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.
*sb0366*
SENATE BILL 366
P6 4lr0559
CF HB 1211
By: Senators Mautz and Bailey
Introduced and read first time: January 17, 2024
Assigned to: Budget and Taxation
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: February 25, 2024
CHAPTER ______
AN ACT concerning 1
Teachers’ Pension System Employees’ and Teachers’ Retirement and Pension 2
Systems – Reemployment of Retirees 3
FOR the purpose of repealing a certain exemption from certain reemployed retiree earnings 4
offsets for certain retirees of the Employees’ and Teachers’ Retirement and Pension 5
Systems; repealing certain requirements that certain participating employers pay 6
certain offsets under certain circumstances; establishing an exemption from a 7
reemployed retiree earnings offset for retirees of the Teachers’ Pension System who 8
are reemployed by certain employers if the retiree’s salary is funded from certain 9
sources; providing for the retroactive application of a certain section of this Act; and 10
generally relating to reemployed retirees of the Teachers’ Pension System 11
Employees’ and Teachers’ Retirement and Pension Systems. 12
BY repealing and reenacting, with amendments, 13
Article – State Personnel and Pensions 14
Section 22–406(c)(1) and (4)(x) and (xi) and 23–407(c)(1) and (4)(viii) and (ix) 15
Annotated Code of Maryland 16
(2015 Replacement Volume and 2023 Supplement) 17
BY repealing 18
Article – State Personnel and Pensions 19
Section 22–406(c)(4)(xii) and (11) and 23–407(c)(4)(x) and (11) 20
Annotated Code of Maryland 21
(2015 Replacement Volume and 2023 Supplement) 22
2 SENATE BILL 366
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That: the Laws of Maryland read as follows: 2
Article – State Personnel and Pensions 3
22–406. 4
(c) (1) Except as provided in § 22–407 of this subtitle, the Board of Trustees 5
shall reduce the allowance of an individual who accepts employment as provided under 6
subsection (b) of this section if: 7
(i) the individual’s current employer is a participating employer 8
other than the State and is the same participating employer that employed the individual 9
at the time of the individual’s last separation from employment with a participating 10
employer before the individual commenced receiving a service retirement allowance or 11
vested allowance; 12
(ii) 1. the individual’s current employer is any unit of State 13
government; AND 14
2. the individual’s employer at the time of the individual’s 15
last separation from employment with the State before the individual commenced receiving 16
a service retirement allowance or vested allowance was also a unit of State government; 17
[and 18
3. any portion of the individual’s compensation for the 19
individual’s current employment is derived from State funds, including any fees or 20
penalties collected or received by a unit of State government;] or 21
(iii) the individual becomes reemployed within 12 months of 22
receiving an early service retirement allowance under § 22–402 of this subtitle. 23
(4) Except for an individual whose allowance is subject to a reduction as 24
provided under paragraphs (1)(iii) and (3) of this subsection, the reduction of an allowance 25
under this subsection does not apply to: 26
(x) a retiree of the Employees’ Retirement System who is 27
reemployed on a contractual basis for not more than 4 years as a parole and probation 28
employee in a position authorized under Title 6, Subtitle 1 of the Correctional Services 29
Article; OR 30
(xi) a retiree of the Teachers’ Retirement System who is reemployed 31
by a local school system or the Maryland School for the Deaf and is rehired in accordance 32
with paragraph (8) of this subsection[; or 33
(xii) a retiree whose: 34
SENATE BILL 366 3
1. current employer is any unit of State government; 1
2. compensation from the retiree’s current employer does not 2
include any State funds; and 3
3. position is fully funded by a grant from a non–State source 4
that specifically requires the use of the grant funds to pay the full amount of the 5
compensation for the position]. 6
[(11) (i) Within 30 days after rehiring an individual under paragraph 7
(4)(xii) of this subsection, and on or before January 31 each year for the 5 calendar years 8
immediately following the individual’s date of retirement, the appointing authority of the 9
unit of State government employing the individual shall complete and file with the Board 10
of Trustees a form provided by the Board of Trustees that certifies that the individual 11
rehired by the individual’s current employer under paragraph (4)(xii) of this subsection 12
satisfied the criteria provided in paragraph (4)(xii) of this subsection. 13
(ii) To establish that an individual’s compensation from the current 14
employer does not include any State funds, the current employer shall provide the State 15
Retirement Agency with the following: 16
1. except as provided in subparagraph (iii) of this paragraph, 17
a copy of the grant agreement that provides full funding for the individual’s position, and 18
specifies that the grant funds must be used to pay the full cost of the position’s 19
compensation; 20
2. payroll records of the current employer that demonstrate 21
that the grant funds were used to pay the individual’s compensation; and 22
3. any additional information required by the State 23
Retirement Agency. 24
(iii) A block grant or matching grant may not be used to satisfy the 25
requirement under subparagraph (ii)1 of this paragraph. 26
(iv) If the Board of Trustees finds that an appointing authority has 27
rehired an individual that does not satisfy the criteria provided in paragraph (4)(xii) of this 28
subsection: 29
1. on or before July 1 of the year of the finding, the Board of 30
Trustees shall notify the appointing authority for the unit of State government employing 31
this individual; and 32
2. the unit of State government employing the individual 33
under paragraph (4)(xii) of this subsection shall reimburse the Board of Trustees the 34
amount equal to the reduction to the individual’s retirement allowance that would have 35
been made in paragraph (2) of this subsection.] 36 4 SENATE BILL 366
23–407. 1
(c) (1) Except as provided in § 23–408 of this subtitle, the Board of Trustees 2
shall reduce the allowance of an individual who accepts employment as provided under 3
subsection (b) of this section if: 4
(i) the individual’s current employer is a participating employer 5
other than the State and is the same participating employer that employed the individual 6
at the time of the individual’s last separation from employment with a participating 7
employer before the individual commenced receiving a service retirement allowance or 8
vested allowance; 9
(ii) 1. the individual’s current employer is any unit of State 10
government; AND 11
2. the individual’s employer at the time of the individual’s 12
last separation from employment with the State before the individual commenced receiving 13
a service retirement allowance or vested allowance was also a unit of State government; 14
[and 15
3. any portion of the individual’s compensation for the 16
individual’s current employment is derived from State funds, including any fees or 17
penalties collected or received by a unit of State government;] or 18
(iii) the individual becomes reemployed within 12 months of 19
receiving an early service retirement allowance or an early vested allowance computed 20
under § 23–402 of this subtitle. 21
(4) Except for an individual whose allowance is subject to a reduction as 22
provided under paragraphs (1)(iii) and (3) of this subsection, the reduction of an allowance 23
under this subsection does not apply to: 24
(viii) a retiree of the Employees’ Pension System who is reemployed on 25
a contractual basis for not more than 4 years as a parole and probation employee in a 26
position authorized under Title 6, Subtitle 1 of the Correctional Services Article; OR 27
(ix) a retiree of the Teachers’ Pension System who is reemployed by 28
a local school system or the Maryland School for the Deaf and is rehired in accordance with 29
paragraph (8) of this subsection[; or 30
(x) a retiree whose: 31
1. current employer is any unit of State government; 32
2. compensation from the retiree’s current employer does not 33
include any State funds; and 34 SENATE BILL 366 5
3. position is fully funded by a grant from a non–State source 1
that specifically requires the use of the grant funds to pay the full amount of the 2
compensation for the position]. 3
[(11) (i) Within 30 days after rehiring an individual under paragraph 4
(4)(x) of this subsection, and on or before January 31 each year for the 5 calendar years 5
immediately following the individual’s date of retirement, the appointing authority of the 6
unit of State government employing the individual shall complete and file with the Board 7
of Trustees a form provided by the Board of Trustees that certifies that the individual 8
rehired by the individual’s current employer under paragraph (4)(x) of this subsection 9
satisfied the criteria provided in paragraph (4)(x) of this subsection. 10
(ii) To establish that an individual’s compensation from the current 11
employer does not include any State funds, the current employer shall provide the State 12
Retirement Agency with the following: 13
1. except as provided in subparagraph (iii) of this paragraph, 14
a copy of the grant agreement that provides full funding for the individual’s position, and 15
specifies that the grant funds must be used to pay the full cost of the position’s 16
compensation; 17
2. payroll records of the current employer that demonstrate 18
that the grant funds were used to pay the individual’s compensation; and 19
3. any additional information required by the State 20
Retirement Agency. 21
(iii) A block grant or matching grant may not be used to satisfy the 22
requirement under subparagraph (ii)1 of this paragraph. 23
(iv) If the Board of Trustees finds that an appointing authority has 24
rehired an individual that does not satisfy the criteria provided in paragraph (4)(x) of this 25
subsection: 26
1. on or before July 1 of the year of the finding, the Board of 27
Trustees shall notify the appointing authority for the unit of State government employing 28
this individual; and 29
2. the unit of State government employing the individual 30
under paragraph (4)(x) of this subsection shall reimburse the Board of Trustees the amount 31
equal to the reduction to the individual’s retirement allowance that would have been made 32
in paragraph (2) of this subsection.] 33
SECTION 2. AND BE IT FURTHER ENACTED, That: 34
(a) This section applies to a retiree of the Teachers’ Pension System. 35 6 SENATE BILL 366
(b) Notwithstanding § 23–407 of the State Personnel and Pensions Article, the 1
reduction of an allowance does not apply to a retiree: 2
(1) who is jointly employed pursuant to a joint employer agreement 3
between a local employer as defined in § 21–304 of the State Personnel and Pensions Article 4
and the Maryland Association of Boards of Education; and 5
(2) whose salary is fully funded by the Maryland Association of Boards of 6
Education. 7
(c) To establish an individual’s eligibility for an exemption under subsection (b) 8
of this section, for each of the 5 calendar years immediately following the year of the 9
individual’s retirement, the local employer shall provide the State Retirement Agency with: 10
(1) a copy of the joint employer agreement between the local employer and 11
the Maryland Association of Boards of Education; 12
(2) records demonstrating that the individual’s salary was fully funded by 13
the Maryland Association of Boards of Education; and 14
(3) any additional information required by the State Retirement Agency. 15
SECTION 2. 3. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall 16
be construed to apply retroactively from January 1, 2021. 17
SECTION 3. 4. AND BE IT FURTHER ENACTED, That this Act shall take effect 18
July 1, 2024. Section 2 of this Act shall remain effective for a period of 6 months and, at the 19
end of December 31, 2024, Section 2 of this Act, with no further action required by the 20
General Assembly, shall be abrogated and of no further force and effect. 21
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.