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MarylandHB 10332025 Regular SessionHouseWALLET

State Retirement and Pension System - Reemployment Earnings Limitations - Maximum Average Final Compensation

Sponsored By: Catherine M. Forbes (Democratic)

Signed by Governor

State Government - Pensions and RetirementRetirement -see also- Mandatory RetirementSalaries and Compensation -see also- Overtime; Reimb. RatesState EmployeesWork, Labor, and Employment -see also- JobTrn; Leave; etc.

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Bill Overview

Analyzed Economic Effects

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

Pension protection for qualifying disability retirees

Beginning July 1, 2025, qualifying disability retirees are exempt from temporary pension-payment suspensions after returning to work. They must be ineligible for normal service retirement and have served as law enforcement officers for participating employers at retirement. Covered systems are State Police, Law Enforcement Officers’ Pension, Local Fire and Police, and Employees’ Retirement or Pension. They must return to a participating employer, but not as a probationary law enforcement officer, law enforcement officer, or chief. Their average final compensation must be below the minimum annual salary on the standard State pay scale on January 1 of the previous calendar year.

New pension cutoff for returning retirees

Beginning July 1, 2025, the law replaces the $25,000 cutoff for certain exemptions from pension cuts after returning to work. Average final compensation must be below the new cutoff. That cutoff is the minimum annual salary on the standard State pay scale on January 1 of the previous calendar year. The exemptions cover qualifying permanent, temporary, or contract work. Existing reemployment rules remain, including rules for returning within 12 months after an early retirement allowance.

Sponsors & Cosponsors

Sponsor

  • Catherine M. Forbes

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 183 • No: 0

Senate vote • 4/2/2025

Third Reading Passed

Yes: 46 • No: 0 • Other: 1

House vote • 3/17/2025

Third Reading Passed

Yes: 137 • No: 0 • Other: 1

Actions Timeline

  1. Approved by the Governor - Chapter 774

    5/20/2025

  2. Returned Passed

    4/2/2025House

  3. Third Reading Passed (46-0)

    4/2/2025Senate

  4. Favorable Adopted Second Reading Passed

    3/27/2025Senate

  5. Favorable Report by Budget and Taxation

    3/27/2025Senate

  6. Referred Budget and Taxation

    3/17/2025Senate

  7. Third Reading Passed (137-0)

    3/17/2025House

  8. Favorable Adopted Second Reading Passed

    3/14/2025House

  9. Favorable Report by Appropriations

    3/14/2025House

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

    2/21/2025House

  11. First Reading Appropriations

    2/3/2025House

Bill Text

  • Enacted

    5/20/2025

    PDF

  • Third Reading

    3/14/2025

    PDF

  • First Reading

    2/3/2025

    PDF

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