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SB 864

Relating to bonding requirements for landscape contracting businesses.

2025 Regular Session

Forest Heights employees may join Maryland's State Employees’ Pension System, earning 50% prior Town service credit if they elect by the deadline and are employed on the effective

Effective date, January 1, 2026.
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Bill Summary · SB 864

Summary — SB 864

Employees’ Pension System — Town of Forest Heights Employees — Membership

Status: Hearing canceled. Introduced (Md.) Jan. 28, 2025; assigned to Budget & Taxation. Bill text sets an effective date of June 1, 2025.

Purpose

SB 864 authorizes employees of the Town of Forest Heights to participate in Maryland’s State Employees’ Pension System (Employees’ Pension System) and specifies how prior local service is credited for those who opt in. It creates a limited, time‑sensitive option for current Town employees to join the State plan and receive partial credit for prior Town employment.

Key provisions

  • Authorizes Town of Forest Heights employees to join the Employees’ Pension System under the existing optional‑membership framework for participating governmental units (amends multiple sections of the State Personnel and Pensions Article; adds §31–111.9).
  • Election timing and mechanics:
    • Membership is optional for eligible Town employees employed before the effective participation date and who remain employed through that date. (Cites and modifies §23‑204 procedures.)
    • An employee who elects to join must file the election with the State Retirement Agency (Board of Trustees) before the effective date; that election is one‑time and irrevocable (consistent with existing §23‑204 rules).
  • Prior service credit for employees on effective date:
    • An employee of the Town of Forest Heights who elects membership and is employed by the Town on the effective date will receive eligibility service and creditable service in the Employees’ Pension System equal to 50% of the individual’s period of employment with the Town prior to the effective date.
    • That prior service amount must be certified by the Town as of the effective date.
  • No retroactive credit for later joiners:
    • If an employee or former employee becomes a member after the effective date, that person may not receive service credit for employment with the Town prior to the effective date.
  • Effective date: The Act takes effect June 1, 2025.

Who is affected

  • Primary: Current employees of the Town of Forest Heights employed through the effective date who choose to opt into the State Employees’ Pension System.
  • Secondary: Employees or former employees who join after the effective date (they are ineligible to receive prior Town service credit); the Town of Forest Heights (must certify prior service for electing employees); and the State Retirement Agency (administration of elections and credits).

Implementation notes

  • The bill adds a new, Town‑specific provision (§31‑111.9) to the State Pensions statute while conforming to existing procedural rules for optional participation and irrevocable elections.
  • The Town must timely certify prior service for employees electing membership on the effective date; employees must file elections by the deadline set in §23‑204 to obtain the 50% prior service credit.

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

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