SB 693 Maryland Senate · 2025 Regular Session

State Retirement and Pension System - Reemployment Earnings Limitations - Maximum Average Final Compensation

This bill clarifies that state retirees with an average final compensation below the minimum annual salary on the standard Maryland state pay scale (as of January 1 of the previous year) are exempt from reemployment earnings limitations when taking new state jobs. It specifically applies to retirees who accept permanent, temporary, or contractual positions with participating state employers within 12 months of retirement. The bill also adds a similar exemption for disability retirees who meet the same compensation threshold. These changes modify existing Maryland pension laws (sections 22-406, 23-407, 25-403, 29-115, and 29-116 of the State Personnel and Pensions article) to establish a clear, consistent income threshold for exemption.

Bill status signed all 5 stages cleared

Introduction

Jan 2025

Committee Review

Apr 2025

Senate Passage

Apr 2025

House of Delegates Passage

Apr 2025

Signed into Law

May 2025

Introduced Jan 30, 2025 Signed May 20, 2025

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What changed between versions

First - State Retirement and Pension System - Reemployment Earnings Limitations - Maximum Average Final Compensation → Third - State Retirement and Pension System - Reemployment Earnings Limitations - Maximum Average Final Compensation · 4 edits

MODERATE

This bill updates Senate Bill 693 with new committee assignments and procedural history, while making substantive changes to retirement allowance reduction rules for state employees who return to work. The most significant change is the removal of a $25,000 minimum salary threshold that previously exempted low-earning retirees from certain reduction requirements, now applying the rule to all reemployed retirees regardless of their average final compensation.

Scope change

The bill's scope expanded to apply reemployment earnings limitations to all retirees regardless of their average final compensation, removing a previous exemption for those earning below $25,000.

TIMELINE

Added procedural information including committee reassignment to Budget and Taxation, favorable committee report, and Senate adoption with second reading on February 21, 2025.

ELIGIBILITY

Removed the $25,000 minimum annual salary threshold exemption, meaning all retirees who accept reemployment are now subject to allowance reduction rules regardless of their compensation level.

REQUIREMENT

Reorganized the statutory language structure, moving certain subsections and renumbering paragraphs while maintaining the core requirement that the Board of Trustees must reduce allowances for reemployed retirees within 12 months of early service retirement.

TECHNICAL

Updated bill header information including bill number reference (CF HB 1033) and sponsor name change from Senator Jackson to Senator M. Jackson.

Floor votes · Senate Feb 23, 2025 · House of Delegates Mar 24, 2025

How they voted

46–0

Passed

Total votes 46

Feb 23, 2025

D Democratic33

33 Yea

100% Yea

R Republican13

13 Yea

100% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

May 20, 2025

Signed into law

Approved by the Governor - Chapter 775

executive

Apr 7, 2025

Upper · Passed

Returned Passed

upper

Apr 7, 2025

Lower · Passed

Third Reading Passed

lower

Apr 4, 2025

Lower · Passed

Favorable Adopted Second Reading Passed

lower

Apr 4, 2025

Lower · Passed

Favorable Report by Appropriations

lower

Mar 24, 2025

House Of Delegates · Passed

House of Delegates Vote: pass (134-0-5)

house of delegates

Mar 13, 2025

Committee

Referred Appropriations

lower

Mar 12, 2025

Upper · Passed

Third Reading Passed

upper

Mar 11, 2025

Upper · Passed

Favorable Adopted

upper

Mar 10, 2025

Upper · Passed

Favorable Report by Budget and Taxation

upper

Feb 23, 2025

Senate · Passed

Senate Vote: pass (46-0)

senate

Jan 30, 2025

Committee

First Reading Judicial Proceedings

upper

1 primary · 0 co-sponsors