Title 26. Law Enforcement Officers' Pension System — Subtitle 4. Service Retirement Benefits
Statutes in effect as of October 1, 2026.
Md. Code Ann., State Pers. & Pens. § 26-401 (2026)
Title 26. Law Enforcement Officers' Pension System
Subtitle 4. Service Retirement Benefits
§ 26–401LinkCopy Citation
(a)
(1)
Subject to paragraph (2) of this subsection, a member may retire with a normal service retirement allowance if:
(i)
on or before the date of retirement, the member:
(1)
has at least 25 years of eligibility service; or
(2)
is at least 50 years old; and
(ii)
the member completes and submits a written application to the Board of Trustees on the form that the Board of Trustees provides stating the date when the member desires to retire.
(2)
A member may not retire before the first day of the month after employment ends.
(b)
(1)
Except as provided in paragraphs (2), (3), and (4) of this subsection, on retirement under this section, a member is entitled to receive a normal service retirement allowance that equals the number of years of the member’s creditable service multiplied by 2% of the member’s average final compensation.
(2)
A member’s normal service retirement allowance under paragraph (1) of this subsection may not exceed 65% of the member’s average final compensation.
(3)
(i)
This paragraph applies only to a member who is not subject to the Law Enforcement Officers’ Modified Pension Benefit under Subtitle 2, Part II of this title.
(ii)
Except as provided in paragraph (4) of this subsection, on retirement under this paragraph, the member is entitled to receive a normal service retirement allowance that equals:
(1)
(2)
3% of the member’s average final compensation multiplied by each year of the member’s first 30 years of creditable service; and
(2)
1% of the member’s average final compensation multiplied by each year of creditable service in excess of 30 years.
(4)
Subject to paragraph (2) of this subsection, on retirement under this section, if a member’s annuity is greater than the member’s normal service retirement allowance calculated under paragraph (1) or (3) of this subsection, the member’s normal service retirement allowance shall equal the member’s annuity.
Md. Code Ann., State Pers. & Pens. § 26-401.1 (2026)
Title 26. Law Enforcement Officers' Pension System
Subtitle 4. Service Retirement Benefits
§ 26–401.1LinkCopy Citation
(a)
(1)
In this section the following words have the meanings indicated.
(2)
“DROP” means the Deferred Retirement Option Program established under this section.
(3)
“DROP member” means a member of the Law Enforcement Officers’ Pension System who:
(i)
is eligible to participate in the DROP as provided in subsection (c) of this section; and
(ii)
elects to participate in the DROP as provided in subsection (e) of this section.
(b)
There is a DROP for eligible members of the Law Enforcement Officers’ Pension System.
(c)
(1)
In this subsection, “creditable service” does not include credit for unused sick leave as provided in § 20–206 of this article.
(2)
A member of the Law Enforcement Officers’ Pension System is eligible to participate in the DROP if the member has at least 25 and less than 32 years of creditable service.
(d)
(1)
In this subsection, “creditable service” does not include credit for unused sick leave as provided in § 20–206 of this article.
(2)
An eligible member may elect to participate in the DROP for a period not to exceed the lesser of:
(i)
7 years;
(ii)
the difference between 32 years and the member’s creditable service as of the date of the member’s election to participate in the DROP and retire from the Law Enforcement Officers’ Pension System; or
(iii)
a term selected by the member.
(e)
(1)
An eligible member who elects to participate in the DROP shall:
(i)
complete and submit a written election form to the Board of Trustees, on the form that the Board of Trustees provides, stating:
(1)
the member’s intention to participate in the DROP;
(2)
the date when the member desires to retire;
(3)
the period that the member desires to participate in the DROP, as provided in subsection (d) of this section;
(4)
the date when the member intends to terminate employment with the State in the form of a binding letter of resignation accepted by the Secretary or the Secretary’s designee of the Department for which the member is employed; and
(5)
any other information required by the Board of Trustees to implement the DROP; and
(ii)
complete and submit a written retirement application form to the Board of Trustees, on the form that the Board of Trustees provides.
(2)
An eligible member’s election to participate in the DROP is irrevocable.
(f)
(1)
A DROP member’s participation in the DROP shall commence on the first day of the month following acceptance by the Board of Trustees of the DROP member’s completed election form, retirement application form, and any other information required by the Board of Trustees.
(2)
A DROP member is a retiree of the Law Enforcement Officers’ Pension System.
(g)
Participation in the DROP ends if the DROP participant:
(1)
separates from employment in accordance with the binding letter of resignation submitted with the member’s election form;
(2)
dies;
(3)
is terminated from employment by the DROP member’s participating employer at any time before the date specified on the member’s election form;
(4)
shortens the time period for participation in the DROP by delivering to the DROP member’s participating employer and the Board of Trustees written notice of the intent of the DROP member to terminate employment; or
(5)
accepts an accidental disability retirement allowance as provided in subsection (k) of this section.
(h)
(1)
As of the effective date of participation in the DROP, the Board of Trustees shall determine the DROP member’s normal service retirement allowance under § 26–401 of this subtitle.
(2)
During the period that a DROP member participates in the DROP, the Board of Trustees shall:
(i)
deposit the DROP member’s normal service retirement allowance in the DROP for the DROP member’s benefit;
(ii)
adjust the DROP member’s normal service retirement allowance each fiscal year as provided in §§ 29–401, 29–402, 29–406, and 29–408 of this article; and
(iii)
accrue interest on the amounts calculated under subparagraphs (i) and (ii) of this paragraph for the DROP member into the DROP at the rate of:
(1)
6% a year, compounded monthly if the individual is a DROP member on or before June 30, 2011; or
(2)
4% a year, compounded annually, if the individual becomes a DROP member on or after July 1, 2011.
(3)
A DROP member may not receive creditable service or eligibility service during the period that the DROP member participates in the DROP.
(4)
A DROP member’s compensation during the period that the DROP member participates in the DROP may not be:
(i)
subject to the employer pickup provisions of § 21–303 of this article or any reduction or deduction as a member contribution for pension or retirement purposes; or
(ii)
used to increase the DROP member’s average final compensation except as provided in subsection (k) of this section.
(5)
During the period that a DROP member participates in the DROP, the DROP member shall:
(i)
continue to receive compensation, health insurance, and other benefit options established under the State Employee and Retiree Health and Welfare Benefit Program administered by the Secretary of Budget and Management, and any other benefits as an employee of the State;
(ii)
be subject to the personnel law, regulations, and policies applicable to an employee of the State agency for which the member is employed; and
(iii)
receive retirement benefits only to the extent provided in this section.
(6)
The Board of Trustees is not required to establish an individual DROP account for each DROP member.
(7)
Each year, the Board of Trustees shall provide a DROP member with a written accounting of the DROP member’s account balance in the DROP.
(i)
(1)
Subject to paragraphs (2), (3), and (4) of this subsection, on termination of a DROP member’s participation in the DROP, the Board of Trustees shall pay to the DROP member or, if the DROP member has died, the designated beneficiary of the DROP member, the amount accrued in the DROP for the DROP member under subsection (h)(2) of this section, reduced by any withholding taxes remitted to the Internal Revenue Service or other taxing authority, in a lump sum.
(2)
The designated beneficiary of a DROP member is:
(i)
the DROP member’s surviving spouse;
(ii)
if there is not a surviving spouse or if the surviving spouse dies, each child of the deceased DROP member who is under 26 years old or is disabled; or
(iii)
if there is not a surviving spouse or a child who is under 26 years old or is disabled, the DROP member’s designated beneficiary.
(3)
A DROP member or designated beneficiary of a DROP member may direct the Board of Trustees to pay all or a portion of the amount accrued for the DROP member’s benefit under subsection (h)(2) of this section directly to the custodian of an eligible retirement plan as provided in Title 21, Subtitle 6 of this article.
(4)
A DROP member or designated beneficiary of a DROP member is eligible to receive the amount due under this subsection within 90 days after:
(i)
the date of termination of the DROP member’s participation in the DROP;
(ii)
the receipt by the Board of Trustees of a completed application to receive the DROP amount, on the form that the Board of Trustees provides; and
(iii)
the receipt by the Board of Trustees of any other information that the Board of Trustees requires to process payment of the DROP member’s account balance to the DROP participant, the designated beneficiary of the DROP participant, or the custodian of an eligible retirement plan.
(j)
(1)
Except as provided in paragraph (2) of this subsection, as of the first day of the month following termination of a DROP member’s participation in the DROP, the Board of Trustees shall commence and continue payment of the normal service retirement allowance, including the cost–of–living adjustments as provided in §§ 29–401, 29–402, 29–406, and 29–408 of this article, to the member as provided in §§ 26–401 and 26–402 of this subtitle.
(2)
If a DROP member dies before termination of the DROP member’s participation in the DROP, the Board of Trustees shall pay 50% of the normal service retirement allowance, including the cost–of–living adjustments as provided in §§ 29–401, 29–402, 29–406, and 29–408 of this article, to the beneficiary as provided in § 26–402 of this subtitle.
(k)
(1)
A DROP member is eligible to apply for an accidental disability retirement allowance under § 29–109 of this article if after the DROP member commences participation in the DROP:
(i)
the member is totally and permanently incapacitated for duty arising out of or in the course of the actual performance of duty that occurs while participating in the DROP, and without willful negligence of the member; and
(ii)
the medical board certifies that:
(1)
the member is totally incapacitated, either mentally or physically, for the further performance of duty by the occurrence described under item (i) of this paragraph;
(2)
the incapacity is likely to be permanent; and
(3)
the member should be retired.
(2)
(i)
If a DROP member is granted an accidental disability retirement allowance, the DROP member shall:
(1)
submit an application to the Board of Trustees, on the form the Board of Trustees provides, to receive payment of the amount accrued in the DROP in accordance with subsection (i) of this section;
(2)
execute a written waiver of any benefits to which the DROP member may be entitled under the DROP; and
(3)
submit an application to retire with an accidental disability retirement allowance, on the form the Board of Trustees provides, stating the effective date of the DROP member’s retirement as an accidental disability retiree.
(ii)
On acceptance of the application for payment and application to retire, the Board of Trustees shall commence payment of an accidental disability allowance to the DROP member as provided in § 29–110 of this article, except that the DROP member’s average final compensation shall be computed as of the effective date of the DROP member’s application for an accidental disability retirement allowance.
Md. Code Ann., State Pers. & Pens. § 26-402 (2026)
Title 26. Law Enforcement Officers' Pension System
Subtitle 4. Service Retirement Benefits
§ 26–402LinkCopy Citation
(a)
This section applies to the surviving spouse or a child of a retiree in receipt of a service retirement allowance or a disability retirement allowance.
(b)
On the death of a retiree, the Board of Trustees shall pay 50% of the retiree’s retirement allowance to:
(1)
the surviving spouse; or
(2)
if there is no surviving spouse or if the surviving spouse dies, to any children of the deceased retiree who are under 26 years old or disabled, as defined under § 72(m)(7) of the Internal Revenue Code.
(c)
(1)
Except as provided in paragraphs (2) and (3) of this subsection, if the Board of Trustees pays an allowance to more than one child, the Board of Trustees shall divide the allowance among the children in a manner that provides for payments to continue until:
(i)
each child has died; or
(ii)
each child becomes 26 years old.
(2)
Notwithstanding paragraph (1)(ii) of this subsection, a surviving child who is disabled shall continue to receive an allowance under paragraph (1) of this subsection past the age of 26 years, if the child continues to be disabled.
(3)
(i)
If a surviving child receiving an allowance under paragraph (1) of this subsection is disabled, as defined under § 72(m)(7) of the Internal Revenue Code, the Board of Trustees shall pay to the disabled surviving child an allowance equal to the total of the allowances paid under paragraph (1) of this subsection after:
(1)
all other nondisabled surviving children have died; or
(2)
the youngest nondisabled surviving child becomes 26 years old.
(ii)
If more than one surviving child is disabled, as defined under § 72(m)(7) of the Internal Revenue Code, the allowance payable under this paragraph shall be divided equally among the disabled children.
Md. Code Ann., State Pers. & Pens. § 26-403 (2026)
Title 26. Law Enforcement Officers' Pension System
Subtitle 4. Service Retirement Benefits
§ 26–403LinkCopy Citation
(a)
Except as provided in subsections (f) and (g) of this section, a retiree who is receiving a service retirement allowance may accept employment with a participating employer on a permanent, temporary, or contractual basis, without any reduction in retirement allowance.
(b)
A reemployed retiree who is receiving a service retirement allowance may not receive creditable service or eligibility service during the period of reemployment.
(c)
The retiree’s compensation during the period of reemployment may not be subject to the employer pickup provisions of § 21–303 of this article or any reduction or deduction as a member contribution for pension or retirement purposes.
(d)
The State Retirement Agency shall institute appropriate reporting procedures with the affected payroll systems to ensure compliance with this section.
(e)
(1)
Immediately on the employment of any retiree, a participating employer shall notify the State Retirement Agency of the type of employment and the anticipated earnings of the retiree.
(2)
At least once each year, in a format specified by the State Retirement Agency, each participating employer shall provide the State Retirement Agency with a list of all employees included on any payroll of the employer, the Social Security numbers of the employees, and their earnings for that year.
(f)
An individual who is receiving a service retirement allowance under this title may not be employed within 45 days of the date the individual retired, on a permanent, temporary, or contractual basis, by:
(1)
the State or other participating employer; or
(2)
a withdrawn participating governmental unit, if the retiree was an employee of the withdrawn participating governmental unit while the withdrawn governmental unit was a participating employer.
(g)
(1)
This section applies to a retiree who is elected as a sheriff less than 1 year after the retiree’s date of retirement.
(2)
The Board of Trustees shall, after giving notice, temporarily suspend the retiree’s allowance as of the date the retiree begins serving as a sheriff.
(3)
(i)
On receiving satisfactory documentation that the individual is no longer serving as a sheriff, the Board of Trustees shall reinstate the retiree’s allowance with accumulated cost–of–living adjustments from the date the allowance was temporarily suspended.
(ii)
The retiree’s allowance will be reinstated on the first day of the month following the month in which the retiree ceased serving as a sheriff.
(4)
If a retiree whose allowance is temporarily suspended dies while serving as a sheriff, survivorship benefits selected by the member at the time of retirement shall be paid to:
(i)
the surviving spouse or child, in accordance with § 26–402 of this subtitle; or
(ii)
if there is no surviving spouse or child, the designated beneficiary in accordance with § 21–403 of this article.
Md. Code Ann., State Pers. & Pens. § 26-404 (2026)
Title 26. Law Enforcement Officers' Pension System
Subtitle 4. Service Retirement Benefits
§ 26–404LinkCopy Citation
A member may be entitled to benefits under Title 29 of this article other than, or in addition to, the benefits provided under this subtitle.