EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb0322*
SENATE BILL 322
P6 4lr1702
SB 6/23 – B&T
By: Senator Jackson
Introduced and read first time: January 12, 2024
Assigned to: Budget and Taxation
Committee Report: Favorable
Senate action: Adopted
Read second time: February 25, 2024
CHAPTER ______
AN ACT concerning 1
Maryland Teachers and State Employees Supplemental Retirement Plans – 2
Automatic Enrollment 3
FOR the purpose of requiring the State Board of Trustees of the Maryland Teachers and 4
State Employees Supplemental Retirement Plans to implement an automatic 5
enrollment arrangement for certain State employees; requiring an eligible employer 6
to deduct wages of an employee for contribution to a supplemental retirement plan 7
in accordance with an automatic enrollment arrangement, unless the employee has 8
elected to withdraw from or cease to contribute to the supplemental retirement plan; 9
and generally relating to the automatic enrollment of State employees into 10
supplemental retirement plans. 11
BY repealing and reenacting, with amendments, 12
Article – State Personnel and Pensions 13
Section 35–101 14
Annotated Code of Maryland 15
(2015 Replacement Volume and 2023 Supplement) 16
BY adding to 17
Article – State Personnel and Pensions 18
Section 35–206 19
Annotated Code of Maryland 20
(2015 Replacement Volume and 2023 Supplement) 21
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 22 2 SENATE BILL 322
That the Laws of Maryland read as follows: 1
Article – State Personnel and Pensions 2
35–101. 3
(a) In this title the following words have the meanings indicated. 4
(B) “AUTOMATIC ENROLLMENT ARRANGEMENT ” MEANS A SUPPLEMENTAL 5
PLAN PROVISION THAT REQUIRES AN ELIGIBLE EMPLOYER TO DEDUCT E LECTIVE 6
DEFERRALS FROM AN EM PLOYEE’S WAGES FOR CONTRIBUTION TO A 7
SUPPLEMENTAL RETIREM ENT PLAN UNLESS THE EMPLOYEE MAKES AN EL ECTION 8
NOT TO CONTRIBUTE OR TO CONTRIBUTE A DIFF ERENT AMOUNT . 9
[(b)] (C) “Board” means the State Board of Trustees of the Maryland Teachers 10
and State Employees Supplemental Retirement Plans. 11
(D) “ELIGIBLE EMPLOYER ” MEANS THE EMPLOYER O F AN INDIVIDUAL 12
ELIGIBLE TO PARTICIP ATE IN A SUPPLEMENTA L RETIREMENT PLAN . 13
[(c)] (E) “Supplemental retirement plans” means the deferred compensation, 14
tax sheltered annuity, salary reduction savings plans, and any other plans authorized by 15
this title. 16
35–206. 17
(A) THE BOARD SHALL IMPLEMENT AN AUTOMATIC ENROLLM ENT 18
ARRANGEMENT TO AUTOM ATICALLY ENROLL ALL STATE EMPLOYEES HIRED ON OR 19
AFTER JANUARY 1, 2025, IN A SUPPLEMENTAL RE TIREMENT PLAN . 20
(B) (1) NOTWITHSTANDING ANY O THER PROVISION OF LA W, AN ELIGIBLE 21
EMPLOYER SHALL DEDUC T AN AMOUNT FROM THE WAGES OF AN EMPLOYEE FOR 22
CONTRIBUTION TO A SU PPLEMENTAL RETIREMEN T PLAN AS PART OF AN 23
AUTOMATIC ENROLLMENT ARRANGEMENT , UNLESS THE EMPLOYEE HAS ELECTED 24
TO WITHDRAW FROM THE SUP PLEMENTAL RETIREMENT PLAN OR CEASE MAKING 25
CONTRIBUTIONS TO THE SUPPLEMENTAL RETIREM ENT PLAN. 26
(2) THE AMOUNT DEDUCTED F ROM THE WAGES OF AN EMPLOYEE 27
EACH PAY PERIOD SHAL L BE THE MINIMUM AMO UNT SET BY THE BOARD, UNLESS 28
THE EMPLOYEE ELEC TS TO: 29
(I) HAVE A DIFFERENT AMO UNT DEDUCTED ; 30
(II) CEASE MAKING CONTRIB UTIONS TO THE SUPPLE MENTAL 31 SENATE BILL 322 3
RETIREMENT PLAN ; OR 1
(III) WITHDRAW FROM THE SU PPLEMENTAL RETIREMEN T PLAN. 2
(C) AN EMPLOYEE ENROLLED IN A SUPPLEMENTAL RE TIREMENT PLAN 3
UNDER AN AUTOMATIC ENROLLMENT ARRANGEMENT SHALL BE : 4
(1) PROVIDED A NOTICE WI TH AN EXPLANATION OF : 5
(I) THE TERMS OF THE EMP LOYEE’S ENROLLMENT IN THE 6
SUPPLEMENTAL RETIREM ENT PLAN, INCLUDING THE CURREN T CONTRIBUTION 7
AMOUNT PROVIDED FOR UNDER THE AUTOMATIC ENROLLMENT ARRANGEMENT ; 8
(II) THE EMPLOYEE ’S RIGHT TO INCREASE , DECREASE, OR 9
CEASE CONTRIBUTIONS TO THE SUPPLEMENTAL RETIREMENT PLAN ; 10
(III) THE EMPLOYEE ’S RIGHT TO DISCONTIN UE PARTICIPATION 11
IN THE SUPPLEMENTAL RETIREMENT PLAN WITH IN 90 DAYS AFTER THE STA RT OF 12
EMPLOYMENT ; 13
(IV) THE EMPLOYEE ’S RIGHT TO RECEIVE A REFUND OF THEIR 14
ACCOUNT CONTRIBUTION S AS SOON AS PRACTIC ABLE AFTER DISCONTIN UING 15
PARTICIPATION WITHIN 90 DAYS AFTER THE START OF EMPLOYMENT ; AND 16
(V) THE EMPLOYEE ’S RIGHTS REGARDING T HE INVESTMENT OF 17
THE EMPLOYEE ’S ACCOUNT AND THE IN VESTMENT OPTIONS AVA ILABLE UNDER THE 18
SUPPLEMENTAL RETIREM ENT PLAN; AND 19
(2) TREATED AS EXERCISIN G CONTROL OF THE ASS ETS IN THE 20
SUPPLEMENTAL RETIREM ENT PLAN ACCOUNT REG ARDING THE AMOUNT OF 21
CONTRIBUTIONS AND EA RNINGS. 22
(D) IF A PARTICIPANT IS E NROLLED IN A SUPPLEM ENTAL RETIREMENT 23
PLAN UNDER AN AUTOMA TIC ENROLLMENT ARRAN GEMENT, THE BOARD SHALL 24
INVEST THE PARTICIPA NT’S CONTRIBUTIONS IN A DESIGNATED DEFAULT 25
INVESTMENT OPTION IN ACCORDANCE WITH EACH APPLICABLE SUPPLEMEN TAL 26
RETIREMENT PLAN . 27
(E) EACH UNIT THAT HIRES AN ELIGIBLE EMPLOYEE WHO IS NOT ALREADY 28
ENROLLED IN A SUPPLE MENTAL RETIREMENT PL AN SHALL PROVIDE THE BOARD 29
WITH THE INFORMATION NECESSARY TO COMPLET E THE ENROLLMENT OF THE 30
EMPLOYEE UNDER THE A UTOMATIC ENROLLM ENT ARRANGEMENT . 31
4 SENATE BILL 322
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall apply only to 1
individuals eligible to participate in a supplemental retirement plan who commence 2
employment or who are reinstated on or after January 1, 2025. 3
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 4
October 1, 2024. 5
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.