EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0481*
SENATE BILL 481
P6 3lr1356
CF HB 424
By: Senator Lewis Young
Introduced and read first time: February 3, 2023
Assigned to: Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
State Retirement and Pension System – Nonvested Accounts – Regular Interest 2
FOR the purpose of requiring a certain rate of interest on certain member contributions in 3
an active member’s nonvested account in the State Retirement and Pension System 4
if the member has not withdrawn contributions from the nonvested account and is 5
not eligible to receive a certain vested allowance; and generally relating to the 6
accrual of interest on member contributions in the State Retirement and Pension 7
System. 8
BY repealing and reenacting, with amendments, 9
Article – State Personnel and Pensions 10
Section 22–215, 23–213, 24–206, 25–204, 26–205, and 27–203 11
Annotated Code of Maryland 12
(2015 Replacement Volume and 2022 Supplement) 13
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 14
That the Laws of Maryland read as follows: 15
Article – State Personnel and Pensions 16
22–215. 17
(a) Except as provided in subsection (b) of this section, regular interest is payable 18
on member contributions at the rate of 4% a year compounded annually, until retirement 19
or withdrawal of the accumulated contributions. 20
(b) [No] EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS SECTION , NO 21
further interest shall be paid on member contributions after membership ends if the former 22
member is not eligible to receive a vested allowance under Title 29, Subtitle 3 of this article. 23
2 SENATE BILL 481
(C) (1) IN THIS SUBSECTION , “ACTIVE MEMBER ” MEANS A MEMBER WHO 1
IS NOT SEPARATED FRO M EMPLOYMENT WITH TH E STATE OR A PARTICIPAT ING 2
EMPLOYER OF ONE O F THE SEVERAL SYSTEM S. 3
(2) THIS SUBSECTION APPLI ES ONLY TO AN INDIVI DUAL WHO: 4
(I) IS A FORMER MEMBER O F THE EMPLOYEES’ RETIREMENT 5
SYSTEM; 6
(II) IS NOT ELIGIBLE TO R ECEIVE A VESTED ALLO WANCE FROM 7
THE EMPLOYEES’ RETIREMENT SYSTEM UNDER TITLE 29, SUBTITLE 3 OF THIS 8
ARTICLE; 9
(III) HAS NOT WITHDRAWN TH E INDIVIDUAL ’S MEMBER 10
CONTRIBUTIONS FROM T HE EMPLOYEES’ RETIREMENT SYSTEM; AND 11
(IV) IS AN ACTIVE MEMBER OF ONE OF THE SEVERA L SYSTEMS. 12
(3) AN INDIVIDUAL DESCRIB ED IN PARAGRAPH (2) OF THIS 13
SUBSECTION SHALL REC EIVE REGULAR INTERES T AT THE RATE DESCRI BED UNDER 14
SUBSECTION (A) OF THIS SECTION ON T HE INDIVIDUAL’S MEMBER CONTRIBUTIO NS 15
IN A NONVESTED ACCOU NT IN THE EMPLOYEES’ RETIREMENT SYSTEM WHILE THE 16
INDIVIDUAL IS AN ACT IVE MEMBER OF ONE OF THE SEVERAL SYSTEMS . 17
23–213. 18
(a) Except as provided in subsection (b) of this section, regular interest is payable 19
on member contributions at the rate of 5% per year compounded annually until retirement 20
or withdrawal of contributions and interest. 21
(b) Except as provided in [subsection (c)] SUBSECTIONS (C) AND (D) of this 22
section, no further interest shall be paid on member contributions after membership ends 23
if the former member is not eligible to receive a vested allowance under Title 29, Subtitle 3 24
of this article. 25
(c) (1) In this subsection, “active member” means a member who is not 26
separated from employment with the State or a participating employer of the Employees’ 27
Pension System or the Teachers’ Pension System. 28
(2) This subsection applies only to an individual who: 29
(i) is a former member of the Alternate Contributory Pension 30
Selection; 31
(ii) is not eligible to receive a vested allowance from the Alternate 32 SENATE BILL 481 3
Contributory Pension Selection under Title 29, Subtitle 3 of this article; 1
(iii) has not withdrawn the individual’s member contributions from 2
the Alternate Contributory Pension Selection; and 3
(iv) is an active member subject to the Reformed Contributory 4
Pension Benefit. 5
(3) An individual described in paragraph (2) of this subsection shall receive 6
regular interest at the rate described under subsection (a) of this section on the individual’s 7
member contributions in the Alternate Contributory Pension Selection while the individual 8
is an active member subject to the Reformed Contributory Pension Benefit. 9
(D) (1) IN THIS SUBSECTION , “ACTIVE MEMBER” MEANS A MEMBER WHO 10
IS NOT SEPARATED FRO M EMPLOYMENT WITH TH E STATE OR A PARTICIPAT ING 11
EMPLOYER OF ONE OF T HE SEVERAL SYSTEMS . 12
(2) THIS SUBSECTION APPLI ES ONLY TO AN INDIVI DUAL WHO: 13
(I) IS A FORMER MEMBER O F THE EMPLOYEES’ PENSION 14
SYSTEM; 15
(II) IS NOT ELIGIBLE TO R ECEIVE A VESTED ALLO WANCE FROM 16
THE EMPLOYEES’ PENSION SYSTEM UNDER TITLE 29, SUBTITLE 3 OF THIS ARTICLE; 17
(III) HAS NOT WITHDRAWN TH E INDIVIDUAL ’S MEMBER 18
CONTRIBUTIONS FROM T HE EMPLOYEES’ PENSION SYSTEM; AND 19
(IV) IS AN ACTIVE MEMBER OF ONE O F THE SEVERAL SYSTEM S. 20
(3) AN INDIVIDUAL DESCRIB ED IN PARAGRAPH (2) OF THIS 21
SUBSECTION SHALL REC EIVE REGULAR INTERES T AT THE RATE DESCRI BED UNDER 22
SUBSECTION (A) OF THIS SECTION ON T HE INDIVIDUAL’S MEMBER CONTRIBUTIO NS 23
IN A NONVESTED ACCOUNT IN THE EMPLOYEES’ PENSION SYSTEM WHILE THE 24
INDIVIDUAL IS AN ACT IVE MEMBER OF ONE OF THE SEVERAL SYSTEMS . 25
24–206. 26
(a) Except as provided in subsection (b) of this section, regular interest is payable 27
on member contributions at the rate of 4% a year, compounded annually, until retirement 28
or withdrawal of the accumulated contributions. 29
(b) [No] EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS SECTION , NO 30
further interest shall be paid on member contributions after membership ends if the former 31
member is not eligible to receive a vested allowance under Title 29, Subtitle 3 of this article. 32 4 SENATE BILL 481
(C) (1) IN THIS SUBSECTION , “ACTIVE MEMBER ” MEANS A MEMBER WHO 1
IS NOT SEPARATED FRO M EMPLOYMENT WITH TH E STATE OR A PARTICIPAT ING 2
EMPLOYER OF ONE OF T HE SEVERAL SYS TEMS. 3
(2) THIS SUBSECTION APPLI ES ONLY TO AN INDIVI DUAL WHO: 4
(I) IS A FORMER MEMBER O F THE STATE POLICE RETIREMENT 5
SYSTEM; 6
(II) IS NOT ELIGIBLE TO R ECEIVE A VESTED ALLO WANCE FROM 7
THE STATE POLICE RETIREMENT SYSTEM UNDER TITLE 29, SUBTITLE 3 OF THIS 8
ARTICLE; 9
(III) HAS NOT WITHDRAWN TH E INDIVIDUAL ’S MEMBER 10
CONTRIBUTIONS FROM T HE STATE POLICE RETIREMENT SYSTEM; AND 11
(IV) IS AN ACTIVE MEMBER OF ONE OF THE SEVERA L SYSTEMS. 12
(3) AN INDIVIDUAL DESCRIB ED IN PARAGRAPH (2) OF THIS 13
SUBSECTION SHALL RECEIVE REGULAR INTE REST AT THE RATE DES CRIBED UNDER 14
SUBSECTION (A) OF THIS SECTION ON T HE INDIVIDUAL’S MEMBER CONTRIBUTIO NS 15
IN A NONVESTED ACCOU NT IN THE STATE POLICE RETIREMENT SYSTEM WHILE THE 16
INDIVIDUAL IS AN ACT IVE MEMBER OF ONE OF THE SEVERAL SYSTEM S. 17
25–204. 18
(a) Except as provided in subsection (b) of this section, regular interest is payable 19
on member contributions at the rate of 4% a year, compounded annually, until retirement 20
or withdrawal of the accumulated contributions. 21
(b) [No] EXCEPT AS PROVIDED IN SUBSECTI ON (C) OF THIS SECTION , NO 22
further interest shall be paid on member contributions after membership ends if the former 23
member is not eligible to receive a vested allowance under Title 29, Subtitle 3 of this article. 24
(C) (1) IN THIS SUBSECTION, “ACTIVE MEMBER ” MEANS A MEMBER WHO 25
IS NOT SEPARATED FRO M EMPLOYMENT WITH TH E STATE OR A PARTICIPAT ING 26
EMPLOYER OF ONE OF T HE SEVERAL SYSTEMS . 27
(2) THIS SUBSECTION APPLI ES ONLY TO AN INDIVI DUAL WHO: 28
(I) IS A FORMER MEMBER O F THE CORRECTIONAL OFFICERS’ 29
RETIREMENT SYSTEM; 30
SENATE BILL 481 5
(II) IS NOT ELIGIBLE TO R ECEIVE A VESTED ALLO WANCE FROM 1
THE CORRECTIONAL OFFICERS’ RETIREMENT SYSTEM UNDER TITLE 29, SUBTITLE 2
3 OF THIS ARTICLE; 3
(III) HAS NOT WITHDRAWN TH E INDIVIDUAL ’S MEMBER 4
CONTRIBUTIONS FROM T HE CORRECTIONAL OFFICERS’ RETIREMENT SYSTEM; AND 5
(IV) IS AN ACTIVE MEMBER OF ONE OF THE SEVERA L SYSTEMS. 6
(3) AN INDIVIDUAL DESCRIB ED IN PARAGRAPH (2) OF THIS 7
SUBSECTION SHALL REC EIVE REGULAR INTERES T AT THE RATE DESCRI BED UNDER 8
SUBSECTION (A) OF THIS SECTION ON THE INDIVIDU AL’S MEMBER CONTRIBUTIO NS 9
IN A NONVESTED ACCOU NT IN THE CORRECTIONAL OFFICERS’ RETIREMENT 10
SYSTEM WHILE THE INDI VIDUAL IS AN ACTIVE MEMBER OF ONE OF THE SEVERAL 11
SYSTEMS. 12
26–205. 13
(a) Except as provided in subsection (b) of this section, regular interest is payable 14
on member contributions until retirement or withdrawal of accumulated contributions at 15
the rate of: 16
(1) 4% a year, compounded annually, for a member who has transferred 17
from the Employees’ Retirement System on or before December 31, 2004; or 18
(2) 5% a year, compounded annually, for each other member. 19
(b) [No] EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS SECTION , NO 20
further interest shall be paid on member contributions after membership ends if the former 21
member is not eligible to receive a vested allowance under Title 29, Subtitle 3 of this article. 22
(C) (1) IN THIS SUBSECTION , “ACTIVE MEMBER ” MEANS A MEMBER WHO 23
IS NOT SEPARATED FRO M EMPLOYMENT WITH TH E STATE OR A PARTICIPAT ING 24
EMPLOYER OF ONE OF T HE SEVERAL SYSTE MS. 25
(2) THIS SUBSECTION APPLI ES ONLY TO AN INDIVI DUAL WHO: 26
(I) IS A FORMER MEMBER O F THE LAW ENFORCEMENT 27
OFFICERS’ PENSION SYSTEM; 28
(II) IS NOT ELIGIBLE TO R ECEIVE A VESTED ALLO WANCE FROM 29
THE LAW ENFORCEMENT OFFICERS’ PENSION SYSTEM UNDER TITLE 29, SUBTITLE 30
3 OF THIS ARTICLE; 31
6 SENATE BILL 481
(III) HAS NOT WITHDRAWN TH E INDIVIDUAL ’S MEMBER 1
CONTRIBUTIONS FROM T HE LAW ENFORCEMENT OFFICERS’ PENSION SYSTEM; AND 2
(IV) IS AN ACTIVE MEMBER OF ONE OF THE SEVERA L SYSTEMS. 3
(3) AN INDIVIDUAL DESCRIB ED IN PARAGRAPH (2) OF THIS 4
SUBSECTION SHALL REC EIVE REGULAR INTERES T AT THE RATE DESCRI BED UNDER 5
SUBSECTION (A) OF THIS SECTION ON T HE INDIVIDUAL’S MEMBER CONTRIBUTIO NS 6
IN A NONVESTED ACCOU NT IN THE LAW ENFORCEMENT OFFICERS’ PENSION 7
SYSTEM WHILE THE INDI VIDUAL IS AN ACT IVE MEMBER OF ONE OF THE SEVERAL 8
SYSTEMS. 9
27–203. 10
(a) Except as provided in subsection (b) of this section, regular interest is payable 11
on member contributions at the rate of 4% a year compounded annually, until retirement 12
or withdrawal of the accumulated contributions. 13
(b) (1) This subsection applies only to an individual who becomes a member of 14
the Judges’ Retirement System on or after July 1, 2012. 15
(2) [No] EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS SECTION, 16
NO further interest shall be paid on member contributions after membership ends if the 17
former member is not eligible to receive a vested allowance under Title 29, Subtitle 3 of this 18
article. 19
(C) (1) IN THIS SUBSECTION , “ACTIVE MEMBER ” MEANS A MEMBER WHO 20
IS NOT SEPARATED FROM E MPLOYMENT WITH THE STATE OR A PARTICIPAT ING 21
EMPLOYER OF ONE OF T HE SEVERAL SYSTEMS . 22
(2) THIS SUBSECTION APPLI ES ONLY TO AN INDIVI DUAL WHO: 23
(I) IS A FORMER MEMBER O F THE JUDGES’ RETIREMENT 24
SYSTEM; 25
(II) IS NOT ELIGIBLE TO R ECEIVE A VESTED ALLOWAN CE FROM 26
THE JUDGES’ RETIREMENT SYSTEM UNDER TITLE 29, SUBTITLE 3 OF THIS 27
ARTICLE; 28
(III) HAS NOT WITHDRAWN TH E INDIVIDUAL ’S MEMBER 29
CONTRIBUTIONS FROM T HE JUDGES’ RETIREMENT SYSTEM; AND 30
(IV) IS AN ACTIVE MEMBER OF ONE OF THE SEVER AL SYSTEMS. 31
SENATE BILL 481 7
(3) AN INDIVIDUAL DESCRIB ED IN PARAGRAPH (2) OF THIS 1
SUBSECTION SHALL REC EIVE REGULAR INTERES T AT THE RATE DESCRI BED UNDER 2
SUBSECTION (A) OF THIS SECTION ON T HE INDIVIDUAL’S MEMBER CONTRIBUTIO NS 3
IN A NONVESTED ACCOU NT IN THE JUDGES’ RETIREMENT SYSTEM WHILE THE 4
INDIVIDUAL IS AN ACT IVE MEMBER OF ONE OF THE SEVERAL SYSTEMS . 5
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 6
1, 2023. 7