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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
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Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb0710*
SENATE BILL 710
P6 6lr2444
CF HB 1194
By: Senators Corderman, West, Salling, and Simonaire
Introduced and read first time: February 6, 2026
Assigned to: Budget and Taxation
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: March 3, 2026
CHAPTER ______
AN ACT concerning 1
Correctional Officers’ Retirement System – Reemployment After Retirement – 2
Exemption from Earnings Offset 3
FOR the purpose of exempting a retiree of the Correctional Officers’ Retirement System 4
from a certain earnings offset if the retiree is reemployed with a certain participating 5
employer; and generally relating to the reemployment of retirees of the Correctional 6
Officers’ Retirement System. 7
BY repealing and reenacting, with amendments, 8
Article – State Personnel and Pensions 9
Section 25–403 10
Annotated Code of Maryland 11
(2024 Replacement Volume and 2025 Supplement) 12
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
That the Laws of Maryland read as follows: 14
Article – State Personnel and Pensions 15
25–403. 16
(a) Except as provided in subsection (h) of this section, an individual who is 17
receiving a service retirement allowance or vested allowance may accept employment with 18
a participating employer on a permanent, temporary, or contractual basis, if the individual 19
immediately notifies the Board of Trustees[: 20
2 SENATE BILL 710
(1)] of the individual’s intention to accept the employment[; and 1
(2) of the compensation that the individual will receive]. 2
[(b) (1) The Board of Trustees shall reduce the allowance of an individual who 3
accepts employment as provided under subsection (a) of this section if: 4
(i) the individual’s current e mployer is a participating employer 5
other than the State and is the same participating employer that employed the individual 6
at the time of the individual’s last separation from employment with a participating 7
employer before the individual commenced recei ving a service retirement allowance or 8
vested allowance; or 9
(ii) the individual’s current employer is any unit of State government 10
and the individual’s employer at the time of the individual’s last separation from 11
employment with the State before the individual commenced receiving a service retirement 12
allowance or vested allowance was also a unit of State government. 13
(2) (i) Subject to subparagraphs (ii) and (iii) of this paragraph, the 14
reduction under paragraph (1) of this subsection shall equal the amount by which the sum 15
of the individual’s initial annual basic allowance and the individual’s annual compensation 16
exceeds the average final compensation used to compute the basic allowance. 17
(ii) Any reduction taken under this subsection may not redu ce the 18
retiree’s allowance to an amount less than the required deduction for: 19
1. if the retiree retired from any unit of State government, 20
the retiree’s monthly State–approved medical insurance premiums; or 21
2. if the retiree retired from a partic ipating employer other 22
than the State, the approved monthly medical insurance premiums required by the 23
participating employer that employed the retiree at the time of the retiree’s retirement. 24
(iii) The Board of Trustees shall recover from the retiree any 25
difference between the reduction required under subparagraph (i) of this paragraph and 26
the reduction taken under subparagraph (ii) of this paragraph. 27
(3) The reduction under this subsection does not apply to: 28
(i) an individual who has been retir ed for 5 years, beginning on 29
January 1, after the date the individual retires; 30
(ii) an individual whose average final compensation was less than 31
the minimum annual salary on the standard State pay scale as of January 1 of the 32
preceding calendar year and who is reemployed on a permanent, temporary, or contractual 33
basis; 34
SENATE BILL 710 3
(iii) an individual who is serving in an elected position as an official 1
of a participating governmental unit or as a constitutional officer for a county that is a 2
participating governmental unit; 3
(iv) a retiree of the Correctional Officers’ Retirement System who is 4
reemployed on a contractual basis for not more than 4 years by the Division of Corrections, 5
the Division of Pretrial Detention and Services, or the Patuxent Institut ion in the 6
Department of Public Safety and Correctional Services as a correctional officer in a 7
correctional facility defined in § 1–101 of the Correctional Services Article; or 8
(v) a retiree of the Correctional Officers’ Retirement System who is 9
reemployed on a contractual basis for not more than 4 years as a parole and probation 10
employee in a position authorized under Title 6, Subtitle 1 of the Correctional Services 11
Article; OR 12
(VI) A RETIREE OF THE CORRECTIONAL OFFICERS’ 13
RETIREMENT SYSTEM WHO IS EMPLOYED AS A BAILIFF IN A STATE COURT.] 14
(B) AN INDIVIDUAL WHO IS RECEIVING A SERVICE RETIREMENT 15
ALLOWANCE OR A VESTE D ALLOWANCE AND WHO ACCEPTS EMPLOYMENT W ITH A 16
PARTICIPATING EMPLOY ER ON A PERMANENT , TEMPORARY, OR CONTRACTUAL 17
BASIS IS NOT SUBJECT TO A REDUCTION TO THE INDIVIDUAL’S ALLOWANCE. 18
(c) An individual who is receiving a service retirement allowance or a vested 19
allowance and who is reemployed by a participating employer may not receive creditable 20
service or eligibility service during the period of reemployment. 21
(d) The individual’s compensation during the period of reemployment may not be 22
subject to the employer pickup provisions of § 21 –303 of this article or any reduction or 23
deduction as a member contribution for pension or retirement purposes. 24
(e) The State Retirement Agency shall institute appropriate reporting procedures 25
with the affected payroll systems to ensure compliance with this section. 26
(f) [(1) Immediately on the employment of any individual receiving a service 27
retirement allowance or a vested allowance, a participating employer shall notify the State 28
Retirement Agency of the type of employment and the anticipated earnings of the 29
individual. 30
(2)] At least once each year, in a format specified by the State Retirement 31
Agency, each participating employer shall provide the State Retirement Agency with a list 32
of all employees included on any payroll of the employer, the Social Security numbers of 33
the employees, and their earnings for that year. 34
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(g) At the request of the Stat e Retirement Agency, a unit of State government 1
shall certify to the State Retirement Agency that the individual was not employed by any 2
unit of State government at the time of the individual’s last separation from employment 3
before the individual commence d receiving a service retirement allowance or a vested 4
allowance. 5
(h) An individual who is receiving a service retirement allowance under this title 6
may not be employed within 45 days of the date the individual retired, on a permanent, 7
temporary, or contractual basis, by: 8
(1) the State or other participating employer; or 9
(2) a withdrawn participating governmental unit, if the retiree was an 10
employee of the withdrawn participating governmental unit while the withdrawn 11
governmental unit was a participating employer. 12
[(i) The Division of Corrections, the Division of Pretrial Detention and Services, 13
or the Patuxent Institution in the Department of Public Safety and Correctional Services 14
shall notify the State Retirement Agency of any retirees w ho qualify under subsection 15
(b)(3)(iv) of this section. 16
(j) On or before September 1 of each year, the Commissioner of Corrections, the 17
Commissioner of Pretrial Detention and Services, and the Director of the Patuxent 18
Institution in the Department of Pub lic Safety and Correctional Services shall jointly 19
submit a report in accordance with § 2 –1257 of the State Government Article to the Joint 20
Committee on Pensions that provides: 21
(1) the number of rehired retirees under subsection (b)(3)(iv) AND (VI) of 22
this section; 23
(2) the annual salary of each rehired retiree at the time of retirement and 24
the current annual salary of each rehired retiree; 25
(3) the number of correctional officers hired who are not retirees; and 26
(4) the annual salary of each correctional officer who is hired.] 27
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 28
1, 2026. 29