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.
*sb0693*
SENATE BILL 693
P6 5lr2231
CF HB 1033
By: Senator M. Jackson (Chair, Joint Committee on Pensions)
Introduced and read first time: January 26, 2025
Assigned to: Judicial Proceedings
Reassigned: Budget and Taxation, January 27, 2025
Committee Report: Favorable
Senate action: Adopted
Read second time: February 21, 2025
CHAPTER ______
AN ACT concerning 1
State Retirement and Pension System – Reemployment Earnings Limitations – 2
Maximum Average Final Compensation 3
FOR the purpose of clarifying that the maximum average final compensation that certain 4
retirees of the State Retirement and Pension System is to be based on the minimum 5
annual salary on the standard State pay scale as of January 1 of the preceding 6
calendar year in order to be exempt from a certain reemployment earnings 7
limitation; adding an average final compensation reemployment exemption for the 8
temporary suspension of a retirement allowance for disability retirees; and generally 9
relating to the maximum average final compensation for exempting reemployment 10
earnings limitations for retirees of the State Retirement and Pension System. 11
BY repealing and reenacting, without amendments, 12
Article – State Personnel and Pensions 13
Section 22–406(c)(1)(iii) and (3), 23–407(b) and (c)(1)(iii) and (3), and 29–116(a)(1) 14
Annotated Code of Maryland 15
(2024 Replacement Volume and 2024 Supplement) 16
BY repealing and reenacting, with amendments, 17
Article – State Personnel and Pensions 18
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
Annotated Code of Maryland 20
(2024 Replacement Volume and 2024 Supplement) 21
2 SENATE BILL 693
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
22–406. 4
(c) (1) Except as provided in § 22–407 of this subtitle, the Board of Trustees 5
shall reduce the allowance of an individual who accepts employment as provided under 6
subsection (b) of this section if: 7
(iii) the individual becomes reemployed within 12 months of 8
receiving an early service retirement allowance under § 22–402 of this subtitle. 9
(3) A reduction of an early service retirement allowance under paragraph 10
(1)(iii) of this subsection shall be applied only until the individual has received an allowance 11
for 12 months. 12
(4) Except for an individual whose allowance is subject to a reduction as 13
provided under paragraphs (1)(iii) and (3) of this subsection, the reduction of an allowance 14
under this subsection does not apply to: 15
(ii) an individual whose average final compensation was less than 16
[$25,000] THE MINIMUM ANNUAL S ALARY ON THE STANDAR D STATE PAY SCALE AS 17
OF JANUARY 1 OF THE PRECEDING CAL ENDAR YEAR and who is reemployed on a 18
permanent, temporary, or contractual basis; 19
23–407. 20
(b) Except as provided in subsection (d) of this section, an individual who is 21
receiving a service retirement allowance or a vested allowance may accept employment 22
with a participating employer on a permanent, temporary, or contractual basis, if: 23
(1) the individual immediately notifies the Board of Trustees of the 24
individual’s intention to accept this employment; and 25
(2) the individual specifies the compensation to be received. 26
(c) (1) Except as provided in § 23–408 of this subtitle, the Board of Trustees 27
shall reduce the allowance of an individual who accepts employment as provided under 28
subsection (b) of this section if: 29
(iii) the individual becomes reemployed within 12 months of 30
receiving an early service retirement allowance or an early vested allowance computed 31
under § 23–402 of this subtitle. 32
SENATE BILL 693 3
(3) A reduction of an early service retirement allowance or an early vested 1
allowance under paragraph (1)(iii) of this subsection shall be applied only until the 2
individual has received an allowance for 12 months. 3
(4) Except for an individual whose allowance is subject to a reduction as 4
provided under paragraphs (1)(iii) and (3) of this subsection, the reduction of an allowance 5
under this subsection does not apply to: 6
(i) an individual whose average final compensation was less than 7
[$25,000] THE MINIMUM ANNUAL S ALARY ON THE STANDAR D STATE PAY SCALE AS 8
OF JANUARY 1 OF THE PRECEDING CALENDAR YE AR and who is reemployed on a 9
permanent, temporary, or contractual basis; 10
25–403. 11
(b) (3) The reduction under this subsection does not apply to: 12
(ii) an individual whose average final compensation was less than 13
[$25,000] THE MINIMUM ANNUAL SALARY ON THE STANDARD STATE PAY SCALE AS 14
OF JANUARY 1 OF THE PRECEDING CAL ENDAR YEAR and who is reemployed on a 15
permanent, temporary, or contractual basis; 16
29–115. 17
(a) (1) This section applies only to a disability retiree who is not eligible to 18
receive a normal service retirement. 19
(2) This section does not apply to a disability retiree [who is]: 20
(i) WHO IS a retiree of: 21
1. the State Police Retirement System; 22
2. the Law Enforcement Officers’ Pension System; 23
3. the Local Fire and Police System; or 24
4. the Employees’ Retirement System or the Employees’ 25
Pension System, if at the time of retirement the retiree was a law enforcement officer for a 26
participating employer under § 26–201(a) of this article; [and] 27
(ii) WHO IS reemployed by a participating employer in any position 28
other than a probationary status law enforcement officer, a law enforcement officer, as 29
defined in § 1–101 of the Public Safety Article, or chief; AND 30
4 SENATE BILL 693
(III) WHOSE AVERAGE FINAL COMPENSATION WAS LES S THAN 1
THE MINIMUM ANNUAL S ALARY ON THE STANDAR D STATE PAY SCALE AS OF 2
JANUARY 1 OF THE PRECEDING CAL ENDAR YEAR. 3
29–116. 4
(a) This section does not apply to a disability retiree: 5
(1) (i) who is a retiree of: 6
1. the State Police Retirement System; 7
2. the Law Enforcement Officers’ Pension System; 8
3. the Local Fire and Police System; or 9
4. the Employees’ Retirement System or the Employees’ 10
Pension System, if at the time of retirement the retiree was a law enforcement officer for a 11
participating employer under § 26–201(a) of this article; and 12
(ii) who is reemployed by a participating employer in any position 13
other than a probationary status law enforcement officer, a law enforcement officer, as 14
defined in § 1–101 of the Public Safety Article, or chief; or 15
(2) (i) whose average final compensation was less than [$25,000] THE 16
MINIMUM ANNUAL SALAR Y ON THE STANDARD STATE PAY SCALE AS OF JANUARY 1 17
OF THE PRECEDING CAL ENDAR YEAR ; and 18
(ii) who is reemployed by a participating employer. 19
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 20
1, 2025. 21
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.