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SB 810

Board of Trustees for the State Retirement and Pension System - Investment Division - Compensation and Staffing

2025 Regular Session

SB 810 shifts staffing and compensation oversight to a Board-level Compensation and Staffing Committee for the SRPS Investment Division, using objective criteria and incentive caps

Approved by the Governor - Chapter 772
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Bill Summary · SB 810

Summary — SB 810 (Chapter 772, 2025)

Board of Trustees for the State Retirement and Pension System — Investment Division — Compensation and Staffing

Overview / Purpose

SB 810 reforms how the Maryland State Retirement and Pension System (SRPS) sets staffing, qualifications, and compensation (including incentive pay) for the Investment Division. The bill repeals the existing Objective Criteria Committee (OCC) and establishes a Board-level Compensation and Staffing Committee (CSC) with revised membership, duties, and procedural rules. It also clarifies when awarded incentive compensation may be paid following employee separation and furloughs.

  • Sponsor/Lead: Senator M. Jackson (chair, Joint Committee on Pensions)
  • Chaptered: Chapter 772 (approved by Governor)
  • Effective date: July 1, 2025

Key provisions

  • Repeals the Objective Criteria Committee and creates the Compensation and Staffing Committee (CSC) within the SRPS Board of Trustees.
  • Membership: CSC members are board members (including the Secretary of Budget & Management); legislative and public appointee seats that were part of OCC are removed. The Board chair may not chair CSC and must appoint CSC’s chair; the Board may appoint Treasurer/Comptroller or designees.
  • Duties transferred and clarified:
    • CSC must establish objective criteria and make recommendations on:
    • Type and number of positions in the Investment Division;
    • Qualifications for each position;
    • Compensation and financial incentives (including specific recommendations for the Chief Investment Officer (CIO) and Investment Division staff).
    • The Board must consider CSC recommendations when adopting criteria or approving staffing/compensation.
  • CIO role: The CIO advises CSC on staffing and compensation matters but is prohibited from participating in deliberations concerning criteria for compensation or incentive awards that would apply to the CIO or Investment Division staff.
  • Incentive compensation rules:
    • Incentives must be based on objective criteria and may be limited by statute-derived caps: compensation increases may be limited (statutory language references not-to-exceed annual increase limits, e.g., a 10% cap for some positions) and incentive awards may be limited (statutory cap example: up to 33% of base compensation for a position).
    • Incentive payments are generally paid in equal installments over multiple fiscal years. The bill clarifies that awarded incentives not paid because of a furlough may still be paid to individuals who separate from employment if they retire directly from the Investment Division (or within 30 days).
  • Consultant requirement: The Board must enter into an agreement with a consultant to assist CSC and the Board; the consultant may not be actively providing other SRPS consultancy. The Board may contract with the consultant for executive search services.

Who is affected

  • SRPS Board of Trustees (responsibility changes)
  • State Retirement Agency (SRA) and Investment Division staff, including the CIO
  • Retiring Investment Division employees (timing of incentive payouts)
  • State special fund (for consultant costs)

Fiscal impact

  • Department of Legislative Services fiscal note: Special fund expenditures increase by an estimated $10,000 annually beginning FY 2026 (except FY 2029) to retain the required consultant. Additional costs may occur if the consultant provides executive search services. SRA can staff the CSC using existing resources.

Procedural / Timeline notes

  • Bill introduced January 28, 2025; enacted as Chapter 772 and effective July 1, 2025.
  • The bill moves OCC responsibilities into a board-only committee and adjusts meeting/consultant cadence; it removes statutorily required inclusion of legislative and public members previously present on OCC.

Notable details

  • The bill emphasizes objective, performance-based criteria and retains statutory guardrails (benchmarks, annual increase limits, and incentive caps) intended to align compensation with comparative public pension practices and measurable investment performance.
  • Protects against paying incentives during fiscal-year furloughs, but provides limited flexibility to pay previously awarded incentives to those who retire directly from the Investment Division.

Compiled from official sources — confirm details with the bill’s official record.

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