MD
Maryland Senate Bill SB366

Maryland 2024 Regular Session

Maryland Senate Bill SB366 Compare Versions

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1- WES MOORE, Governor Ch. 67
21
3-– 1 –
4-Chapter 67
5-(Senate Bill 366)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
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+ *sb0366*
89
9-Teachers’ Pension System Employees’ and Teachers’ Retirement and Pension
10-Systems – Reemployment of Retirees
10+SENATE BILL 366
11+P6 4lr0559
12+ CF HB 1211
13+By: Senators Mautz and Bailey
14+Introduced and read first time: January 17, 2024
15+Assigned to: Budget and Taxation
16+Committee Report: Favorable with amendments
17+Senate action: Adopted
18+Read second time: February 25, 2024
1119
12-FOR the purpose of repealing a certain exemption from certain reemployed retiree earnings
13-offsets for certain retirees of the Employees’ and Teachers’ Retirement and Pension
14-Systems; repealing certain requirements that certain participating employers pay
15-certain offsets under certain circumstances; establishing an exemption from a
16-reemployed retiree earnings offset for retirees of the Teachers’ Pension System who
17-are reemployed by certain employers if the retiree’s salary is funded from certain
18-sources; providing for the retroactive application of a certain section of this Act; and
19-generally relating to reemployed retirees of the Teachers’ Pension System
20-Employees’ and Teachers’ Retirement and Pension Systems.
20+CHAPTER ______
2121
22-BY repealing and reenacting, with amendments,
23- Article – State Personnel and Pensions
24-Section 22–406(c)(1) and (4)(x) and (xi) and 23–407(c)(1) and (4)(viii) and (ix)
25- Annotated Code of Maryland
26- (2015 Replacement Volume and 2023 Supplement)
22+AN ACT concerning 1
2723
28-BY repealing
29- Article – State Personnel and Pensions
30-Section 22–406(c)(4)(xii) and (11) and 23–407(c)(4)(x) and (11)
31- Annotated Code of Maryland
32- (2015 Replacement Volume and 2023 Supplement)
24+Teachers’ Pension System Employees’ and Teachers’ Retirement and Pension 2
25+Systems – Reemployment of Retirees 3
3326
34- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
35-That: the Laws of Maryland read as follows:
27+FOR the purpose of repealing a certain exemption from certain reemployed retiree earnings 4
28+offsets for certain retirees of the Employees’ and Teachers’ Retirement and Pension 5
29+Systems; repealing certain requirements that certain participating employers pay 6
30+certain offsets under certain circumstances; establishing an exemption from a 7
31+reemployed retiree earnings offset for retirees of the Teachers’ Pension System who 8
32+are reemployed by certain employers if the retiree’s salary is funded from certain 9
33+sources; providing for the retroactive application of a certain section of this Act; and 10
34+generally relating to reemployed retirees of the Teachers’ Pension System 11
35+Employees’ and Teachers’ Retirement and Pension Systems. 12
3636
37-Article – State Personnel and Pensions
37+BY repealing and reenacting, with amendments, 13
38+ Article – State Personnel and Pensions 14
39+Section 22–406(c)(1) and (4)(x) and (xi) and 23–407(c)(1) and (4)(viii) and (ix) 15
40+ Annotated Code of Maryland 16
41+ (2015 Replacement Volume and 2023 Supplement) 17
3842
39-22–406.
43+BY repealing 18
44+ Article – State Personnel and Pensions 19
45+Section 22–406(c)(4)(xii) and (11) and 23–407(c)(4)(x) and (11) 20
46+ Annotated Code of Maryland 21
47+ (2015 Replacement Volume and 2023 Supplement) 22
48+ 2 SENATE BILL 366
4049
41- (c) (1) Except as provided in § 22–407 of this subtitle, the Board of Trustees
42-shall reduce the allowance of an individual who accepts employment as provided under
43-subsection (b) of this section if:
4450
45- (i) the individual’s current employer is a participating employer
46-other than the State and is the same participating employer that employed the individual
47-at the time of the individual’s last separation from employment with a participating
48-employer before the individual commenced receiving a service retirement allowance or
49-vested allowance; Ch. 67 2024 LAWS OF MARYLAND
51+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
52+That: the Laws of Maryland read as follows: 2
5053
51-– 2 –
54+Article – State Personnel and Pensions 3
5255
53- (ii) 1. the individual’s current employer is any unit of State
54-government; AND
56+22–406. 4
5557
56- 2. the individual’s employer at the time of the individual’s
57-last separation from employment with the State before the individual commenced receiving
58-a service retirement allowance or vested allowance was also a unit of State government;
59-[and
58+ (c) (1) Except as provided in § 22–407 of this subtitle, the Board of Trustees 5
59+shall reduce the allowance of an individual who accepts employment as provided under 6
60+subsection (b) of this section if: 7
6061
61- 3. any portion of the individual’s compensation for the
62-individual’s current employment is derived from State funds, including any fees or
63-penalties collected or received by a unit of State government;] or
62+ (i) the individual’s current employer is a participating employer 8
63+other than the State and is the same participating employer that employed the individual 9
64+at the time of the individual’s last separation from employment with a participating 10
65+employer before the individual commenced receiving a service retirement allowance or 11
66+vested allowance; 12
6467
65- (iii) the individual becomes reemployed within 12 months of
66-receiving an early service retirement allowance under § 22–402 of this subtitle.
68+ (ii) 1. the individual’s current employer is any unit of State 13
69+government; AND 14
6770
68- (4) Except for an individual whose allowance is subject to a reduction as
69-provided under paragraphs (1)(iii) and (3) of this subsection, the reduction of an allowance
70-under this subsection does not apply to:
71+ 2. the individual’s employer at the time of the individual’s 15
72+last separation from employment with the State before the individual commenced receiving 16
73+a service retirement allowance or vested allowance was also a unit of State government; 17
74+[and 18
7175
72- (x) a retiree of the Employees’ Retirement System who is
73-reemployed on a contractual basis for not more than 4 years as a parole and probation
74-employee in a position authorized under Title 6, Subtitle 1 of the Correctional Services
75-Article; OR
76+ 3. any portion of the individual’s compensation for the 19
77+individual’s current employment is derived from State funds, including any fees or 20
78+penalties collected or received by a unit of State government;] or 21
7679
77- (xi) a retiree of the Teachers’ Retirement System who is reemployed
78-by a local school system or the Maryland School for the Deaf and is rehired in accordance
79-with paragraph (8) of this subsection[; or
80+ (iii) the individual becomes reemployed within 12 months of 22
81+receiving an early service retirement allowance under § 22–402 of this subtitle. 23
8082
81- (xii) a retiree whose:
83+ (4) Except for an individual whose allowance is subject to a reduction as 24
84+provided under paragraphs (1)(iii) and (3) of this subsection, the reduction of an allowance 25
85+under this subsection does not apply to: 26
8286
83- 1. current employer is any unit of State government;
87+ (x) a retiree of the Employees’ Retirement System who is 27
88+reemployed on a contractual basis for not more than 4 years as a parole and probation 28
89+employee in a position authorized under Title 6, Subtitle 1 of the Correctional Services 29
90+Article; OR 30
8491
85- 2. compensation from the retiree’s current employer does not
86-include any State funds; and
92+ (xi) a retiree of the Teachers’ Retirement System who is reemployed 31
93+by a local school system or the Maryland School for the Deaf and is rehired in accordance 32
94+with paragraph (8) of this subsection[; or 33
8795
88- 3. position is fully funded by a grant from a non–State source
89-that specifically requires the use of the grant funds to pay the full amount of the
90-compensation for the position].
96+ (xii) a retiree whose: 34
97+ SENATE BILL 366 3
9198
92- [(11) (i) Within 30 days after rehiring an individual under paragraph
93-(4)(xii) of this subsection, and on or before January 31 each year for the 5 calendar years
94-immediately following the individual’s date of retirement, the appointing authority of the
95-unit of State government employing the individual shall complete and file with the Board
96-of Trustees a form provided by the Board of Trustees that certifies that the individual WES MOORE, Governor Ch. 67
9799
98-– 3 –
99-rehired by the individual’s current employer under paragraph (4)(xii) of this subsection
100-satisfied the criteria provided in paragraph (4)(xii) of this subsection.
100+ 1. current employer is any unit of State government; 1
101101
102- (ii) To establish that an individual’s compensation from the current
103-employer does not include any State funds, the current employer shall provide the State
104-Retirement Agency with the following:
102+ 2. compensation from the retiree’s current employer does not 2
103+include any State funds; and 3
105104
106- 1. except as provided in subparagraph (iii) of this paragraph,
107-a copy of the grant agreement that provides full funding for the individual’s position, and
108-specifies that the grant funds must be used to pay the full cost of the position’s
109-compensation;
105+ 3. position is fully funded by a grant from a non–State source 4
106+that specifically requires the use of the grant funds to pay the full amount of the 5
107+compensation for the position]. 6
110108
111- 2. payroll records of the current employer that demonstrate
112-that the grant funds were used to pay the individual’s compensation; and
109+ [(11) (i) Within 30 days after rehiring an individual under paragraph 7
110+(4)(xii) of this subsection, and on or before January 31 each year for the 5 calendar years 8
111+immediately following the individual’s date of retirement, the appointing authority of the 9
112+unit of State government employing the individual shall complete and file with the Board 10
113+of Trustees a form provided by the Board of Trustees that certifies that the individual 11
114+rehired by the individual’s current employer under paragraph (4)(xii) of this subsection 12
115+satisfied the criteria provided in paragraph (4)(xii) of this subsection. 13
113116
114- 3. any additional information required by the State
115-Retirement Agency.
117+ (ii) To establish that an individual’s compensation from the current 14
118+employer does not include any State funds, the current employer shall provide the State 15
119+Retirement Agency with the following: 16
116120
117- (iii) A block grant or matching grant may not be used to satisfy the
118-requirement under subparagraph (ii)1 of this paragraph.
121+ 1. except as provided in subparagraph (iii) of this paragraph, 17
122+a copy of the grant agreement that provides full funding for the individual’s position, and 18
123+specifies that the grant funds must be used to pay the full cost of the position’s 19
124+compensation; 20
119125
120- (iv) If the Board of Trustees finds that an appointing authority has
121-rehired an individual that does not satisfy the criteria provided in paragraph (4)(xii) of this
122-subsection:
126+ 2. payroll records of the current employer that demonstrate 21
127+that the grant funds were used to pay the individual’s compensation; and 22
123128
124- 1. on or before July 1 of the year of the finding, the Board of
125-Trustees shall notify the appointing authority for the unit of State government employing
126-this individual; and
129+ 3. any additional information required by the State 23
130+Retirement Agency. 24
127131
128- 2. the unit of State government employing the individual
129-under paragraph (4)(xii) of this subsection shall reimburse the Board of Trustees the
130-amount equal to the reduction to the individual’s retirement allowance that would have
131-been made in paragraph (2) of this subsection.]
132+ (iii) A block grant or matching grant may not be used to satisfy the 25
133+requirement under subparagraph (ii)1 of this paragraph. 26
132134
133-23–407.
135+ (iv) If the Board of Trustees finds that an appointing authority has 27
136+rehired an individual that does not satisfy the criteria provided in paragraph (4)(xii) of this 28
137+subsection: 29
134138
135- (c) (1) Except as provided in § 23–408 of this subtitle, the Board of Trustees
136-shall reduce the allowance of an individual who accepts employment as provided under
137-subsection (b) of this section if:
139+ 1. on or before July 1 of the year of the finding, the Board of 30
140+Trustees shall notify the appointing authority for the unit of State government employing 31
141+this individual; and 32
138142
139- (i) the individual’s current employer is a participating employer
140-other than the State and is the same participating employer that employed the individual
141-at the time of the individual’s last separation from employment with a participating
142-employer before the individual commenced receiving a service retirement allowance or
143-vested allowance;
144- Ch. 67 2024 LAWS OF MARYLAND
143+ 2. the unit of State government employing the individual 33
144+under paragraph (4)(xii) of this subsection shall reimburse the Board of Trustees the 34
145+amount equal to the reduction to the individual’s retirement allowance that would have 35
146+been made in paragraph (2) of this subsection.] 36 4 SENATE BILL 366
145147
146-– 4 –
147- (ii) 1. the individual’s current employer is any unit of State
148-government; AND
149148
150- 2. the individual’s employer at the time of the individual’s
151-last separation from employment with the State before the individual commenced receiving
152-a service retirement allowance or vested allowance was also a unit of State government;
153-[and
154149
155- 3. any portion of the individual’s compensation for the
156-individual’s current employment is derived from State funds, including any fees or
157-penalties collected or received by a unit of State government;] or
150+23–407. 1
158151
159- (iii) the individual becomes reemployed within 12 months of
160-receiving an early service retirement allowance or an early vested allowance computed
161-under § 23–402 of this subtitle.
152+ (c) (1) Except as provided in § 23–408 of this subtitle, the Board of Trustees 2
153+shall reduce the allowance of an individual who accepts employment as provided under 3
154+subsection (b) of this section if: 4
162155
163- (4) Except for an individual whose allowance is subject to a reduction as
164-provided under paragraphs (1)(iii) and (3) of this subsection, the reduction of an allowance
165-under this subsection does not apply to:
156+ (i) the individual’s current employer is a participating employer 5
157+other than the State and is the same participating employer that employed the individual 6
158+at the time of the individual’s last separation from employment with a participating 7
159+employer before the individual commenced receiving a service retirement allowance or 8
160+vested allowance; 9
166161
167- (viii) a retiree of the Employees’ Pension System who is reemployed on
168-a contractual basis for not more than 4 years as a parole and probation employee in a
169-position authorized under Title 6, Subtitle 1 of the Correctional Services Article; OR
162+ (ii) 1. the individual’s current employer is any unit of State 10
163+government; AND 11
170164
171- (ix) a retiree of the Teachers’ Pension System who is reemployed by
172-a local school system or the Maryland School for the Deaf and is rehired in accordance with
173-paragraph (8) of this subsection[; or
165+ 2. the individual’s employer at the time of the individual’s 12
166+last separation from employment with the State before the individual commenced receiving 13
167+a service retirement allowance or vested allowance was also a unit of State government; 14
168+[and 15
174169
175- (x) a retiree whose:
170+ 3. any portion of the individual’s compensation for the 16
171+individual’s current employment is derived from State funds, including any fees or 17
172+penalties collected or received by a unit of State government;] or 18
176173
177- 1. current employer is any unit of State government;
174+ (iii) the individual becomes reemployed within 12 months of 19
175+receiving an early service retirement allowance or an early vested allowance computed 20
176+under § 23–402 of this subtitle. 21
178177
179- 2. compensation from the retiree’s current employer does not
180-include any State funds; and
178+ (4) Except for an individual whose allowance is subject to a reduction as 22
179+provided under paragraphs (1)(iii) and (3) of this subsection, the reduction of an allowance 23
180+under this subsection does not apply to: 24
181181
182- 3. position is fully funded by a grant from a non–State source
183-that specifically requires the use of the grant funds to pay the full amount of the
184-compensation for the position].
182+ (viii) a retiree of the Employees’ Pension System who is reemployed on 25
183+a contractual basis for not more than 4 years as a parole and probation employee in a 26
184+position authorized under Title 6, Subtitle 1 of the Correctional Services Article; OR 27
185185
186- [(11) (i) Within 30 days after rehiring an individual under paragraph
187-(4)(x) of this subsection, and on or before January 31 each year for the 5 calendar years
188-immediately following the individual’s date of retirement, the appointing authority of the
189-unit of State government employing the individual shall complete and file with the Board
190-of Trustees a form provided by the Board of Trustees that certifies that the individual WES MOORE, Governor Ch. 67
186+ (ix) a retiree of the Teachers’ Pension System who is reemployed by 28
187+a local school system or the Maryland School for the Deaf and is rehired in accordance with 29
188+paragraph (8) of this subsection[; or 30
191189
192-– 5 –
193-rehired by the individual’s current employer under paragraph (4)(x) of this subsection
194-satisfied the criteria provided in paragraph (4)(x) of this subsection.
190+ (x) a retiree whose: 31
195191
196- (ii) To establish that an individual’s compensation from the current
197-employer does not include any State funds, the current employer shall provide the State
198-Retirement Agency with the following:
192+ 1. current employer is any unit of State government; 32
199193
200- 1. except as provided in subparagraph (iii) of this paragraph,
201-a copy of the grant agreement that provides full funding for the individual’s position, and
202-specifies that the grant funds must be used to pay the full cost of the position’s
203-compensation;
194+ 2. compensation from the retiree’s current employer does not 33
195+include any State funds; and 34 SENATE BILL 366 5
204196
205- 2. payroll records of the current employer that demonstrate
206-that the grant funds were used to pay the individual’s compensation; and
207197
208- 3. any additional information required by the State
209-Retirement Agency.
210198
211- (iii) A block grant or matching grant may not be used to satisfy the
212-requirement under subparagraph (ii)1 of this paragraph.
199+ 3. position is fully funded by a grant from a non–State source 1
200+that specifically requires the use of the grant funds to pay the full amount of the 2
201+compensation for the position]. 3
213202
214- (iv) If the Board of Trustees finds that an appointing authority has
215-rehired an individual that does not satisfy the criteria provided in paragraph (4)(x) of this
216-subsection:
203+ [(11) (i) Within 30 days after rehiring an individual under paragraph 4
204+(4)(x) of this subsection, and on or before January 31 each year for the 5 calendar years 5
205+immediately following the individual’s date of retirement, the appointing authority of the 6
206+unit of State government employing the individual shall complete and file with the Board 7
207+of Trustees a form provided by the Board of Trustees that certifies that the individual 8
208+rehired by the individual’s current employer under paragraph (4)(x) of this subsection 9
209+satisfied the criteria provided in paragraph (4)(x) of this subsection. 10
217210
218- 1. on or before July 1 of the year of the finding, the Board of
219-Trustees shall notify the appointing authority for the unit of State government employing
220-this individual; and
211+ (ii) To establish that an individual’s compensation from the current 11
212+employer does not include any State funds, the current employer shall provide the State 12
213+Retirement Agency with the following: 13
221214
222- 2. the unit of State government employing the individual
223-under paragraph (4)(x) of this subsection shall reimburse the Board of Trustees the amount
224-equal to the reduction to the individual’s retirement allowance that would have been made
225-in paragraph (2) of this subsection.]
215+ 1. except as provided in subparagraph (iii) of this paragraph, 14
216+a copy of the grant agreement that provides full funding for the individual’s position, and 15
217+specifies that the grant funds must be used to pay the full cost of the position’s 16
218+compensation; 17
226219
227- SECTION 2. AND BE IT FURTHER ENACTED, That:
220+ 2. payroll records of the current employer that demonstrate 18
221+that the grant funds were used to pay the individual’s compensation; and 19
228222
229- (a) This section applies to a retiree of the Teachers’ Pension System.
223+ 3. any additional information required by the State 20
224+Retirement Agency. 21
230225
231- (b) Notwithstanding § 23–407 of the State Personnel and Pensions Article, the
232-reduction of an allowance does not apply to a retiree:
226+ (iii) A block grant or matching grant may not be used to satisfy the 22
227+requirement under subparagraph (ii)1 of this paragraph. 23
233228
234- (1) who is jointly employed pursuant to a joint employer agreement
235-between a local employer as defined in § 21–304 of the State Personnel and Pensions Article
236-and the Maryland Association of Boards of Education; and
237- Ch. 67 2024 LAWS OF MARYLAND
229+ (iv) If the Board of Trustees finds that an appointing authority has 24
230+rehired an individual that does not satisfy the criteria provided in paragraph (4)(x) of this 25
231+subsection: 26
238232
239-– 6 –
240- (2) whose salary is fully funded by the Maryland Association of Boards of
241-Education.
233+ 1. on or before July 1 of the year of the finding, the Board of 27
234+Trustees shall notify the appointing authority for the unit of State government employing 28
235+this individual; and 29
242236
243- (c) To establish an individual’s eligibility for an exemption under subsection (b)
244-of this section, for each of the 5 calendar years immediately following the year of the
245-individual’s retirement, the local employer shall provide the State Retirement Agency with:
237+ 2. the unit of State government employing the individual 30
238+under paragraph (4)(x) of this subsection shall reimburse the Board of Trustees the amount 31
239+equal to the reduction to the individual’s retirement allowance that would have been made 32
240+in paragraph (2) of this subsection.] 33
246241
247- (1) a copy of the joint employer agreement between the local employer and
248-the Maryland Association of Boards of Education;
242+ SECTION 2. AND BE IT FURTHER ENACTED, That: 34
249243
250- (2) records demonstrating that the individual’s salary was fully funded by
251-the Maryland Association of Boards of Education; and
244+ (a) This section applies to a retiree of the Teachers’ Pension System. 35 6 SENATE BILL 366
252245
253- (3) any additional information required by the State Retirement Agency.
254246
255- SECTION 2. 3. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall
256-be construed to apply retroactively from January 1, 2021.
257247
258- SECTION 3. 4. AND BE IT FURTHER ENACTED, That this Act shall take effect
259-July 1, 2024. Section 2 of this Act shall remain effective for a period of 6 months and, at the
260-end of December 31, 2024, Section 2 of this Act, with no further action required by the
261-General Assembly, shall be abrogated and of no further force and effect.
248+ (b) Notwithstanding § 23–407 of the State Personnel and Pensions Article, the 1
249+reduction of an allowance does not apply to a retiree: 2
262250
263-Approved by the Governor, April 9, 2024.
251+ (1) who is jointly employed pursuant to a joint employer agreement 3
252+between a local employer as defined in § 21–304 of the State Personnel and Pensions Article 4
253+and the Maryland Association of Boards of Education; and 5
254+
255+ (2) whose salary is fully funded by the Maryland Association of Boards of 6
256+Education. 7
257+
258+ (c) To establish an individual’s eligibility for an exemption under subsection (b) 8
259+of this section, for each of the 5 calendar years immediately following the year of the 9
260+individual’s retirement, the local employer shall provide the State Retirement Agency with: 10
261+
262+ (1) a copy of the joint employer agreement between the local employer and 11
263+the Maryland Association of Boards of Education; 12
264+
265+ (2) records demonstrating that the individual’s salary was fully funded by 13
266+the Maryland Association of Boards of Education; and 14
267+
268+ (3) any additional information required by the State Retirement Agency. 15
269+
270+ SECTION 2. 3. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall 16
271+be construed to apply retroactively from January 1, 2021. 17
272+
273+ SECTION 3. 4. AND BE IT FURTHER ENACTED, That this Act shall take effect 18
274+July 1, 2024. Section 2 of this Act shall remain effective for a period of 6 months and, at the 19
275+end of December 31, 2024, Section 2 of this Act, with no further action required by the 20
276+General Assembly, shall be abrogated and of no further force and effect. 21
277+
278+
279+
280+
281+Approved:
282+________________________________________________________________________________
283+ Governor.
284+________________________________________________________________________________
285+ President of the Senate.
286+________________________________________________________________________________
287+ Speaker of the House of Delegates.