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SB 612

State Retirement and Pension System - Deferred Vested Former Members - Return to Service

2025 Regular Session Introduced by Michael Jackson

SB 612 restores pre-2011 benefit rules for eligible deferred-vested state employees who return to the same retirement system (EPS/SPRS/CORS/LEOPS), with conditions.

Approved by the Governor - Chapter 771
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Bill Summary · SB 612

SB 612 — State Retirement and Pension System — Deferred‑Vested Former Members — Return to Service

Chapter 771 (Approved by Governor; effective July 1, 2025)

Purpose / Intent

SB 612 restores parity in benefit treatment for certain former State employees who earned vested status before July 1, 2011, left State service, and later return to State employment. The bill ensures these returning, deferred‑vested members may resume membership under the same eligibility and benefit rules that applied to continuing pre‑2011 members, subject to specific conditions.

Key provisions

  • Adds four new statutory subsections to the State Personnel and Pensions Article:
    • 23–215.3 (Employees’ Pension System, EPS)
    • 24–207.1 (State Police Retirement System, SPRS)
    • 25–205.1 (Correctional Officers’ Retirement System, CORS)
    • 26–206.1 (Law Enforcement Officers’ Pension System, LEOPS)
  • Applicability:
    • Applies to individuals who were members of the listed systems on or before June 30, 2011, and who, prior to returning to service, had:
    • a separation from employment of four years or less; or
    • a separation for qualifying military service and resumed employment within one year after discharge; or
    • separated after having already earned the minimum service to be vested (deferred‑vested).
    • The individual must not have withdrawn accumulated contributions and must not have become a retiree.
  • Effect on returning members:
    • A qualifying returnee who resumes employment in a position covered by the same retirement system is treated subject to the same requirements (eligibility, benefit calculations, contributions) that applied to persons who were members on June 30, 2011, and remained members on July 1, 2011. In practice, this preserves the pre‑2011 benefit framework for those returning under the conditions above.

Who is affected

  • Beneficiaries: former members of EPS, SPRS, CORS, or LEOPS who (a) were members on or before 6/30/2011, (b) had vested service at separation (or meet the time‑out/military service windows), (c) did not withdraw contributions or retire, and (d) return to employment in a position included in the same system.
  • Systems/administration: State Retirement Agency and affected retirement systems for administrative implementation.
  • Employers: participating State agencies employing returnees.

Background & fiscal impact

  • Context: Chapter 397 (2011) changed benefit rules for hires on/after July 1, 2011 (e.g., vesting and average final compensation rules), producing less‑generous benefit structures for some re‑hires. SB 612 narrows that gap for certain deferred‑vested former members who return.
  • Fiscal note (Department of Legislative Services / State Retirement Agency): based on membership data, the number of Maryland State members likely to benefit is very small (SRA identified 16 LEOPS members; none in CORS or SPRS), so the bill is expected to have no discernible effect on State or local pension liabilities or contribution rates.

Procedure / Effective date

  • Enacted as Chapter 771.
  • Signed by Governor: May 20, 2025.
  • Effective date: July 1, 2025.
  • Cross‑filed companion: HB 886 (Appropriations).

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

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