MD
Maryland Senate Bill SB395

Maryland 2023 Regular Session

Maryland Senate Bill SB395 Compare Versions

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1- WES MOORE, Governor Ch. 127
21
3-– 1 –
4-Chapter 127
5-(Senate Bill 395)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4+ [Brackets] indicate matter deleted from existing law.
5+ Underlining indicates amendments to bill.
6+ Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7+amendment.
8+ *sb0395*
89
9-State Employee and Retiree Health Benefits – Creditable Service – Historic St.
10-Mary’s City Commission
10+SENATE BILL 395
11+P6 3lr2142
12+ CF HB 581
13+By: Senator Bailey
14+Introduced and read first time: February 1, 2023
15+Assigned to: Budget and Taxation
16+Committee Report: Favorable with amendments
17+Senate action: Adopted
18+Read second time: March 3, 2023
1119
12-FOR the purpose of requiring the inclusion of certain all State service while an individual
13-was employed by the Historic St. Mary’s City Commission State in the Executive,
14-Legislative, or Judicial Branch of government for the purpose of determining
15-eligibility for State retiree health benefits for a retiree of the Historic St. Mary’s City
16-Commission; and generally relating to retiree health benefits.
20+CHAPTER ______
1721
18-BY repealing and reenacting, with amendments,
19- Article – State Personnel and Pensions
20-Section 2–508(a) and 2–509
21- Annotated Code of Maryland
22- (2015 Replacement Volume and 2022 Supplement)
22+AN ACT concerning 1
2323
24-BY repealing and reenacting, without amendments,
25- Article – State Personnel and Pensions
26-Section 2–508(a)(1), (2)(i), and (3)(i)1. and (b)(1), (2), and (4)(i) and 20–101(d), (m),
27-(dd), and (ll) 2–508(b) and (c)
28- Annotated Code of Maryland
29- (2015 Replacement Volume and 2022 Supplement)
24+State Employee and Retiree Health Benefits – Creditable Service – Historic St. 2
25+Mary’s City Commission 3
3026
31- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
32-That the Laws of Maryland read as follows:
27+FOR the purpose of requiring the inclusion of certain all State service while an individual 4
28+was employed by the Historic St. Mary’s City Commission State in the Executive, 5
29+Legislative, or Judicial Branch of government for the purpose of determining 6
30+eligibility for State retiree health benefits for a retiree of the Historic St. Mary’s City 7
31+Commission; and generally relating to retiree health benefits. 8
3332
34-Article – State Personnel and Pensions
33+BY repealing and reenacting, with amendments, 9
34+ Article – State Personnel and Pensions 10
35+Section 2–508(a) and 2–509 11
36+ Annotated Code of Maryland 12
37+ (2015 Replacement Volume and 2022 Supplement) 13
3538
36-2–508.
39+BY repealing and reenacting, without amendments, 14
40+ Article – State Personnel and Pensions 15
41+Section 2–508(a)(1), (2)(i), and (3)(i)1. and (b)(1), (2), and (4)(i) and 20–101(d), (m), 16
42+(dd), and (ll) 2–508(b) and (c) 17
43+ Annotated Code of Maryland 18
44+ (2015 Replacement Volume and 2022 Supplement) 19
3745
38- (a) (1) In this section the following words have the meanings indicated.
46+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
47+That the Laws of Maryland read as follows: 21
48+ 2 SENATE BILL 395
3949
40- (2) “Creditable service” means:
4150
42- (i) service credited toward a retirement allowance under Division II
43-of this article;
51+Article – State Personnel and Pensions 1
4452
45- (3) (i) “Retiree” means:
53+2–508. 2
4654
47- 1. a former State employee who receives a retirement
48-allowance under Division II of this article;
49- Ch. 127 2023 LAWS OF MARYLAND
55+ (a) (1) In this section the following words have the meanings indicated. 3
5056
51-– 2 –
52- (b) (1) This subsection applies to a retiree who:
57+ (2) “Creditable service” means: 4
5358
54- (i) began State service on or before June 30, 2011; or
59+ (i) service credited toward a retirement allowance under Division II 5
60+of this article; 6
5561
56- (ii) 1. began State service on or after July 1, 2011; and
62+ (3) (i) “Retiree” means: 7
5763
58- 2. is a retiree of the Judges’ Retirement System.
64+ 1. a former State employee who receives a retirement 8
65+allowance under Division II of this article; 9
5966
60- (2) A retiree may enroll and participate in the health insurance benefit
61-options established under the Program if the retiree:
67+ (b) (1) This subsection applies to a retiree who: 10
6268
63- (i) ended State service with at least 10 years of creditable service
64-and within 5 years before the age at which a vested retirement allowance normally would
65-begin;
69+ (i) began State service on or before June 30, 2011; or 11
6670
67- (ii) ended State service with at least 16 years of creditable service;
71+ (ii) 1. began State service on or after July 1, 2011; and 12
6872
69- (iii) ended State service on or before June 30, 1984;
73+ 2. is a retiree of the Judges’ Retirement System. 13
7074
71- (iv) retired directly from State service with a State retirement
72-allowance on or after July 1, 1984, and had at least 5 years of creditable service;
75+ (2) A retiree may enroll and participate in the health insurance benefit 14
76+options established under the Program if the retiree: 15
7377
74- (v) retired directly from State service with a State disability
75-retirement allowance on or after July 1, 1984; or
78+ (i) ended State service with at least 10 years of creditable service 16
79+and within 5 years before the age at which a vested retirement allowance normally would 17
80+begin; 18
7681
77- (vi) retired directly from State service in the Judges’ Retirement
78-System at the mandatory retirement age required by Article IV, § 3 of the Maryland
79-Constitution with less than 5 years of creditable service.
82+ (ii) ended State service with at least 16 years of creditable service; 19
8083
81- (4) (i) If a retiree receives a State disability retirement allowance or has
82-16 or more years of creditable service, the retiree or the retiree’s surviving spouse or
83-dependent child is entitled to the same State subsidy allowed a State employee.
84+ (iii) ended State service on or before June 30, 1984; 20
8485
85-20–101.
86+ (iv) retired directly from State service with a State retirement 21
87+allowance on or after July 1, 1984, and had at least 5 years of creditable service; 22
8688
87- (d) “Allowance” means a benefit that is payable in equal monthly installments for
88-the life of the recipient, except as otherwise provided for an optional form of an allowance
89-under § 21–403 of this article.
89+ (v) retired directly from State service with a State disability 23
90+retirement allowance on or after July 1, 1984; or 24
9091
91- (m) “Creditable service” means the service credit of a member that is recognized
92-for computing a benefit under this Division II.
92+ (vi) retired directly from State service in the Judges’ Retirement 25
93+System at the mandatory retirement age required by Article IV, § 3 of the Maryland 26
94+Constitution with less than 5 years of creditable service. 27
95+ SENATE BILL 395 3
9396
94- (dd) “Participating employer” means the employer of an individual who, because of
95-the employment relationship, is eligible for membership in a State system.
96- WES MOORE, Governor Ch. 127
9797
98-– 3 –
99- (ll) (1) “Retirement allowance” means an allowance that is payable at the time
100-of separation from employment with a participating employer.
98+ (4) (i) If a retiree receives a State disability retirement allowance or has 1
99+16 or more years of creditable service, the retiree or the retiree’s surviving spouse or 2
100+dependent child is entitled to the same State subsidy allowed a State employee. 3
101101
102- (2) “Retirement allowance” includes:
102+20–101. 4
103103
104- (i) a service retirement allowance; and
104+ (d) “Allowance” means a benefit that is payable in equal monthly installments for 5
105+the life of the recipient, except as otherwise provided for an optional form of an allowance 6
106+under § 21–403 of this article. 7
105107
106- (ii) a disability retirement allowance.
108+ (m) “Creditable service” means the service credit of a member that is recognized 8
109+for computing a benefit under this Division II. 9
107110
108- (3) “Retirement allowance” does not include a vested allowance.
111+ (dd) “Participating employer” means the employer of an individual who, because of 10
112+the employment relationship, is eligible for membership in a State system. 11
109113
110- SECTION 2. AND BE IT FURTHER ENACTED, That:
114+ (ll) (1) “Retirement allowance” means an allowance that is payable at the time 12
115+of separation from employment with a participating employer. 13
111116
112- (a) (1) In this subsection, “Optional Retirement Program” means the Optional
113-Retirement Program under Title 30 of the State Personnel and Pensions Article.
117+ (2) “Retirement allowance” includes: 14
114118
115- (2) This section applies to a retiree who:
119+ (i) a service retirement allowance; and 15
116120
117- (i) receives a retirement allowance from the Employees’ Pension
118-System;
121+ (ii) a disability retirement allowance. 16
119122
120- (ii) was employed by the Historic St. Mary’s City Commission, with
121-employment beginning on or after July 1, 1995;
123+ (3) “Retirement allowance” does not include a vested allowance. 17
122124
123- (iii) was enrolled in the Optional Retirement Program while
124-employed by the Historic St. Mary’s City Commission; and
125+ SECTION 2. AND BE IT FURTHER ENACTED, That: 18
125126
126- (iv) was disenrolled from the Optional Retirement Program and
127-enrolled in the Employees’ Pension System while employed by the Historic St. Mary’s City
128-Commission.
127+ (a) (1) In this subsection, “Optional Retirement Program” means the Optional 19
128+Retirement Program under Title 30 of the State Personnel and Pensions Article. 20
129129
130- (b) To determine eligibility for health insurance benefits under § 2–508 of the
131-State Personnel and Pensions Article for an individual described under subsection (a) of
132-this section:
130+ (2) This section applies to a retiree who: 21
133131
134- (1) the calculation of years of creditable service shall include the
135-individual’s employment by the Historic St. Mary’s City Commission while enrolled in the
136-Optional Retirement Program; and
132+ (i) receives a retirement allowance from the Employees’ Pension 22
133+System; 23
137134
138- (2) the individual shall be considered as having begun service as an
139-employee of the State on or before June 30, 2011.
135+ (ii) was employed by the Historic St. Mary’s City Commission, with 24
136+employment beginning on or after July 1, 1995; 25
140137
141-2–508.
138+ (iii) was enrolled in the Optional Retirement Program while 26
139+employed by the Historic St. Mary’s City Commission; and 27
142140
143- (a) (1) In this section the following words have the meanings indicated.
144- Ch. 127 2023 LAWS OF MARYLAND
141+ (iv) was disenrolled from the Optional Retirement Program and 28
142+enrolled in the Employees’ Pension System while employed by the Historic St. Mary’s City 29
143+Commission. 30
144+ 4 SENATE BILL 395
145145
146-– 4 –
147- (2) “Creditable service” means:
148146
149- (i) [service credited toward a retirement allowance under Division
150-II of this article;
147+ (b) To determine eligibility for health insurance benefits under § 2–508 of the 1
148+State Personnel and Pensions Article for an individual described under subsection (a) of 2
149+this section: 3
151150
152- (ii) service while a member of the Judges’ Retirement System under
153-Title 27 of this article;
151+ (1) the calculation of years of creditable service shall include the 4
152+individual’s employment by the Historic St. Mary’s City Commission while enrolled in the 5
153+Optional Retirement Program; and 6
154154
155- (iii)] ANY PERIOD DURING WH ICH AN INDIVIDUAL WA S
156-EMPLOYED BY THE STATE IN THE EXECUTIVE, LEGISLATIVE, OR JUDICIAL BRANCH
157-AND ENROLLED AS A ME MBER OF ONE OF THE S EVERAL SYST EMS UNDER DIVISION
158-II OF THIS ARTICLE OR T HE OPTIONAL RETIREMENT PROGRAM UNDER TITLE 30 OF
159-THIS ARTICLE;
155+ (2) the individual shall be considered as having begun service as an 7
156+employee of the State on or before June 30, 2011. 8
160157
161- (II) service while an employee was employed by the Domestic
162-Relations Division of the Anne Arundel County Circuit Court, prior to transfer on or before
163-July 1, 2002 into the State Personnel Management System, in accordance with § 2–510 of
164-the Courts Article; or
158+2–508. 9
165159
166- [(iv)] (III) service while a member of the Maryland Transit
167-Administration Retirement Plan under § 7–206 of the Transportation Article.
160+ (a) (1) In this section the following words have the meanings indicated. 10
168161
169- (3) (i) “Retiree” means:
162+ (2) “Creditable service” means: 11
170163
171- 1. a former State employee who receives a retirement
172-allowance under Division II of this article;
164+ (i) [service credited toward a retirement allowance under Division 12
165+II of this article; 13
173166
174- 2. a former employee of the Medical System Corporation, as
175-defined in § 13–301 or § 13–401 of the Education Article, who receives a retirement
176-allowance from the Employees’ Retirement System of the State of Maryland or the
177-Employees’ Pension System of the State of Maryland under Title 22 or Title 23 of this
178-article; or
167+ (ii) service while a member of the Judges’ Retirement System under 14
168+Title 27 of this article; 15
179169
180- 3. a former employee of the Maryland Transit
181-Administration who receives a Maryland Transit Administration retirement allowance
182-under § 7–206 of the Transportation Article.
170+ (iii)] ANY PERIOD DURING WH ICH AN INDIVIDUAL WA S 16
171+EMPLOYED BY THE STATE IN THE EXECUTIVE, LEGISLATIVE, OR JUDICIAL BRANCH 17
172+AND ENROLLED AS A ME MBER OF ONE OF THE S EVERAL SYSTEMS UNDE R DIVISION 18
173+II OF THIS ARTICLE OR T HE OPTIONAL RETIREMENT PROGRAM UNDER TITLE 30 OF 19
174+THIS ARTICLE; 20
183175
184- (ii) “Retiree” does not include:
176+ (II) service while an employee was employed by the Domestic 21
177+Relations Division of the Anne Arundel County Circuit Court, prior to transfer on or before 22
178+July 1, 2002 into the State Personnel Management System, in accordance with § 2–510 of 23
179+the Courts Article; or 24
185180
186- 1. a member of the faculty or staff of a community college;
181+ [(iv)] (III) service while a member of the Maryland Transit 25
182+Administration Retirement Plan under § 7–206 of the Transportation Article. 26
187183
188- 2. a teacher or a staff member employed by a county board of
189-education; or
190- WES MOORE, Governor Ch. 127
184+ (3) (i) “Retiree” means: 27
191185
192-– 5 –
193- 3. an individual who retired under an optional program
194-under Title 30 of this article.
186+ 1. a former State employee who receives a retirement 28
187+allowance under Division II of this article; 29
195188
196- (4) “State service” means service with the State by:
189+ 2. a former employee of the Medical System Corporation, as 30
190+defined in § 13–301 or § 13–401 of the Education Article, who receives a retirement 31
191+allowance from the Employees’ Retirement System of the State of Maryland or the 32 SENATE BILL 395 5
197192
198- (i) an employee while a member of the Employees’ Retirement
199-System or the Employees’ Pension System under Title 22 or Title 23 of this article;
200193
201- (ii) a member of the Judges’ Retirement System under Title 27 of
202-this article;
194+Employees’ Pension System of the State of Maryland under Title 22 or Title 23 of this 1
195+article; or 2
203196
204- (iii) a teacher while a member of the Teachers’ Retirement System or
205-Teachers’ Pension System under Title 22 or Title 23 of this article;
197+ 3. a former employee of the Maryland Transit 3
198+Administration who receives a Maryland Transit Administration retirement allowance 4
199+under § 7–206 of the Transportation Article. 5
206200
207- (iv) a correctional officer, while a member of the Correctional
208-Officers’ Retirement System under Title 25 of this article;
201+ (ii) “Retiree” does not include: 6
209202
210- (v) an employee of the Medical System Corporation, as defined in §
211-13–301 or § 13–401 of the Education Article, while a member of the Employees’ Retirement
212-System of the State of Maryland or the Employees’ Pension System of the State of Maryland
213-under Title 22 or Title 23 of this article;
203+ 1. a member of the faculty or staff of a community college; 7
214204
215- (vi) a State Police officer while a member of the State Police
216-Retirement System under Title 24 of this article;
205+ 2. a teacher or a staff member employed by a county board of 8
206+education; or 9
217207
218- (vii) a law enforcement officer while a member of the Law
219-Enforcement Officers’ Pension System under Title 26 of this article; or
208+ 3. an individual who retired under an optional program 10
209+under Title 30 of this article. 11
220210
221- (viii) an employee while a member of the Maryland Transit
222-Administration Plan under § 7–206 of the Transportation Article.
211+ (4) “State service” means service with the State by: 12
223212
224- (b) (1) This subsection applies to a retiree who:
213+ (i) an employee while a member of the Employees’ Retirement 13
214+System or the Employees’ Pension System under Title 22 or Title 23 of this article; 14
225215
226- (i) began State service on or before June 30, 2011; or
216+ (ii) a member of the Judges’ Retirement System under Title 27 of 15
217+this article; 16
227218
228- (ii) 1. began State service on or after July 1, 2011; and
219+ (iii) a teacher while a member of the Teachers’ Retirement System or 17
220+Teachers’ Pension System under Title 22 or Title 23 of this article; 18
229221
230- 2. is a retiree of the Judges’ Retirement System.
222+ (iv) a correctional officer, while a member of the Correctional 19
223+Officers’ Retirement System under Title 25 of this article; 20
231224
232- (2) A retiree may enroll and participate in the health insurance benefit
233-options established under the Program if the retiree:
225+ (v) an employee of the Medical System Corporation, as defined in § 21
226+13–301 or § 13–401 of the Education Article, while a member of the Employees’ Retirement 22
227+System of the State of Maryland or the Employees’ Pension System of the State of Maryland 23
228+under Title 22 or Title 23 of this article; 24
234229
235- (i) ended State service with at least 10 years of creditable service
236-and within 5 years before the age at which a vested retirement allowance normally would
237-begin;
238- Ch. 127 2023 LAWS OF MARYLAND
230+ (vi) a State Police officer while a member of the State Police 25
231+Retirement System under Title 24 of this article; 26
239232
240-– 6 –
241- (ii) ended State service with at least 16 years of creditable service;
233+ (vii) a law enforcement officer while a member of the Law 27
234+Enforcement Officers’ Pension System under Title 26 of this article; or 28
242235
243- (iii) ended State service on or before June 30, 1984;
236+ (viii) an employee while a member of t he Maryland Transit 29
237+Administration Plan under § 7–206 of the Transportation Article. 30
244238
245- (iv) retired directly from State service with a State retirement
246-allowance on or after July 1, 1984, and had at least 5 years of creditable service;
239+ (b) (1) This subsection applies to a retiree who: 31
240+ 6 SENATE BILL 395
247241
248- (v) retired directly from State service with a State disability
249-retirement allowance on or after July 1, 1984; or
250242
251- (vi) retired directly from State service in the Judges’ Retirement
252-System at the mandatory retirement age required by Article IV, § 3 of the Maryland
253-Constitution with less than 5 years of creditable service.
243+ (i) began State service on or before June 30, 2011; or 1
254244
255- (3) (i) The surviving spouse or dependent child of a deceased retiree
256-who was eligible to enroll may enroll and participate in the health insurance benefit options
257-established under the Program as long as the spouse or child is receiving a periodic
258-allowance under Division II of this article or the Maryland Transit Administration
259-Retirement Plan under § 7–206 of the Transportation Article.
245+ (ii) 1. began State service on or after July 1, 2011; and 2
260246
261- (ii) Subparagraph (i) of this paragraph does not apply to a deceased
262-retiree’s spouse or dependent child who receives an Option 1, Option 4, or Option 7 benefit
263-under Division II of this article or a lump–sum payment of benefits under the Maryland
264-Transit Administration Retirement Plan under § 7–206 of the Transportation Article.
247+ 2. is a retiree of the Judges’ Retirement System. 3
265248
266- (4) (i) If a retiree receives a State disability retirement allowance or has
267-16 or more years of creditable service, the retiree or the retiree’s surviving spouse or
268-dependent child is entitled to the same State subsidy allowed a State employee.
249+ (2) A retiree may enroll and participate in the health insurance benefit 4
250+options established under the Program if the retiree: 5
269251
270- (ii) In all other cases, if a retiree has at least 5 years of creditable
271-service, the retiree or the retiree’s surviving spouse or dependent child is entitled to 1/16 of
272-the State subsidy allowed a State employee for each year of the retiree’s creditable service
273-up to 16 years.
252+ (i) ended State service with at least 10 years of creditable service 6
253+and within 5 years before the age at which a vested retirement allowance normally would 7
254+begin; 8
274255
275- (iii) Notwithstanding subparagraph (ii) of this paragraph and
276-subsection (a)(4)(i) of this section, if a retiree is an additional employee or agent of the State
277-Racing Commission, for the purposes of determining a retiree’s State subsidy, creditable
278-service shall be determined with respect to service as an additional employee or agent
279-beginning from the initial date of employment or January 1, 1986, whichever is later.
256+ (ii) ended State service with at least 16 years of creditable service; 9
280257
281- (iv) 1. This paragraph applies only to a retiree of the Judges’
282-Retirement System who retired directly from State service at the mandatory retirement
283-age required by Article IV, § 3 of the Maryland Constitution with less than 5 years of
284-creditable service.
285- WES MOORE, Governor Ch. 127
258+ (iii) ended State service on or before June 30, 1984; 10
286259
287-– 7 –
288- 2. Notwithstanding subparagraph (ii) of this paragraph, a
289-retiree of the Judges’ Retirement System or the retiree’s surviving spouse or dependent
290-child is entitled to 1/16 of the State subsidy allowed a State employee for each year of the
291-retiree’s creditable service.
260+ (iv) retired directly from State service with a State retirement 11
261+allowance on or after July 1, 1984, and had at least 5 years of creditable service; 12
292262
293- (c) (1) (i) Except as provided in subparagraph (ii) of this paragraph, this
294-subsection applies to a retiree who begins State service on or after July 1, 2011.
263+ (v) retired directly from State service with a State disability 13
264+retirement allowance on or after July 1, 1984; or 14
295265
296- (ii) This subsection does not apply to:
266+ (vi) retired directly from State service in the Judges’ Retirement 15
267+System at the mandatory retirement age required by Article IV, § 3 of the Maryland 16
268+Constitution with less than 5 years of creditable service. 17
297269
298- 1. a retiree of the Judges’ Retirement System; or
270+ (3) (i) The surviving spouse or dependent child of a deceased retiree 18
271+who was eligible to enroll may enroll and participate in the health insurance benefit options 19
272+established under the Program as long as the spouse or child is receiving a periodic 20
273+allowance under Division II of this article or the Maryland Transit Administration 21
274+Retirement Plan under § 7–206 of the Transportation Article. 22
299275
300- 2. a former Governor of Maryland who began serving as
301-Governor on or after January 21, 2015.
276+ (ii) Subparagraph (i) of this paragraph does not apply to a deceased 23
277+retiree’s spouse or dependent child who receives an Option 1, Option 4, or Option 7 benefit 24
278+under Division II of this article or a lump–sum payment of benefits under the Maryland 25
279+Transit Administration Retirement Plan under § 7–206 of the Transportation Article. 26
302280
303- (2) A retiree may enroll and participate in the health insurance benefit
304-options established under the Program if the retiree:
281+ (4) (i) If a retiree receives a State disability retirement allowance or has 27
282+16 or more years of creditable service, the retiree or the retiree’s surviving spouse or 28
283+dependent child is entitled to the same State subsidy allowed a State employee. 29
305284
306- (i) ends State service with at least 25 years of creditable service;
285+ (ii) In all other cases, if a retiree has at least 5 years of creditable 30
286+service, the retiree or the retiree’s surviving spouse or dependent child is entitled to 1/16 of 31
287+the State subsidy allowed a State employee for each year of the retiree’s creditable service 32
288+up to 16 years. 33
289+ SENATE BILL 395 7
307290
308- (ii) ends State service with at least 10 years of creditable service
309-within 5 years before the age at which a vested retirement allowance normally would begin;
310291
311- (iii) retires directly from State service with a State retirement
312-allowance and has 10 years of creditable service; or
292+ (iii) Notwithstanding subparagraph (ii) of this paragraph a nd 1
293+subsection (a)(4)(i) of this section, if a retiree is an additional employee or agent of the State 2
294+Racing Commission, for the purposes of determining a retiree’s State subsidy, creditable 3
295+service shall be determined with respect to service as an additional employee or agent 4
296+beginning from the initial date of employment or January 1, 1986, whichever is later. 5
313297
314- (iv) retires directly from State service with a State disability
315-retirement allowance.
298+ (iv) 1. This paragraph applies only to a retiree of the Judges’ 6
299+Retirement System who retired directly from State service at the mandatory retirement 7
300+age required by Article IV, § 3 of the Maryland Constitution with less than 5 years of 8
301+creditable service. 9
316302
317- (3) (i) The surviving spouse or dependent child of a deceased retiree
318-who was eligible to enroll may enroll and participate in the health insurance benefit options
319-established under the Program as long as the spouse or child is receiving a periodic
320-allowance under Division II of this article or the Maryland Transit Administration
321-Retirement Plan under § 7–206 of the Transportation Article.
303+ 2. Notwithstanding subparagraph (ii) of this paragraph, a 10
304+retiree of the Judges’ Retirement System or the retiree’s surviving spouse or dependent 11
305+child is entitled to 1/16 of the State subsidy allowed a State employee for each year of the 12
306+retiree’s creditable service. 13
322307
323- (ii) Subparagraph (i) of this paragraph does not apply to a deceased
324-retiree’s spouse or dependent child who receives an Option 1, Option 4, or Option 7 benefit
325-under Division II of this article or a lump–sum payment of benefits under the Maryland
326-Transit Administration Retirement Plan under § 7–206 of the Transportation Article.
308+ (c) (1) (i) Except as provided in subparagraph (ii) of this paragraph, this 14
309+subsection applies to a retiree who begins State service on or after July 1, 2011. 15
327310
328- (4) (i) If a retiree receives a State disability retirement allowance or has
329-25 or more years of creditable service, the retiree or the retiree’s surviving spouse or
330-dependent child is entitled to the same State subsidy allowed a State employee.
311+ (ii) This subsection does not apply to: 16
331312
332- (ii) In all other cases, if a retiree has at least 10 years of creditable
333-service, the retiree or the retiree’s surviving spouse or dependent child is entitled to 1/25 of Ch. 127 2023 LAWS OF MARYLAND
313+ 1. a retiree of the Judges’ Retirement System; or 17
334314
335-– 8 –
336-the State subsidy allowed a State employee for each year of the retiree’s creditable service
337-up to 25 years.
315+ 2. a former Governor of Maryland who began serving as 18
316+Governor on or after January 21, 2015. 19
338317
339- (iii) Notwithstanding subparagraph (ii) of this paragraph and
340-subsection (a)(4)(i) of this section, if a retiree is an additional employee or agent of the State
341-Racing Commission, for the purposes of determining a retiree’s State subsidy, creditable
342-service shall be determined with respect to service as an additional employee or agent
343-beginning from the initial date of employment.
318+ (2) A retiree may enroll and participate in the health insurance benefit 20
319+options established under the Program if the retiree: 21
344320
345-2–509.
321+ (i) ends State service with at least 25 years of creditable service; 22
346322
347- (a) (1) This subsection applies to a retiree of an optional retirement program
348-under Title 30 of this article who began service as an employee of the State in the Executive,
349-Legislative, or Judicial Branch of government on or before June 30, 2011.
323+ (ii) ends State service with at least 10 years of creditable service 23
324+within 5 years before the age at which a vested retirement allowance normally would begin; 24
350325
351- (2) (i) Subject to subparagraph (ii) of this paragraph, an individual may
352-enroll and participate in the health insurance benefit options established under the
353-Program if the individual retired under an optional program under Title 30 of this article
354-and:
326+ (iii) retires directly from State service with a State retirement 25
327+allowance and has 10 years of creditable service; or 26
355328
356- 1. ended service with a State institution of higher education
357-with at least 10 years of service and was at least age 57;
329+ (iv) retires directly from State service with a State disability 27
330+retirement allowance. 28
358331
359- 2. ended service with a State institution of higher education
360-with at least 16 years of service; or
332+ (3) (i) The surviving spouse or dependent child of a deceased retiree 29
333+who was eligible to enroll may enroll and participate in the health insurance benefit options 30
334+established under the Program as long as the spouse or child is receiving a periodic 31
335+allowance under Division II of this article or the Maryland Transit Administration 32
336+Retirement Plan under § 7–206 of the Transportation Article. 33
337+ 8 SENATE BILL 395
361338
362- 3. retired directly from and had at least 5 years of service
363-with a State institution of higher education with a periodic distribution of benefits on or
364-after July 1, 1984.
365339
366- (ii) 1. For purposes of this subsection only, years of service shall
367-be calculated as follows:
340+ (ii) Subparagraph (i) of this paragraph does not apply to a deceased 1
341+retiree’s spouse or dependent child who receives an Option 1, Option 4, or Option 7 benefit 2
342+under Division II of this article or a lump–sum payment of benefits under the Maryland 3
343+Transit Administration Retirement Plan under § 7–206 of the Transportation Article. 4
368344
369- A. except as provided in subsubparagraph 2 of this
370-subparagraph, a year of service means a period of 12 months during which an employee
371-was a participant in an optional retirement program under Title 30 of this article and the
372-participant’s employer made contributions to the participant’s account in the Program; [or]
345+ (4) (i) If a retiree receives a State disability retirement allowance or has 5
346+25 or more years of creditable service, the retiree or the retiree’s surviving spouse or 6
347+dependent child is entitled to the same State subsidy allowed a State employee. 7
373348
374- B. if an employee’s work year is an academic year of at least
375-9 but less than 12 months, a year of service means a period equal to the academic year
376-during which an employee was a participant in an optional retirement program under Title
377-30 of this article and the participant’s employer made contributions to the participant’s
378-account in the Program; OR
349+ (ii) In all other cases, if a retiree has at least 10 years of creditable 8
350+service, the retiree or the retiree’s surviving spouse or dependent child is entitled to 1/25 of 9
351+the State subsidy allowed a State employee for each year of the retiree’s creditable service 10
352+up to 25 years. 11
379353
380- C. ANY PERIOD DURING WH ICH AN INDIVI DUAL WAS
381-EMPLOYED BY THE STATE IN THE EXECUTIVE, LEGISLATIVE, OR JUDICIAL BRANCH WES MOORE, Governor Ch. 127
354+ (iii) Notwithstanding subparagraph (ii) of this paragraph and 12
355+subsection (a)(4)(i) of this section, if a retiree is an additional employee or agent of the State 13
356+Racing Commission, for the purposes of determining a retiree’s State subsidy, creditable 14
357+service shall be determined with respect to service as an additional employee or agent 15
358+beginning from the initial date of employment. 16
382359
383-– 9 –
384-AND ENROLLED AS A ME MBER OF ONE OF THE S EVERAL SYSTEMS UNDER DIVISION
385-II OF THIS ARTICLE .
360+2–509. 17
386361
387- 2. To determine eligibility for health insurance benefits
388-under this section, each year of service shall be multiplied by the participant’s percentage
389-of full–time employment for that year of service.
362+ (a) (1) This subsection applies to a retiree of an optional retirement program 18
363+under Title 30 of this article who began service as an employee of the State in the Executive, 19
364+Legislative, or Judicial Branch of government on or before June 30, 2011. 20
390365
391- (iii) The surviving spouse or dependent child of a deceased individual
392-who was eligible to enroll may enroll and participate in the health insurance benefit options
393-established under the Program as long as the spouse or child is receiving a periodic
394-distribution of benefits under an optional retirement program under Title 30 of this article.
366+ (2) (i) Subject to subparagraph (ii) of this paragraph, an individual may 21
367+enroll and participate in the health insurance benefit options established under the 22
368+Program if the individual retired under an optional program under Title 30 of this article 23
369+and: 24
395370
396- (3) (i) An enrollee under this section who was in service with a State
397-institution of higher education at the time of the retirement is entitled to the same State
398-subsidy allowed a retiree under § 2–508(b)(4) of this subtitle. However, except as provided
399-in subparagraph (ii) of this paragraph, the subsidy shall apply only to the costs of coverage
400-for the enrollee and may not apply to any additional costs of coverage for the enrollee’s
401-spouse or children.
371+ 1. ended service with a State institution of higher education 25
372+with at least 10 years of service and was at least age 57; 26
402373
403- (ii) If the enrollee has 25 or more years of service as an employee of
404-the State in the Executive, Legislative, or Judicial Branch of government, the enrollee or
405-the enrollee’s surviving spouse or dependent child is entitled to the same State subsidy
406-allowed a retiree with 16 or more years of creditable service under § 2–508(b)(4)(i) of this
407-subtitle.
374+ 2. ended service with a State institution of higher education 27
375+with at least 16 years of service; or 28
408376
409- (b) (1) This subsection applies to a retiree of an optional retirement program
410-under Title 30 of this article who begins service as an employee of the State in the
411-Executive, Legislative, or Judicial Branch of government on or after July 1, 2011.
377+ 3. retired directly from and had at least 5 years of service 29
378+with a State institution of higher education with a periodic distribution of benefits on or 30
379+after July 1, 1984. 31
412380
413- (2) (i) Subject to subparagraph (ii) of this paragraph, an individual may
414-enroll and participate in the health insurance benefit options established under the
415-Program if the individual retired under an optional program under Title 30 of this article
416-and:
381+ (ii) 1. For purposes of this subsection only, years of service shall 32
382+be calculated as follows: 33
417383
418- 1. ended service with a State institution of higher education
419-with at least 10 years of service and was at least age 57;
384+ A. except as provided in subsubparagraph 2 of this 34
385+subparagraph, a year of service means a period of 12 months during which an employee 35 SENATE BILL 395 9
420386
421- 2. ended service with a State institution of higher education
422-with at least 25 years of service; or
423387
424- 3. retired directly from and had at least 10 years of service
425-with a State institution of higher education with a periodic distribution of benefits on or
426-after July 1, 2011.
388+was a participant in an optional retirement program under Title 30 of this article and the 1
389+participant’s employer made contributions to the participant’s account in the Program; [or] 2
427390
428- (ii) 1. For purposes of this paragraph only, years of service shall
429-be calculated as follows: Ch. 127 2023 LAWS OF MARYLAND
391+ B. if an employee’s work year is an academic year of at least 3
392+9 but less than 12 months, a year of service means a period equal to the academic year 4
393+during which an employee was a participant in an optional retirement program under Title 5
394+30 of this article and the participant’s employer made contributions to the participant’s 6
395+account in the Program; OR 7
430396
431-– 10 –
397+ C. ANY PERIOD DURING WH ICH AN INDIVIDUAL WA S 8
398+EMPLOYED BY THE STATE IN THE EXECUTIVE, LEGISLATIVE, OR JUDICIAL BRANCH 9
399+AND ENROLLED AS A ME MBER OF ONE OF THE S EVERAL SYST EMS UNDER DIVISION 10
400+II OF THIS ARTICLE . 11
432401
433- A. except as provided in subsubparagraph 2 of this
434-subparagraph, a year of service means a period of 12 months during which an employee
435-was a participant in an optional retirement program under Title 30 of this article and the
436-participant’s employer made contributions to the participant’s account in the Program; [or]
402+ 2. To determine eligibility for health insurance benefits 12
403+under this section, each year of service shall be multiplied by the participant’s percentage 13
404+of full–time employment for that year of service. 14
437405
438- B. if an employee’s work year is an academic year of at least
439-9 but less than 12 months, a year of service means a period equal to the academic year
440-during which an employee was a participant in an optional retirement program under Title
441-30 of this article and the participant’s employer made contributions to the participant’s
442-account in the Program; OR
406+ (iii) The surviving spouse or dependent child of a deceased individual 15
407+who was eligible to enroll may enroll and participate in the health insurance benefit options 16
408+established under the Program as long as the spouse or child is receiving a periodic 17
409+distribution of benefits under an optional retirement program under Title 30 of this article. 18
443410
444- C. ANY PERIOD DURING WH ICH AN INDIVIDUAL WA S
445-EMPLOYED BY THE STATE IN THE EXECUTIVE, LEGISLATIVE, OR JUDICIAL BRANCH
446-AND ENROLLED AS A ME MBER OF ONE OF THE S EVERAL SYSTEMS UNDER DIVISION
447-II OF THIS ARTICLE .
411+ (3) (i) An enrollee under this section who was in service with a State 19
412+institution of higher education at the time of the retirement is entitled to the same State 20
413+subsidy allowed a retiree under § 2–508(b)(4) of this subtitle. However, except as provided 21
414+in subparagraph (ii) of this paragraph, the subsidy shall apply only to the costs of coverage 22
415+for the enrollee and may not apply to any additional costs of coverage for the enrollee’s 23
416+spouse or children. 24
448417
449- 2. To determine eligibility for health insurance benefits
450-under this section, each year of service shall be multiplied by the participant’s percentage
451-of full–time employment for that year of service.
418+ (ii) If the enrollee has 25 or more years of service as an employee of 25
419+the State in the Executive, Legislative, or Judicial Branch of government, the enrollee or 26
420+the enrollee’s surviving spouse or dependent child is entitled to the same State subsidy 27
421+allowed a retiree with 16 or more years of creditable service under § 2–508(b)(4)(i) of this 28
422+subtitle. 29
452423
453- (iii) The surviving spouse or dependent child of a deceased individual
454-who was eligible to enroll may enroll and participate in the health insurance benefit options
455-established under the Program as long as the spouse or child is receiving a periodic
456-distribution of benefits under an optional retirement program under Title 30 of this article.
424+ (b) (1) This subsection applies to a retiree of an optional retirement program 30
425+under Title 30 of this article who begins service as an employee of the State in the 31
426+Executive, Legislative, or Judicial Branch of government on or after July 1, 2011. 32
457427
458- (3) (i) An enrollee under this subsection who was in service with a State
459-institution of higher education at the time of the retirement is entitled to the same State
460-subsidy allowed a retiree under § 2–508(c)(4) of this subtitle. However, except as provided
461-in subparagraph (ii) of this paragraph, the subsidy shall apply only to the costs of coverage
462-for the enrollee and may not apply to any additional costs of coverage for the enrollee’s
463-spouse or children.
428+ (2) (i) Subject to subparagraph (ii) of this paragraph, an individual may 33
429+enroll and participate in the health insurance benefit options established under the 34
430+Program if the individual retired under an optional program under Title 30 of this article 35
431+and: 36
432+ 10 SENATE BILL 395
464433
465- (ii) If the enrollee has 25 or more years of service as an employee of
466-the State in the Executive, Legislative, or Judicial Branch of government, the enrollee or
467-the enrollee’s surviving spouse or dependent child is entitled to the same State subsidy
468-allowed a retiree with 25 or more years of creditable service under § 2–508(c)(4)(i) of this
469-subtitle.
470434
471- SECTION 3. 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
472-June 1, 2023.
435+ 1. ended service with a State institution of higher education 1
436+with at least 10 years of service and was at least age 57; 2
473437
474-Approved by the Governor, April 24, 2023.
438+ 2. ended service with a State institution of higher education 3
439+with at least 25 years of service; or 4
440+
441+ 3. retired directly from and had at least 10 years of service 5
442+with a State institution of higher education with a periodic distribution of benefits on or 6
443+after July 1, 2011. 7
444+
445+ (ii) 1. For purposes of this paragraph only, years of service shall 8
446+be calculated as follows: 9
447+
448+ A. except as provided in subsubparagraph 2 of this 10
449+subparagraph, a year of service means a period of 12 months during which an employee 11
450+was a participant in an optional retirement program under Title 30 of this article and the 12
451+participant’s employer made contributions to the participant’s account in the Program; [or] 13
452+
453+ B. if an employee’s work year is an academic year of at least 14
454+9 but less than 12 months, a year of service means a period equal to the academic year 15
455+during which an employee was a participant in an optional retirement program under Title 16
456+30 of this article and the participant’s employer made contributions to the participant’s 17
457+account in the Program; OR 18
458+
459+ C. ANY PERIOD DURING WH ICH AN INDIVIDUAL WA S 19
460+EMPLOYED BY THE STATE IN THE EXECUTIVE, LEGISLATIVE, OR JUDICIAL BRANCH 20
461+AND ENROLLED AS A ME MBER OF ONE OF THE S EVERAL SYSTEMS UNDER DIVISION 21
462+II OF THIS ARTICLE . 22
463+
464+ 2. To determine eligibility for health insurance benefits 23
465+under this section, each year of service shall be multiplied by the participant’s percentage 24
466+of full–time employment for that year of service. 25
467+
468+ (iii) The surviving spouse or dependent child of a deceased individual 26
469+who was eligible to enroll may enroll and participate in the health insurance benefit options 27
470+established under the Program as long as the spouse or child is receiving a periodic 28
471+distribution of benefits under an optional retirement program under Title 30 of this article. 29
472+
473+ (3) (i) An enrollee under this subsection who was in service with a State 30
474+institution of higher education at the time of the retirement is entitled to the same State 31
475+subsidy allowed a retiree under § 2–508(c)(4) of this subtitle. However, except as provided 32
476+in subparagraph (ii) of this paragraph, the subsidy shall apply only to the costs of coverage 33
477+for the enrollee and may not apply to any additional costs of coverage for the enrollee’s 34
478+spouse or children. 35
479+ SENATE BILL 395 11
480+
481+
482+ (ii) If the enrollee has 25 or more years of service as an employee of 1
483+the State in the Executive, Legislative, or Judicial Branch of government, the enrollee or 2
484+the enrollee’s surviving spouse or dependent child is entitled to the same State subsidy 3
485+allowed a retiree with 25 or more years of creditable service under § 2–508(c)(4)(i) of this 4
486+subtitle. 5
487+
488+ SECTION 3. 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 6
489+June 1, 2023. 7
490+
491+
492+
493+
494+Approved:
495+________________________________________________________________________________
496+ Governor.
497+________________________________________________________________________________
498+ President of the Senate.
499+________________________________________________________________________________
500+ Speaker of the House of Delegates.