Bill > HB1033

This bill modifies several sections of Maryland's State Personnel and Pensions law to replace a fixed dollar amount of $25,000 with a more dynamic reference point: the minimum annual salary on the standard State pay scale as of January 1 of the preceding calendar year. This change affects reemployment earnings limitations for retirees across multiple pension systems, including those receiving early service retirement allowances, vested allowances, and disability retirement benefits. The bill specifically updates provisions related to how certain retirees' earnings are calculated when they return to work, making the threshold for earnings limitations more adaptable by tying it to the current state pay scale instead of a static dollar amount. Additionally, the bill adds a new provision for disability retirees, creating an exemption based on their average final compensation being below the minimum annual salary on the state pay scale. The changes aim to provide more flexibility and fairness in how retired state employees can be reemployed without significantly impacting their retirement benefits. The bill is set to take effect on July 1, 2025.

Budget and Finance

Pensions

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB1033?ys=2025RS