| 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 | *sb0693* | |
| 9 | 6 | ||
| 10 | 7 | SENATE BILL 693 | |
| 11 | 8 | P6 5lr2231 | |
| 12 | - | CF | |
| 13 | - | By: Senator | |
| 9 | + | CF 5lr2232 | |
| 10 | + | By: Senator Jackson (Chair, Joint Committee on Pensions) | |
| 14 | 11 | Introduced and read first time: January 26, 2025 | |
| 15 | 12 | Assigned to: Judicial Proceedings | |
| 16 | - | Reassigned: Budget and Taxation, January 27, 2025 | |
| 17 | - | Committee Report: Favorable | |
| 18 | - | Senate action: Adopted | |
| 19 | - | Read second time: February 21, 2025 | |
| 20 | 13 | ||
| 21 | - | ||
| 14 | + | A BILL ENTITLED | |
| 22 | 15 | ||
| 23 | 16 | AN ACT concerning 1 | |
| 24 | 17 | ||
| 25 | 18 | State Retirement and Pension System – Reemployment Earnings Limitations – 2 | |
| 26 | 19 | Maximum Average Final Compensation 3 | |
| 27 | 20 | ||
| 28 | 21 | FOR the purpose of clarifying that the maximum average final compensation that certain 4 | |
| 29 | 22 | retirees of the State Retirement and Pension System is to be based on the minimum 5 | |
| 30 | 23 | annual salary on the standard State pay scale as of January 1 of the preceding 6 | |
| 31 | 24 | calendar year in order to be exempt from a certain reemployment earnings 7 | |
| 32 | 25 | limitation; adding an average final compensation reemployment exemption for the 8 | |
| 33 | 26 | temporary suspension of a retirement allowance for disability retirees; and generally 9 | |
| 34 | 27 | relating to the maximum average final compensation for exempting reemployment 10 | |
| 35 | 28 | earnings limitations for retirees of the State Retirement and Pension System. 11 | |
| 36 | 29 | ||
| 37 | 30 | BY repealing and reenacting, without amendments, 12 | |
| 38 | 31 | Article – State Personnel and Pensions 13 | |
| 39 | 32 | Section 22–406(c)(1)(iii) and (3), 23–407(b) and (c)(1)(iii) and (3), and 29–116(a)(1) 14 | |
| 40 | 33 | Annotated Code of Maryland 15 | |
| 41 | 34 | (2024 Replacement Volume and 2024 Supplement) 16 | |
| 42 | 35 | ||
| 43 | 36 | BY repealing and reenacting, with amendments, 17 | |
| 44 | 37 | Article – State Personnel and Pensions 18 | |
| 45 | 38 | Section 22–406(c)(4)(ii), 23–407(c)(4)(i), 25–403(b)(3)(ii), 29–115(a), and 29–116(a)(2) 19 | |
| 46 | 39 | Annotated Code of Maryland 20 | |
| 47 | 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 | + | 22–406. 25 | |
| 48 | 48 | 2 SENATE BILL 693 | |
| 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 | + | (c) (1) Except as provided in § 22–407 of this subtitle, the Board of Trustees 1 | |
| 52 | + | shall reduce the allowance of an individual who accepts employment as provided under 2 | |
| 53 | + | subsection (b) of this section if: 3 | |
| 53 | 54 | ||
| 54 | - | Article – State Personnel and Pensions 3 | |
| 55 | + | (iii) the individual becomes reemployed within 12 months of 4 | |
| 56 | + | receiving an early service retirement allowance under § 22–402 of this subtitle. 5 | |
| 55 | 57 | ||
| 56 | - | 22–406. 4 | |
| 58 | + | (3) A reduction of an early service retirement allowance under paragraph 6 | |
| 59 | + | (1)(iii) of this subsection shall be applied only until the individual has received an allowance 7 | |
| 60 | + | for 12 months. 8 | |
| 57 | 61 | ||
| 58 | - | ( | |
| 59 | - | ||
| 60 | - | ||
| 62 | + | (4) Except for an individual whose allowance is subject to a reduction as 9 | |
| 63 | + | provided under paragraphs (1)(iii) and (3) of this subsection, the reduction of an allowance 10 | |
| 64 | + | under this subsection does not apply to: 11 | |
| 61 | 65 | ||
| 62 | - | (iii) the individual becomes reemployed within 12 months of 8 | |
| 63 | - | receiving an early service retirement allowance under § 22–402 of this subtitle. 9 | |
| 66 | + | (ii) an individual whose average final compensation was less than 12 | |
| 67 | + | [$25,000] THE MINIMUM ANNUAL S ALARY ON THE STANDAR D STATE PAY SCALE AS 13 | |
| 68 | + | OF JANUARY 1 OF THE PRECEDING CAL ENDAR YEAR and who is reemployed on a 14 | |
| 69 | + | permanent, temporary, or contractual basis; 15 | |
| 64 | 70 | ||
| 65 | - | (3) A reduction of an early service retirement allowance under paragraph 10 | |
| 66 | - | (1)(iii) of this subsection shall be applied only until the individual has received an allowance 11 | |
| 67 | - | for 12 months. 12 | |
| 71 | + | 23–407. 16 | |
| 68 | 72 | ||
| 69 | - | ( | |
| 70 | - | ||
| 71 | - | ||
| 73 | + | (b) Except as provided in subsection (d) of this section, an individual who is 17 | |
| 74 | + | receiving a service retirement allowance or a vested allowance may accept employment 18 | |
| 75 | + | with a participating employer on a permanent, temporary, or contractual basis, if: 19 | |
| 72 | 76 | ||
| 73 | - | (ii) an individual whose average final compensation was less than 16 | |
| 74 | - | [$25,000] THE MINIMUM ANNUAL S ALARY ON THE STANDAR D STATE PAY SCALE AS 17 | |
| 75 | - | OF JANUARY 1 OF THE PRECEDING CAL ENDAR YEAR and who is reemployed on a 18 | |
| 76 | - | permanent, temporary, or contractual basis; 19 | |
| 77 | + | (1) the individual immediately notifies the Board of Trustees of the 20 | |
| 78 | + | individual’s intention to accept this employment; and 21 | |
| 77 | 79 | ||
| 78 | - | ||
| 80 | + | (2) the individual specifies the compensation to be received. 22 | |
| 79 | 81 | ||
| 80 | - | ( | |
| 81 | - | ||
| 82 | - | ||
| 82 | + | (c) (1) Except as provided in § 23–408 of this subtitle, the Board of Trustees 23 | |
| 83 | + | shall reduce the allowance of an individual who accepts employment as provided under 24 | |
| 84 | + | subsection (b) of this section if: 25 | |
| 83 | 85 | ||
| 84 | - | (1) the individual immediately notifies the Board of Trustees of the 24 | |
| 85 | - | individual’s intention to accept this employment; and 25 | |
| 86 | + | (iii) the individual becomes reemployed within 12 months of 26 | |
| 87 | + | receiving an early service retirement allowance or an early vested allowance computed 27 | |
| 88 | + | under § 23–402 of this subtitle. 28 | |
| 86 | 89 | ||
| 87 | - | (2) the individual specifies the compensation to be received. 26 | |
| 90 | + | (3) A reduction of an early service retirement allowance or an early vested 29 | |
| 91 | + | allowance under paragraph (1)(iii) of this subsection shall be applied only until the 30 | |
| 92 | + | individual has received an allowance for 12 months. 31 | |
| 88 | 93 | ||
| 89 | - | (c) (1) Except as provided in § 23–408 of this subtitle, the Board of Trustees 27 | |
| 90 | - | shall reduce the allowance of an individual who accepts employment as provided under 28 | |
| 91 | - | subsection (b) of this section if: 29 | |
| 92 | - | ||
| 93 | - | (iii) the individual becomes reemployed within 12 months of 30 | |
| 94 | - | receiving an early service retirement allowance or an early vested allowance computed 31 | |
| 95 | - | under § 23–402 of this subtitle. 32 | |
| 94 | + | (4) Except for an individual whose allowance is subject to a reduction as 32 | |
| 95 | + | provided under paragraphs (1)(iii) and (3) of this subsection, the reduction of an allowance 33 | |
| 96 | + | under this subsection does not apply to: 34 | |
| 96 | 97 | SENATE BILL 693 3 | |
| 97 | 98 | ||
| 98 | 99 | ||
| 99 | - | (3) A reduction of an early service retirement allowance or an early vested 1 | |
| 100 | - | allowance under paragraph (1)(iii) of this subsection shall be applied only until the 2 | |
| 101 | - | individual has received an allowance for 12 months. 3 | |
| 100 | + | (i) an individual whose average final compensation was less than 1 | |
| 101 | + | [$25,000] THE MINIMUM ANNUAL S ALARY ON THE STANDAR D STATE PAY SCALE AS 2 | |
| 102 | + | OF JANUARY 1 OF THE PRECEDING CAL ENDAR YEAR and who is reemployed on a 3 | |
| 103 | + | permanent, temporary, or contractual basis; 4 | |
| 102 | 104 | ||
| 103 | - | (4) Except for an individual whose allowance is subject to a reduction as 4 | |
| 104 | - | provided under paragraphs (1)(iii) and (3) of this subsection, the reduction of an allowance 5 | |
| 105 | - | under this subsection does not apply to: 6 | |
| 105 | + | 25–403. 5 | |
| 106 | 106 | ||
| 107 | - | (i) an individual whose average final compensation was less than 7 | |
| 107 | + | (b) (3) The reduction under this subsection does not apply to: 6 | |
| 108 | + | ||
| 109 | + | (ii) an individual whose average final compensation was less than 7 | |
| 108 | 110 | [$25,000] THE MINIMUM ANNUAL S ALARY ON THE STANDAR D STATE PAY SCALE AS 8 | |
| 109 | 111 | OF JANUARY 1 OF THE PRECEDING CAL ENDAR YEAR and who is reemployed on a 9 | |
| 110 | 112 | permanent, temporary, or contractual basis; 10 | |
| 111 | 113 | ||
| 112 | - | ||
| 114 | + | 29–115. 11 | |
| 113 | 115 | ||
| 114 | - | (b) (3) The reduction under this subsection does not apply to: 12 | |
| 116 | + | (a) (1) This section applies only to a disability retiree who is not eligible to 12 | |
| 117 | + | receive a normal service retirement. 13 | |
| 115 | 118 | ||
| 116 | - | (ii) an individual whose average final compensation was less than 13 | |
| 117 | - | [$25,000] THE MINIMUM ANNUAL SALARY ON THE STANDARD STATE PAY SCALE AS 14 | |
| 118 | - | OF JANUARY 1 OF THE PRECEDING CAL ENDAR YEAR and who is reemployed on a 15 | |
| 119 | - | permanent, temporary, or contractual basis; 16 | |
| 119 | + | (2) This section does not apply to a disability retiree [who is]: 14 | |
| 120 | 120 | ||
| 121 | - | ||
| 121 | + | (i) WHO IS a retiree of: 15 | |
| 122 | 122 | ||
| 123 | - | (a) (1) This section applies only to a disability retiree who is not eligible to 18 | |
| 124 | - | receive a normal service retirement. 19 | |
| 123 | + | 1. the State Police Retirement System; 16 | |
| 125 | 124 | ||
| 126 | - | | |
| 125 | + | 2. the Law Enforcement Officers’ Pension System; 17 | |
| 127 | 126 | ||
| 128 | - | | |
| 127 | + | 3. the Local Fire and Police System; or 18 | |
| 129 | 128 | ||
| 130 | - | 1. the State Police Retirement System; 22 | |
| 129 | + | 4. the Employees’ Retirement System or the Employees’ 19 | |
| 130 | + | Pension System, if at the time of retirement the retiree was a law enforcement officer for a 20 | |
| 131 | + | participating employer under § 26–201(a) of this article; [and] 21 | |
| 131 | 132 | ||
| 132 | - | 2. the Law Enforcement Officers’ Pension System; 23 | |
| 133 | + | (ii) WHO IS reemployed by a participating employer in any position 22 | |
| 134 | + | other than a probationary status law enforcement officer, a law enforcement officer, as 23 | |
| 135 | + | defined in § 1–101 of the Public Safety Article, or chief; AND 24 | |
| 133 | 136 | ||
| 134 | - | 3. the Local Fire and Police System; or 24 | |
| 137 | + | (III) WHOSE AVERAGE FINAL COMPENSATION WAS LES S THAN 25 | |
| 138 | + | THE MINIMUM ANNUAL S ALARY ON THE STANDAR D STATE PAY SCALE AS OF 26 | |
| 139 | + | JANUARY 1 OF THE PRECEDING CAL ENDAR YEAR. 27 | |
| 135 | 140 | ||
| 136 | - | 4. the Employees’ Retirement System or the Employees’ 25 | |
| 137 | - | Pension System, if at the time of retirement the retiree was a law enforcement officer for a 26 | |
| 138 | - | participating employer under § 26–201(a) of this article; [and] 27 | |
| 141 | + | 29–116. 28 | |
| 139 | 142 | ||
| 140 | - | (ii) WHO IS reemployed by a participating employer in any position 28 | |
| 141 | - | other than a probationary status law enforcement officer, a law enforcement officer, as 29 | |
| 142 | - | defined in § 1–101 of the Public Safety Article, or chief; AND 30 | |
| 143 | - | 4 SENATE BILL 693 | |
| 143 | + | (a) This section does not apply to a disability retiree: 29 | |
| 144 | 144 | ||
| 145 | - | ||
| 146 | - | (III) WHOSE AVERAGE FINAL COMPENSATION WAS LES S THAN 1 | |
| 147 | - | THE MINIMUM ANNUAL S ALARY ON THE STANDAR D STATE PAY SCALE AS OF 2 | |
| 148 | - | JANUARY 1 OF THE PRECEDING CAL ENDAR YEAR. 3 | |
| 149 | - | ||
| 150 | - | 29–116. 4 | |
| 151 | - | ||
| 152 | - | (a) This section does not apply to a disability retiree: 5 | |
| 153 | - | ||
| 154 | - | (1) (i) who is a retiree of: 6 | |
| 155 | - | ||
| 156 | - | 1. the State Police Retirement System; 7 | |
| 157 | - | ||
| 158 | - | 2. the Law Enforcement Officers’ Pension System; 8 | |
| 159 | - | ||
| 160 | - | 3. the Local Fire and Police System; or 9 | |
| 161 | - | ||
| 162 | - | 4. the Employees’ Retirement System or the Employees’ 10 | |
| 163 | - | Pension System, if at the time of retirement the retiree was a law enforcement officer for a 11 | |
| 164 | - | participating employer under § 26–201(a) of this article; and 12 | |
| 165 | - | ||
| 166 | - | (ii) who is reemployed by a participating employer in any position 13 | |
| 167 | - | other than a probationary status law enforcement officer, a law enforcement officer, as 14 | |
| 168 | - | defined in § 1–101 of the Public Safety Article, or chief; or 15 | |
| 169 | - | ||
| 170 | - | (2) (i) whose average final compensation was less than [$25,000] THE 16 | |
| 171 | - | MINIMUM ANNUAL SALAR Y ON THE STANDARD STATE PAY SCALE AS OF JANUARY 1 17 | |
| 172 | - | OF THE PRECEDING CAL ENDAR YEAR ; and 18 | |
| 173 | - | ||
| 174 | - | (ii) who is reemployed by a participating employer. 19 | |
| 175 | - | ||
| 176 | - | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 20 | |
| 177 | - | 1, 2025. 21 | |
| 145 | + | (1) (i) who is a retiree of: 30 4 SENATE BILL 693 | |
| 178 | 146 | ||
| 179 | 147 | ||
| 180 | 148 | ||
| 181 | - | Approved: | |
| 182 | - | ________________________________________________________________________________ | |
| 183 | - | Governor. | |
| 184 | - | ________________________________________________________________________________ | |
| 185 | - | President of the Senate. | |
| 186 | - | ________________________________________________________________________________ | |
| 187 | - | Speaker of the House of Delegates. | |
| 149 | + | 1. the State Police Retirement System; 1 | |
| 150 | + | ||
| 151 | + | 2. the Law Enforcement Officers’ Pension System; 2 | |
| 152 | + | ||
| 153 | + | 3. the Local Fire and Police System; or 3 | |
| 154 | + | ||
| 155 | + | 4. the Employees’ Retirement System or the Employees’ 4 | |
| 156 | + | Pension System, if at the time of retirement the retiree was a law enforcement officer for a 5 | |
| 157 | + | participating employer under § 26–201(a) of this article; and 6 | |
| 158 | + | ||
| 159 | + | (ii) who is reemployed by a participating employer in any position 7 | |
| 160 | + | other than a probationary status law enforcement officer, a law enforcement officer, as 8 | |
| 161 | + | defined in § 1–101 of the Public Safety Article, or chief; or 9 | |
| 162 | + | ||
| 163 | + | (2) (i) whose average final compensation was less than [$25,000] THE 10 | |
| 164 | + | MINIMUM ANNUAL SA LARY ON THE STANDARD STATE PAY SCALE AS OF JANUARY 1 11 | |
| 165 | + | OF THE PRECEDING CAL ENDAR YEAR ; and 12 | |
| 166 | + | ||
| 167 | + | (ii) who is reemployed by a participating employer. 13 | |
| 168 | + | ||
| 169 | + | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 14 | |
| 170 | + | 1, 2025. 15 |