EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0632*
SENATE BILL 632
P6 3lr0674
HB 1294/22 – APP
By: Senator Mautz
Introduced and read first time: February 6, 2023
Assigned to: Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
State Employee and Retiree Health and Welfare Benefits Program – BWI 2
Airport Fire and Rescue Department – Employees and Dependents 3
FOR the purpose of authorizing certain retirees who began employment with the BWI 4
Airport Fire and Rescue Department before a certain date and who are receiving a 5
retirement allowance from the Baltimore City Fire and Police Retirement System to 6
participate in the State Employee and Retiree Health and Welfare Benefits Program; 7
authorizing certain spouses and dependent children of certain deceased retirees to 8
participate in the Program; and generally relating to the State Employee and Retiree 9
Health and Welfare Benefits Program. 10
BY repealing and reenacting, with amendments, 11
Article – State Personnel and Pensions 12
Section 2–508 13
Annotated Code of Maryland 14
(2015 Replacement Volume and 2022 Supplement) 15
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16
That the Laws of Maryland read as follows: 17
Article – State Personnel and Pensions 18
2–508. 19
(a) (1) In this section the following words have the meanings indicated. 20
(2) “Creditable service” means: 21
(i) service credited toward a retirement allowance under Division II 22
of this article; 23
2 SENATE BILL 632
(ii) service while a member of the Judges’ Retirement System under 1
Title 27 of this article; 2
(iii) service while an employee was employed by the Domestic 3
Relations Division of the Anne Arundel County Circuit Court, prior to transfer on or before 4
July 1, 2002 into the State Personnel Management System, in accordance with § 2–510 of 5
the Courts Article; [or] 6
(iv) service while a member of the Maryland Transit Administration 7
Retirement Plan under § 7–206 of the Transportation Article; OR 8
(V) SERVICE WHILE AN EMP LOYEE WAS EMPLOYED B Y THE BWI 9
AIRPORT FIRE AND RESCUE DEPARTMENT IF THE EMPLOYEE : 10
1. BEGAN EMPLOYMENT WIT H THE BWI AIRPORT FIRE 11
AND RESCUE DEPARTMENT BEFORE OCTOBER 1, 1993; AND 12
2. RECEIVES A RETIREMENT ALLOWAN CE FROM THE 13
BALTIMORE CITY FIRE AND POLICE RETIREMENT SYSTEM. 14
(3) (i) “Retiree” means: 15
1. a former State employee who receives a retirement 16
allowance under Division II of this article; 17
2. a former employee of the Medical System Corporation, as 18
defined in § 13–301 or § 13–401 of the Education Article, who receives a retirement 19
allowance from the Employees’ Retirement System of the State of Maryland or the 20
Employees’ Pension System of the State of Maryland under Title 22 or Title 23 of this 21
article; [or] 22
3. a former employee of the Maryland Transit 23
Administration who receives a Maryland Transit Administration retirement allowance 24
under § 7–206 of the Transportation Article; OR 25
4. A FORMER EMPLOYEE OF THE BWI AIRPORT FIRE 26
AND RESCUE DEPARTMENT WHO : 27
A. BEGAN EMPLOYMENT WIT H THE BWI AIRPORT FIRE 28
AND RESCUE DEPARTMENT BEFORE OCTOBER 1, 1993; AND 29
B. RECEIVES A RETIREMEN T ALLOWANCE FROM THE 30
BALTIMORE CITY FIRE AND POLICE RETIREMENT SYSTEM. 31
(ii) “Retiree” does not include: 32 SENATE BILL 632 3
1. a member of the faculty or staff of a community college; 1
2. a teacher or a staff member employed by a county board of 2
education; or 3
3. an individual who retired under an optional program 4
under Title 30 of this article. 5
(4) (I) “State service” means service with the State by: 6
[(i)] 1. an employee while a member of the Employees’ 7
Retirement System or the Employees’ Pension System under Title 22 or Title 23 of this 8
article; 9
[(ii)] 2. a member of the Judges’ Retirement System under Title 10
27 of this article; 11
[(iii)] 3. a teacher while a member of the Teachers’ Retirement 12
System or Teachers’ Pension System under Title 22 or Title 23 of this article; 13
[(iv)] 4. a correctional officer, while a member of the Correctional 14
Officers’ Retirement System under Title 25 of this article; 15
[(v)] 5. an employee of the Medical System Corporation, as 16
defined in § 13–301 or § 13–401 of the Education Article, while a member of the Employees’ 17
Retirement System of the State of Maryland or the Employees’ Pension System of the State 18
of Maryland under Title 22 or Title 23 of this article; 19
[(vi)] 6. a State Police officer while a member of the State Police 20
Retirement System under Title 24 of this article; 21
[(vii)] 7. a law enforcement officer while a member of the Law 22
Enforcement Officers’ Pension System under Title 26 of this article; or 23
[(viii)] 8. an employee while a member of the Maryland Transit 24
Administration Plan under § 7–206 of the Transportation Article. 25
(II) “STATE SERVICE” INCLUDES SERVICE BY AN EMPLOYEE OF 26
THE BWI AIRPORT FIRE AND RESCUE DEPARTMENT WHILE A MEMBER OF TH E 27
BALTIMORE CITY FIRE AND POLICE RETIREMENT SYSTEM IF THE EMPLOYE E 28
BEGAN EMPLOYMENT WITH THE BWI AIRPORT FIRE AND RESCUE DEPARTMENT 29
BEFORE OCTOBER 1, 1993. 30
(b) (1) This subsection applies to a retiree who: 31
4 SENATE BILL 632
(i) began State service on or before June 30, 2011; or 1
(ii) 1. began State service on or after July 1, 2011; and 2
2. is a retiree of the Judges’ Retirement System. 3
(2) A retiree may enroll and participate in the health insurance benefit 4
options established under the Program if the retiree: 5
(i) ended State service with at least 10 years of creditable service 6
and within 5 years before the age at which a vested retirement allowance normally would 7
begin; 8
(ii) ended State service with at least 16 years of creditable service; 9
(iii) ended State service on or before June 30, 1984; 10
(iv) retired directly from State service with a State retirement 11
allowance on or after July 1, 1984, and had at least 5 years of creditable service; 12
(v) retired directly from State service with a State disability 13
retirement allowance on or after July 1, 1984; or 14
(vi) retired directly from State service in the Judges’ Retirement 15
System at the mandatory retirement age required by Article IV, § 3 of the Maryland 16
Constitution with less than 5 years of creditable service. 17
(3) (i) The surviving spouse or dependent child of a deceased retiree 18
who was eligible to enroll may enroll and participate in the health insurance benefit options 19
established under the Program as long as the spouse or child is receiving a periodic 20
allowance under Division II of this article [or], the Maryland Transit Administration 21
Retirement Plan under § 7–206 of the Transportation Article, OR THE BALTIMORE CITY 22
FIRE AND POLICE RETIREMENT SYSTEM. 23
(ii) Subparagraph (i) of this paragraph does not apply to a deceased 24
retiree’s spouse or dependent child who receives an Option 1, Option 4, or Option 7 benefit 25
under Division II of this article [or], a lump–sum payment of benefits under the Maryland 26
Transit Administration Retirement Plan under § 7–206 of the Transportation Article, OR 27
A LUMP–SUM PAYMENT OF BENEF ITS FROM THE BALTIMORE CITY FIRE AND 28
POLICE RETIREMENT SYSTEM. 29
(4) (i) If a retiree receives a State disability retirement allowance or has 30
16 or more years of creditable service, the retiree or the retiree’s surviving spouse or 31
dependent child is entitled to the same State subsidy allowed a State employee. 32
(ii) In all other cases, if a retiree has at least 5 years of creditable 33 SENATE BILL 632 5
service, the retiree or the retiree’s surviving spouse or dependent child is entitled to 1/16 of 1
the State subsidy allowed a State employee for each year of the retiree’s creditable service 2
up to 16 years. 3
(iii) Notwithstanding subparagraph (ii) of this paragraph and 4
subsection (a)(4)(i) of this section, if a retiree is an additional employee or agent of the State 5
Racing Commission, for the purposes of determining a retiree’s State subsidy, creditable 6
service shall be determined with respect to service as an additional employee or agent 7
beginning from the initial date of employment or January 1, 1986, whichever is later. 8
(iv) 1. This paragraph applies only to a retiree of the Judges’ 9
Retirement System who retired directly from State service at the mandatory retirement 10
age required by Article IV, § 3 of the Maryland Constitution with less than 5 years of 11
creditable service. 12
2. Notwithstanding subparagraph (ii) of this paragraph, a 13
retiree of the Judges’ Retirement System or the retiree’s surviving spouse or dependent 14
child is entitled to 1/16 of the State subsidy allowed a State employee for each year of the 15
retiree’s creditable service. 16
(c) (1) (i) Except as provided in subparagraph (ii) of this paragraph, this 17
subsection applies to a retiree who begins State service on or after July 1, 2011. 18
(ii) This subsection does not apply to: 19
1. a retiree of the Judges’ Retirement System; or 20
2. a former Governor of Maryland who began serving as 21
Governor on or after January 21, 2015. 22
(2) A retiree may enroll and participate in the health insurance benefit 23
options established under the Program if the retiree: 24
(i) ends State service with at least 25 years of creditable service; 25
(ii) ends State service with at least 10 years of creditable service 26
within 5 years before the age at which a vested retirement allowance normally would begin; 27
(iii) retires directly from State service with a State retirement 28
allowance and has 10 years of creditable service; or 29
(iv) retires directly from State service with a State disability 30
retirement allowance. 31
(3) (i) The surviving spouse or dependent child of a deceased retiree 32
who was eligible to enroll may enroll and participate in the health insurance benefit options 33
established under the Program as long as the spouse or child is receiving a periodic 34 6 SENATE BILL 632
allowance under Division II of this article [or], the Maryland Transit Administration 1
Retirement Plan under § 7–206 of the Transportation Article, OR THE BALTIMORE CITY 2
FIRE AND POLICE RETIREMENT SYSTEM. 3
(ii) Subparagraph (i) of this paragraph does not apply to a deceased 4
retiree’s spouse or dependent child who receives an Option 1, Option 4, or Option 7 benefit 5
under Division II of this article [or], a lump–sum payment of benefits under the Maryland 6
Transit Administration Retirement Plan under § 7–206 of the Transportation Article, OR 7
A LUMP–SUM PAYMENT OF BENEF ITS FROM THE BALTIMORE CITY FIRE AND 8
POLICE RETIREMENT SYSTEM. 9
(4) (i) If a retiree receives a State disability retirement allowance or has 10
25 or more years of creditable service, the retiree or the retiree’s surviving spouse or 11
dependent child is entitled to the same State subsidy allowed a State employee. 12
(ii) In all other cases, if a retiree has at least 10 years of creditable 13
service, the retiree or the retiree’s surviving spouse or dependent child is entitled to 1/25 of 14
the State subsidy allowed a State employee for each year of the retiree’s creditable service 15
up to 25 years. 16
(iii) Notwithstanding subparagraph (ii) of this paragraph and 17
subsection (a)(4)(i) of this section, if a retiree is an additional employee or agent of the State 18
Racing Commission, for the purposes of determining a retiree’s State subsidy, creditable 19
service shall be determined with respect to service as an additional employee or agent 20
beginning from the initial date of employment. 21
(d) (1) Notwithstanding subsections (b) and (c) of this section and §§ 2–509 and 22
2–509.1 of this subtitle, the State may establish separate health insurance benefit options 23
for retirees that differ from those for active State employees. 24
(2) Subject to § 2–509.1 of this subtitle, on or after July 1, 2011, the health 25
insurance benefit option for retirees shall include a prescription drug benefit that: 26
(i) has the same co–payments, coinsurance, and deductible that 27
apply to the prescription drug benefit for active State employees; 28
(ii) requires: 29
1. retirees who qualify for the maximum State subsidy to pay 30
25% of the premium for the prescription drug benefit; and 31
2. retirees who qualify for a partial State subsidy to pay 25% 32
of the premium for the prescription drug benefit plus the proportional additional amount 33
required under subsections (b)(4)(ii) and (c)(4)(ii) of this section; and 34
(iii) requires retirees to pay out–of–pocket limits equal to: 35 SENATE BILL 632 7
1. $1,500 for the retiree only; and 1
2. $2,000 for the retiree and the retiree’s family. 2
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 3
1, 2023. 4