Maryland 2025 Regular Session

Maryland Senate Bill SB270 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		sb0270
9	6
10	7		SENATE BILL 270
11	8		P6 5lr2091
12	9
13		-	By: Senator M. Jackson (By Request – State Treasurer)
	10	+	By: Senator Jackson (By Request – State Treasurer)
14	11		Introduced and read first time: January 9, 2025
15	12		Assigned to: Budget and Taxation
16		-	Committee Report: Favorable with amendments
17		-	Senate action: Adopted
18		-	Read second time: February 28, 2025
19	13
20		-	~~CHAPTER ______~~
	14	+	A BILL ENTITLED
21	15
22	16		AN ACT concerning 1
23	17
24	18		Board of Trustees of the Maryland Teachers and State Employees Supplemental 2
25	19		Retirement Plans – 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		-	enrollment arrangement for certain State employees; authorizing certain employing 6
30		-	institutions to automatically enroll employees into a certain supplemental 7
31		-	retirement plan; requiring an eligible employer to deduct wages of an employee for 8
32		-	contribution to a supplemental retirement plan in accordance with an automatic 9
33		-	enrollment arrangement, unless the employee has elected to withdraw from or cease 10
34		-	to contribute to the supplemental retirement plan; and generally relating to the 11
35		-	automatic enrollment of State employees into supplemental retirement plans. 12
	23	+	enrollment arrangement for certain State employees; requiring an eligible employer 6
	24	+	to deduct wages of an employee for contribution to a supplemental retirement plan 7
	25	+	in accordance with an automatic enrollment arrangement, unless the employee has 8
	26	+	elected to withdraw from or cease to contribute to the supplemental retirement plan; 9
	27	+	and generally relating to the automatic enrollment of State employees into 10
	28	+	supplemental retirement plans. 11
36	29
37		-	BY repealing and reenacting, with amendments, 13
38		-	Article – State Personnel and Pensions 14
39		-	Section 35–101 15
40		-	Annotated Code of Maryland 16
41		-	(2024 Replacement Volume and 2024 Supplement) 17
	30	+	BY repealing and reenacting, with amendments, 12
	31	+	Article – State Personnel and Pensions 13
	32	+	Section 35–101 14
	33	+	Annotated Code of Maryland 15
	34	+	(2024 Replacement Volume and 2024 Supplement) 16
42	35
43		-	BY adding to 18
44		-	Article – State Personnel and Pensions 19
45		-	Section 35–206 20
46		-	Annotated Code of Maryland 21
47		-	(2024 Replacement Volume and 2024 Supplement) 22
	36	+	BY adding to 17
	37	+	Article – State Personnel and Pensions 18
	38	+	Section 35–206 19
	39	+	Annotated Code of Maryland 20
	40	+	(2024 Replacement Volume and 2024 Supplement) 21
	41	+
	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	48		2 SENATE BILL 270
49	49
50	50
51		-	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
52		-	That the Laws of Maryland read as follows: 2
	51	+	(a) In this title the following words have the meanings indicated. 1
53	52
54		-	Article – State Personnel and Pensions 3
	53	+	(B) “AUTOMATIC ENROLLMENT ARRANGEMENT ” 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 A N ELECTION 5
	57	+	NOT TO CONTRIBUTE OR TO CONTRIBUTE A DIFF ERENT AMOUNT . 6
55	58
56		-	35–101. 4
	59	+	[(b)] (C) “Board” means the State Board of Trustees of the Maryland Teachers 7
	60	+	and State Employees Supplemental Retirement Plans. 8
57	61
58		-	(a) In this title the following words have the meanings indicated. 5
	62	+	(D) “ELIGIBLE EMPLOYER ” MEANS THE EMPLOYER OF AN INDIV IDUAL 9
	63	+	ELIGIBLE TO PARTICIP ATE IN A SUPPLEMENTA L RETIREMENT PLAN . 10
59	64
60		-	(B) “AUTOMATIC ENROLLMENT ARRANGEMENT ” MEANS A SUPPLEMENTAL 6
61		-	PLAN PROVISION THAT REQUIRES AN ELIGIBLE EMPLOYER TO DEDUCT E LECTIVE 7
62		-	DEFERRALS FROM AN EM PLOYEE’S WAGES FOR CONTRIBU TION TO A 8
63		-	SUPPLEMENTAL RETIREM ENT PLAN UNLESS THE EMPLOYEE MAKES AN E LECTION 9
64		-	NOT TO CONTRIBUTE OR TO CONTRIBUTE A DIFF ERENT AMOUNT . 10
	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
65	68
66		-	[(b)] (C) “Board” means the State Board of Trustees of the Maryland Teachers 11
67		-	and State Employees Supplemental Retirement Plans. 12
	69	+	35–206. 14
68	70
69		-	(D) “ELIGIBLE EMPLOYER ” MEANS THE EMPLOYER O F AN INDIVIDUAL 13
70		-	ELIGIBLE TO PARTICIPA TE IN A SUPPLEMENTAL RETIREMENT PLAN . 14
	71	+	(A) THE BOARD SHALL IMPLEMENT AN AUTOMATIC ENROLLM ENT 15
	72	+	ARRANGEMENT TO AUTOM ATICALLY ENROLL ALL STATE EMPLOYEES HIRED ON OR 16
	73	+	AFTER JANUARY 1, 2026, IN A SUPPLEMENTAL RE TIREMENT PLAN . 17
71	74
72		-	[(c)] (E) “Supplemental retirement plans” means the deferred compensation, 15
73		-	tax sheltered annuity, salary reduction savings plans, and any other plans authorized by 16
74		-	this title. 17
	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 CE ASE MAKING 22
	80	+	CONTRIBUTIONS TO THE SUPPLEMENTAL RETIREM ENT PLAN. 23
75	81
76		-	35–206. 18
	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
77	85
78		-	(A) THE (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 19
79		-	SUBSECTION, THE BOARD SHALL IMPLEMENT AN AUTOMATIC ENROLLM ENT 20
80		-	ARRANGEMENT TO AUTOM ATICALLY ENROLL ALL STATE EMPLOYEES HIRED ON OR 21
81		-	AFTER JANUARY 1, 2026, IN A SUPPLEMENTAL RE TIREMENT PLAN . 22
	86	+	(I) HAVE A DIFFERENT AMO UNT DEDUCTED ; 27
82	87
83		-	(2) AN EMPLOYING INSTITUTION, AS DEFINED IN § 30–101 OF THIS 23
84		-	ARTICLE, MAY AUTOMATICALLY EN ROLL EMPLOYEES INTO THE SUPPLEMENTAL 24
85		-	RETIREMENT PLAN THAT THE EMPLOYING INSTIT UTION CHOOSES . 25
	88	+	(II) CEASE MAKING CONTRIB UTIONS TO THE SUPPLE MENTAL 28
	89	+	RETIREMENT PLAN ; OR 29
86	90
87		-	(B) (1) NOTWITHSTANDING ANY O THER PROVISION OF LA W, AN ELIGIBLE 26
88		-	EMPLOYER SHALL DEDUC T AN AMOUNT FROM THE WAGE S OF AN EMPLOYEE FOR 27
89		-	CONTRIBUTION TO A SU PPLEMENTAL RETIREMEN T PLAN AS PART OF AN 28
90		-	AUTOMATIC ENROLLMENT ARRANGEMENT , UNLESS THE EMPLOYEE HAS ELECTED 29
91		-	TO WITHDRAW FROM THE SUPPLEMENTAL RETIREM ENT PLAN OR CEASE MA KING 30
92		-	CONTRIBUTIONS TO THE SUPPLEMENTAL RETIREM ENT PLAN. 31
93		-	SENATE BILL 270 3
	91	+	(III) WITHDRAW FROM THE SU PPLEMENTAL RETIREMEN T PLAN. 30
	92	+
	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 270 3
94	95
95	96
96		-	(2) THE AMOUNT DEDUCTED F ROM THE WAGES OF AN EMPLOYEE 1
97		-	EACH PAY PERIOD SHAL L BE THE MINIMUM AMO UNT SET BY THE BOARD, NOT TO 2
98		-	EXCEED $25, UNLESS THE EMPLOYEE ELECTS TO: 3
99	97
100		-	(I) ~~HAVE~~ A ~~DIFFERENT AMO UNT DEDUCTED ; 4~~
	98	+	(1) PROVIDED A NOTICE WITH A N EXPLANATION OF : 1
101	99
102		-	(II) CEASE MAKING CONTRIBUTIONS TO THE SUPPLEMENTAL 5
103		-	RETIREMENT PLAN ; OR 6
	100	+	(I) THE TERMS OF THE EMP LOYEE’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
104	103
105		-	(III) WITHDRAW FROM THE SU PPLEMENTAL RETIREMEN T PLAN. 7
	104	+	(II) THE EMPLOYEE ’S RIGHT TO IN CREASE, DECREASE, OR 5
	105	+	CEASE CONTRIBUTIONS TO THE SUPPLEMENTAL RETIREMENT PLAN ; 6
106	106
107		-	(C) AN EMPLOYEE ENROLLED IN A SUPPLEMENTAL RE TIREMENT PLAN 8
108		-	UNDER AN AUTOMATIC E NROLLMENT ARRANGEMEN T SHALL BE: 9
	107	+	(III) THE EMPLOYEE ’S RIGHT TO DISCONTIN UE PARTICIPATION 7
	108	+	IN THE SUPPLEMENTAL RETIREMENT PLAN WITH IN 90 DAYS AFTER THE FIRST 8
	109	+	AUTOMATIC DEDUCTION OF THE EMPLOYEE ’S CONTRIBUTION FROM WAGES ; 9
109	110
110		-	(1) OFFERED A VIRTUAL OR IN–PERSON COUNSELING AP POINTMENT 10
111		-	TO DISCUSS THE SUPPL EMENTAL RETIREMENT P LAN AND THE TIMELINE FOR 11
112		-	DISCONTINUING PARTIC IPATION; 12
	111	+	(IV) THE EMPLOYEE ’S RIGHT TO RECEIVE A REFUND OF THE 10
	112	+	EMPLOYEE’S ACCOUNT CONTRIBUTI ONS AS SOON AS PRACT ICABLE AFTER 11
	113	+	DISCONTINUING PARTIC IPATION WITHIN 90 DAYS AFTER THE FIRST AUTOMATIC 12
	114	+	DEDUCTION OF THE EMP LOYEE’S CONTRIBUTION FROM WAGES; AND 13
113	115
114		-	(2) PROVIDED A NOTICE WI TH AN EXPLANATION OF : 13
	116	+	(V) THE EMPLOYEE ’S RIGHTS REGARDING T HE INVESTMENT OF 14
	117	+	THE EMPLOYEE ’S ACCOUNT AND THE IN VESTMENT OPTIONS AVA ILABLE UNDER THE 15
	118	+	SUPPLEMENTAL RETIREM ENT PLAN; AND 16
115	119
116		-	(I) ~~THE TERMS~~ OF THE ~~EMP LOYEE’S ENROLLMENT~~ IN THE 14
117		-	SUPPLEMENTAL RETIREM ENT PLAN~~, INCLUDING~~ THE ~~CURREN T CONTRIBUTION 15~~
118		-	~~AMOUNT PROVIDED FOR UNDER THE AUTOMATIC ENROLLMENT ARRANGEME NT; 16~~
	120	+	(2) TREATED AS EXERCISIN G CONTROL OF THE ASS ETS IN THE 17
	121	+	SUPPLEMENTAL RETIREM ENT PLAN ACCOUN T REGARDING THE AMOU NT OF 18
	122	+	CONTRIBUTIONS AND EA RNINGS. 19
119	123
120		-	(II) THE EMPLOYEE ’S RIGHT TO INCREASE , DECREASE, OR 17
121		-	CEASE CONTRIBUTIONS TO THE SUPPLEMENTAL RETIREMENT PLAN ; 18
	124	+	(D) IF A PARTICIPANT IS E NROLLED IN A SUPPLEM ENTAL RETIREMENT 20
	125	+	PLAN UNDER AN AUTOMA TIC ENROLLMENT ARRAN GEMENT, THE BOARD SHALL 21
	126	+	INVEST THE PARTICIPA NT’S CONTRIBUTIONS IN A DESIGNATED DEFAULT 22
	127	+	INVESTMENT OPTION IN ACCORDANCE WITH EACH APPLICABLE SUPPLEMENTAL 23
	128	+	RETIREMENT PLAN . 24
122	129
123		-	(III) THE EMPLOYEE ’S RIGHT TO DISCONTINUE PARTICIPAT ION 19
124		-	IN THE SUPPLEMENTAL RETIREMENT PLAN WITH IN 90 DAYS AFTER THE FIRST 20
125		-	AUTOMATIC DEDUCTION OF THE EMPLOYEE ’S CONTRIBUTION FROM WAGES; 21
	130	+	(E) EACH UNIT THAT HIRES AN ELIGIBLE EMPLOYEE WHO IS NOT ALREADY 25
	131	+	ENROLLED IN A SUPPLE MENTAL RETIREMENT PL AN SHALL PROVIDE THE BOARD 26
	132	+	WITH THE INFORMATION NECESSARY TO COMPLET E THE ENR OLLMENT OF THE 27
	133	+	EMPLOYEE UNDER THE A UTOMATIC ENROLLMENT ARRANGEMENT . 28
126	134
127		-	(IV) THE EMPLOYEE ’S RIGHT TO RECEIVE A REFUND OF THE 22
128		-	EMPLOYEE’S ACCOUNT CONTRIBUTI ONS AS SOON AS P RACTICABLE AFTER 23
129		-	DISCONTINUING PARTIC IPATION WITHIN 90 DAYS AFTER THE FIRST AUTOMATIC 24
130		-	DEDUCTION OF THE EMP LOYEE’S CONTRIBUTION FROM WAGES; AND 25
	135	+	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall apply only to 29
	136	+	individuals eligible to participate in a supplemental retirement plan who commence 30
	137	+	employment or who are reinstated on or after January 1, 2026. 31
131	138
132		-	(V) THE EMPLOYEE ’S RIGHTS REGARDING T HE INVESTMENT OF 26
133		-	THE EMPLOYEE ’S ACCOUNT AND THE IN VESTMENT OPTIONS AVAILABLE UNDER THE 27
134		-	SUPPLEMENTAL RETIREM ENT PLAN; AND 28
135		-
136		-	(VI) THE DEFAULT CONTRIBU TION AMOUNT ESTABLIS HED 29
137		-	UNDER SUBSECTION (B) OF THIS SECTION THAT WILL BE IN EFFECT FO R THE 30
138		-	EMPLOYEE’S FIRST PAYROLL DEDU CTION; AND 31
139		-	4 SENATE BILL 270
140		-
141		-
142		-	(2) (3) TREATED AS EXERCISIN G CONTROL OF THE ASSETS IN THE 1
143		-	SUPPLEMENTAL RETIREM ENT PLAN ACCOUNT REG ARDING THE AMOUNT OF 2
144		-	CONTRIBUTIONS AND EA RNINGS. 3
145		-
146		-	(D) IF A PARTICIPANT IS E NROLLED IN A SUPPLEM ENTAL RETIREMENT 4
147		-	PLAN UNDER AN AUTOMA TIC ENROLLMENT ARRAN GEMENT, THE BOARD SHALL 5
148		-	INVEST THE PARTICIPANT’S CONTRIBUTIONS IN A DESIGNATED DEFAULT 6
149		-	INVESTMENT OPTION IN ACCORDANCE WITH EACH APPLICABLE SUPPLEMEN TAL 7
150		-	RETIREMENT PLAN . 8
151		-
152		-	(E) EACH UNIT THAT HIRES AN ELIGIBLE EMPLOYEE WHO IS NOT ALREADY 9
153		-	ENROLLED IN A SUPPLE MENTAL RETIREMENT PL AN SHALL PROVI DE THE BOARD 10
154		-	WITH THE INFORMATION NECESSARY TO COMPLET E THE ENROLLMENT OF THE 11
155		-	EMPLOYEE UNDER THE A UTOMATIC ENROLLMENT ARRANGEMENT . 12
156		-
157		-	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall apply only to 13
158		-	individuals eligible to participate in a supplemental retirement plan who commence 14
159		-	employment or who are reinstated on or after January 1, 2026. 15
160		-
161		-	SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 16
162		-	October 1, 2025. 17
	139	+	SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 32
	140	+	October 1, 2025. 33 4 SENATE BILL 270
163	141
164	142
165	143
166	144
167		-	Approved:
168		-	________________________________________________________________________________
169		-	Governor.
170		-	________________________________________________________________________________
171		-	President of the Senate.
172		-	________________________________________________________________________________
173		-	Speaker of the House of Delegates.
	145	+