Board of Trustees 10
with the necessary documentation to join the Law Enforcement Officers’ Pension System 11
on or before the effective date for the eligible governmental unit, the effective date shall be 12
postponed until July 1 of the second year following the fiscal year in which the eligible 13
governmental unit elects to participate in the Law Enforcement Officers’ Pension System. 14

(2) (I) AN ELIGIBLE GOVERNMENTAL UNIT SHALL CERTIFY TO THE 15
STATE RETIREMENT AGENCY THAT THE ELIGIBLE GOVERNMENTAL UNIT PROVIDED 16
EACH OF ITS EMPLOYEES WHO ARE ELIGIBLE TO ELECT OPTIONAL MEMBERSHIP IN 17
THE LAW ENFORCEMENT OFFICERS’ PENSION SYSTEM WITH THE NECES SARY 18
DOCUMENTATION REQUIRED BY THE STATE RETIREMENT AGENCY TO MAKE THAT 19
ELECTION. 20

(II) FOR ANY EMPLOYEE OF AN ELIGIBLE GOVERNMENTAL UNIT 21
WHO IS ELIGIBLE FOR OPTIONAL MEMBERSHIP TO ELECT TO PARTICIP ATE IN THE 22
LAW ENFORCEMENT OFFICERS’ PENSION SYSTEM, THE NECESSARY 23
DOCUMENTATION UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH PARAGRAPH (1) 24
OF THIS SUBSECTION SHALL INCLUDE PROPER LY COMPLETED ELECTIO N FORMS 25
INDICATING EITHER THAT: 26

1. (I) THE EMPLOYEE INTENDS TO PARTICIPATE IN TH E 27
LAW ENFORCEMENT OFFICERS’ PENSION SYSTEM; OR 28

2. (II) THE EMPLOYEE INTENDS TO OPT OUT OF 29
PARTICIPATION IN THE LAW ENFORCEMENT OFFICERS’ PENSION SYSTEM. 30

(3) (I) AN EMPLOYEE THAT DOES NOT COMPLETE THE NECESSARY 31
DOCUMENTATION INDICATING WHETHER THE EMPLOYEE INTENDS TO PARTICIPATE 32
IN OR OPT OUT OF PARTICIPATION IN THE LAW ENFORCEMENT OFFICERS’ PENSION 33
SYSTEM IS DEEMED TO HAVE ELECTED TO PARTICIPATE IN THE LAW ENFORCEMENT 34
OFFICERS’ PENSION SYSTEM. 35

SENATE BILL 734 13

(II) THE APPOINTING AUTHORITY FOR THE EMPLOYEE O F THE 1
ELIGIBLE GOVERNMENTA L UNIT THAT DOES NOT COMPLETE THE NECESSA RY 2
DOCUMENTATION INDICATING WHETHER THE EMPLOYEE INTENDS TO PARTICIPATE 3
IN OR OPT OUT OF PARTICIPATION IN THE LAW ENFORCEMENT OFFICERS’ PENSION 4
SYSTEM SHALL EXECUTE AND SUBMIT AN AFFIDAVIT TO THE STATE RETIREMENT 5
AGENCY STATING: 6

1. THE NAME OF THE EMPL OYEE WHO DID NOT SUB MIT 7
THE NECESSARY DOCUMENTATION; AND 8

2. THE DATE WHEN THE AP POINTING AUTHORITY 9
PROVIDED THE EMPLOYEE WITH THE ELECTION FORM TO BE COMPLETED. 10

(III) AN AFFIDAVIT UNDER TH IS PARAGRAPH IS NECE SSARY 11
DOCUMENTATION THAT A N ELIGIBLE GOVERNMEN TAL UNIT IS REQUIRED TO 12
SUBMIT UNDER THIS SU BSECTION TO JOIN THE LAW ENFORCEMENT OFFICERS’ 13
PENSION SYSTEM. 14

31–2A–04. 15

If a law enforcement officer, firefighter, emergency medical technician, or paramedic 16
joins the Law Enforcement Officers’ Pension System on the effective date, the member [is 17
entitled to] SHALL RECEIVE 100% SERVICE credit for THE MEMBER’S employment with 18
the participating governmental unit before the effective date. 19

31–2B–01. 20

(a) In this subtitle the following words have the meanings indicated. 21

(c) “Eligible governmental unit” means a governmental unit that is eligible to 22
participate in the Correctional Officers’ Retirement System under § 31–2B–02 of this 23
subtitle. 24

31–2B–02. 25

Subject to § 31 –2B–03 of this subtitle, the governmental units that are eligible to 26
participate in the Correctional Officers’ Retirement System are: 27

(1) counties; and 28

(2) municipal corporations. 29

31–2B–03. 30

14 SENATE BILL 734

(a) Subject to subsection (b) of this section, the legislative body of an eligible 1
governmental unit may approve participation by its local detention center officers in the 2
Correctional Officers’ Retirement System if: 3

(1) the legislative body adopts a r esolution in the form prescribed by the 4
Board of Trustees; and 5

(2) the eligible governmental unit participates in a State system or 6
operates a local plan for its local detention center officers, only if: 7

(i) at least 60% of the local detention cente r officers of the eligible 8
governmental unit petition to become members of the Correctional Officers’ Retirement 9
System; 10

(ii) the eligible governmental unit satisfies the requirements in 11
subsection (b) of this section; and 12

(iii) the legislative body approves participation of its local detention 13
center officers in lieu of participation in the State system or local plan. 14

(b) An eligible governmental unit that operates a local plan or participates in a 15
State system may approve participation of its lo cal detention center officers in the 16
Correctional Officers’ Retirement System only if: 17

(1) the State system or local plan of the eligible governmental unit requires 18
member contributions at the same rate as the member contribution rate that would be 19
applicable to the local detention center officers of the eligible governmental unit in the 20
Correctional Officers’ Retirement System; or 21

(2) the eligible governmental unit: 22

(i) does not provide for the employer pickup of member 23
contributions to the State system or local plan within the meaning of § 414(h)(2) of the 24
Internal Revenue Code; and 25

(ii) certifies that it will not become an approved employer under § 26
21–313 of this article on or after the effective date of participation. 27

(c) (1) If an eligib le governmental unit does not satisfy the requirements 28
under subsection (b) of this section, the eligible governmental unit may submit a request to 29
the Board of Trustees to participate in the Correctional Officers’ Retirement System. 30

(2) The Board of Trustees shall consider a request made under paragraph 31
(1) of this subsection and determine whether any legislation is necessary to allow the 32
eligible governmental unit to participate in the Correctional Officers’ Retirement System. 33

SENATE BILL 734 15

(3) The Board of Trust ees shall make recommendations to the Joint 1
Committee on Pensions regarding any legislation that it determines is necessary to allow 2
the eligible governmental unit to participate in the Correctional Officers’ Retirement 3
System. 4

(D) AN ELIGIBLE GOVERNMEN TAL UNIT THAT SATISFI ES THE 5
REQUIREMENTS UNDER S UBSECTION (B) OF THIS SECTION IS E LIGIBLE TO 6
PARTICIPATE IN THE CORRECTIONAL OFFICERS’ RETIREMENT SYSTEM ONLY IF 7
THE ELIGIBLE GOVERNM ENTAL UNIT MAKES ENR OLLMENT AVAILABLE TO ALL 8
ELIGIBLE LOCAL DETENTION CENTER OFFICERS OF THE ELIGIBLE GOVERNMENTAL 9
UNIT PARTICIPATE IN THE CORRECTIONAL OFFICERS’ RETIREMENT SYSTEM. 10

31–2B–03.1. 11

(a) Except as provided in subsection (b) of this section, the effective date of 12
participation for an eligible governmental unit is July 1 of the year following the fiscal year 13
in which the eligible governmental unit elects to participate in the Correctional Officers’ 14
Retirement System. 15

(b) (1) If an eligible governmental unit does not provide the Board of Trustees 16
with the necessary documentation to join the Correctional Officers’ Retirement System on 17
or before the effective date for the eligible governmental unit, the effective date shall be 18
postponed until July 1 of the second year following the fiscal year in which the eligible 19
governmental unit elects to participate in the Correctional Officers’ Retirement System. 20

(2) (I) AN ELIGIBLE GOVERNMENTAL UNIT SHALL CERTIFY TO THE 21
STATE RETIREMENT AGENCY THAT THE ELIGIBLE GOVERNMENTAL UNIT PROVIDED 22
EACH OF ITS EMPLOYEES WHO ARE ELIGIBLE TO ELECT OPTIONAL MEMBERSHIP IN 23
THE CORRECTIONAL OFFICERS’ RETIREMENT SYSTEM WITH THE NECES SARY 24
DOCUMENTATION REQUIRED BY THE STATE RETIREMENT AGENCY TO MAKE THAT 25
ELECTION. 26

(II) FOR ANY EMPLOYEE OF AN ELIGIBLE GOVERNMENTAL UNIT 27
WHO IS ELIGIBLE FOR OPTIONAL MEMBERSHIP TO ELECT TO PARTICIP ATE IN THE 28
CORRECTIONAL OFFICERS’ RETIREMENT SYSTEM, THE NECESSARY 29
DOCUMENTATION UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH PARAGRAPH (1) 30
OF THIS SUBSECTION SHALL INCLUDE PROPER LY COMPLETED ELECTIO N FORMS 31
INDICATING EITHER THAT: 32

1. (I) THE EMPLOYEE INTENDS TO PARTICIPATE IN TH E 33
CORRECTIONAL OFFICERS’ RETIREMENT SYSTEM; OR 34

2. (II) THE EMPLOYEE INTENDS TO OPT OUT OF 35
PARTICIPATION IN THE CORRECTIONAL OFFICERS’ RETIREMENT SYSTEM. 36

16 SENATE BILL 734

(3) (I) AN EMPLOYEE THAT DOES NOT COMPLETE THE NECESSA RY 1
DOCUMENTATION INDICATING WHETHER THE EMPLOYEE INTENDS TO PARTICIPATE 2
IN OR OPT OUT OF PARTICIPATION IN THE CORRECTIONAL OFFICERS’ RETIREMENT 3
SYSTEM IS DEEMED TO H AVE ELECTED TO PARTI CIPATE IN THE CORRECTIONAL 4
OFFICERS’ RETIREMENT 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 CORRECTIONAL OFFICERS’ RETIREMENT 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 CORRECTIONAL OFFICERS’ 18
RETIREMENT SYSTEM. 19

31–2B–04. 20

If a local detention center officer joins the Correctional Officers’ Retirement System 21
on the effective date, the member [is entitled to] SHALL RECEIVE 100% SERVICE credit 22
for THE MEMBER ’S employment with the participating governmental unit before the 23
effective date. 24

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 25
1, 2026. 26

Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.