EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0009*
HOUSE BILL 9
P6 4lr0455
HB 790/23 – APP (PRE–FILED)
By: Delegate Crosby
Requested: August 4, 2023
Introduced and read first time: January 10, 2024
Assigned to: Appropriations
A BILL ENTITLED
AN ACT concerning 1
State Retirement and Pension System – Forfeiture of Benefits 2
FOR the purpose of establishing that a public employee is subject to forfeiture of benefits 3
from the State Retirement and Pension System when the public employee is found 4
guilty of, pleads guilty to, or enters a plea of nolo contendere to a qualifying crime; 5
providing for the processes and procedures to implement a forfeiture of benefits; 6
providing for the processes and procedures to reverse a forfeiture of benefits; and 7
generally relating to the forfeiture of pension benefits. 8
BY repealing and reenacting, with amendments, 9
Article – State Personnel and Pensions 10
Section 21–502(a)(3) 11
Annotated Code of Maryland 12
(2015 Replacement Volume and 2023 Supplement) 13
BY adding to 14
Article – State Personnel and Pensions 15
Section 21–801 through 21–809 to be under the new subtitle “Subtitle 8. Forfeiture 16
of Benefits” 17
Annotated Code of Maryland 18
(2015 Replacement Volume and 2023 Supplement) 19
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
That the Laws of Maryland read as follows: 21
Article – State Personnel and Pensions 22
21–502. 23
(a) (3) A court of competent jurisdiction may expressly order that a benefit 24 2 HOUSE BILL 9
under this Division II be assigned to a spouse, former spouse, child, or other dependent 1
when [an order of benefit forfeiture is issued] A FORFEITURE OF BENE FITS OCCURS in 2
accordance with § 21–704 OR § 21–804 of this title. 3
SUBTITLE 8. FORFEITURE OF BENEFITS. 4
21–801. 5
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 6
INDICATED. 7
(B) “DOMESTIC RELATIONS OR DER” MEANS AN ORDER ISSUE D IN 8
ACCORDANCE WITH § 21–502(A)(2) OF THIS TITLE, § 414(P) OF THE INTERNAL 9
REVENUE CODE, AND REGULATIONS ADOP TED BY THE BOARD OF TRUSTEES THAT 10
ASSIGNS A BENEFIT TO A SPOUSE, A FORMER SPOUSE , A CHILD, OR ANY OTHER 11
DEPENDENT OF A PUBLI C EMPLOYEE IN CONNEC TION WITH A DECREE O R ORDER OF 12
ALIMONY, CHILD SUPPORT , OR DIVORCE. 13
(C) “FINAL ADJUDICATION ” MEANS ADJUDICATION B Y A TRIAL COURT 14
RESULTING IN FINAL D ISPOSITION OF ALL CH ARGES THAT CONSTITUT E A 15
QUALIFYING CRIME . 16
(D) “PUBLIC EMPLOYEE ” MEANS AN INDIVIDUAL WHO: 17
(1) IS LISTED IN § 21–802 OF THIS SUBTITLE; AND 18
(2) HAS BEEN CHARGED WIT H A QUALIFYING CRIME . 19
(E) “QUALIFYING CRIME” MEANS A CRIMINAL OFF ENSE UNDER § 3–303, § 20
3–304, § 3–309, OR § 3–310 OF THE CRIMINAL LAW ARTICLE THAT IS COMMI TTED IN 21
THE COURSE OF THE PE RFORMANCE OF THE PUB LIC EMPLOYEE ’S DUTIES AND 22
RESPONSIBILITIES . 23
(F) “RETIREMENT ALLOWANCE ”: 24
(1) HAS THE MEANING STATED IN § 20–101 OF THIS ARTICLE; AND 25
(2) INCLUDES A VESTED AL LOWANCE. 26
(G) “VESTED ALLOWANCE ” HAS THE MEANING STAT ED IN § 20–101 OF THIS 27
ARTICLE. 28
21–802. 29 HOUSE BILL 9 3
(A) THIS SUBTITLE APPLIES TO AN INDIVIDUAL WHO IS A MEMBER, FORMER 1
MEMBER, OR RETIREE OF: 2
(1) THE STATE POLICE RETIREMENT SYSTEM; 3
(2) THE LAW ENFORCEMENT OFFICERS’ PENSION SYSTEM; 4
(3) THE EMPLOYEES’ PENSION SYSTEM OR THE EMPLOYEES’ 5
RETIREMENT SYSTEM; 6
(4) THE TEACHERS’ PENSION SYSTEM OR THE TEACHERS’ 7
RETIREMENT SYSTEM; 8
(5) THE CORRECTIONAL OFFICERS’ RETIREMENT SYSTEM; OR 9
(6) THE JUDGES’ RETIREMENT SYSTEM. 10
(B) THIS SUBTITLE DOES NO T APPLY TO ANY SERVI CE EARNED BEFORE 11
JULY 1, 2024. 12
21–803. 13
(A) BENEFITS UNDER THIS DIVISION II OF THIS ARTICLE PAYA BLE TO A 14
PUBLIC EMPLOYEE ARE SUBJECT TO FORFEITURE IN ACC ORDANCE WITH THIS 15
SUBTITLE IF THE PUBL IC EMPLOYEE IS FOUND GUILTY OF, PLEADS GUILTY TO , OR 16
ENTERS A PLEA OF NOL O CONTENDERE TO A QU ALIFYING CRIME . 17
(B) (1) BENEFITS UNDER THIS DIVISION II MAY NOT BE FORFEITED OR 18
REDUCED IF THE INTERNAL REVENUE SERVICE DETERMINES TH AT THE 19
FORFEITURE OR REDUCT ION WILL NEGATIVELY AFFECT OR INVALIDATE THE TAX 20
QUALIFIED STATUS OF ANY OF THE SEVERAL S YSTEMS. 21
(2) IF THE INTERNAL REVENUE SERVICE DETERMINES TH AT THE 22
APPLICATION OF THIS SUBTITLE WOULD NEGATIV ELY AFFECT OR INVALI DATE THE 23
TAX QUALIFIED STATUS OF ANY OF THE SEVERA L SYSTEMS, ANY FORFEITURE OF 24
BENEFITS THAT TOOK P LACE BEFORE THE INTERNAL REVENUE SERVICE’S 25
DETERMINATION SHALL BE REVERSED IN ACCOR DANCE WITH § 21–807 OF THIS 26
SUBTITLE TO THE EXTENT NEC ESSARY TO COMPLY WIT H THE DETERMINATION . 27
21–804. 28
(A) IF THE FINAL ADJUDICA TION OF CHARGES RESU LTS IN CONVICTION OF 29 4 HOUSE BILL 9
A PUBLIC EMPLOYEE , THE PUBLIC EMPLOYEE ’S RETIREMENT ALLOWAN CE SHALL BE 1
FORFEITED IN ACCORDA NCE WITH THIS SECTIO N. 2
(B) (1) EXCEPT AS PROVIDED UN DER SUBSECTIONS (C), (D), AND (E) OF 3
THIS SECTION, BENEFITS MAY NOT BE PAID TO A PUBLIC EMP LOYEE IF THE BOARD 4
OF TRUSTEES FINDS BY CLE AR AND CONVINCING EV IDENCE THAT: 5
(I) THE PUBLIC EMPLOYEE WAS CONVICTED OF A Q UALIFYING 6
CRIME; 7
(II) THE PUBLIC EMPLOYEE WAS A MEMBER OF THE STATE 8
POLICE RETIREMENT SYSTEM, THE LAW ENFORCEMENT OFFICERS’ PENSION 9
SYSTEM, THE EMPLOYEES’ PENSION SYSTEM, THE EMPLOYEES’ RETIREMENT 10
SYSTEM, THE TEACHERS’ PENSION SYSTEM, THE TEACHERS’ RETIREMENT 11
SYSTEM, THE CORRECTIONAL OFFICERS’ RETIREMENT SYSTEM, OR THE JUDGES’ 12
RETIREMENT SYSTEM; AND 13
(III) THE QUALIFYING CRIME FOR WHICH THE PUBLIC 14
EMPLOYEE WAS CONVICT ED WAS COMMITTED WHI LE THE PUBLIC EMPLOY EE WAS 15
AN ACTIVE MEMBER OF THE STATE POLICE RETIREMENT SYSTEM, THE LAW 16
ENFORCEMENT OFFICERS’ PENSION SYSTEM, THE EMPLOYEES’ PENSION SYSTEM, 17
THE EMPLOYEES’ RETIREMENT SYSTEM, THE TEACHERS’ PENSION SYSTEM, THE 18
TEACHERS’ RETIREMENT SYSTEM, THE CORRECTIONAL OFFICERS’ RETIREMENT 19
SYSTEM, OR THE JUDGES’ RETIREMENT SYSTEM. 20
(2) ONLY SERVICE CREDIT I N THE STATE SYSTEM IN WHICH THE 21
PUBLIC EMPLOYEE IS A MEMBER WHEN THE QUAL IFYING CRIME IS COMM ITTED IS 22
ELIGIBLE FOR FORFEIT URE UNDER THIS SECTI ON. 23
(C) (1) A PUBLIC EMPLOYEE CONV ICTED OF A QUALIFYIN G CRIME MAY, 24
WITHIN 1 YEAR AFTER THE CONVIC TION, FILE A CLAIM IN CIRC UIT COURT FOR A 25
PARTIAL PAYMENT OF T HE PUBLIC EMPLOYEE ’S RETIREMENT ALLOWAN CE. 26
(2) NOTICE OF THE CLAIM F ILED UNDER PARAGRAPH (1) OF THIS 27
SUBSECTION SHALL BE SERVED ON THE STATE RETIREMENT AGENCY. 28
(3) WHEN CONSIDERING A CLAIM OF A PUBLIC EMPLOYEE UNDER 29
PARAGRAPH (1) OF THIS SUBSECTION , THE COURT SHALL CONS IDER: 30
(I) THE SEVERITY OF THE CRIME; 31
(II) THE AMOUNT OF MONETA RY LOSS SUFFERED BY THE 32
STATE, A COUNTY, A POLITICAL SUBDIVIS ION, OR A PERSON AS A R ESULT OF THE 33
CRIME; 34 HOUSE BILL 9 5
(III) THE DEGREE OF PUBLIC TRUST PLACED IN THE PUBLIC 1
EMPLOYEE; 2
(IV) THE FINANCIAL NEEDS AND RESOURCES OF THE PUBLIC 3
EMPLOYEE; 4
(V) THE FINANCIAL NEEDS AND RESOURCES OF THE PUBLIC 5
EMPLOYEE’S SPOUSE, CHILDREN, OR OTHER DEPENDE NTS; 6
(VI) ANY INTEREST IN BENE FITS OF A FORMER SPO USE 7
ESTABLISHED UNDER AN EXISTING DOMESTIC RE LATIONS ORDER ; AND 8
(VII) ANY OTHER FACTORS TH E COURT DETERMINES R ELEVANT. 9
(D) (1) A SPOUSE, A FORMER SPOUSE , A CHILD, OR ANY OTHER 10
DEPENDENT OF A PUBLIC EMPLOYEE CONV ICTED OF A QUALIFYIN G CRIME MAY , 11
WITHIN 1 YEAR AFTER THE CONVI CTION, FILE A CLAIM IN CIRC UIT COURT FOR A 12
PARTIAL PAYMENT OF T HE PUBLIC EMPLOYEE ’S RETIREMENT ALLOWAN CE FOR 13
PURPOSES OF CHILD SU PPORT, ALIMONY, OR MARITAL PROPERTY RIGHTS. 14
(2) NOTICE OF THE CLAIM F ILED UNDER PARAGRAPH (1) OF THIS 15
SUBSECTION SHALL BE SERVED ON THE STATE RETIREMENT AGENCY. 16
(3) THE COURT MAY ENTER A DOMESTIC RELATIONS O RDER THAT 17
PROVIDES THAT SOME O R ALL OF THE FORFEIT ED BENEFITS BE PAID TO A SPOUSE, 18
A FORMER SPOUSE, A CHILD, OR ANY OTHER DEPENDE NT FOR PURPOSES OF C HILD 19
SUPPORT, ALIMONY, OR MARITAL PROPERTY RIGHTS. 20
(4) WHEN DETERMINING WHET HER TO ENTER A DOMES TIC 21
RELATIONS ORDER UNDE R THIS SUBSECTION , THE COURT SHALL CONS IDER 22
WHETHER THE PUBLIC E MPLOYEE’S SPOUSE, FORMER SPOUSE , CHILDREN, OR 23
OTHER DEPENDENTS WER E CULPABLE OR COMPLI CIT IN THE COMMISSIO N OF THE 24
QUALIFYING CRIME . 25
(5) THE COURT MAY NOT ORD ER BENEFITS TO BE PA ID TO A PUBLIC 26
EMPLOYEE’S SPOUSE, FORMER SPOUSE , CHILD, OR OTHER DEPENDENT I N A 27
MANNER THAT IS INCONSIS TENT WITH THE PAYMEN T OF BENEFITS IN THE STATE 28
SYSTEM IN WHICH THE PUBLIC EMPLOYEE WAS A MEMBER. 29
(E) (1) A FORFEITURE OF BENEFI TS UNDER THIS SECTIO N MAY NOT 30
IMPAIR OR ALTER AN E XISTING DOMESTIC REL ATIONS ORDER PROVIDI NG BENEFITS 31
TO A FORMER SPOUSE OF A P UBLIC EMPLOYEE . 32
6 HOUSE BILL 9
(2) A PUBLIC EMPLOYEE ’S INTEREST IN A BENE FIT OF A FORMER 1
SPOUSE ESTABLISHED B Y A DOMESTIC RELATIO NS ORDER MAY NOT BE SUBJECT TO 2
A FORFEITURE OR REDU CTION UNDER THIS SUB TITLE. 3
(F) BENEFITS AVAILABLE TO A PUBLIC EMPL OYEE AS A BENEFICIAR Y MAY 4
NOT BE SUBJECT TO A FORFEITURE UNDER THI S SUBTITLE. 5
21–805. 6
(A) IF A PUBLIC EMPLOYEE HAS RETIRED BEFORE B EING CONVICTED OF A 7
QUALIFYING CRIME , THE BOARD OF TRUSTEES MAY RECOVER FROM THE PUBLIC 8
EMPLOYEE THE AMOUNT OF BENEFITS PA ID TO THE PUBLIC EMP LOYEE BEFORE THE 9
CONVICTION. 10
(B) THE RECOVERY UNDER SU BSECTION (A) OF THIS SECTION IS L IMITED 11
TO AN AMOUNT EQUAL T O THE BENEFITS THAT WOULD HAVE BEEN FORF EITED HAD 12
THE CONVICTION OCCUR RED BEFORE THE PUBLI C EMPLOYEE BEGAN REC EIVING 13
ANY BENEFITS AS A RETIRE E. 14
21–806. 15
(A) THIS SECTION APPLIES TO A PUBLIC EMPLOYEE WHO IS NOT A RETIREE . 16
(B) SUBJECT TO SUBSECTION (C) OF THIS SECTION , A PUBLIC EMPLOYEE 17
MAY SUBMIT AN APPLIC ATION FOR RETIREMENT . 18
(C) IF A PUBLIC EMPLOYEE IS ELIGIBLE TO APPLY FOR A RETIREME NT 19
ALLOWANCE , A PUBLIC EMPLOYEE ’S APPLICATION FOR RE TIREMENT BENEFITS : 20
(1) SHALL BE CONSIDERED SUBMITTED ON THE FIR ST DAY OF THE 21
MONTH AFTER IT IS PR OPERLY COMPLETED AND SUBMITTED TO THE STATE 22
RETIREMENT AGENCY; AND 23
(2) MAY NOT BE PROCESSED BY THE STATE RETIREMENT AGENCY 24
UNLESS AND UNTIL THE FINAL ADJUDICATION O F THE CHARGE DOES NO T RESULT 25
IN CONVICTION. 26
21–807. 27
(A) (1) ON RECEIPT OF AN ORDE R THAT REVERSES OR O VERTURNS A 28
CONVICTION OF A PUBL IC EMPLOYEE, THE BOARD OF TRUSTEES SHALL RESCIND 29
THE FORFEITURE OF BE NEFITS AND PAY ANY B ENEFITS THAT ARE PAY ABLE UNDER 30
THIS DIVISION II OF THIS ARTICLE TO T HE PUBLIC EMPLOYEE . 31
HOUSE BILL 9 7
(2) WHEN A CONVICTION IS OVERTURNED , ANY DOMESTIC 1
RELATIONS ORDER ENTE RED IN ACCORDANCE WI TH § 21–804(D) OF THIS SUBTITLE 2
IS TERMINATED AND TH E BOARD OF TRUSTEES MAY NOT PAY ANY BENEFITS IN 3
ACCORDANCE WITH THE ORDER. 4
(B) IF A CONVICTION OF A PUBLIC EMPLOYEE WHO WAS A RETIREE BEFORE 5
THE DATE OF CONVICTI ON IS OVERTURNED : 6
(1) THE PUBLIC EMPLOYEE ’S BENEFITS SHALL BE RESTORED BACK 7
TO THE DATE THE BENE FIT PAYMENTS CEASED ; 8
(2) THE ALLOWANCE SHALL : 9
(I) BE PAID BEGINNING TH E MONTH AFTER THE STATE 10
RETIREMENT AGENCY IS NOTIFIED TH AT THE CONVICTION IS OVERTURNED ; AND 11
(II) INCLUDE ANY COST –OF–LIVING ADJUSTMENTS T HAT 12
WOULD HAVE BEEN MADE IN THE TIME BETWEEN THE CONVICTION AND T HE TIME 13
BENEFIT PAYMENTS ARE RESTORED; AND 14
(3) BENEFIT PAYMENTS THA T WOULD HAVE BEEN MA DE DURING THE 15
TIME FROM THE DATE O F CONVICTION TO THE DATE THE CONVICTION IS 16
OVERTURNED SHALL BE MADE TO THE PUBLIC EMPLOY EE, LESS ANY PAYMENTS : 17
(I) MADE IN ACCORDANCE W ITH A DOMESTIC RELAT IONS 18
ORDER DIRECTING PAYM ENT OF BENEFITS TO A SPOUSE, A FORMER SPOUSE , A 19
CHILD, OR ANY OTHER DEPENDE NT; AND 20
(II) RECEIVED BY THE PUBL IC EMPLOYEE IN ACCOR DANCE 21
WITH AN ORDER ISSUED UNDER § 21–804 GRANTING THE PUBLIC EMPLOYEE A 22
PARTIAL PAYMENT OF B ENEFITS. 23
(C) IF A CONVICTION OF A PUBLIC EMPLOYEE WHO WAS NOT A RETIREE 24
BEFORE THE DATE OF C ONVICTION IS OVERTUR NED, THE PUBLIC EMPLOYEE MAY 25
RECEIVE BENEFITS IN ACCORDANCE WITH THIS DIVISION II OF THIS ARTICLE. 26
21–808. 27
(A) EXCEPT AS PROVIDED UN DER SUBSECTION (B) OF THIS SECTION , A 28
PUBLIC EMPLOYEE SUBJ ECT TO A FORFEITURE UNDER THIS SUBTITLE IS ENTITLED 29
TO A RETURN OF THE I NDIVIDUAL’S ACCUMULATED CONTRI BUTIONS ON REQUE ST 30
UNDER § 29–501 OF THIS ARTICLE. 31
(B) THE PUBLIC EMPLOYEE ’S ACCUMULATED CONTRI BUTIONS SHALL BE 32 8 HOUSE BILL 9
REDUCED BY AN AMOUNT EQUAL TO ANY BENEFIT PAYMENTS RECEIVED BY THE 1
PUBLIC EMPLOYEE THAT WOULD HAVE BEEN SUBJ ECT TO FORFEITURE AN D HAVE 2
NOT BEEN RECOVERED B Y THE BOARD OF TRUSTEES UNDER § 21–805 OF THIS 3
SUBTITLE. 4
21–809. 5
THE BOARD OF TRUSTEES SHALL ADOPT REGULATIONS TO IMPLE MENT THIS 6
SUBTITLE. 7
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall be construed to 8
apply only prospectively and may not be applied or interpreted to have any effect on or 9
application to any crime committed before the effective date of this Act. 10
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 11
1, 2024. 12