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MarylandSB 06932025 Regular SessionSenateWALLET

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

Sponsored By: M. Jackson

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 Maryland disability retirees are exempt from the disability-retirement earnings limit when returning to work. They must be ineligible for normal service retirement and have average final compensation below the salary-based cutoff. That cutoff is the minimum annual salary on the standard State pay scale as of January 1 of the preceding calendar year. Eligible systems are State Police, Law Enforcement Officers’ Pension, Local Fire and Police, Employees’ Retirement, and Employees’ Pension. For the latter three systems, retirees must have been law enforcement officers for a participating employer when they retired. The new job must be with a participating employer and cannot be a probationary law enforcement officer, law enforcement officer, or chief position.

New pension earnings rules for Maryland retirees

Beginning July 1, 2025, Maryland replaces the $25,000 cutoff for specified pension exemptions after returning to work. The new cutoff is the minimum annual salary on the standard State pay scale as of January 1 of the preceding calendar year. A retiree's average final compensation must be strictly below that amount. This salary-based cutoff can expand or narrow eligibility compared with $25,000, depending on the applicable salary. In the Employees’ Retirement and Pension Systems, the exemption does not override reductions for returning within 12 months after early retirement. Those reductions remain capped at 12 months, and retirees must still notify the Board of Trustees and report their pay.

Sponsors & Cosponsors

Sponsor

  • M. Jackson

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 183 • No: 0

House vote • 4/7/2025

Third Reading Passed

Yes: 136 • No: 0 • Other: 4

Senate vote • 3/12/2025

Third Reading Passed

Yes: 47 • No: 0

Actions Timeline

  1. Approved by the Governor - Chapter 775

    5/20/2025

  2. Returned Passed

    4/7/2025Senate

  3. Third Reading Passed (136-0)

    4/7/2025House

  4. Favorable Adopted Second Reading Passed

    4/4/2025House

  5. Favorable Report by Appropriations

    4/4/2025House

  6. Hearing 3/25 at 1:00 p.m.

    3/19/2025House

  7. Referred Appropriations

    3/13/2025House

  8. Third Reading Passed (47-0)

    3/12/2025Senate

  9. Second Reading Passed

    3/11/2025Senate

  10. Favorable Adopted

    3/11/2025Senate

  11. Favorable Report by Budget and Taxation

    3/10/2025Senate

  12. Hearing 2/13 at 9:00 a.m.

    2/3/2025Senate

  13. Reassigned to Budget and Taxation

    1/31/2025Senate

  14. First Reading Judicial Proceedings

    1/30/2025Senate

Bill Text

  • Enacted

    5/20/2025

    PDF

  • Third Reading

    3/11/2025

    PDF

  • First Reading

    1/30/2025

    PDF

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