Maryland SB 597: Pensions and Retirement – Forfeiture of Benefits – Law Enforcement Officers

Bill Text

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0597*

SENATE BILL 597
P6 3lr0567
SB 47/22 – B&T CF HB 731
By: Senator Carter
Introduced and read first time: February 6, 2023
Assigned to: Budget and Taxation

A BILL ENTITLED

AN ACT concerning 1

Pensions and Retirement – Forfeiture of Benefits – Law Enforcement Officers 2

FOR the purpose of establishing that law enforcement officers are subject to forfeiture of 3
benefits from the State Retirement and Pension System or a local system when a law 4
enforcement officer is found guilty of, pleads guilty to, or enters a plea of nolo 5
contendere to a qualifying crime; providing for the processes and procedures to 6
implement a forfeiture of benefits; providing for the processes and procedures to 7
reverse a forfeiture of benefits; and generally relating to the forfeiture of pension 8
benefits. 9

BY repealing and reenacting, with amendments, 10
Article – State Personnel and Pensions 11
Section 21–502(a)(3) 12
Annotated Code of Maryland 13
(2015 Replacement Volume and 2022 Supplement) 14

BY adding to 15
Article – State Personnel and Pensions 16
Section 21–801 through 21–809 to be under the new subtitle “Subtitle 8. Forfeiture 17
of Benefits – Law Enforcement Officers”; the subtitle designation “Subtitle 1. 18
Local Pension Systems” to immediately precede Section 40–101; and 40–201 19
through 40–209 to be under the new subtitle “Subtitle 2. Forfeiture of Benefits 20
– Law Enforcement Officers” 21
Annotated Code of Maryland 22
(2015 Replacement Volume and 2022 Supplement) 23

BY repealing and reenacting, without amendments, 24
Article – State Personnel and Pensions 25
Section 40–101(a) 26
Annotated Code of Maryland 27
(2015 Replacement Volume and 2022 Supplement) 28

2 SENATE BILL 597

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

21–502. 4

(a) (3) A court of competent jurisdiction may expressly order that a benefit 5
under this Division II be assigned to a spouse, former spouse, child, or other dependent 6
when [an order of benefit forfeiture is issued] A FORFEITURE OF BENEFITS OCCURS in 7
accordance with § 21–704 OR § 21–804 of this title. 8

SUBTITLE 8. FORFEITURE OF BENEFITS – LAW ENFORCEMENT OFFICERS. 9

21–801. 10

(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 11
INDICATED. 12

(B) “DOMESTIC RELATIONS ORDER” MEANS AN ORDER ISSUED IN 13
ACCORDANCE WITH § 21–502(A)(2) OF THIS TITLE, § 414(P) OF THE INTERNAL 14
REVENUE CODE, AND REGULATIONS ADOPTED BY THE BOARD OF TRUSTEES THAT 15
ASSIGNS A BENEFIT TO A SPOUSE, A FORMER SPOUSE, A CHILD, OR ANY OTHER 16
DEPENDENT OF A LAW ENFORCEMENT OFFICER IN CONNECTION WITH A DECREE OR 17
ORDER OF ALIMONY, CHILD SUPPORT, OR DIVORCE. 18

(C) “FINAL ADJUDICATION” MEANS ADJUDICATION BY A TRIAL COURT 19
RESULTING IN FINAL DISPOSITION OF ALL CHARGES THAT CONSTITUTE A 20
QUALIFYING CRIME. 21

(D) “LAW ENFORCEMENT OFFICER” MEANS AN INDIVIDUAL WHO: 22

(1) IS LISTED IN § 21–802 OF THIS SUBTITLE; AND 23

(2) HAS BEEN CHARGED WITH A QUALIFYING CRIME. 24

(E) “QUALIFYING CRIME” MEANS A CRIMINAL OFFENSE THAT IS 25
COMMITTED IN THE COURSE OF THE PERFORMANCE OF THE LAW ENFORCEMENT 26
OFFICER’S DUTIES AND RESPONSIBILITIES THAT IS: 27

(1) A FELONY; 28

(2) PERJURY; OR 29

SENATE BILL 597 3

(3) A MISDEMEANOR RELATING TO TRUTHFULNESS AND VERACITY. 1

(F) “RETIREMENT ALLOWANCE”: 2

(1) HAS THE MEANING STATED IN § 20–101 OF THIS ARTICLE; AND 3

(2) INCLUDES A VESTED ALLOWANCE. 4

(G) “VESTED ALLOWANCE” HAS THE MEANING STATED IN § 20–101 OF THIS 5
ARTICLE. 6

21–802. 7

(A) THIS SUBTITLE APPLIES TO AN INDIVIDUAL WHO: 8

(1) IS A MEMBER, FORMER MEMBER, OR RETIREE OF: 9

(I) THE STATE POLICE RETIREMENT SYSTEM; 10

(II) THE LAW ENFORCEMENT OFFICERS’ PENSION SYSTEM; OR 11

(III) THE EMPLOYEES’ PENSION SYSTEM OR THE EMPLOYEES’ 12
RETIREMENT SYSTEM; AND 13

(2) HAS EARNED CREDITABLE SERVICE WHILE EMPLOYED AS A LAW 14
ENFORCEMENT OFFICER. 15

(B) THIS SUBTITLE DOES NOT APPLY TO ANY SERVICE EARNED BEFORE 16
JULY 1, 2023. 17

21–803. 18

(A) BENEFITS UNDER THIS DIVISION II OF THIS ARTICLE PAYABLE TO A 19
LAW ENFORCEMENT OFFICER ARE SUBJECT TO FORFEITURE IN ACCORDANCE WITH 20
THIS SUBTITLE IF THE LAW ENFORCEMENT OFFICER IS FOUND GUILTY OF, PLEADS 21
GUILTY TO, OR ENTERS A PLEA OF NOLO CONTENDERE TO A QUALIFYING CRIME. 22

(B) (1) BENEFITS UNDER THIS DIVISION II OF THIS ARTICLE MAY NOT BE 23
FORFEITED OR REDUCED IF THE INTERNAL REVENUE SERVICE DETERMINES THAT 24
THE FORFEITURE OR REDUCTION WILL NEGATIVELY AFFECT OR INVALIDATE THE 25
TAX QUALIFIED STATUS OF ANY OF THE SEVERAL SYSTEMS. 26

4 SENATE BILL 597

(2) IF THE INTERNAL REVENUE SERVICE DETERMINES THAT THE 1
APPLICATION OF THIS SUBTITLE WOULD NEGATIVELY AFFECT OR INVALIDATE THE 2
TAX QUALIFIED STATUS OF ANY OF THE SEVERAL SYSTEMS, ANY FORFEITURE OF 3
BENEFITS THAT TOOK PLACE BEFORE THE INTERNAL REVENUE SERVICE’S