WES MOORE, Governor Ch. 234
– 1 –
Chapter 234
(Senate Bill 481)
AN ACT concerning
State Retirement and Pension System – Nonvested Accounts – Regular Interest
FOR the purpose of requiring a certain rate of interest on certain member contributions in
an active member’s nonvested account in the State Retirement and Pension System
if the member has not withdrawn contributions from the nonvested account and is
not eligible to receive a certain vested allowance; providing for the retroactive
application of this Act; and generally relating to the accrual of interest on member
contributions in the State Retirement and Pension System.
BY repealing and reenacting, with amendments,
Article – State Personnel and Pensions
Section 22–215, 23–213, 24–206, 25–204, 26–205, and 27–203
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
22–215.
(a) Except as provided in subsection (b) of this section, regular interest is payable
on member contributions at the rate of 4% a year compounded annually, until retirement
or withdrawal of the accumulated contributions.
(b) [No] EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS SECTION , NO
further interest shall be paid on member contributions after membership ends if the former
member is not eligible to receive a vested allowance under Title 29, Subtitle 3 of this article.
(C) (1) IN THIS SUBSECTION , “ACTIVE MEMBER ” MEANS A MEMBER WHO
IS NOT SEPARATED FRO M EMPLOYMENT WITH TH E STATE OR A PARTICIPAT ING
EMPLOYER OF ONE OF T HE SEVERAL SYSTEMS .
(2) THIS SUBSECTION APPLI ES ONLY TO AN INDIVIDUA L WHO:
(I) IS A FORMER MEMBER O F THE EMPLOYEES’ RETIREMENT
SYSTEM OR THE TEACHERS’ RETIREMENT SYSTEM;
Ch. 234 2023 LAWS OF MARYLAND
– 2 –
(II) IS NOT ELIGIBLE TO R ECEIVE A VESTED ALLO WANCE FROM
THE EMPLOYEES’ RETIREMENT SYSTEM OR THE TEACHERS’ RETIREMENT SYSTEM
UNDER TITLE 29, SUBTITLE 3 OF THIS ARTICLE;
(III) HAS NOT WITHDRAWN TH E INDIVIDUAL ’S MEMBER
CONTRIBUTIONS FROM T HE EMPLOYEES’ RETIREMENT SYSTEM OR THE TEACHERS’
RETIREMENT SYSTEM; AND
(IV) IS AN ACTIVE MEMBER OF ONE OF THE SEVERA L SYSTEMS.
(3) AN INDIVIDUAL DESCRIB ED IN PARAGRAPH (2) OF THIS
SUBSECTION SHALL REC EIVE REGULAR INTERES T AT THE RATE DESCRI BED UNDER
SUBSECTION (A) OF THIS SECTION ON T HE INDIVIDUAL’S MEMBER CONTRIBUTIO NS
IN A NONVESTED ACCOU NT IN THE EMPLOYEES’ RETIREMENT SYSTEM OR THE
TEACHERS’ RETIREMENT SYSTEM WHILE THE INDIVIDUAL IS AN ACTIVE MEMBER
OF ONE OF THE SEVERA L SYSTEMS.
23–213.
(a) Except as provided in subsection (b) of this section, regular interest is payable
on member contributions at the rate of 5% per year compounded annually until retirement
or withdrawal of contributions and interest.
(b) Except as provided in [subsection (c)] SUBSECTIONS (C) AND (D) of this
section, no further interest shall be paid on member contributions after membership ends
if the former member is not eligible to receive a vested allowance under Title 29, Subtitle 3
of this article.
(c) (1) In this subsection, “active member” means a member who is not
separated from employment with the State or a participating employer of the Employees’
Pension System or the Teachers’ Pension System ONE OF THE SEVERAL S YSTEMS.
(2) This subsection applies only to an individual who:
(i) is a former member of the Alternate Contributory Pension
Selection EMPLOYEES’ PENSION SYSTEM OR THE TEACHERS’ PENSION SYSTEM;
(ii) is not eligible to receive a vested allowance from the Alternate
Contributory Pension Selection EMPLOYEES’ PENSION SYSTEM OR THE TEACHERS’
PENSION SYSTEM under Title 29, Subtitle 3 of this article;
(iii) has not withdrawn the individual’s member contributions from
the Alternate Contributory Pension Selection EMPLOYEES’ PENSION SYSTEM OR THE
TEACHERS’ PENSION SYSTEM; and WES MOORE, Governor Ch. 234
– 3 –
(iv) is an active member subject to the Reformed Contributory
Pension Benefit OF ONE OF THE SEVERA L SYSTEMS.
(3) An individual described in paragraph (2) of this subsection shall receive
regular interest at the rate described under subsection (a) of this section on the individual’s
member contributions in the Alternate Contributory Pension Selection A NONVESTED
ACCOUNT IN THE EMPLOYEES’ PENSION SYSTEM OR THE TEACHERS’ PENSION
SYSTEM while the individual is an active member subject to the Reformed Contributory
Pension Benefit OF ONE OF THE SEVERA L SYSTEMS.
(D) (1) IN THIS SUBSECTION , “ACTIVE MEMBER ” MEANS A MEMBE R WHO
IS NOT SEPARATED FRO M EMPLOYMENT WITH TH E STATE OR A PARTICIPAT ING
EMPLOYER OF ONE OF T HE SEVERAL SYSTEMS .
(2) THIS SUBSECTION APPLI ES ONLY TO AN INDIVI DUAL WHO:
(I) IS A FORMER MEMBER O F THE EMPLOYEES’ PENSION
SYSTEM;
(II) IS NOT ELIGIBLE TO RECEIVE A VESTED ALLOWANCE FROM
THE EMPLOYEES’ PENSION SYSTEM UNDER TITLE 29, SUBTITLE 3 OF THIS ARTICLE;
(III) HAS NOT WITHDRAWN TH E INDIVIDUAL ’S MEMBER
CONTRIBUTIONS FROM T HE EMPLOYEES’ PENSION SYSTEM; AND
(IV) IS AN ACTIVE MEMBER OF ONE OF THE SEVERAL SYSTEMS .
(3) AN INDIVIDUAL DESCRIB ED IN PARAGRAPH (2) OF THIS
SUBSECTION SHALL REC EIVE REGULAR INTERES T AT THE RATE DESCRI BED UNDER
SUBSECTION (A) OF THIS SECTION ON T HE INDIVIDUAL’S MEMBER CONTRIBUTIO NS
IN A NONVESTED ACCOU NT IN THE EMPLOYEES’ PENSION SYSTEM WHILE THE
INDIVIDUAL IS AN ACT IVE MEMBER OF ONE OF THE SEVERAL SYSTEMS .
24–206.
(a) Except as provided in subsection (b) of this section, regular interest is payable
on member contributions at the rate of 4% a year, compounded annually, until retirement
or withdrawal of the accumulated contributions.
(b) [No] EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS SECTION , NO
further interest shall be paid on member contributions after membership ends if the former
member is not eligible to receive a vested allowance under Title 29, Subtitle 3 of this article.
Ch. 234 2023 LAWS OF MARYLAND
– 4 –
(C) (1) IN THIS SUBSECTION , “ACTIVE MEMBER ” MEANS A MEMBER WHO
IS NOT SEPARATED FRO M EMPLOYMENT WITH TH E STATE OR A PARTICIPAT ING
EMPLOYER OF ONE OF T HE SEVERAL SYSTEMS .
(2) THIS SUBSECTION APPLIES ONLY TO AN INDIVIDUAL WHO :
(I) IS A FORMER MEMBER O F THE STATE POLICE RETIREMENT
SYSTEM;
(II) IS NOT ELIGIBLE TO R ECEIVE A VESTED ALLO WANCE FROM
THE STATE POLICE RETIREMENT SYSTEM UNDER TITLE 29, SUBTITLE 3 OF THIS
ARTICLE;
(III) HAS NOT WITHDRAWN TH E INDIVIDUAL ’S MEMBER
CONTRIBUTIONS FROM T HE STATE POLICE RETIREMENT SYSTEM; AND
(IV) IS AN ACTIVE MEMBER OF ONE OF THE SEVERA L SYSTEMS.
(3) AN INDIVIDUAL DESCRIB ED IN PARAGRAPH (2) OF THIS
SUBSECTION SHALL REC EIVE REGULAR INTEREST AT THE RATE DESCRIBED UNDER
SUBSECTION (A) OF THIS SECTION ON T HE INDIVIDUAL’S MEMBER CONTRIBUTIO NS
IN A NONVESTED ACCOU NT IN THE STATE POLICE RETIREMENT SYSTEM WHILE THE
INDIVIDUAL IS AN ACT IVE MEMBER OF ONE OF THE SEVERAL SYSTEMS .
25–204.
(a) Except as provided in subsection (b) of this section, regular interest is payable
on member contributions at the rate of 4% a year, compounded annually, until retirement
or withdrawal of the accumulated contributions.
(b) [No] EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS SECTION , NO
further interest shall be paid on member contributions after membership ends if the former
member is not eligible to receive a vested allowance under Title 29, Subtitle 3 of this article.
(C) (1) IN THIS SUBSECTION , “ACTIVE MEMBER” MEANS A MEMBER WHO
IS NOT SEPARATED FRO M EMPLOYMENT WITH TH E STATE OR A PARTICIPAT ING
EMPLOYER OF ONE OF T HE SEVERAL SYSTEMS .
(2) THIS SUBSECTION APPLI ES ONLY TO AN INDIVI DUAL WHO:
(I) IS A FORMER MEMBER O F THE CORRECTIONAL OFFICERS’
RETIREMENT SYSTEM;
WES MOORE, Governor Ch. 234
– 5 –
(II) IS NOT ELIGIBLE TO R ECEIVE A VESTED ALLO WANCE FROM
THE CORRECTIONAL OFFICERS’ RETIREMENT SYSTEM UNDER TITLE 29, SUBTITLE
3 OF THIS ARTICLE;
(III) HAS NOT WITHDRAWN TH E INDIVIDUAL ’S MEMBER
CONTRIBUTIONS FROM T HE CORRECTIONAL OFFICERS’ RETIREMENT SYSTEM; AND
(IV) IS AN ACTIVE MEMBER OF ONE OF THE SEVERA L SYSTEMS.
(3) AN INDIVIDUAL DESCRIB ED IN PARAGRAPH (2) OF THIS
SUBSECTION SHALL REC EIVE REGULAR INTERES T AT THE RATE DESCRI BED UNDER
SUBSECTION (A) OF THIS SECTION ON T HE INDIVIDUAL’S MEMBER CONTRIBUTIO NS
IN A NONVESTED ACCOU NT IN THE CORRECTIONAL OFFICERS’ RETIREMENT
SYSTEM WHILE THE INDI VIDUAL IS AN ACTIVE MEMBER OF ONE OF THE SEVERAL
SYSTEMS.
26–205.
(a) Except as provided in subsection (b) of this section, regular interest is payable
on member contributions until retirement or withdrawal of accumulated contributions at
the rate of:
(1) 4% a year, compounded annually, for a member who has transferred
from the Employees’ Retirement System on or before December 31, 2004; or
(2) 5% a year, compounded annually, for each other member.
(b) [No] EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS SECTION , NO
further interest shall be paid on member contributions after membership ends if the former
member is not eligible to receive a vested allowance under Title 29, Subtitle 3 of this article.
(C) (1) IN THIS SUBSECTION , “ACTIVE MEMBER ” MEANS A MEMBER WHO
IS NOT SEPARATED FROM E MPLOYMENT WITH THE STATE OR A PARTICIPAT ING
EMPLOYER OF ONE OF T HE SEVERAL SYSTEMS .
(2) THIS SUBSECTION APPLI ES ONLY TO AN INDIVI DUAL WHO:
(I) IS A FORMER MEMBER O F THE LAW ENFORCEMENT
OFFICERS’ PENSION SYSTEM;
(II) IS NOT ELIGIBLE TO RECEIVE A VESTED ALLOWANCE FRO M
THE LAW ENFORCEMENT OFFICERS’ PENSION SYSTEM UNDER TITLE 29, SUBTITLE
3 OF THIS ARTICLE;
Ch. 234 2023 LAWS OF MARYLAND
– 6 –
(III) HAS NOT WITHDRAWN TH E INDIVIDUAL ’S MEMBER
CONTRIBUTIONS FROM T HE LAW ENFORCEMENT OFFICERS’ PENSION SYSTEM; AND
(IV) IS AN ACTIVE MEMBER OF ONE OF THE SEVERA L SYSTEMS.
(3) AN INDIVIDUAL DESCRIB ED IN PARAGRAPH (2) OF THIS
SUBSECTION SHALL REC EIVE REGULAR INTERES T AT THE RATE DESCRI BED UNDER
SUBSECTION (A) OF THIS SECTION ON T HE INDIVIDUAL’S MEMBER CONTRIBUTIO NS
IN A NONVESTED ACCOUN T IN THE LAW ENFORCEMENT OFFICERS’ PENSION
SYSTEM WHILE THE INDI VIDUAL IS AN ACTIVE MEMBER OF ONE OF THE SEVERAL
SYSTEMS.
27–203.
(a) Except as provided in subsection (b) of this section, regular interest is payable
on member contributions at the rate of 4% a year compounded annually, until retirement
or withdrawal of the accumulated contributions.
(b) (1) This subsection applies only to an individual who becomes a member of
the Judges’ Retirement System on or after July 1, 2012.
(2) [No] EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS SECTION,
NO further interest shall be paid on member contributions after membership ends if the
former member is not eligible to receive a vested allowance under Title 29, Subtitle 3 of this
article.
(C) (1) IN THIS SUBSECTION , “ACTIVE MEMBER ” MEANS A MEMBER WHO
IS NOT SEPARATED FRO M EMPLOYMENT WITH TH E STATE OR A PARTICIPAT ING
EMPLOYER OF ONE OF T HE SEVERAL SYSTEMS .
(2) THIS SUBSECTION APPLI ES ONLY TO AN INDIVI DUAL WHO:
(I) IS A FORMER MEMBER OF THE JUDGES’ RETIREMENT
SYSTEM;
(II) IS NOT ELIGIBLE TO R ECEIVE A VESTED ALLO WANCE FROM
THE JUDGES’ RETIREMENT SYSTEM UNDER TITLE 29, SUBTITLE 3 OF THIS
ARTICLE;
(III) HAS NOT WITHDRAWN TH E INDIVIDUAL ’S MEMBER
CONTRIBUTIONS FROM T HE JUDGES’ RETIREMENT SYSTEM; AND
(IV) IS AN ACTIVE MEMBER OF ONE OF THE SEVERA L SYSTEMS.
WES MOORE, Governor Ch. 234
– 7 –
(3) AN INDIVIDUAL DESCRIB ED IN PARAGRAPH (2) OF THIS
SUBSECTION SHALL REC EIVE REGULAR INTERES T AT THE RATE DESCRI BED UNDER
SUBSECTION (A) OF THIS SECTION ON T HE INDIVIDUAL’S MEMBER CONTRIBUTIONS
IN A NONVESTED ACCOU NT IN THE JUDGES’ RETIREMENT SYSTEM WHILE THE
INDIVIDUAL IS AN ACT IVE MEMBER OF ONE OF THE SEVERAL SYSTEMS .
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall be construed to
apply retroactively and shall be applied to and interpreted to provide payment of interest
on an individual’s contributions as a former member in one of the several systems of the
State Retirement and Pension System beginning on the date the individual became a
member of one of the several systems if the individual is an active member of one of the
several systems on the effective date of this Act.
SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act shall take effect
July 1, 2023.
Approved by the Governor, April 24, 2023.