Maryland 2023 Regular Session

Maryland House Bill HB296 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	hb0296
6	6
7	7	HOUSE BILL 296
8	8	P6 3lr1741
9	9	CF SB 6
10	10	By: Delegate Bridges
11	11	Introduced and read first time: January 25, 2023
12	12	Assigned to: Appropriations
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Maryland Teachers and State Employees Supplemental Retirement Plans 2
19	19	– Automatic Enrollment 3
20	20
21	21	FOR the purpose of requiring the State Board of Trustees of the Maryland Teachers and 4
22	22	State Employees Supplemental Retirement Plans to impleme nt an automatic 5
23	23	enrollment arrangement for certain State employees; requiring an eligible employer 6
24	24	to deduct wages of an employee for contribution to a supplemental retirement plan 7
25	25	in accordance with an automatic enrollment arrangement, unless the employee has 8
26	26	elected to withdraw from or cease to contribute to the supplemental retirement plan; 9
27	27	and generally relating to the automatic enrollment of State employees into 10
28	28	supplemental retirement plans. 11
29	29
30	30	BY repealing and reenacting, with amendments, 12
31	31	Article – State Personnel and Pensions 13
32	32	Section 35–101 14
33	33	Annotated Code of Maryland 15
34	34	(2015 Replacement Volume and 2022 Supplement) 16
35	35
36	36	BY adding to 17
37	37	Article – State Personnel and Pensions 18
38	38	Section 35–206 19
39	39	Annotated Code of Maryland 20
40	40	(2015 Replacement Volume and 2022 Supplement) 21
41	41
42	42	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 22
43	43	That the Laws of Maryland read as follows: 23
44	44
45	45	Article – State Personnel and Pensions 24
46	46
47	47	35–101. 25
48	48	2 HOUSE BILL 296
49	49
50	50
51	51	(a) In this title the following words have the meanings indicated. 1
52	52
53	53	(B) “AUTOMATIC ENROLLM ENT ARRANGEMENT ” MEANS A SUPPLEMENTAL 2
54	54	PLAN PROVISION THAT REQUIRES AN ELIGIBLE EMPLOYER TO DEDUCT E LECTIVE 3
55	55	DEFERRALS FROM AN EM PLOYEE’S WAGES FOR CONTRIBU TION TO A 4
56	56	SUPPLEMENTAL RETIREM ENT PLAN UNLESS THE EMPLOYEE MAKES AN EL ECTION 5
57	57	NOT TO CONTRIBUTE OR TO CONTRIBUTE A DIFFEREN T AMOUNT. 6
58	58
59	59	[(b)] (C) “Board” means the State Board of Trustees of the Maryland Teachers 7
60	60	and State Employees Supplemental Retirement Plans. 8
61	61
62	62	(D) “ELIGIBLE EMPLOYER ” MEANS THE EMPLOYER O F AN INDIVIDUAL 9
63	63	ELIGIBLE TO PARTICIP ATE IN A SUPPLEMENTAL RETIREM ENT PLAN. 10
64	64
65	65	[(c)] (E) “Supplemental retirement plans” means the deferred compensation, 11
66	66	tax sheltered annuity, salary reduction savings plans, and any other plans authorized by 12
67	67	this title. 13
68	68
69	69	35–206. 14
70	70
71	71	(A) THE BOARD SHALL IMPLEMENT AN AUTO MATIC ENROLLMENT 15
72	72	ARRANGEMENT TO AUTOM ATICALLY ENROLL ALL STATE EMPLOYEES HIRED ON OR 16
73	73	AFTER JANUARY 1, 2024, IN A SUPPLEMENTAL RE TIREMENT PLAN . 17
74	74
75	75	(B) (1) NOTWITHSTANDING ANY O THER PROVISION OF LA W, AN ELIGIBLE 18
76	76	EMPLOYER SHALL DEDUC T AN AMOUNT FROM THE WAGES OF AN EMPLOYEE FOR 19
77	77	CONTRIBUTION TO A SU PPLEMENTAL RETIREMEN T PLAN AS PART OF AN 20
78	78	AUTOMATIC ENROLLMENT ARRANGEMENT , UNLESS THE EMPLOYEE HAS ELECTED 21
79	79	TO WITHDRAW FROM THE SUPPLEMENTAL RETIREM ENT PLAN OR CEASE MA KING 22
80	80	CONTRIBUTIONS TO THE SUPPLEMENTAL RETIREM ENT PLAN. 23
81	81
82	82	(2) THE AMOUNT DEDUCTED F ROM THE WAGES OF AN EMPLOYEE 24
83	83	EACH PAY PERIOD SHAL L BE THE MINIMUM AMO UNT SET BY THE BOARD, UNLESS 25
84	84	THE EMPLOYEE ELECTS TO: 26
85	85
86	86	(I) HAVE A DIFFERENT AMO UNT DEDUCTED ; 27
87	87
88	88	(II) CEASE MAKING CONTRIB UTIONS TO THE SUPPLE MENTAL 28
89	89	RETIREMENT PLAN ; OR 29
90	90
91	91	(III) WITHDRAW FROM THE SU PPLEMENTAL RETIREMEN T PLAN. 30
92	92
93	93	(C) AN EMPLOYEE ENROLLED IN A SUPPLEMENTAL RE TIREMENT PLAN 31
94	94	UNDER AN AUTOMATIC E NROLLMENT ARRANGEMEN T SHALL BE: 32 HOUSE BILL 296 3
95	95
96	96
97	97
98	98	(1) PROVIDED A NOTICE WI TH AN EXPLANATION OF : 1
99	99
100	100	(I) THE TERMS OF THE EMPLOYEE ’S ENROLLMENT IN THE 2
101	101	SUPPLEMENTAL RETIREM ENT PLAN, INCLUDING THE CURREN T CONTRIBUTION 3
102	102	AMOUNT PROVIDED FOR UNDER THE AUTOMATIC ENROLLMENT ARRANGEME NT; 4
103	103
104	104	(II) THE EMPLOYEE ’S RIGHT TO INCREASE , DECREASE, OR 5
105	105	CEASE CONTRIBUTIONS TO THE SUPPLEM ENTAL RETIREMENT PLA N; 6
106	106
107	107	(III) THE EMPLOYEE ’S RIGHT TO DISCONTIN UE PARTICIPATION 7
108	108	IN THE SUPPLEMENTAL RETIREMENT PLAN WITH IN 90 DAYS AFTER THE START OF 8
109	109	EMPLOYMENT ; 9
110	110
111	111	(IV) THE EMPLOYEE ’S RIGHT TO RECEIVE A REFUND OF THEIR 10
112	112	ACCOUNT CONTRIBUTION S AS SOON AS PRACTICABLE AFTER DI SCONTINUING 11
113	113	PARTICIPATION WITHIN 90 DAYS AFTER THE START OF EMPLOYMENT ; AND 12
114	114
115	115	(V) THE EMPLOYEE ’S RIGHTS REGARDING T HE INVESTMENT OF 13
116	116	THE EMPLOYEE ’S ACCOUNT AND THE IN VESTMENT OPTIONS AVA ILABLE UNDER THE 14
117	117	SUPPLEMENTAL RETIREM ENT PLAN; AND 15
118	118
119	119	(2) TREATED AS EXERCISIN G CONTROL OF THE ASS ETS IN THE 16
120	120	SUPPLEMENTAL RETIREM ENT PLAN ACCOUNT REG ARDING THE AMOUNT OF 17
121	121	CONTRIBUTIONS AND EA RNINGS. 18
122	122
123	123	(D) IF A PARTICIPANT IS E NROLLED IN A SUPPLEM ENTAL RETIREMENT 19
124	124	PLAN UNDER AN AUTOMA TIC ENROLLMENT ARRAN GEMENT, THE BOARD SHALL 20
125	125	INVEST THE PARTICIPA NT’S CONTRIBUTIONS IN A DESIGNATED DEFAULT 21
126	126	INVESTMENT OPTION IN ACCORDANCE WITH EACH APPLICABLE SUPPLEMEN TAL 22
127	127	RETIREMENT PLAN . 23
128	128
129	129	(E) EACH UNIT THAT HIRES AN ELIGIBLE EMPLOYEE WHO IS NOT ALREADY 24
130	130	ENROLLED IN A SUPPLE MENTAL RETIREMENT PLA N SHALL PROVIDE THE BOARD 25
131	131	WITH THE INFORMATION NECESSARY TO COMPLET E THE ENROLLMENT OF THE 26
132	132	EMPLOYEE UNDER THE A UTOMATIC ENROLLMENT ARRANGEMENT . 27
133	133
134	134	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall apply only to 28
135	135	individuals eligible to participate in a supplemental retirement plan who commence 29
136	136	employment or who are reinstated on or after January 1, 2024. 30
137	137
138	138	SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 31
139	139	October 1, 2023. 32
140	140