Title 30. Optional Retirement Program — Subtitle 2. Optional Retirement Program
Statutes in effect as of October 1, 2026.
Md. Code Ann., State Pers. & Pens. § 30-201 (2026)
Title 30. Optional Retirement Program
Subtitle 2. Optional Retirement Program
§ 30–201LinkCopy Citation
(a)
There is an optional retirement program in which eligible employees may participate.
(b)
Under the program, annuity contracts offered by a designated company that provide retirement and death benefits may be purchased for participating employees.
(c)
(1)
The Board of Trustees shall administer the program to the extent provided in this title.
(2)
The State Retirement Agency shall carry out the administrative duties of the Board of Trustees.
(d)
The program shall be offered by each employing institution.
Md. Code Ann., State Pers. & Pens. § 30-202 (2026)
Title 30. Optional Retirement Program
Subtitle 2. Optional Retirement Program
§ 30–202LinkCopy Citation
(a)
The Board of Trustees may designate not more than five companies from which annuity contracts are to be purchased under the program.
(b)
The Board of Trustees shall approve the form and contents of annuity contracts to be offered by a company that is designated by the Board of Trustees under subsection (a) of this section.
(c)
In making the designation and giving approval under this section, the Board of Trustees shall consider:
(1)
the nature and extent of the rights and benefits to be provided by the annuity contracts for participating employees and their beneficiaries;
(2)
the relation of those rights and benefits to the amount of contributions to be made;
(3)
the suitability of the rights and benefits to the needs of the participating employees and the interests of the employing institutions in the recruitment and retention of participating employees;
(4)
the ability of the company to provide for suitable rights and benefits under the annuity contracts;
(5)
the selection of annuity contracts offered by the company;
(6)
the financial stability of the company and whether the company meets minimum financial criteria, if any, including a minimum net worth requirement, if any, established by the Board of Trustees; and
(7)
the effect of any fees, commissions, or other charges imposed or collected in connection with an annuity contract.
Md. Code Ann., State Pers. & Pens. § 30-203 (2026)
Title 30. Optional Retirement Program
Subtitle 2. Optional Retirement Program
§ 30–203LinkCopy Citation
The Board of Trustees shall adopt and maintain a written plan document for the program and may adopt regulations that it deems necessary to carry out this title.
Md. Code Ann., State Pers. & Pens. § 30-204 (2026)
Title 30. Optional Retirement Program
Subtitle 2. Optional Retirement Program
§ 30–204LinkCopy Citation
The Board of Trustees is not responsible for:
(1)
retirement counseling with respect to the program;
(2)
preparing or disseminating information with respect to an annuity contract offered by a designated company; or
(3)
enrolling, terminating, or retiring a participating employee.
Md. Code Ann., State Pers. & Pens. § 30-205 (2026)
Title 30. Optional Retirement Program
Subtitle 2. Optional Retirement Program
§ 30–205LinkCopy Citation
(a)
Under the program, the State and the participating employees shall contribute, to the extent required, toward the purchase of annuity contracts.
(b)
A participating employee may elect to make contributions to no more than two designated companies under the program for the same payroll period, if the Board of Trustees determines that the election of more than one designated company is administratively feasible.
(c)
(1)
On behalf of each participating employee, the State shall contribute 7.25% of the participating employee’s annual earnable compensation.
(2)
If a participating employee’s compensation is paid from special or federal funds or both, the State’s contribution to the program shall be paid from those funds.
(d)
The Central Payroll Bureau shall pay contributions to the appropriate designated company for the benefit of each participating employee.
Md. Code Ann., State Pers. & Pens. § 30-206 (2026)
Title 30. Optional Retirement Program
Subtitle 2. Optional Retirement Program
§ 30–206LinkCopy Citation
In accordance with § 403(b) of the Internal Revenue Code, a participating employee’s rights to benefits under an annuity contract purchased under the program shall be fully vested and nonforfeitable.
Md. Code Ann., State Pers. & Pens. § 30-207 (2026)
Title 30. Optional Retirement Program
Subtitle 2. Optional Retirement Program
§ 30–207LinkCopy Citation
Benefits under the program:
(1)
shall be payable to participating employees or their beneficiaries in accordance with the terms of the annuity contracts; and
(2)
are not payable by the State or governing board of an employing institution.
Md. Code Ann., State Pers. & Pens. § 30-208 (2026)
Title 30. Optional Retirement Program
Subtitle 2. Optional Retirement Program
§ 30–208LinkCopy Citation
(a)
Every 3 years the Board of Trustees shall review the performance, form, and contents of the annuity contracts offered under the program.
(b)
After a review under subsection (a) of this section, the Board of Trustees may:
(1)
eliminate a designated company from participation in the program; or
(2)
withdraw approval for a type of annuity contract offered by a designated company under the program.
(c)
(1)
If a designated company is eliminated from the program or approval for a type of annuity contract is withdrawn, the Board of Trustees:
(i)
to the extent permitted under an annuity contract, may direct the transfer of existing balances of participating employees to a new annuity contract; and
(ii)
shall give participating employees an opportunity to select an annuity contract with a designated company for future contributions and existing balances subject to transfer under the program, in accordance with item (i) of this paragraph.
(2)
If a participating employee does not make a selection under paragraph (1)(ii) of this subsection within a period specified by the Board of Trustees, the participating employee shall be deemed to have elected for future contributions and existing balances subject to transfer an annuity contract and a designated company specified by the Board of Trustees.
(d)
All eligible employees shall have access to the information compiled for the purpose of conducting the review required under this section and shall be notified of the availability of the information by the Board of Trustees.
Md. Code Ann., State Pers. & Pens. § 30-209 (2026)
Title 30. Optional Retirement Program
Subtitle 2. Optional Retirement Program
§ 30–209LinkCopy Citation
(a)
There is an expense fund for the program to which shall be credited and from which shall be paid all money provided in the State budget to pay the administrative and operational expenses of the program.
(b)
(1)
Each year, the Board of Trustees shall estimate the amount of money required to provide for the administrative and operational expenses of the program for the subsequent fiscal year.
(2)
The amount determined in accordance with paragraph (1) of this subsection shall be collected from the designated companies on an equal basis and credited to the expense fund, as determined by the Board of Trustees.
(c)
The costs incurred by the Board of Trustees in selecting companies and types of annuity contracts to be offered under the program shall be recovered by assessing on an equal basis the companies designated by the Board of Trustees under § 30-202(a) of this subtitle and crediting those amounts to the expense fund.
(d)
Any unexpended funds remaining in the expense fund at the end of the fiscal year shall be held by the Board of Trustees for the exclusive purpose of defraying administrative costs of the program in subsequent years and may not revert to the General Fund of the State.
(e)
The Board of Trustees may invest and reinvest the expense fund as the Board of Trustees determines.
Md. Code Ann., State Pers. & Pens. § 30-210 (2026)
Title 30. Optional Retirement Program
Subtitle 2. Optional Retirement Program
§ 30–210LinkCopy Citation
With respect to a participating employee who is employed by an employing institution or an institution over which the employing institution has administrative authority, the employing institution shall administer the participating employee’s enrollment, termination, or retirement under the program.
Md. Code Ann., State Pers. & Pens. § 30-210.1 (2026)
Title 30. Optional Retirement Program
Subtitle 2. Optional Retirement Program
§ 30–210.1LinkCopy Citation
(a)
In this section, “covered individual” means an employee of an employing institution with discretionary authority over the management or administration of any of the supplemental retirement plans or the management or disposition of the assets of any of the supplemental retirement plans.
(b)
Subject to the provisions of this section, the State shall indemnify a covered individual who is, or is threatened to be made, a party to an action or proceeding, including an administrative or investigative proceeding, by reason of the covered individual’s service as an employee of an employing institution with discretionary authority over the management or administration of any of the supplemental retirement plans or the management or disposition of the assets of any of the supplemental retirement plans.
(c)
(1)
In this subsection, “expenses” include:
(i)
reasonable attorney’s fees;
(ii)
judgments;
(iii)
fines; and
(iv)
other expenses that were actually and reasonably incurred by the individual in connection with the action or proceeding.
(2)
With respect to a civil, administrative, or investigative action or proceeding, the State shall indemnify a covered individual for the expenses of the action or proceeding if the covered individual acted:
(i)
in good faith; and
(ii)
in a manner the covered individual reasonably believed to be in or not opposed to the best interest of the supplemental retirement plans.
(3)
With respect to a criminal action or proceeding, the State shall indemnify a covered individual for the expenses of the action or proceeding if the covered individual:
(i)
acted in good faith;
(ii)
acted in a manner the covered individual reasonably believed to be in or not opposed to the best interest of the supplemental retirement plans; and
(iii)
did not have reasonable cause to believe that the covered individual’s conduct was unlawful.
(d)
Any termination of an action or proceeding does not, of itself, create a presumption that the covered individual did not meet the standards for indemnification described in subsection (b)(2) and (3) of this section.
(e)
The State may not indemnify:
(1)
a covered individual with respect to an action or proceeding as to which the covered individual was held liable for gross negligence or willful misconduct in the performance of the covered individual’s duty to the supplemental retirement plans; or
(2)
an independent contractor furnishing services to the supplemental retirement plans.
(f)
(1)
The State shall provide insurance for a covered individual eligible for indemnification under this section.
(2)
For the purpose of paragraph (1) of this subsection, the State may provide self-insurance under terms and conditions satisfactory to the State Treasurer.
(3)
A covered individual may not be required to pay amounts attributable to liability described in this section because the State does not provide adequate insurance coverage or otherwise fails to indemnify in accordance with this section.
Md. Code Ann., State Pers. & Pens. § 30-211 (2026)
Title 30. Optional Retirement Program
Subtitle 2. Optional Retirement Program
§ 30–211LinkCopy Citation
(a)
Before enrolling a participating employee, each designated company shall provide to eligible employees, the Board of Trustees, and the employing institutions any information requested, including a full disclosure of the entire compensation provided to the senior executives of the designated company, and any information requested regarding the designated company or the annuity contracts offered by the designated company.
(b)
Each designated company shall provide and pay for all administrative, informational, and counseling services with respect to the annuity contracts offered by the designated company.
(c)
Each designated company shall cooperate with the employing institution in connection with any concerns that relate to enrollment, termination, or retirement of a participating employee.
(d)
Each designated company shall disclose to the Board of Trustees all fees, commissions, or other charges the designated company imposes or collects with respect to an annuity contract.
Md. Code Ann., State Pers. & Pens. § 30-212 (2026)
Title 30. Optional Retirement Program
Subtitle 2. Optional Retirement Program
§ 30–212LinkCopy Citation
A designated company or a company authorized to provide supplemental retirement accounts under § 30–401 of this title shall hold harmless and indemnify the State, the Board of Trustees, employing institutions, and the officers, agents, and employees of the State, the Board of Trustees, and employing institutions from any claims or demands arising from any act or omission on the part of the designated company or a company authorized to provide supplemental retirement accounts under § 30–401 of this title or its officers, agents, or employees, including any claim or demand for payment of benefits or damages arising from the formation, execution, performance, or termination of an annuity contract.