Bill > HB1028

This bill clarifies and modifies the compensation and staffing procedures for the Chief Investment Officer and employees of the State Retirement and Pension System's Investment Division. The legislation establishes a new Compensation and Staffing Committee to assist in recommending qualifications, compensation, and leave for the Chief Investment Officer, and provides detailed guidelines for awarding financial incentives. Key provisions include allowing the Board of Trustees to award financial incentives to the Chief Investment Officer, which will be paid over multiple fiscal years in equal installments, with specific conditions for payment. The bill stipulates that these incentives cannot be paid during state employee furlough periods, but may be paid retroactively under certain circumstances, such as if the Chief Investment Officer retires directly from the Investment Division within 30 days of separation from employment. The legislation also requires objective criteria for setting compensation, including performance benchmarks, and mandates regular reporting to legislative committees about investment returns and compensation changes. Additionally, the bill restructures the composition of the Compensation and Staffing Committee, removing some previous legislative members and adding flexibility in committee appointments. The changes aim to provide more transparent and performance-based compensation mechanisms for the Investment Division's leadership and staff, with an effective date of July 1, 2025.

Budget and Finance

Pensions

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB1028?ys=2025RS