MarylandSB 08102025 Regular SessionSenateWALLET

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

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Bill Overview

Analyzed Economic Effects

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

Maryland pension investment staff face pay limits

Beginning July 1, 2025, Maryland’s pension board sets Investment Division jobs, qualifications, and pay using committee recommendations and public-pension comparisons. The board also sets the investment chief’s appointment and leave, based on recommendations from the Executive Director and committee. Annual staff pay increases cannot exceed 10%, require meeting investment benchmarks, and are barred in fiscal years with state-employee furloughs. Jobs without investment decision-making power cannot pay more than comparable state jobs. The investment chief and staff with investment decision-making power cannot receive general state cost-of-living or merit increases.

Pension investment bonuses face caps and delays

Beginning July 1, 2025, Maryland’s pension board can award the investment chief and eligible investment staff performance bonuses under objective criteria. Staff annual bonuses cannot exceed 33% of pay excluding bonuses; only jobs with investment decision-making power qualify. Staff must meet investment benchmarks, including those for the types of assets they manage. Awards are paid in equal installments across multiple fiscal years, with payment dates fixed when awarded and unchangeable afterward. Payments are barred in fiscal years with state-employee furloughs. Unpaid awards generally stop when employees leave, except when they retire directly from the division or within 30 days after leaving. Furlough-delayed awards are payable only after the furlough ends, with continued division employment or the stated retirement exception.

New oversight of pension investment staff pay

Beginning July 1, 2025, a Compensation and Staffing Committee replaces Maryland’s pension board’s Objective Criteria Committee. It recommends objective rules for investment-chief and staff qualifications, pay, and bonuses; the board retains final authority. Membership includes the budget secretary or designee and specified board members; eligible appointees include a public financial-industry expert, Treasurer, and Comptroller or designees. The board chair appoints the committee chair but cannot serve in that role; the board can also create other committees. The investment chief advises on staffing and pay but cannot join discussions about pay or bonus criteria for the chief or staff. The board must hire an independent consultant not already advising the board or division; that consultant may also conduct executive searches. The investment chief cannot separately hire that consultant. The board must send adopted criteria to the Senate Budget and Taxation, House Appropriations, and Joint Pensions committees annually by October 1, and changes within 30 days. Investment reports are due to those committees October 1, January 1, March 1, and July 1, covering the preceding fiscal quarter. Reports must show results by asset class and for assets directed by each Investment Division employee.

Sponsors & Cosponsors

Sponsor

M. Jackson
Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 179 • No: 0

House vote • 4/7/2025

Third Reading Passed

Yes: 137 • No: 0 • Other: 3

Senate vote • 3/17/2025