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MarylandHB 10282025 Regular SessionHouseWALLET

Board of Trustees for the State Retirement and Pension System - Investment Division - Compensation and Staffing

Sponsored By: Catherine M. Forbes (Democratic)

Signed by Governor

State Government - Pensions and RetirementAdministrative AgenciesCommittees and CommissionsInvestments -see also- SecuritiesPublic Officials -see also- Atty Gen; Compt; Coun Admin; etcReportsRetirement -see also- Mandatory RetirementSalaries and Compensation -see also- Overtime; Reimb. RatesStandards and Best PracticesState EmployeesWork, Labor, and Employment -see also- JobTrn; Leave; etc.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 0 benefits, 1 costs, 2 mixed.

Pay limits for pension investment staff

Beginning July 1, 2025, Maryland's pension board approves Investment Division jobs, qualifications, and staff pay based on committee recommendations. Staff pay increases cannot exceed 10% per fiscal year and require meeting or beating investment benchmarks. Pay criteria must compare similar jobs at comparable public pension funds. Jobs without authority to make investment decisions cannot pay more than comparable non-investment state jobs. The chief investment officer cannot receive statewide cost-of-living or merit increases.

Performance bonuses with pension staff limits

Beginning July 1, 2025, the pension board can award performance bonuses to eligible Investment Division staff and the chief investment officer. Bonuses require meeting or beating investment benchmarks, including those for asset classes an employee directs. Employees without authority to make investment decisions cannot receive bonuses. Bonuses cannot exceed 33% of a position's pay before bonuses per fiscal year. Awards are paid in equal installments across multiple fiscal years, on dates fixed when awarded. The law bars bonus awards in fiscal years when state employees face furloughs; the chief's bonus payments are also barred. Remaining payments generally stop after separation, except when employees retire directly from the division or within 30 days after separation. Bonuses withheld during a furlough must be paid afterward for employees who leave during it and meet that retirement rule.

New oversight for pension staff pay

Beginning July 1, 2025, a Compensation and Staffing Committee replaces Maryland's pension board's Objective Criteria Committee. It recommends job qualifications, pay and bonus criteria, and staffing needs; the board retains final authority. The board chair appoints members but cannot chair the committee. Members must include the Budget and Management Secretary or designee and at least one board member. The Treasurer and Comptroller, or their designees, may also serve. The board appoints the chief investment officer on recommendations from the executive director and committee. The officer can advise the committee but cannot join its discussions of compensation criteria. The board must hire a consultant, generally excluding firms already serving the board or investment staff. Executive search work is an exception; the chief investment officer cannot separately hire the board's consultant. By October 1 annually, the board must send adopted chief investment officer qualification and pay criteria to three legislative committees. These are Senate Budget and Taxation, House Appropriations, and the Joint Committee on Pensions; changes are due within 30 days. Investment reports are due to them October 1, January 1, March 1, and July 1. Reports cover prior-quarter returns, asset-class results against benchmarks, and performance of assets directed by each investment employee. The law removes the required periodic review schedule for criteria.

Sponsors & Cosponsors

Sponsor

  • Catherine M. Forbes

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 323 • No: 0

House vote • 4/7/2025

Third Reading Passed

Yes: 138 • No: 0 • Other: 2

Senate vote • 3/28/2025

Third Reading Passed

Yes: 46 • No: 0 • Other: 1

House vote • 3/14/2025

Third Reading Passed

Yes: 139 • No: 0

Actions Timeline

  1. Approved by the Governor - Chapter 773

    5/20/2025

  2. Passed Enrolled

    4/7/2025House

  3. Third Reading Passed (138-0)

    4/7/2025House

  4. House Concurs Senate Amendments

    4/7/2025House

  5. Third Reading Passed (46-0)

    3/28/2025Senate

  6. Second Reading Passed with Amendments

    3/27/2025Senate

  7. Favorable with Amendments {543229/1 Adopted

    3/27/2025Senate

  8. Favorable with Amendments Report by Budget and Taxation

    3/27/2025Senate

  9. Referred Budget and Taxation

    3/17/2025Senate

  10. Third Reading Passed (139-0)

    3/14/2025House

  11. Favorable Adopted Second Reading Passed

    3/14/2025House

  12. Favorable Report by Appropriations

    3/14/2025House

  13. Hearing 3/11 at 1:00 p.m.

    2/21/2025House

  14. First Reading Appropriations

    2/3/2025House

Bill Text

  • Enacted

    5/20/2025

    PDF

  • Enrolled

    4/7/2025

    PDF

  • Third Reading

    3/14/2025

    PDF

  • First Reading

    2/3/2025

    PDF

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