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MD SB44

MD SB44
State Retirement and Pension System - Forfeiture of Benefits


summary

Introduced
01/14/2026
In Committee
01/14/2026
Crossed Over
Passed
Dead

Introduced Session

2026 Regular Session

Bill Summary

Establishing that a public employee is subject to forfeiture of benefits from the State Retirement and Pension System when a public employee is found guilty of, pleads guilty to, or enters a plea of nolo contendere to a qualifying crime that is committed in the course of the performance of the public employee's duties; providing for the processes and procedures to implement a forfeiture of benefits; and providing for the processes and procedures to reverse a forfeiture of benefits.

AI Summary

This bill establishes new rules for the forfeiture of retirement benefits for public employees in Maryland who are convicted of certain crimes committed while on duty, specifically defining a "qualifying crime" as a criminal offense related to their job duties, and applies to members of various state retirement systems, excluding service earned before July 1, 2026. Under these provisions, a public employee's retirement allowance will be forfeited if they are found guilty of, plead guilty to, or enter a plea of no contest to a qualifying crime, though benefits will not be forfeited if the Internal Revenue Service determines it would negatively impact the tax-qualified status of the retirement systems. Importantly, the bill allows for a public employee to petition a court for a partial payment of their forfeited benefits, considering factors like the crime's severity and financial needs, and also permits spouses, former spouses, children, or other dependents to claim a portion of the forfeited benefits for child support, alimony, or marital property rights through a court-ordered domestic relations order, with specific provisions for the restoration of benefits if a conviction is overturned.

Committee Categories

Budget and Finance

Sponsors (1)

Last Action

Senate Budget and Taxation Hearing (09:30:00 2/5/2026 ) (on 02/05/2026)

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