Bill > HB605

This bill establishes an automatic enrollment arrangement for Maryland state employees' supplemental retirement plans, requiring all new state employees hired on or after January 1, 2026, to be automatically enrolled in a supplemental retirement plan. Under this arrangement, eligible employers will automatically deduct a minimum contribution amount from an employee's wages for the retirement plan, unless the employee specifically chooses to withdraw or modify their contributions. Employees will receive a detailed notice explaining their enrollment, including their rights to adjust or cease contributions, and the option to discontinue participation within 90 days of the first automatic deduction. If an employee does not make an active choice, their contributions will be invested in a default investment option designated by the Board of Trustees of the Maryland Teachers and State Employees Supplemental Retirement Plans. The bill aims to encourage retirement savings by making participation in supplemental retirement plans the default option for new state employees, while still providing flexibility for individual choice and contribution levels. The automatic enrollment will take effect on October 1, 2025, and will apply to employees who start or are reinstated in their positions on or after January 1, 2026.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0605?ys=2025RS