WES MOORE, Governor Ch. 127
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Chapter 127
(Senate Bill 395)
AN ACT concerning
State Employee and Retiree Health Benefits – Creditable Service – Historic St.
Mary’s City Commission
FOR the purpose of requiring the inclusion of certain all State service while an individual
was employed by the Historic St. Mary’s City Commission State in the Executive,
Legislative, or Judicial Branch of government for the purpose of determining
eligibility for State retiree health benefits for a retiree of the Historic St. Mary’s City
Commission; and generally relating to retiree health benefits.
BY repealing and reenacting, with amendments,
Article – State Personnel and Pensions
Section 2–508(a) and 2–509
Annotated Code of Maryland
(2015 Replacement Volume and 2022 Supplement)
BY repealing and reenacting, without amendments,
Article – State Personnel and Pensions
Section 2–508(a)(1), (2)(i), and (3)(i)1. and (b)(1), (2), and (4)(i) and 20–101(d), (m),
(dd), and (ll) 2–508(b) and (c)
Annotated Code of Maryland
(2015 Replacement Volume and 2022 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – State Personnel and Pensions
2–508.
(a) (1) In this section the following words have the meanings indicated.
(2) “Creditable service” means:
(i) service credited toward a retirement allowance under Division II
of this article;
(3) (i) “Retiree” means:
1. a former State employee who receives a retirement
allowance under Division II of this article;
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(b) (1) This subsection applies to a retiree who:
(i) began State service on or before June 30, 2011; or
(ii) 1. began State service on or after July 1, 2011; and
2. is a retiree of the Judges’ Retirement System.
(2) A retiree may enroll and participate in the health insurance benefit
options established under the Program if the retiree:
(i) ended State service with at least 10 years of creditable service
and within 5 years before the age at which a vested retirement allowance normally would
begin;
(ii) ended State service with at least 16 years of creditable service;
(iii) ended State service on or before June 30, 1984;
(iv) retired directly from State service with a State retirement
allowance on or after July 1, 1984, and had at least 5 years of creditable service;
(v) retired directly from State service with a State disability
retirement allowance on or after July 1, 1984; or
(vi) retired directly from State service in the Judges’ Retirement
System at the mandatory retirement age required by Article IV, § 3 of the Maryland
Constitution with less than 5 years of creditable service.
(4) (i) If a retiree receives a State disability retirement allowance or has
16 or more years of creditable service, the retiree or the retiree’s surviving spouse or
dependent child is entitled to the same State subsidy allowed a State employee.
20–101.
(d) “Allowance” means a benefit that is payable in equal monthly installments for
the life of the recipient, except as otherwise provided for an optional form of an allowance
under § 21–403 of this article.
(m) “Creditable service” means the service credit of a member that is recognized
for computing a benefit under this Division II.
(dd) “Participating employer” means the employer of an individual who, because of
the employment relationship, is eligible for membership in a State system.
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(ll) (1) “Retirement allowance” means an allowance that is payable at the time
of separation from employment with a participating employer.
(2) “Retirement allowance” includes:
(i) a service retirement allowance; and
(ii) a disability retirement allowance.
(3) “Retirement allowance” does not include a vested allowance.
SECTION 2. AND BE IT FURTHER ENACTED, That:
(a) (1) In this subsection, “Optional Retirement Program” means the Optional
Retirement Program under Title 30 of the State Personnel and Pensions Article.
(2) This section applies to a retiree who:
(i) receives a retirement allowance from the Employees’ Pension
System;
(ii) was employed by the Historic St. Mary’s City Commission, with
employment beginning on or after July 1, 1995;
(iii) was enrolled in the Optional Retirement Program while
employed by the Historic St. Mary’s City Commission; and
(iv) was disenrolled from the Optional Retirement Program and
enrolled in the Employees’ Pension System while employed by the Historic St. Mary’s City
Commission.
(b) To determine eligibility for health insurance benefits under § 2–508 of the
State Personnel and Pensions Article for an individual described under subsection (a) of
this section:
(1) the calculation of years of creditable service shall include the
individual’s employment by the Historic St. Mary’s City Commission while enrolled in the
Optional Retirement Program; and
(2) the individual shall be considered as having begun service as an
employee of the State on or before June 30, 2011.
2–508.
(a) (1) In this section the following words have the meanings indicated.
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(2) “Creditable service” means:
(i) [service credited toward a retirement allowance under Division
II of this article;
(ii) service while a member of the Judges’ Retirement System under
Title 27 of this article;
(iii)] ANY PERIOD DURING WH ICH AN INDIVIDUAL WA S
EMPLOYED BY THE STATE IN THE EXECUTIVE, LEGISLATIVE, OR JUDICIAL BRANCH
AND ENROLLED AS A ME MBER OF ONE OF THE S EVERAL SYST EMS UNDER DIVISION
II OF THIS ARTICLE OR T HE OPTIONAL RETIREMENT PROGRAM UNDER TITLE 30 OF
THIS ARTICLE;
(II) service while an employee was employed by the Domestic
Relations Division of the Anne Arundel County Circuit Court, prior to transfer on or before
July 1, 2002 into the State Personnel Management System, in accordance with § 2–510 of
the Courts Article; or
[(iv)] (III) service while a member of the Maryland Transit
Administration Retirement Plan under § 7–206 of the Transportation Article.
(3) (i) “Retiree” means:
1. a former State employee who receives a retirement
allowance under Division II of this article;
2. a former employee of the Medical System Corporation, as
defined in § 13–301 or § 13–401 of the Education Article, who receives a retirement
allowance from the Employees’ Retirement System of the State of Maryland or the
Employees’ Pension System of the State of Maryland under Title 22 or Title 23 of this
article; or
3. a former employee of the Maryland Transit
Administration who receives a Maryland Transit Administration retirement allowance
under § 7–206 of the Transportation Article.
(ii) “Retiree” does not include:
1. a member of the faculty or staff of a community college;
2. a teacher or a staff member employed by a county board of
education; or
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3. an individual who retired under an optional program
under Title 30 of this article.
(4) “State service” means service with the State by:
(i) an employee while a member of the Employees’ Retirement
System or the Employees’ Pension System under Title 22 or Title 23 of this article;
(ii) a member of the Judges’ Retirement System under Title 27 of
this article;
(iii) a teacher while a member of the Teachers’ Retirement System or
Teachers’ Pension System under Title 22 or Title 23 of this article;
(iv) a correctional officer, while a member of the Correctional
Officers’ Retirement System under Title 25 of this article;
(v) an employee of the Medical System Corporation, as defined in §
13–301 or § 13–401 of the Education Article, while a member of the Employees’ Retirement
System of the State of Maryland or the Employees’ Pension System of the State of Maryland
under Title 22 or Title 23 of this article;
(vi) a State Police officer while a member of the State Police
Retirement System under Title 24 of this article;
(vii) a law enforcement officer while a member of the Law
Enforcement Officers’ Pension System under Title 26 of this article; or
(viii) an employee while a member of the Maryland Transit
Administration Plan under § 7–206 of the Transportation Article.
(b) (1) This subsection applies to a retiree who:
(i) began State service on or before June 30, 2011; or
(ii) 1. began State service on or after July 1, 2011; and
2. is a retiree of the Judges’ Retirement System.
(2) A retiree may enroll and participate in the health insurance benefit
options established under the Program if the retiree:
(i) ended State service with at least 10 years of creditable service
and within 5 years before the age at which a vested retirement allowance normally would
begin;
Ch. 127 2023 LAWS OF MARYLAND
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(ii) ended State service with at least 16 years of creditable service;
(iii) ended State service on or before June 30, 1984;
(iv) retired directly from State service with a State retirement
allowance on or after July 1, 1984, and had at least 5 years of creditable service;
(v) retired directly from State service with a State disability
retirement allowance on or after July 1, 1984; or
(vi) retired directly from State service in the Judges’ Retirement
System at the mandatory retirement age required by Article IV, § 3 of the Maryland
Constitution with less than 5 years of creditable service.
(3) (i) The surviving spouse or dependent child of a deceased retiree
who was eligible to enroll may enroll and participate in the health insurance benefit options
established under the Program as long as the spouse or child is receiving a periodic
allowance under Division II of this article or the Maryland Transit Administration
Retirement Plan under § 7–206 of the Transportation Article.
(ii) Subparagraph (i) of this paragraph does not apply to a deceased
retiree’s spouse or dependent child who receives an Option 1, Option 4, or Option 7 benefit
under Division II of this article or a lump–sum payment of benefits under the Maryland
Transit Administration Retirement Plan under § 7–206 of the Transportation Article.
(4) (i) If a retiree receives a State disability retirement allowance or has
16 or more years of creditable service, the retiree or the retiree’s surviving spouse or
dependent child is entitled to the same State subsidy allowed a State employee.
(ii) In all other cases, if a retiree has at least 5 years of creditable
service, the retiree or the retiree’s surviving spouse or dependent child is entitled to 1/16 of
the State subsidy allowed a State employee for each year of the retiree’s creditable service
up to 16 years.
(iii) Notwithstanding subparagraph (ii) of this paragraph and
subsection (a)(4)(i) of this section, if a retiree is an additional employee or agent of the State
Racing Commission, for the purposes of determining a retiree’s State subsidy, creditable
service shall be determined with respect to service as an additional employee or agent
beginning from the initial date of employment or January 1, 1986, whichever is later.
(iv) 1. This paragraph applies only to a retiree of the Judges’
Retirement System who retired directly from State service at the mandatory retirement
age required by Article IV, § 3 of the Maryland Constitution with less than 5 years of
creditable service.
WES MOORE, Governor Ch. 127
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2. Notwithstanding subparagraph (ii) of this paragraph, a
retiree of the Judges’ Retirement System or the retiree’s surviving spouse or dependent
child is entitled to 1/16 of the State subsidy allowed a State employee for each year of the
retiree’s creditable service.
(c) (1) (i) Except as provided in subparagraph (ii) of this paragraph, this
subsection applies to a retiree who begins State service on or after July 1, 2011.
(ii) This subsection does not apply to:
1. a retiree of the Judges’ Retirement System; or
2. a former Governor of Maryland who began serving as
Governor on or after January 21, 2015.
(2) A retiree may enroll and participate in the health insurance benefit
options established under the Program if the retiree:
(i) ends State service with at least 25 years of creditable service;
(ii) ends State service with at least 10 years of creditable service
within 5 years before the age at which a vested retirement allowance normally would begin;
(iii) retires directly from State service with a State retirement
allowance and has 10 years of creditable service; or
(iv) retires directly from State service with a State disability
retirement allowance.
(3) (i) The surviving spouse or dependent child of a deceased retiree
who was eligible to enroll may enroll and participate in the health insurance benefit options
established under the Program as long as the spouse or child is receiving a periodic
allowance under Division II of this article or the Maryland Transit Administration
Retirement Plan under § 7–206 of the Transportation Article.
(ii) Subparagraph (i) of this paragraph does not apply to a deceased
retiree’s spouse or dependent child who receives an Option 1, Option 4, or Option 7 benefit
under Division II of this article or a lump–sum payment of benefits under the Maryland
Transit Administration Retirement Plan under § 7–206 of the Transportation Article.
(4) (i) If a retiree receives a State disability retirement allowance or has
25 or more years of creditable service, the retiree or the retiree’s surviving spouse or
dependent child is entitled to the same State subsidy allowed a State employee.
(ii) In all other cases, if a retiree has at least 10 years of creditable
service, the retiree or the retiree’s surviving spouse or dependent child is entitled to 1/25 of Ch. 127 2023 LAWS OF MARYLAND
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the State subsidy allowed a State employee for each year of the retiree’s creditable service
up to 25 years.
(iii) Notwithstanding subparagraph (ii) of this paragraph and
subsection (a)(4)(i) of this section, if a retiree is an additional employee or agent of the State
Racing Commission, for the purposes of determining a retiree’s State subsidy, creditable
service shall be determined with respect to service as an additional employee or agent
beginning from the initial date of employment.
2–509.
(a) (1) This subsection applies to a retiree of an optional retirement program
under Title 30 of this article who began service as an employee of the State in the Executive,
Legislative, or Judicial Branch of government on or before June 30, 2011.
(2) (i) Subject to subparagraph (ii) of this paragraph, an individual may
enroll and participate in the health insurance benefit options established under the
Program if the individual retired under an optional program under Title 30 of this article
and:
1. ended service with a State institution of higher education
with at least 10 years of service and was at least age 57;
2. ended service with a State institution of higher education
with at least 16 years of service; or
3. retired directly from and had at least 5 years of service
with a State institution of higher education with a periodic distribution of benefits on or
after July 1, 1984.
(ii) 1. For purposes of this subsection only, years of service shall
be calculated as follows:
A. except as provided in subsubparagraph 2 of this
subparagraph, a year of service means a period of 12 months during which an employee
was a participant in an optional retirement program under Title 30 of this article and the
participant’s employer made contributions to the participant’s account in the Program; [or]
B. if an employee’s work year is an academic year of at least
9 but less than 12 months, a year of service means a period equal to the academic year
during which an employee was a participant in an optional retirement program under Title
30 of this article and the participant’s employer made contributions to the participant’s
account in the Program; OR
C. ANY PERIOD DURING WH ICH AN INDIVI DUAL WAS
EMPLOYED BY THE STATE IN THE EXECUTIVE, LEGISLATIVE, OR JUDICIAL BRANCH WES MOORE, Governor Ch. 127
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AND ENROLLED AS A ME MBER OF ONE OF THE S EVERAL SYSTEMS UNDER DIVISION
II OF THIS ARTICLE .
2. To determine eligibility for health insurance benefits
under this section, each year of service shall be multiplied by the participant’s percentage
of full–time employment for that year of service.
(iii) The surviving spouse or dependent child of a deceased individual
who was eligible to enroll may enroll and participate in the health insurance benefit options
established under the Program as long as the spouse or child is receiving a periodic
distribution of benefits under an optional retirement program under Title 30 of this article.
(3) (i) An enrollee under this section who was in service with a State
institution of higher education at the time of the retirement is entitled to the same State
subsidy allowed a retiree under § 2–508(b)(4) of this subtitle. However, except as provided
in subparagraph (ii) of this paragraph, the subsidy shall apply only to the costs of coverage
for the enrollee and may not apply to any additional costs of coverage for the enrollee’s
spouse or children.
(ii) If the enrollee has 25 or more years of service as an employee of
the State in the Executive, Legislative, or Judicial Branch of government, the enrollee or
the enrollee’s surviving spouse or dependent child is entitled to the same State subsidy
allowed a retiree with 16 or more years of creditable service under § 2–508(b)(4)(i) of this
subtitle.
(b) (1) This subsection applies to a retiree of an optional retirement program
under Title 30 of this article who begins service as an employee of the State in the
Executive, Legislative, or Judicial Branch of government on or after July 1, 2011.
(2) (i) Subject to subparagraph (ii) of this paragraph, an individual may
enroll and participate in the health insurance benefit options established under the
Program if the individual retired under an optional program under Title 30 of this article
and:
1. ended service with a State institution of higher education
with at least 10 years of service and was at least age 57;
2. ended service with a State institution of higher education
with at least 25 years of service; or
3. retired directly from and had at least 10 years of service
with a State institution of higher education with a periodic distribution of benefits on or
after July 1, 2011.
(ii) 1. For purposes of this paragraph only, years of service shall
be calculated as follows: Ch. 127 2023 LAWS OF MARYLAND
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A. except as provided in subsubparagraph 2 of this
subparagraph, a year of service means a period of 12 months during which an employee
was a participant in an optional retirement program under Title 30 of this article and the
participant’s employer made contributions to the participant’s account in the Program; [or]
B. if an employee’s work year is an academic year of at least
9 but less than 12 months, a year of service means a period equal to the academic year
during which an employee was a participant in an optional retirement program under Title
30 of this article and the participant’s employer made contributions to the participant’s
account in the Program; OR
C. ANY PERIOD DURING WH ICH AN INDIVIDUAL WA S
EMPLOYED BY THE STATE IN THE EXECUTIVE, LEGISLATIVE, OR JUDICIAL BRANCH
AND ENROLLED AS A ME MBER OF ONE OF THE S EVERAL SYSTEMS UNDER DIVISION
II OF THIS ARTICLE .
2. To determine eligibility for health insurance benefits
under this section, each year of service shall be multiplied by the participant’s percentage
of full–time employment for that year of service.
(iii) The surviving spouse or dependent child of a deceased individual
who was eligible to enroll may enroll and participate in the health insurance benefit options
established under the Program as long as the spouse or child is receiving a periodic
distribution of benefits under an optional retirement program under Title 30 of this article.
(3) (i) An enrollee under this subsection who was in service with a State
institution of higher education at the time of the retirement is entitled to the same State
subsidy allowed a retiree under § 2–508(c)(4) of this subtitle. However, except as provided
in subparagraph (ii) of this paragraph, the subsidy shall apply only to the costs of coverage
for the enrollee and may not apply to any additional costs of coverage for the enrollee’s
spouse or children.
(ii) If the enrollee has 25 or more years of service as an employee of
the State in the Executive, Legislative, or Judicial Branch of government, the enrollee or
the enrollee’s surviving spouse or dependent child is entitled to the same State subsidy
allowed a retiree with 25 or more years of creditable service under § 2–508(c)(4)(i) of this
subtitle.
SECTION 3. 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
June 1, 2023.
Approved by the Governor, April 24, 2023.