Maryland 2024 Regular Session

Maryland Senate Bill SB322 Compare Versions

Version 1 (Old)

Version 2 (New)

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		-	Underlining indicates amendments to bill.
6		-	Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7		-	amendment.
8	5		sb0322
9	6
10	7		SENATE BILL 322
11	8		P6 4lr1702
12	9		SB 6/23 – B&T
13	10		By: Senator Jackson
14	11		Introduced and read first time: January 12, 2024
15	12		Assigned to: Budget and Taxation
16		-	Committee Report: Favorable
17		-	Senate action: Adopted
18		-	Read second time: February 25, 2024
19	13
20		-	~~CHAPTER ______~~
	14	+	A BILL ENTITLED
21	15
22	16		AN ACT concerning 1
23	17
24	18		Maryland Teachers and State Employees Supplemental Retirement Plans – 2
25	19		Automatic Enrollment 3
26	20
27	21		FOR the purpose of requiring the State Board of Trustees of the Maryland Teachers and 4
28	22		State Employees Supplemental Retirement Plans to implement an automatic 5
29	23		enrollment arrangement for certain State employees; requiring an eligible employer 6
30	24		to deduct wages of an employee for contribution to a supplemental retirement plan 7
31	25		in accordance with an automatic enrollment arrangement, unless the employee has 8
32	26		elected to withdraw from or cease to contribute to the supplemental retirement plan; 9
33	27		and generally relating to the automatic enrollment of State employees into 10
34	28		supplemental retirement plans. 11
35	29
36	30		BY repealing and reenacting, with amendments, 12
37	31		Article – State Personnel and Pensions 13
38	32		Section 35–101 14
39	33		Annotated Code of Maryland 15
40	34		(2015 Replacement Volume and 2023 Supplement) 16
41	35
42	36		BY adding to 17
43	37		Article – State Personnel and Pensions 18
44	38		Section 35–206 19
45	39		Annotated Code of Maryland 20
46	40		(2015 Replacement Volume and 2023 Supplement) 21
47	41
48		-	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 22 2 SENATE BILL 322
	42	+	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 22
	43	+	That the Laws of Maryland read as follows: 23
	44	+
	45	+	Article – State Personnel and Pensions 24
	46	+
	47	+	35–101. 25
	48	+	2 SENATE BILL 322
49	49
50	50
51		-	~~That~~ the ~~Laws of Maryland read as follows:~~ 1
	51	+	(a) In this title the following words have the meanings indicated. 1
52	52
53		-	Article – State Personnel and Pensions 2
	53	+	(B) “AUTOMATIC ENROLLMENT ARRANG EMENT” MEANS A SUPPLEMENTAL 2
	54	+	PLAN PROVISION THAT REQUIRES AN ELIGIBLE EMPLOYER TO DEDUCT E LECTIVE 3
	55	+	DEFERRALS FROM AN EM PLOYEE’S WAGES FOR CONTRIBU TION TO A 4
	56	+	SUPPLEMENTAL RETIREM ENT PLAN UNLESS THE EMPLOYEE MAKES AN EL ECTION 5
	57	+	NOT TO CONTRIBU TE OR TO CONTRIBUTE A DIFFERENT AMOUNT . 6
54	58
55		-	35–101. 3
	59	+	[(b)] (C) “Board” means the State Board of Trustees of the Maryland Teachers 7
	60	+	and State Employees Supplemental Retirement Plans. 8
56	61
57		-	(a) In this title the following words have the meanings indicated. 4
	62	+	(D) “ELIGIBLE EMPLOYER ” MEANS THE EMPLOYER O F AN INDIVIDUAL 9
	63	+	ELIGIBLE TO PARTICIP ATE IN A SUPPLEMENTAL RE TIREMENT PLAN . 10
58	64
59		-	(B) “AUTOMATIC ENROLLMENT ARRANGEMENT ” MEANS A SUPPLEMENTAL 5
60		-	PLAN PROVISION THAT REQUIRES AN ELIGIBLE EMPLOYER TO DEDUCT E LECTIVE 6
61		-	DEFERRALS FROM AN EM PLOYEE’S WAGES FOR CONTRIBUTION TO A 7
62		-	SUPPLEMENTAL RETIREM ENT PLAN UNLESS THE EMPLOYEE MAKES AN EL ECTION 8
63		-	NOT TO CONTRIBUTE OR TO CONTRIBUTE A DIFF ERENT AMOUNT . 9
	65	+	[(c)] (E) “Supplemental retirement plans” means the deferred compensation, 11
	66	+	tax sheltered annuity, salary reduction savings plans, and any other plans authorized by 12
	67	+	this title. 13
64	68
65		-	[(b)] (C) “Board” means the State Board of Trustees of the Maryland Teachers 10
66		-	and State Employees Supplemental Retirement Plans. 11
	69	+	35–206. 14
67	70
68		-	(D) “ELIGIBLE EMPLOYER ” MEANS THE EMPLOYER O F AN INDIVIDUAL 12
69		-	ELIGIBLE TO PARTICIP ATE IN A SUPPLEMENTA L RETIREMENT PLAN . 13
	71	+	(A) THE BOARD SHALL IMPLEMENT AN AUTOMATIC ENROLLMENT 15
	72	+	ARRANGEMENT TO AUTOM ATICALLY ENROLL ALL STATE EMPLOYEES HIRED ON OR 16
	73	+	AFTER JANUARY 1, 2025, IN A SUPPLEMENTAL RE TIREMENT PLAN . 17
70	74
71		-	[(c)] (E) “Supplemental retirement plans” means the deferred compensation, 14
72		-	tax sheltered annuity, salary reduction savings plans, and any other plans authorized by 15
73		-	this title. 16
	75	+	(B) (1) NOTWITHSTANDING ANY O THER PROVISION OF LA W, AN ELIGIBLE 18
	76	+	EMPLOYER SHALL DEDUC T AN AMOUNT FROM THE WAGES OF AN EMPLOYEE FOR 19
	77	+	CONTRIBUTION TO A SU PPLEMENTAL RETIREMEN T PLAN AS PART OF AN 20
	78	+	AUTOMATIC ENROLLMENT ARRANGEMENT , UNLESS THE EMPLOYEE HAS ELECTED 21
	79	+	TO WITHDRAW FROM THE SUPPLEMENTAL RETIREM ENT PLAN OR CEASE MA KING 22
	80	+	CONTRIBUTIONS TO THE SUPPLEMENTAL RETIR EMENT PLAN. 23
74	81
75		-	35–206. 17
	82	+	(2) THE AMOUNT DEDUCTED F ROM THE WAGES OF AN EMPLOYEE 24
	83	+	EACH PAY PERIOD SHAL L BE THE MINIMUM AMO UNT SET BY THE BOARD, UNLESS 25
	84	+	THE EMPLOYEE ELECTS TO: 26
76	85
77		-	(A) THE BOARD SHALL IMPLEMENT AN AUTOMATIC ENROLLM ENT 18
78		-	ARRANGEMENT TO AUTOM ATICALLY ENROLL ALL STATE EMPLOYEES HIRED ON OR 19
79		-	AFTER JANUARY 1, 2025, IN A SUPPLEMENTAL RE TIREMENT PLAN . 20
	86	+	(I) HAVE A DIFFERENT AMO UNT DEDUCTED ; 27
80	87
81		-	(B) (1) NOTWITHSTANDING ANY O THER PROVISION OF LA W, AN ELIGIBLE 21
82		-	EMPLOYER SHALL DEDUC T AN AMOUNT FROM THE WAGES OF AN EMPLOYEE FOR 22
83		-	CONTRIBUTION TO A SU PPLEMENTAL RETIREMEN T PLAN AS PART OF AN 23
84		-	AUTOMATIC ENROLLMENT ARRANGEMENT , UNLESS THE EMPLOYEE HAS ELECTED 24
85		-	TO WITHDRAW FROM THE SUP PLEMENTAL RETIREMENT PLAN OR CEASE MAKING 25
86		-	CONTRIBUTIONS TO THE SUPPLEMENTAL RETIREM ENT PLAN. 26
	88	+	(II) CEASE MAKING CONTRIB UTIONS TO THE SUPPLE MENTAL 28
	89	+	RETIREMENT PLAN ; OR 29
87	90
88		-	(2) THE AMOUNT DEDUCTED F ROM THE WAGES OF AN EMPLOYEE 27
89		-	EACH PAY PERIOD SHAL L BE THE MINIMUM AMO UNT SET BY THE BOARD, UNLESS 28
90		-	THE EMPLOYEE ELEC TS TO: 29
	91	+	(III) WITHDRAW FROM THE SU PPLEMENTAL RETIREMEN T PLAN. 30
91	92
92		-	(I) HAVE A DIFFERENT AMO UNT DEDUCTED ; 30
93		-
94		-	(II) CEASE MAKING CONTRIB UTIONS TO THE SUPPLE MENTAL 31 SENATE BILL 322 3
95		-
96		-
97		-	RETIREMENT PLAN ; OR 1
98		-
99		-	(III) WITHDRAW FROM THE SU PPLEMENTAL RETIREMEN T PLAN. 2
100		-
101		-	(C) AN EMPLOYEE ENROLLED IN A SUPPLEMENTAL RE TIREMENT PLAN 3
102		-	UNDER AN AUTOMATIC ENROLLMENT ARRANGEMENT SHALL BE : 4
103		-
104		-	(1) PROVIDED A NOTICE WI TH AN EXPLANATION OF : 5
105		-
106		-	(I) THE TERMS OF THE EMP LOYEE’S ENROLLMENT IN THE 6
107		-	SUPPLEMENTAL RETIREM ENT PLAN, INCLUDING THE CURREN T CONTRIBUTION 7
108		-	AMOUNT PROVIDED FOR UNDER THE AUTOMATIC ENROLLMENT ARRANGEMENT ; 8
109		-
110		-	(II) THE EMPLOYEE ’S RIGHT TO INCREASE , DECREASE, OR 9
111		-	CEASE CONTRIBUTIONS TO THE SUPPLEMENTAL RETIREMENT PLAN ; 10
112		-
113		-	(III) THE EMPLOYEE ’S RIGHT TO DISCONTIN UE PARTICIPATION 11
114		-	IN THE SUPPLEMENTAL RETIREMENT PLAN WITH IN 90 DAYS AFTER THE STA RT OF 12
115		-	EMPLOYMENT ; 13
116		-
117		-	(IV) THE EMPLOYEE ’S RIGHT TO RECEIVE A REFUND OF THEIR 14
118		-	ACCOUNT CONTRIBUTION S AS SOON AS PRACTIC ABLE AFTER DISCONTIN UING 15
119		-	PARTICIPATION WITHIN 90 DAYS AFTER THE START OF EMPLOYMENT ; AND 16
120		-
121		-	(V) THE EMPLOYEE ’S RIGHTS REGARDING T HE INVESTMENT OF 17
122		-	THE EMPLOYEE ’S ACCOUNT AND THE IN VESTMENT OPTIONS AVA ILABLE UNDER THE 18
123		-	SUPPLEMENTAL RETIREM ENT PLAN; AND 19
124		-
125		-	(2) TREATED AS EXERCISIN G CONTROL OF THE ASS ETS IN THE 20
126		-	SUPPLEMENTAL RETIREM ENT PLAN ACCOUNT REG ARDING THE AMOUNT OF 21
127		-	CONTRIBUTIONS AND EA RNINGS. 22
128		-
129		-	(D) IF A PARTICIPANT IS E NROLLED IN A SUPPLEM ENTAL RETIREMENT 23
130		-	PLAN UNDER AN AUTOMA TIC ENROLLMENT ARRAN GEMENT, THE BOARD SHALL 24
131		-	INVEST THE PARTICIPA NT’S CONTRIBUTIONS IN A DESIGNATED DEFAULT 25
132		-	INVESTMENT OPTION IN ACCORDANCE WITH EACH APPLICABLE SUPPLEMEN TAL 26
133		-	RETIREMENT PLAN . 27
134		-
135		-	(E) EACH UNIT THAT HIRES AN ELIGIBLE EMPLOYEE WHO IS NOT ALREADY 28
136		-	ENROLLED IN A SUPPLE MENTAL RETIREMENT PL AN SHALL PROVIDE THE BOARD 29
137		-	WITH THE INFORMATION NECESSARY TO COMPLET E THE ENROLLMENT OF THE 30
138		-	EMPLOYEE UNDER THE A UTOMATIC ENROLLM ENT ARRANGEMENT . 31
139		-	4 SENATE BILL 322
140		-
141		-
142		-	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall apply only to 1
143		-	individuals eligible to participate in a supplemental retirement plan who commence 2
144		-	employment or who are reinstated on or after January 1, 2025. 3
145		-
146		-	SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 4
147		-	October 1, 2024. 5
	93	+	(C) AN EMPLOYEE ENROLLED IN A SUPPLEMENTAL RE TIREMENT PLAN 31
	94	+	UNDER AN AUTOMATIC E NROLLMENT ARRANGEMEN T SHALL BE: 32 SENATE BILL 322 3
148	95
149	96
150	97
151		-	Approved:
152		-	________________________________________________________________________________
153		-	Governor.
154		-	________________________________________________________________________________
155		-	President of the Senate.
156		-	________________________________________________________________________________
157		-	Speaker of the House of Delegates.
	98	+	(1) PROVIDED A NOTICE WI TH AN EXPLANATION OF : 1
	99	+
	100	+	(I) THE TERMS OF THE EMPLOYE E’S ENROLLMENT IN THE 2
	101	+	SUPPLEMENTAL RETIREM ENT PLAN, INCLUDING THE CURREN T CONTRIBUTION 3
	102	+	AMOUNT PROVIDED FOR UNDER THE AUTOMATIC ENROLLMENT ARRANGEME NT; 4
	103	+
	104	+	(II) THE EMPLOYEE ’S RIGHT TO INCREASE , DECREASE, OR 5
	105	+	CEASE CONTRIBUTIONS TO THE SUPPLEMENTAL RETIREMEN T PLAN; 6
	106	+
	107	+	(III) THE EMPLOYEE ’S RIGHT TO DISCONTIN UE PARTICIPATION 7
	108	+	IN THE SUPPLEMENTAL RETIREMENT PLAN WITH IN 90 DAYS AFTER THE START OF 8
	109	+	EMPLOYMENT ; 9
	110	+
	111	+	(IV) THE EMPLOYEE ’S RIGHT TO RECEIVE A REFUND OF THEIR 10
	112	+	ACCOUNT CONTRIBUTION S AS SOON AS PRACTICABLE AFTER DISCONTINUING 11
	113	+	PARTICIPATION WITHIN 90 DAYS AFTER THE START OF EMPLOYMENT ; AND 12
	114	+
	115	+	(V) THE EMPLOYEE ’S RIGHTS REGARDING T HE INVESTMENT OF 13
	116	+	THE EMPLOYEE ’S ACCOUNT AND THE IN VESTMENT OPTIONS AVA ILABLE UNDER THE 14
	117	+	SUPPLEMENTAL RETIREM ENT PLAN; AND 15
	118	+
	119	+	(2) TREATED AS EXERCISIN G CONTROL OF THE ASS ETS IN THE 16
	120	+	SUPPLEMENTAL RETIREM ENT PLAN ACCOUNT REG ARDING THE AMOUNT OF 17
	121	+	CONTRIBUTIONS AND EA RNINGS. 18
	122	+
	123	+	(D) IF A PARTICIPANT IS E NROLLED IN A SUPPLEM ENTAL RETIREMENT 19
	124	+	PLAN UNDER AN AUTOMA TIC ENROLLMENT ARRANGEMENT , THE BOARD SHALL 20
	125	+	INVEST THE PARTICIPA NT’S CONTRIBUTIONS IN A DESIGNATED DEFAULT 21
	126	+	INVESTMENT OPTION IN ACCORDANCE WITH EACH APPLICABLE SUPPLEMEN TAL 22
	127	+	RETIREMENT PLAN . 23
	128	+
	129	+	(E) EACH UNIT THAT HIRES AN ELIGIBLE EMPLOYEE WHO IS NOT ALREADY 24
	130	+	ENROLLED IN A SUPPLEMENTAL RETIREM ENT PLAN SHALL PROVI DE THE BOARD 25
	131	+	WITH THE INFORMATION NECESSARY TO COMPLET E THE ENROLLMENT OF THE 26
	132	+	EMPLOYEE UNDER THE A UTOMATIC ENROLLMENT ARRANGEMENT . 27
	133	+
	134	+	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall apply only to 28
	135	+	individuals eligible to participate in a supplemental retirement plan who commence 29
	136	+	employment or who are reinstated on or after January 1, 2025. 30
	137	+
	138	+	SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 31
	139	+	October 1, 2024. 32