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.
*sb0270*
SENATE BILL 270
P6 5lr2091
By: Senator M. Jackson (By Request – State Treasurer)
Introduced and read first time: January 9, 2025
Assigned to: Budget and Taxation
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: February 28, 2025
CHAPTER ______
AN ACT concerning 1
Board of Trustees of the Maryland Teachers and State Employees Supplemental 2
Retirement Plans – 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; authorizing certain employing 6
institutions to automatically enroll employees into a certain supplemental 7
retirement plan; requiring an eligible employer to deduct wages of an employee for 8
contribution to a supplemental retirement plan in accordance with an automatic 9
enrollment arrangement, unless the employee has elected to withdraw from or cease 10
to contribute to the supplemental retirement plan; and generally relating to the 11
automatic enrollment of State employees into supplemental retirement plans. 12
BY repealing and reenacting, with amendments, 13
Article – State Personnel and Pensions 14
Section 35–101 15
Annotated Code of Maryland 16
(2024 Replacement Volume and 2024 Supplement) 17
BY adding to 18
Article – State Personnel and Pensions 19
Section 35–206 20
Annotated Code of Maryland 21
(2024 Replacement Volume and 2024 Supplement) 22
2 SENATE BILL 270
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
35–101. 4
(a) In this title the following words have the meanings indicated. 5
(B) “AUTOMATIC ENROLLMENT ARRANGEMENT ” MEANS A SUPPLEMENTAL 6
PLAN PROVISION THAT REQUIRES AN ELIGIBLE EMPLOYER TO DEDUCT E LECTIVE 7
DEFERRALS FROM AN EM PLOYEE’S WAGES FOR CONTRIBU TION TO A 8
SUPPLEMENTAL RETIREM ENT PLAN UNLESS THE EMPLOYEE MAKES AN E LECTION 9
NOT TO CONTRIBUTE OR TO CONTRIBUTE A DIFF ERENT AMOUNT . 10
[(b)] (C) “Board” means the State Board of Trustees of the Maryland Teachers 11
and State Employees Supplemental Retirement Plans. 12
(D) “ELIGIBLE EMPLOYER ” MEANS THE EMPLOYER O F AN INDIVIDUAL 13
ELIGIBLE TO PARTICIPA TE IN A SUPPLEMENTAL RETIREMENT PLAN . 14
[(c)] (E) “Supplemental retirement plans” means the deferred compensation, 15
tax sheltered annuity, salary reduction savings plans, and any other plans authorized by 16
this title. 17
35–206. 18
(A) THE (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 19
SUBSECTION, THE BOARD SHALL IMPLEMENT AN AUTOMATIC ENROLLM ENT 20
ARRANGEMENT TO AUTOM ATICALLY ENROLL ALL STATE EMPLOYEES HIRED ON OR 21
AFTER JANUARY 1, 2026, IN A SUPPLEMENTAL RE TIREMENT PLAN . 22
(2) AN EMPLOYING INSTITUTION, AS DEFINED IN § 30–101 OF THIS 23
ARTICLE, MAY AUTOMATICALLY EN ROLL EMPLOYEES INTO THE SUPPLEMENTAL 24
RETIREMENT PLAN THAT THE EMPLOYING INSTIT UTION CHOOSES . 25
(B) (1) NOTWITHSTANDING ANY O THER PROVISION OF LA W, AN ELIGIBLE 26
EMPLOYER SHALL DEDUC T AN AMOUNT FROM THE WAGE S OF AN EMPLOYEE FOR 27
CONTRIBUTION TO A SU PPLEMENTAL RETIREMEN T PLAN AS PART OF AN 28
AUTOMATIC ENROLLMENT ARRANGEMENT , UNLESS THE EMPLOYEE HAS ELECTED 29
TO WITHDRAW FROM THE SUPPLEMENTAL RETIREM ENT PLAN OR CEASE MA KING 30
CONTRIBUTIONS TO THE SUPPLEMENTAL RETIREM ENT PLAN. 31
SENATE BILL 270 3
(2) THE AMOUNT DEDUCTED F ROM THE WAGES OF AN EMPLOYEE 1
EACH PAY PERIOD SHAL L BE THE MINIMUM AMO UNT SET BY THE BOARD, NOT TO 2
EXCEED $25, UNLESS THE EMPLOYEE ELECTS TO: 3
(I) HAVE A DIFFERENT AMO UNT DEDUCTED ; 4
(II) CEASE MAKING CONTRIBUTIONS TO THE SUPPLEMENTAL 5
RETIREMENT PLAN ; OR 6
(III) WITHDRAW FROM THE SU PPLEMENTAL RETIREMEN T PLAN. 7
(C) AN EMPLOYEE ENROLLED IN A SUPPLEMENTAL RE TIREMENT PLAN 8
UNDER AN AUTOMATIC E NROLLMENT ARRANGEMEN T SHALL BE: 9
(1) OFFERED A VIRTUAL OR IN–PERSON COUNSELING AP POINTMENT 10
TO DISCUSS THE SUPPL EMENTAL RETIREMENT P LAN AND THE TIMELINE FOR 11
DISCONTINUING PARTIC IPATION; 12
(2) PROVIDED A NOTICE WI TH AN EXPLANATION OF : 13
(I) THE TERMS OF THE EMP LOYEE’S ENROLLMENT IN THE 14
SUPPLEMENTAL RETIREM ENT PLAN, INCLUDING THE CURREN T CONTRIBUTION 15
AMOUNT PROVIDED FOR UNDER THE AUTOMATIC ENROLLMENT ARRANGEME NT; 16
(II) THE EMPLOYEE ’S RIGHT TO INCREASE , DECREASE, OR 17
CEASE CONTRIBUTIONS TO THE SUPPLEMENTAL RETIREMENT PLAN ; 18
(III) THE EMPLOYEE ’S RIGHT TO DISCONTINUE PARTICIPAT ION 19
IN THE SUPPLEMENTAL RETIREMENT PLAN WITH IN 90 DAYS AFTER THE FIRST 20
AUTOMATIC DEDUCTION OF THE EMPLOYEE ’S CONTRIBUTION FROM WAGES; 21
(IV) THE EMPLOYEE ’S RIGHT TO RECEIVE A REFUND OF THE 22
EMPLOYEE’S ACCOUNT CONTRIBUTI ONS AS SOON AS P RACTICABLE AFTER 23
DISCONTINUING PARTIC IPATION WITHIN 90 DAYS AFTER THE FIRST AUTOMATIC 24
DEDUCTION OF THE EMP LOYEE’S CONTRIBUTION FROM WAGES; AND 25
(V) THE EMPLOYEE ’S RIGHTS REGARDING T HE INVESTMENT OF 26
THE EMPLOYEE ’S ACCOUNT AND THE IN VESTMENT OPTIONS AVAILABLE UNDER THE 27
SUPPLEMENTAL RETIREM ENT PLAN; AND 28
(VI) THE DEFAULT CONTRIBU TION AMOUNT ESTABLIS HED 29
UNDER SUBSECTION (B) OF THIS SECTION THAT WILL BE IN EFFECT FO R THE 30
EMPLOYEE’S FIRST PAYROLL DEDU CTION; AND 31
4 SENATE BILL 270
(2) (3) TREATED AS EXERCISIN G CONTROL OF THE ASSETS IN THE 1
SUPPLEMENTAL RETIREM ENT PLAN ACCOUNT REG ARDING THE AMOUNT OF 2
CONTRIBUTIONS AND EA RNINGS. 3
(D) IF A PARTICIPANT IS E NROLLED IN A SUPPLEM ENTAL RETIREMENT 4
PLAN UNDER AN AUTOMA TIC ENROLLMENT ARRAN GEMENT, THE BOARD SHALL 5
INVEST THE PARTICIPANT’S CONTRIBUTIONS IN A DESIGNATED DEFAULT 6
INVESTMENT OPTION IN ACCORDANCE WITH EACH APPLICABLE SUPPLEMEN TAL 7
RETIREMENT PLAN . 8
(E) EACH UNIT THAT HIRES AN ELIGIBLE EMPLOYEE WHO IS NOT ALREADY 9
ENROLLED IN A SUPPLE MENTAL RETIREMENT PL AN SHALL PROVI DE THE BOARD 10
WITH THE INFORMATION NECESSARY TO COMPLET E THE ENROLLMENT OF THE 11
EMPLOYEE UNDER THE A UTOMATIC ENROLLMENT ARRANGEMENT . 12
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall apply only to 13
individuals eligible to participate in a supplemental retirement plan who commence 14
employment or who are reinstated on or after January 1, 2026. 15
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 16
October 1, 2025. 17
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.