Maryland HB 1027: Military Service Credit - Eligibility

Bill Text

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW. 
        [Brackets] indicate matter deleted from existing law. 
           *hb1027*   
  
HOUSE BILL 1027 
K4   0lr3177 
HB 1133/19 – APP   CF SB 487 
By: Delegates P. Young, Brooks, Chang, Charles, Crosby, Fraser–Hidalgo, Guyton, 
Krimm, Lehman, and Rogers 
Introduced and read first time: February 5, 2020 
Assigned to: Appropriations 
 
A BILL ENTITLED 
 
AN ACT concerning 1 
 
Military Service Credit – Eligibility 2 
 
FOR  the  purpose  of  authorizing  certain  members  of  the  State  Retirement  and  Pension 3 
System to receive credit for certain military service if the member receives military 4 
service  credit  in  another  retirement  system;  and  generally  relating  to  members  of 5 
the State Retirement and Pension System receiving military service credit. 6 
 
BY repealing and reenacting, with amendments, 7 
 Article – State Personnel and Pensions 8 
Section 38–104 9 
 Annotated Code of Maryland 10 
 (2015 Replacement Volume and 2019 Supplement) 11 
 
 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12 
That the Laws of Maryland read as follows: 13 
 
Article – State Personnel and Pensions 14 
 
38–104. 15 
 
 (a) (1) This section applies to an individual who is: 16 
 
   (i) a member of a State system; or 17 
 
   (ii) a  former  member  of  a  State  system  who  is  eligible  to  receive  a 18 
benefit under § 29–302 or § 29–303 of this article. 19 
 
  (2) This section does not apply to a retiree of a State system. 20 
 
 (b) Except as provided in subsection (c) of this section, an individual described in 21 

2 HOUSE BILL 1027  
 
 
subsection  (a)  of  this  section,  who  has  not  met  the  conditions  set  forth  in  §  38–103(a)(2) 1 
through (4) of this subtitle, is entitled to receive service credit for military service only on 2 
the attainment of 10 years of service credit earned through employment as a member of a 3 
State system. 4 
 
 (c) (1) An individual described in subsection (a) of this section may not receive 5 
credit  for  that  military  service  if  the  individual  receives  credit  for  military  service  from 6 
another retirement system for which retirement benefits have been or will be received by 7 
the individual. 8 
 
  (2) Paragraph (1) of this subsection does not apply to: 9 
 
   (i) credit for military service provided under: 10 
 
    1. the Social Security Act; 11 
 
    2. the National Railroad Retirement Act; or 12 
 
    3. Title 3 or Title 10, Chapter 1223, §§ 12731 through 12737 13 
of the United States Code; [or] 14 
 
   (ii) disability payments from a pension or retirement system; OR 15 
 
   (III) A MEMBER OR FORMER MEMBER OF: 16 
 
    1. THE CORRECTIONAL OFFICERS’ RETIREMENT 17 
SYSTEM; 18 
 
    2. THE LAW ENFORCEMENT OFFICERS’ PENSION 19 
SYSTEM; OR 20 
 
    3. THE STATE POLICE RETIREMENT SYSTEM. 21 
 
  (3) (i) Military service credit under this section may not exceed 5 years. 22 
 
   (ii) Subject to subparagraph (i) of this paragraph, a member of the 23 
Maryland  National  Guard  or  of  a  reserve  component  of  the  armed  forces  of  the  United 24 
States who has not been activated under Title 10 of the United States Code, shall receive 25 
service  credit  at  the  rate  of  4  months  for  each  full  year  of  service  with  the  Maryland 26 
National Guard or with a reserve component of the armed forces of the United States, not 27 
to exceed a total of 36 months. 28 
 
 (d) (1) Except as provided in paragraph (2) of this subsection, the service credit 29 
for military service that an individual receives under this section shall be applied to the 30 
individual’s retirement allowance using the accrual rate in effect at the time the individual 31 
retires from a State system. 32 

 HOUSE BILL 1027 3 
 
 
 
  (2) If  an  individual  applies  for  military  service  credit  on  or  after  July  1, 1 
2011, the service credit for military service that the individual receives under this section 2 
shall be applied to the individual’s retirement allowance using the accrual rate in effect at 3 
the  time  the  individual  submits  an  application  for  military  service  credit  to  the  State 4 
Retirement Agency. 5 
 
 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 6 
1, 2020. 7