MD
Maryland Senate Bill SB388

Maryland 2025 Regular Session

Maryland Senate Bill SB388 Compare Versions

Only one version of the bill is available at this time.
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33 EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
44 [Brackets] indicate matter deleted from existing law.
55 *sb0388*
66
77 SENATE BILL 388
88 P6 5lr2413
99 HB 9/24 – APP CF HB 98
1010 By: Senator Folden
1111 Introduced and read first time: January 17, 2025
1212 Assigned to: Budget and Taxation
1313
1414 A BILL ENTITLED
1515
1616 AN ACT concerning 1
1717
1818 State Retirement and Pension System – Forfeiture of Benefits 2
1919
2020 FOR the purpose of establishing that a public employee is subject to forfeiture of benefits 3
2121 from the State Retirement and Pension System when the public employee is found 4
2222 guilty of, pleads guilty to, or enters a plea of nolo contendere to a qualifying crime; 5
2323 providing for the processes and procedures to implement a forfeiture of benefits; 6
2424 providing for the processes and procedures to reverse a forfeiture of benefits; and 7
2525 generally relating to the forfeiture of pension benefits. 8
2626
2727 BY repealing and reenacting, with amendments, 9
2828 Article – State Personnel and Pensions 10
2929 Section 21–502(a)(3) 11
3030 Annotated Code of Maryland 12
3131 (2024 Replacement Volume and 2024 Supplement) 13
3232
3333 BY adding to 14
3434 Article – State Personnel and Pensions 15
3535 Section 21–801 through 21–809 to be under the new subtitle “Subtitle 8. Forfeiture 16
3636 of Benefits” 17
3737 Annotated Code of Maryland 18
3838 (2024 Replacement Volume and 2024 Supplement) 19
3939
4040 SECTION 1. BE IT ENACTED BY TH E GENERAL ASSEMBLY OF MARYLAND, 20
4141 That the Laws of Maryland read as follows: 21
4242
4343 Article – State Personnel and Pensions 22
4444
4545 21–502. 23
4646
4747 (a) (3) A court of competent jurisdiction may expressly order that a benefit 24
4848 under this Division II be assigned to a spouse, former spouse, child, or other dependent 25 2 SENATE BILL 388
4949
5050
5151 when [an order of benefit forfeiture is issued] A FORFEITURE OF BENE FITS OCCURS in 1
5252 accordance with § 21–704 OR § 21–804 of this title. 2
5353
5454 SUBTITLE 8. FORFEITURE OF BENEFITS. 3
5555
5656 21–801. 4
5757
5858 (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANI NGS 5
5959 INDICATED. 6
6060
6161 (B) “DOMESTIC RELATIONS OR DER” MEANS AN ORDER ISSUE D IN 7
6262 ACCORDANCE WITH § 21–502(A)(2) OF THIS TITLE, § 414(P) OF THE INTERNAL 8
6363 REVENUE CODE, AND REGULATIONS ADOP TED BY THE BOARD OF TRUSTEES THAT 9
6464 ASSIGNS A BENEFIT TO A SPOUSE, A FORMER SPOUSE , A CHILD, OR ANY OTHER 10
6565 DEPENDENT OF A PUBLI C EMPLOYEE IN CONNEC TION WITH A DECREE O R ORDER OF 11
6666 ALIMONY, CHILD SUPPORT , OR DIVORCE. 12
6767
6868 (C) “FINAL ADJUDICATION ” MEANS ADJUDICATION B Y A TRIAL COURT 13
6969 RESULTING IN FINAL D ISPOSITION OF ALL C HARGES THAT CONSTITU TE A 14
7070 QUALIFYING CRIME . 15
7171
7272 (D) “PUBLIC EMPLOYEE ” MEANS AN INDIVIDUAL WHO: 16
7373
7474 (1) IS LISTED IN § 21–802 OF THIS SUBTITLE; AND 17
7575
7676 (2) HAS BEEN CHARGED WIT H A QUALIFYING CRIME . 18
7777
7878 (E) “QUALIFYING CRIME ” MEANS A CRIMINAL OFF ENSE UNDER § 3–303, § 19
7979 3–304, § 3–309, OR § 3–310 OF THE CRIMINAL LAW ARTICLE THAT IS COMMI TTED IN 20
8080 THE COURSE OF THE PE RFORMANCE OF THE PUB LIC EMPLOYEE ’S DUTIES AND 21
8181 RESPONSIBILITIES . 22
8282
8383 (F) “RETIREMENT ALLOWANCE ”: 23
8484
8585 (1) HAS THE MEANING STAT ED IN § 20–101 OF THIS ARTICLE; AND 24
8686
8787 (2) INCLUDES A VESTED AL LOWANCE. 25
8888
8989 (G) “VESTED ALLOWANCE ” HAS THE MEANING STAT ED IN § 20–101 OF THIS 26
9090 ARTICLE. 27
9191
9292 21–802. 28
9393 SENATE BILL 388 3
9494
9595
9696 (A) THIS SUBTITLE APPLIES TO AN INDIVIDUAL WHO IS A MEMBER, FORMER 1
9797 MEMBER, OR RETIREE OF: 2
9898
9999 (1) THE STATE POLICE RETIREMENT SYSTEM; 3
100100
101101 (2) THE LAW ENFORCEMENT OFFICERS’ PENSION SYSTEM; 4
102102
103103 (3) THE EMPLOYEES’ PENSION SYSTEM OR THE EMPLOYEES’ 5
104104 RETIREMENT SYSTEM; 6
105105
106106 (4) THE TEACHERS’ PENSION SYSTEM OR THE TEACHERS’ 7
107107 RETIREMENT SYSTEM; 8
108108
109109 (5) THE CORRECTIONAL OFFICERS’ RETIREMENT SYSTEM; OR 9
110110
111111 (6) THE JUDGES’ RETIREMENT SYSTEM. 10
112112
113113 (B) THIS SUBTITLE DOES NO T APPLY TO ANY SERVI CE EARNED BEFORE 11
114114 JULY 1, 2025. 12
115115
116116 21–803. 13
117117
118118 (A) BENEFITS UNDER THIS DIVISION II OF THIS ARTICLE PAYA BLE TO A 14
119119 PUBLIC EMPLOYEE ARE SUBJECT TO FORFEITUR E IN ACCORDANCE WITH THIS 15
120120 SUBTITLE IF THE PUBL IC EMPLOYEE IS FOUND GUILTY OF, PLEADS GUILTY TO , OR 16
121121 ENTERS A PLEA OF NOL O CONTENDERE TO A QU ALIFYING CRIME . 17
122122
123123 (B) (1) BENEFITS UNDER THIS DIVISION II MAY NOT BE FORFEITED OR 18
124124 REDUCED IF THE INTERNAL REVENUE SERVICE DETERMINES TH AT THE 19
125125 FORFEITURE OR REDUCT ION WILL NEGATIVELY AFFECT OR INVALIDATE THE TAX 20
126126 QUALIFIED STATUS OF ANY OF THE SEVERAL S YSTEMS. 21
127127
128128 (2) IF THE INTERNAL REVENUE SERVICE DETERMINES TH AT THE 22
129129 APPLICATION OF THIS SUBTITLE WOULD NEGAT IVELY AFFECT OR INVA LIDATE THE 23
130130 TAX QUALIFIED STATUS OF ANY OF THE SEVERAL SYSTE MS, ANY FORFEITURE OF 24
131131 BENEFITS THAT TOOK P LACE BEFORE THE INTERNAL REVENUE SERVICE’S 25
132132 DETERMINATION SHALL BE REVERSED IN ACCOR DANCE WITH § 21–807 OF THIS 26
133133 SUBTITLE TO THE EXTE NT NECESSARY TO COMP LY WITH THE DETERMIN ATION. 27
134134
135135 21–804. 28
136136
137137 (A) IF THE FINAL ADJUDICA TION OF CHARGES RESU LTS IN CONVICTION OF 29
138138 A PUBLIC EMPLOYEE , THE PUBLIC EMPLOYEE ’S RETIREMENT ALLOWAN CE SHALL BE 30 4 SENATE BILL 388
139139
140140
141141 FORFEITED IN ACCORDA NCE WITH THIS SECTIO N. 1
142142
143143 (B) (1) EXCEPT AS PROVIDED UN DER SUBSECTIONS (C), (D), AND (E) OF 2
144144 THIS SECTION, BENEFITS MAY NOT BE PAID TO A PUBLIC EMP LOYEE IF THE BOARD 3
145145 OF TRUSTEES FINDS BY CLE AR AND CONVINCING EV IDENCE THAT: 4
146146
147147 (I) THE PUBLIC EMPLOYEE WAS CONVICTED OF A Q UALIFYING 5
148148 CRIME; 6
149149
150150 (II) THE PUBLIC EMPLOYEE WAS A MEMBER OF THE STATE 7
151151 POLICE RETIREMENT SYSTEM, THE LAW ENFORCEMENT OFFICERS’ PENSION 8
152152 SYSTEM, THE EMPLOYEES’ PENSION SYSTEM, THE EMPLOYEES’ RETIREMENT 9
153153 SYSTEM, THE TEACHERS’ PENSION SYSTEM, THE TEACHERS’ RETIREMENT 10
154154 SYSTEM, THE CORRECTIONAL OFFICERS’ RETIREMENT SYSTEM, OR THE JUDGES’ 11
155155 RETIREMENT SYSTEM; AND 12
156156
157157 (III) THE QUALIFYING CRIME FOR WHICH THE PUBLIC 13
158158 EMPLOYEE WAS CONVICT ED WAS COMMITTED WHI LE THE PUBLIC EMPLOY EE WAS 14
159159 AN ACTIVE MEMBER OF THE STATE POLICE RETIREMENT SYSTEM, THE LAW 15
160160 ENFORCEMENT OFFICERS’ PENSION SYSTEM, THE EMPLOYEES’ PENSION SYSTEM, 16
161161 THE EMPLOYEES’ RETIREMENT SYSTEM, THE TEACHERS’ PENSION SYSTEM, THE 17
162162 TEACHERS’ RETIREMENT SYSTEM, THE CORRECTIONAL OFFICERS’ RETIREMENT 18
163163 SYSTEM, OR THE JUDGES’ RETIREMENT SYSTEM. 19
164164
165165 (2) ONLY SERVICE CREDIT I N THE STATE SYSTEM IN WHIC H THE 20
166166 PUBLIC EMPLOYEE IS A MEMBER WHEN THE QUAL IFYING CRIME IS COMM ITTED IS 21
167167 ELIGIBLE FOR FORFEIT URE UNDER THIS SECTI ON. 22
168168
169169 (C) (1) A PUBLIC EMPLOYEE CONV ICTED OF A QUALIFYIN G CRIME MAY, 23
170170 WITHIN 1 YEAR AFTER THE CONVI CTION, FILE A CLAIM IN CIRC UIT COURT FOR A 24
171171 PARTIAL PAYMENT OF T HE PUBLIC EMPLOYEE ’S RETIREMENT ALLOWAN CE. 25
172172
173173 (2) NOTICE OF THE CLAIM F ILED UNDER PARAGRAPH (1) OF THIS 26
174174 SUBSECTION SHALL BE SERVED ON THE STATE RETIREMENT AGENCY. 27
175175
176176 (3) WHEN CONSIDERING A CL AIM OF A PUBLIC EMPL OYEE UNDER 28
177177 PARAGRAPH (1) OF THIS SUBSECTION , THE COURT SHALL CONS IDER: 29
178178
179179 (I) THE SEVERITY OF THE CRIME; 30
180180
181181 (II) THE AMOUNT OF MONETA RY LOSS SUFFERED BY THE 31
182182 STATE, A COUNTY, A POLITICAL SUBDIVIS ION, OR A PERSON AS A RES ULT OF THE 32
183183 CRIME; 33
184184 SENATE BILL 388 5
185185
186186
187187 (III) THE DEGREE OF PUBLIC TRUST PLAC ED IN THE PUBLIC 1
188188 EMPLOYEE; 2
189189
190190 (IV) THE FINANCIAL NEEDS AND RESOURCES OF THE PUBLIC 3
191191 EMPLOYEE; 4
192192
193193 (V) THE FINANCIAL NEEDS AND RESOURCES OF THE PUBLIC 5
194194 EMPLOYEE’S SPOUSE, CHILDREN, OR OTHER DEPENDENTS ; 6
195195
196196 (VI) ANY INTEREST IN BENE FITS OF A FORMER SPO USE 7
197197 ESTABLISHED UNDER AN EX ISTING DOMESTIC RELA TIONS ORDER; AND 8
198198
199199 (VII) ANY OTHER FACTORS TH E COURT DETERMINES R ELEVANT. 9
200200
201201 (D) (1) A SPOUSE, A FORMER SPOUSE , A CHILD, OR ANY OTHER 10
202202 DEPENDENT OF A PUBLI C EMPLOYEE CONVICTED OF A QUALIFYING CRIM E MAY, 11
203203 WITHIN 1 YEAR AFTER THE CONVICTION , FILE A CLAIM IN CIRC UIT COURT FOR A 12
204204 PARTIAL PAYMENT OF T HE PUBLIC EMPLOYEE ’S RETIREMENT ALLOWAN CE FOR 13
205205 PURPOSES OF CHILD SU PPORT, ALIMONY, OR MARITAL PROPERTY RIGHTS. 14
206206
207207 (2) NOTICE OF THE CLAIM F ILED UNDER PARAGRAPH (1) OF THIS 15
208208 SUBSECTION SHALL BE SERVED ON THE STATE RETIREMENT AGENCY. 16
209209
210210 (3) THE COURT MAY ENTER A DOMESTIC RELATIONS O RDER THAT 17
211211 PROVIDES THAT SOME O R ALL OF THE FORFEIT ED BENEFITS BE PAID TO A SPOUSE, 18
212212 A FORMER SPOUSE , A CHILD, OR ANY OTHER DEPENDE NT FOR PURPOSES OF CHILD 19
213213 SUPPORT, ALIMONY, OR MARITAL PROPERTY RIGHTS. 20
214214
215215 (4) WHEN DETERMINING WHET HER TO ENTER A DOMES TIC 21
216216 RELATIONS ORDER UNDE R THIS SUBSECTION , THE COURT SHALL CONS IDER 22
217217 WHETHER THE PUBLIC E MPLOYEE’S SPOUSE, FORMER SPOUSE , CHILDREN, OR 23
218218 OTHER DEPENDENTS WER E CULPABLE OR COMPLICI T IN THE COMMISSION OF THE 24
219219 QUALIFYING CRIME . 25
220220
221221 (5) THE COURT MAY NOT ORD ER BENEFITS TO BE PA ID TO A PUBLIC 26
222222 EMPLOYEE’S SPOUSE, FORMER SPOUSE , CHILD, OR OTHER DEPENDENT I N A 27
223223 MANNER THAT IS INCON SISTENT WITH THE PAY MENT OF BENEFITS IN THE STATE 28
224224 SYSTEM IN WHICH THE PUBLIC EMPLOYEE WAS A MEMBER. 29
225225
226226 (E) (1) A FORFEITURE OF BENEFI TS UNDER THIS SECTIO N MAY NOT 30
227227 IMPAIR OR ALTER AN E XISTING DOMESTIC REL ATIONS ORDER PROVIDI NG BENEFITS 31
228228 TO A FORMER SPOUSE O F A PUBLIC EMPLOYEE . 32
229229
230230 (2) A PUBLIC EMPLOYEE’S INTEREST IN A BENE FIT OF A FORMER 33 6 SENATE BILL 388
231231
232232
233233 SPOUSE ESTABLISHED B Y A DOMESTIC RELATIO NS ORDER MAY NOT BE SUBJECT TO 1
234234 A FORFEITURE OR REDU CTION UNDER THIS SUB TITLE. 2
235235
236236 (F) BENEFITS AVAILABLE TO A PUBLIC EMPLOYEE AS A BENEFICIARY MAY 3
237237 NOT BE SUBJECT TO A FORFEITURE UNDER THIS SUBT ITLE. 4
238238
239239 21–805. 5
240240
241241 (A) IF A PUBLIC EMPLOYEE HAS RETIRED BEFORE B EING CONVICTED OF A 6
242242 QUALIFYING CRIME , THE BOARD OF TRUSTEES MAY RECOVER FROM THE PUBLIC 7
243243 EMPLOYEE THE AMOUNT OF BENEFITS PAID TO THE PUBLIC EMPLOYEE BEFORE THE 8
244244 CONVICTION. 9
245245
246246 (B) THE RECOVERY UNDER SU BSECTION (A) OF THIS SECTION IS L IMITED 10
247247 TO AN AMOUNT EQUAL T O THE BENEFITS THAT WOULD HAVE BEEN FORF EITED HAD 11
248248 THE CONVICTION OCCUR RED BEFORE THE PUBLI C EMPLOYEE BEGAN REC EIVING 12
249249 ANY BENEFITS AS A RE TIREE. 13
250250
251251 21–806. 14
252252
253253 (A) THIS SECTION APPLIES TO A PUBLIC EMPLOYEE WHO IS NOT A RETIREE. 15
254254
255255 (B) SUBJECT TO SUBSECTION (C) OF THIS SECTION , A PUBLIC EMPLOYEE 16
256256 MAY SUBMIT AN APPLIC ATION FOR RETIREMENT . 17
257257
258258 (C) IF A PUBLIC EMPLOYEE IS ELIGIBLE TO APPLY FOR A RETIREMENT 18
259259 ALLOWANCE , A PUBLIC EMPLOYEE ’S APPLICATION FOR RETI REMENT BENEFITS : 19
260260
261261 (1) SHALL BE CONSIDERED SUBMITTED ON THE FIR ST DAY OF THE 20
262262 MONTH AFTER IT IS PR OPERLY COMPLETED AND SUBMITTED TO THE STATE 21
263263 RETIREMENT AGENCY; AND 22
264264
265265 (2) MAY NOT BE PROCESSED BY THE STATE RETIREMENT AGENCY 23
266266 UNLESS AND U NTIL THE FINAL ADJUD ICATION OF THE CHARG E DOES NOT RESULT 24
267267 IN CONVICTION. 25
268268
269269 21–807. 26
270270
271271 (A) (1) ON RECEIPT OF AN ORDE R THAT REVERSES OR O VERTURNS A 27
272272 CONVICTION OF A PUBL IC EMPLOYEE, THE BOARD OF TRUSTEES SHALL RESCIN D 28
273273 THE FORFEITURE OF BE NEFITS AND PAY ANY B ENEFITS THAT ARE PAYABL E UNDER 29
274274 THIS DIVISION II OF THIS ARTICLE TO T HE PUBLIC EMPLOYEE . 30
275275
276276 (2) WHEN A CONVICTION IS OVERTURNED , ANY DOMESTIC 31 SENATE BILL 388 7
277277
278278
279279 RELATIONS ORDER ENTE RED IN ACCORDANCE WI TH § 21–804(D) OF THIS SUBTITLE 1
280280 IS TERMINATED AND TH E BOARD OF TRUSTEES MAY NO T PAY ANY BENEFITS I N 2
281281 ACCORDANCE WITH THE ORDER. 3
282282
283283 (B) IF A CONVICTION OF A PUBLIC EMPLOYEE WHO WAS A RETIREE BEFORE 4
284284 THE DATE OF CONVICTI ON IS OVERTURNED : 5
285285
286286 (1) THE PUBLIC EMPLOYEE ’S BENEFITS SHALL BE RESTORED BACK 6
287287 TO THE DATE THE BENE FIT PAYMENTS CEASED ; 7
288288
289289 (2) THE ALLOWANCE SHALL : 8
290290
291291 (I) BE PAID BEGINNING TH E MONTH AFTER THE STATE 9
292292 RETIREMENT AGENCY IS NOTIFIED TH AT THE CONVICTION IS OVERTURNED ; AND 10
293293
294294 (II) INCLUDE ANY COST –OF–LIVING ADJUSTMENTS T HAT 11
295295 WOULD HAVE BEEN MADE IN THE TIME BETWEEN THE CONVICTION AND THE T IME 12
296296 BENEFIT PAYMENTS ARE RESTORED; AND 13
297297
298298 (3) BENEFIT PAYMENTS THA T WOULD HAVE BEEN MA DE DURING THE 14
299299 TIME FROM THE DATE O F CONVICTION TO THE DATE THE CONVICTION IS 15
300300 OVERTURNED SHALL BE MADE TO THE PUBLIC E MPLOYEE, LESS ANY PAYMENTS : 16
301301
302302 (I) MADE IN ACCORDANCE W ITH A DOMESTIC RELAT IONS 17
303303 ORDER DIRECTING PAYM ENT OF BENEFITS TO A SPOUSE, A FORMER SPOUSE , A 18
304304 CHILD, OR ANY OTHER DEPENDE NT; AND 19
305305
306306 (II) RECEIVED BY THE PUBL IC EMPLOYEE IN ACCOR DANCE 20
307307 WITH AN ORDER ISSUED UNDER § 21–804 OF THIS SUBTITLE GRANTING THE PUBL IC 21
308308 EMPLOYEE A PARTIAL P AYMENT OF BENEFITS . 22
309309
310310 (C) IF A CONVICTION OF A PUBLIC EMPLOYEE WHO WAS NOT A RETIREE 23
311311 BEFORE THE DATE OF C ONVICTION IS OVERTUR NED, THE PUBLIC EMPLOYEE MAY 24
312312 RECEIVE BENEFITS IN ACCORDANCE WITH THIS DIVISION II OF THIS ARTICLE. 25
313313
314314 21–808. 26
315315
316316 (A) EXCEPT AS PROVIDED UN DER SUBSECTION (B) OF THIS SECTION , A 27
317317 PUBLIC EMPLOYEE SUBJ ECT TO A FORFEITURE UNDER THIS SUBTITLE IS ENTITLED 28
318318 TO A RETURN OF THE I NDIVIDUAL’S ACCUMULATED CONTRI BUTIONS ON REQUEST 29
319319 UNDER § 29–501 OF THIS ARTICLE. 30
320320
321321 (B) THE PUBLIC EMPLOYEE ’S ACCUMULATED CONTRI BUTIONS SHALL BE 31
322322 REDUCED BY AN AMOUNT EQUAL TO ANY BENEFIT PAYMENTS RECEIVED BY THE 32 8 SENATE BILL 388
323323
324324
325325 PUBLIC EMPLOYEE THAT WOULD HAVE BEEN SUBJ ECT TO FORFEITURE AN D HAVE 1
326326 NOT BEEN RECOVERED B Y THE BOARD OF TRUSTEES UNDER § 21–805 OF THIS 2
327327 SUBTITLE. 3
328328
329329 21–809. 4
330330
331331 THE BOARD OF TRUSTEES SHALL ADOPT REGULATIONS TO IMPLE MENT THIS 5
332332 SUBTITLE. 6
333333
334334 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall be construed to 7
335335 apply only prospectively and may not be applied or interpreted to have any effect on or 8
336336 application to any crime committed before the effective date of this Act. 9
337337
338338 SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 10
339339 1, 2025. 11
340340
341341