Maryland 2023 Regular Session

Maryland Senate Bill SB632 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	sb0632
6	6
7	7	SENATE BILL 632
8	8	P6 3lr0674
9	9	HB 1294/22 – APP
10	10	By: Senator Mautz
11	11	Introduced and read first time: February 6, 2023
12	12	Assigned to: Budget and Taxation
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	State Employee and Retiree Health and Welfare Benefits Program – BWI 2
19	19	Airport Fire and Rescue Department – Employees and Dependents 3
20	20
21	21	FOR the purpose of authorizing certain retirees who began employment with the BWI 4
22	22	Airport Fire and Rescue Department before a certain date and who are receiving a 5
23	23	retirement allowance from the Baltimore City Fire and Police Retirement System to 6
24	24	participate in the State Employee and Retiree Health and Welfare Benefits Program; 7
25	25	authorizing certain spouses and dependent children of certain deceased retirees to 8
26	26	participate in the Program; and generally relating to the State Employee and Retiree 9
27	27	Health and Welfare Benefits Program. 10
28	28
29	29	BY repealing and reenacting, with amendments, 11
30	30	Article – State Personnel and Pensions 12
31	31	Section 2–508 13
32	32	Annotated Code of Maryland 14
33	33	(2015 Replacement Volume and 2022 Supplement) 15
34	34
35	35	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16
36	36	That the Laws of Maryland read as follows: 17
37	37
38	38	Article – State Personnel and Pensions 18
39	39
40	40	2–508. 19
41	41
42	42	(a) (1) In this section the following words have the meanings indicated. 20
43	43
44	44	(2) “Creditable service” means: 21
45	45
46	46	(i) service credited toward a retirement allowance under Division II 22
47	47	of this article; 23
48	48	2 SENATE BILL 632
49	49
50	50
51	51	(ii) service while a member of the Judges’ Retirement System under 1
52	52	Title 27 of this article; 2
53	53
54	54	(iii) service while an employee was employed by the Domestic 3
55	55	Relations Division of the Anne Arundel County Circuit Court, prior to transfer on or before 4
56	56	July 1, 2002 into the State Personnel Management System, in accordance with § 2–510 of 5
57	57	the Courts Article; [or] 6
58	58
59	59	(iv) service while a member of the Maryland Transit Administration 7
60	60	Retirement Plan under § 7–206 of the Transportation Article; OR 8
61	61
62	62	(V) SERVICE WHILE AN EMP LOYEE WAS EMPLOYED B Y THE BWI 9
63	63	AIRPORT FIRE AND RESCUE DEPARTMENT IF THE EMPLOYEE : 10
64	64
65	65	1. BEGAN EMPLOYMENT WIT H THE BWI AIRPORT FIRE 11
66	66	AND RESCUE DEPARTMENT BEFORE OCTOBER 1, 1993; AND 12
67	67
68	68	2. RECEIVES A RETIREMENT ALLOWAN CE FROM THE 13
69	69	BALTIMORE CITY FIRE AND POLICE RETIREMENT SYSTEM. 14
70	70
71	71	(3) (i) “Retiree” means: 15
72	72
73	73	1. a former State employee who receives a retirement 16
74	74	allowance under Division II of this article; 17
75	75
76	76	2. a former employee of the Medical System Corporation, as 18
77	77	defined in § 13–301 or § 13–401 of the Education Article, who receives a retirement 19
78	78	allowance from the Employees’ Retirement System of the State of Maryland or the 20
79	79	Employees’ Pension System of the State of Maryland under Title 22 or Title 23 of this 21
80	80	article; [or] 22
81	81
82	82	3. a former employee of the Maryland Transit 23
83	83	Administration who receives a Maryland Transit Administration retirement allowance 24
84	84	under § 7–206 of the Transportation Article; OR 25
85	85
86	86	4. A FORMER EMPLOYEE OF THE BWI AIRPORT FIRE 26
87	87	AND RESCUE DEPARTMENT WHO : 27
88	88
89	89	A. BEGAN EMPLOYMENT WIT H THE BWI AIRPORT FIRE 28
90	90	AND RESCUE DEPARTMENT BEFORE OCTOBER 1, 1993; AND 29
91	91
92	92	B. RECEIVES A RETIREMEN T ALLOWANCE FROM THE 30
93	93	BALTIMORE CITY FIRE AND POLICE RETIREMENT SYSTEM. 31
94	94
95	95	(ii) “Retiree” does not include: 32 SENATE BILL 632 3
96	96
97	97
98	98
99	99	1. a member of the faculty or staff of a community college; 1
100	100
101	101	2. a teacher or a staff member employed by a county board of 2
102	102	education; or 3
103	103
104	104	3. an individual who retired under an optional program 4
105	105	under Title 30 of this article. 5
106	106
107	107	(4) (I) “State service” means service with the State by: 6
108	108
109	109	[(i)] 1. an employee while a member of the Employees’ 7
110	110	Retirement System or the Employees’ Pension System under Title 22 or Title 23 of this 8
111	111	article; 9
112	112
113	113	[(ii)] 2. a member of the Judges’ Retirement System under Title 10
114	114	27 of this article; 11
115	115
116	116	[(iii)] 3. a teacher while a member of the Teachers’ Retirement 12
117	117	System or Teachers’ Pension System under Title 22 or Title 23 of this article; 13
118	118
119	119	[(iv)] 4. a correctional officer, while a member of the Correctional 14
120	120	Officers’ Retirement System under Title 25 of this article; 15
121	121
122	122	[(v)] 5. an employee of the Medical System Corporation, as 16
123	123	defined in § 13–301 or § 13–401 of the Education Article, while a member of the Employees’ 17
124	124	Retirement System of the State of Maryland or the Employees’ Pension System of the State 18
125	125	of Maryland under Title 22 or Title 23 of this article; 19
126	126
127	127	[(vi)] 6. a State Police officer while a member of the State Police 20
128	128	Retirement System under Title 24 of this article; 21
129	129
130	130	[(vii)] 7. a law enforcement officer while a member of the Law 22
131	131	Enforcement Officers’ Pension System under Title 26 of this article; or 23
132	132
133	133	[(viii)] 8. an employee while a member of the Maryland Transit 24
134	134	Administration Plan under § 7–206 of the Transportation Article. 25
135	135
136	136	(II) “STATE SERVICE” INCLUDES SERVICE BY AN EMPLOYEE OF 26
137	137	THE BWI AIRPORT FIRE AND RESCUE DEPARTMENT WHILE A MEMBER OF TH E 27
138	138	BALTIMORE CITY FIRE AND POLICE RETIREMENT SYSTEM IF THE EMPLOYE E 28
139	139	BEGAN EMPLOYMENT WITH THE BWI AIRPORT FIRE AND RESCUE DEPARTMENT 29
140	140	BEFORE OCTOBER 1, 1993. 30
141	141
142	142	(b) (1) This subsection applies to a retiree who: 31
143	143	4 SENATE BILL 632
144	144
145	145
146	146	(i) began State service on or before June 30, 2011; or 1
147	147
148	148	(ii) 1. began State service on or after July 1, 2011; and 2
149	149
150	150	2. is a retiree of the Judges’ Retirement System. 3
151	151
152	152	(2) A retiree may enroll and participate in the health insurance benefit 4
153	153	options established under the Program if the retiree: 5
154	154
155	155	(i) ended State service with at least 10 years of creditable service 6
156	156	and within 5 years before the age at which a vested retirement allowance normally would 7
157	157	begin; 8
158	158
159	159	(ii) ended State service with at least 16 years of creditable service; 9
160	160
161	161	(iii) ended State service on or before June 30, 1984; 10
162	162
163	163	(iv) retired directly from State service with a State retirement 11
164	164	allowance on or after July 1, 1984, and had at least 5 years of creditable service; 12
165	165
166	166	(v) retired directly from State service with a State disability 13
167	167	retirement allowance on or after July 1, 1984; or 14
168	168
169	169	(vi) retired directly from State service in the Judges’ Retirement 15
170	170	System at the mandatory retirement age required by Article IV, § 3 of the Maryland 16
171	171	Constitution with less than 5 years of creditable service. 17
172	172
173	173	(3) (i) The surviving spouse or dependent child of a deceased retiree 18
174	174	who was eligible to enroll may enroll and participate in the health insurance benefit options 19
175	175	established under the Program as long as the spouse or child is receiving a periodic 20
176	176	allowance under Division II of this article [or], the Maryland Transit Administration 21
177	177	Retirement Plan under § 7–206 of the Transportation Article, OR THE BALTIMORE CITY 22
178	178	FIRE AND POLICE RETIREMENT SYSTEM. 23
179	179
180	180	(ii) Subparagraph (i) of this paragraph does not apply to a deceased 24
181	181	retiree’s spouse or dependent child who receives an Option 1, Option 4, or Option 7 benefit 25
182	182	under Division II of this article [or], a lump–sum payment of benefits under the Maryland 26
183	183	Transit Administration Retirement Plan under § 7–206 of the Transportation Article, OR 27
184	184	A LUMP–SUM PAYMENT OF BENEF ITS FROM THE BALTIMORE CITY FIRE AND 28
185	185	POLICE RETIREMENT SYSTEM. 29
186	186
187	187	(4) (i) If a retiree receives a State disability retirement allowance or has 30
188	188	16 or more years of creditable service, the retiree or the retiree’s surviving spouse or 31
189	189	dependent child is entitled to the same State subsidy allowed a State employee. 32
190	190
191	191	(ii) In all other cases, if a retiree has at least 5 years of creditable 33 SENATE BILL 632 5
192	192
193	193
194	194	service, the retiree or the retiree’s surviving spouse or dependent child is entitled to 1/16 of 1
195	195	the State subsidy allowed a State employee for each year of the retiree’s creditable service 2
196	196	up to 16 years. 3
197	197
198	198	(iii) Notwithstanding subparagraph (ii) of this paragraph and 4
199	199	subsection (a)(4)(i) of this section, if a retiree is an additional employee or agent of the State 5
200	200	Racing Commission, for the purposes of determining a retiree’s State subsidy, creditable 6
201	201	service shall be determined with respect to service as an additional employee or agent 7
202	202	beginning from the initial date of employment or January 1, 1986, whichever is later. 8
203	203
204	204	(iv) 1. This paragraph applies only to a retiree of the Judges’ 9
205	205	Retirement System who retired directly from State service at the mandatory retirement 10
206	206	age required by Article IV, § 3 of the Maryland Constitution with less than 5 years of 11
207	207	creditable service. 12
208	208
209	209	2. Notwithstanding subparagraph (ii) of this paragraph, a 13
210	210	retiree of the Judges’ Retirement System or the retiree’s surviving spouse or dependent 14
211	211	child is entitled to 1/16 of the State subsidy allowed a State employee for each year of the 15
212	212	retiree’s creditable service. 16
213	213
214	214	(c) (1) (i) Except as provided in subparagraph (ii) of this paragraph, this 17
215	215	subsection applies to a retiree who begins State service on or after July 1, 2011. 18
216	216
217	217	(ii) This subsection does not apply to: 19
218	218
219	219	1. a retiree of the Judges’ Retirement System; or 20
220	220
221	221	2. a former Governor of Maryland who began serving as 21
222	222	Governor on or after January 21, 2015. 22
223	223
224	224	(2) A retiree may enroll and participate in the health insurance benefit 23
225	225	options established under the Program if the retiree: 24
226	226
227	227	(i) ends State service with at least 25 years of creditable service; 25
228	228
229	229	(ii) ends State service with at least 10 years of creditable service 26
230	230	within 5 years before the age at which a vested retirement allowance normally would begin; 27
231	231
232	232	(iii) retires directly from State service with a State retirement 28
233	233	allowance and has 10 years of creditable service; or 29
234	234
235	235	(iv) retires directly from State service with a State disability 30
236	236	retirement allowance. 31
237	237
238	238	(3) (i) The surviving spouse or dependent child of a deceased retiree 32
239	239	who was eligible to enroll may enroll and participate in the health insurance benefit options 33
240	240	established under the Program as long as the spouse or child is receiving a periodic 34 6 SENATE BILL 632
241	241
242	242
243	243	allowance under Division II of this article [or], the Maryland Transit Administration 1
244	244	Retirement Plan under § 7–206 of the Transportation Article, OR THE BALTIMORE CITY 2
245	245	FIRE AND POLICE RETIREMENT SYSTEM. 3
246	246
247	247	(ii) Subparagraph (i) of this paragraph does not apply to a deceased 4
248	248	retiree’s spouse or dependent child who receives an Option 1, Option 4, or Option 7 benefit 5
249	249	under Division II of this article [or], a lump–sum payment of benefits under the Maryland 6
250	250	Transit Administration Retirement Plan under § 7–206 of the Transportation Article, OR 7
251	251	A LUMP–SUM PAYMENT OF BENEF ITS FROM THE BALTIMORE CITY FIRE AND 8
252	252	POLICE RETIREMENT SYSTEM. 9
253	253
254	254	(4) (i) If a retiree receives a State disability retirement allowance or has 10
255	255	25 or more years of creditable service, the retiree or the retiree’s surviving spouse or 11
256	256	dependent child is entitled to the same State subsidy allowed a State employee. 12
257	257
258	258	(ii) In all other cases, if a retiree has at least 10 years of creditable 13
259	259	service, the retiree or the retiree’s surviving spouse or dependent child is entitled to 1/25 of 14
260	260	the State subsidy allowed a State employee for each year of the retiree’s creditable service 15
261	261	up to 25 years. 16
262	262
263	263	(iii) Notwithstanding subparagraph (ii) of this paragraph and 17
264	264	subsection (a)(4)(i) of this section, if a retiree is an additional employee or agent of the State 18
265	265	Racing Commission, for the purposes of determining a retiree’s State subsidy, creditable 19
266	266	service shall be determined with respect to service as an additional employee or agent 20
267	267	beginning from the initial date of employment. 21
268	268
269	269	(d) (1) Notwithstanding subsections (b) and (c) of this section and §§ 2–509 and 22
270	270	2–509.1 of this subtitle, the State may establish separate health insurance benefit options 23
271	271	for retirees that differ from those for active State employees. 24
272	272
273	273	(2) Subject to § 2–509.1 of this subtitle, on or after July 1, 2011, the health 25
274	274	insurance benefit option for retirees shall include a prescription drug benefit that: 26
275	275
276	276	(i) has the same co–payments, coinsurance, and deductible that 27
277	277	apply to the prescription drug benefit for active State employees; 28
278	278
279	279	(ii) requires: 29
280	280
281	281	1. retirees who qualify for the maximum State subsidy to pay 30
282	282	25% of the premium for the prescription drug benefit; and 31
283	283
284	284	2. retirees who qualify for a partial State subsidy to pay 25% 32
285	285	of the premium for the prescription drug benefit plus the proportional additional amount 33
286	286	required under subsections (b)(4)(ii) and (c)(4)(ii) of this section; and 34
287	287
288	288	(iii) requires retirees to pay out–of–pocket limits equal to: 35 SENATE BILL 632 7
289	289
290	290
291	291
292	292	1. $1,500 for the retiree only; and 1
293	293
294	294	2. $2,000 for the retiree and the retiree’s family. 2
295	295
296	296	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 3
297	297	1, 2023. 4
298	298
299	299