<section article="gsp" article_name="State Personnel and Pensions" number="35-101" title_number="35" title_name="Supplemental Retirement Plans" subtitle_number="1" subtitle_name="Definitions"> <level label="a"> <text>In this title the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Board” means the State Board of Trustees of the Maryland State Employees Supplemental Retirement Plans.</text> </level> <level label="c"> <text>“Supplemental retirement plans” means the deferred compensation, tax sheltered annuity, salary reduction savings plans, and any other plans authorized by this title.</text> </level> </section> <section article="gsp" article_name="State Personnel and Pensions" number="35-102" title_number="35" title_name="Supplemental Retirement Plans" subtitle_number="1" subtitle_name="Definitions"> <level label="a"> <text>The supplemental retirement plans are in addition to any other retirement, pension, or benefit system established by the State.</text> </level> <level label="b"> <text>A deferral of compensation under any of the supplemental retirement plans does not reduce the amount of any retirement, pension, or other benefit provided by law.</text> </level> </section> <section article="gsp" article_name="State Personnel and Pensions" number="35-201" title_number="35" title_name="Supplemental Retirement Plans" subtitle_number="2" subtitle_name="Board of Trustees"> <text>There is a Board of Trustees of the Maryland State Employees Supplemental Retirement Plans.</text> </section> <section article="gsp" article_name="State Personnel and Pensions" number="35-202" title_number="35" title_name="Supplemental Retirement Plans" subtitle_number="2" subtitle_name="Board of Trustees"> <level label="a"> <level label="1"> <text>The Board consists of nine members appointed by the Governor.</text> </level> <level label="2"> <text>Of the nine members:</text> <level label="i"> <text>three shall be from any of the following units:</text> <level label="1"> <text>the Department of Budget and Management;</text> </level> <level label="2"> <text>the Department of Education;</text> </level> <level label="3"> <text>the Office of the State Comptroller;</text> </level> <level label="4"> <text>the Office of the State Treasurer;</text> </level> <level label="5"> <text>the State Retirement Agency; or</text> </level> <level label="6"> <text>the Maryland Higher Education Commission;</text> </level> </level> <level label="ii"> <text>three shall be individuals who are eligible to participate in one of the supplemental retirement plans, at least one of whom shall be an employee described in § 403(b)(1)(A)(ii) of the Internal Revenue Code; and</text> </level> <level label="iii"> <text>three shall be members of the public who are not eligible to participate in any of the supplemental retirement plans, at least one of whom shall have experience with deferred compensation and salary reduction plans.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>The term of a member is 4 years.</text> </level> <level label="2"> <text>The terms of members are staggered as required by the terms provided for members of the Board on October 1, 1994.</text> </level> <level label="3"> <text>At the end of a term, a member continues to serve until a successor is appointed and qualifies.</text> </level> <level label="4"> <text>A member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed and qualifies.</text> </level> </level> <level label="c"> <text>The Governor may remove a member for incompetence or misconduct.</text> </level> </section> <section article="gsp" article_name="State Personnel and Pensions" number="35-203" title_number="35" title_name="Supplemental Retirement Plans" subtitle_number="2" subtitle_name="Board of Trustees"> <text>The Governor shall appoint a chairman from among the members of the Board appointed under § 35–202(a)(2)(i) or (ii) of this subtitle.</text> </section> <section article="gsp" article_name="State Personnel and Pensions" number="35-204" title_number="35" title_name="Supplemental Retirement Plans" subtitle_number="2" subtitle_name="Board of Trustees"> <level label="a"> <text>The Board shall meet at least quarterly at the times and places it determines.</text> </level> <level label="b"> <text>Each member of the Board is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.</text> </level> <level label="c"> <level label="1"> <text>The Board may employ a staff in accordance with the State budget.</text> </level> <level label="2"> <text>The Board may hire consultants, administrators, and other professionals as necessary to help implement, maintain, and administer the supplemental retirement plans.</text> </level> <level label="3"> <level label="i"> <text>Except as provided in subparagraph (ii) of this paragraph or otherwise by law, employees of the Board are subject to the provisions of Division I of this article that govern nontemporary employees.</text> </level> <level label="ii"> <text>Employees of the Board whose labor is predominately intellectual and who hold positions that the Board designates as professional or technical positions involving specialized skill, education, and knowledge are in the executive service, management service, or are special appointments of the skilled service or the professional service in the State Personnel Management System.</text> </level> </level> <level label="4"> <level label="i"> <text>Except as provided in paragraph (5) of this subsection, all expenses, including employee costs, incurred to implement, maintain, and administer the supplemental retirement plans shall be paid from the contributions to or the income or assets of the supplemental retirement plans.</text> </level> <level label="ii"> <text>Each supplemental retirement plan shall pay a proportionate share of the expenses specified in subparagraph (i) of this paragraph.</text> </level> <level label="iii"> <text>Administrative expenses to implement, maintain, and administer the supplemental retirement plans shall be as provided in the State budget.</text> </level> </level> <level label="5"> <text>At the request of the Board, and subject to an agreement governing the payment of costs, a unit of State government shall help to implement, maintain, and administer the supplemental retirement plans.</text> </level> </level> </section> <section article="gsp" article_name="State Personnel and Pensions" number="35-205" title_number="35" title_name="Supplemental Retirement Plans" subtitle_number="2" subtitle_name="Board of Trustees"> <level label="a"> <text>The Board shall:</text> <level label="1"> <text>implement, maintain, and administer the supplemental retirement plans;</text> </level> <level label="2"> <text>submit progress and status reports to participants in the supplemental retirement plans; and</text> </level> <level label="3"> <text>submit an annual report to the Governor and, subject to § 2-1257 of the State Government Article, to the General Assembly.</text> </level> </level> <level label="b"> <text>In case of doubt as to whether an individual is eligible to participate in any of the supplemental retirement plans, the Board shall determine the individual’s eligibility.</text> </level> </section> <section article="gsp" article_name="State Personnel and Pensions" number="35-301" title_number="35" title_name="Supplemental Retirement Plans" subtitle_number="3" subtitle_name="Fiduciaries and Investments"> <level label="a"> <text>In this section, “fiduciary” means a person with discretionary authority or control over:</text> <level label="1"> <text>the management or administration of any of the supplemental retirement plans; or</text> </level> <level label="2"> <text>the management or disposition of the assets of any of the supplemental retirement plans.</text> </level> </level> <level label="b"> <text>A fiduciary is subject to the duties and responsibilities imposed on fiduciaries by Title 21, Subtitle 2 of this article.</text> </level> <level label="c"> <text>A fiduciary is entitled to indemnification and insurance as provided under § 21-207 of this article.</text> </level> </section> <section article="gsp" article_name="State Personnel and Pensions" number="35-302" title_number="35" title_name="Supplemental Retirement Plans" subtitle_number="3" subtitle_name="Fiduciaries and Investments"> <level label="a"> <text>Assets of the supplemental retirement plans may be deposited and invested in accordance with the investment elections allowed under the supplemental retirement plans as selected and determined by the Board in accordance with the statements of investment policy adopted by the Board from time to time notwithstanding any other law limiting the types of investments that may be made with State funds or imposing conditions on the deposit of State funds.</text> </level> <level label="b"> <text>The Board shall make arrangements for the safe custody, domestic or global, of investments with one or more duly qualified custodian banks or trust companies.</text> </level> <level label="c"> <text>Except as provided in Title 12, Subtitle 4 and Title 14, Subtitle 3 of the State Finance and Procurement Article, Title 10 and Division II of the State Finance and Procurement Article do not apply to the supplemental retirement plans for:</text> <level label="1"> <text>services of managers to invest the assets deposited and invested in investment options of the supplemental retirement plans in accordance with the statements of investment policy adopted by the Board from time to time;</text> </level> <level label="2"> <text>expenditures to manage, maintain, and enhance the value of assets deposited and invested in investment options of the supplemental retirement plans selected in accordance with the statements of investment policy adopted by the Board from time to time; and</text> </level> <level label="3"> <text>expenditures for the safe custody, domestic or global, of assets deposited and invested in investment options of the supplemental retirement plans selected in accordance with subsection (b) of this section.</text> </level> </level> <level label="d"> <level label="1"> <text>The Board shall consider and attempt to use to the greatest extent feasible minority business enterprises to provide investment advisor and fund manager services to the Board consistent with minority business purchasing standards applicable to units of State government under the State Finance and Procurement Article and consistent with the fiduciary duties of the Board.</text> </level> <level label="2"> <level label="i"> <text>To assist it in achieving the goal described under paragraph (1) of this subsection, the Board shall undertake measures to remove any barriers that limit full participation by minority business enterprises in investment advisor and fund manager services opportunities afforded under this title.</text> </level> <level label="ii"> <text>The measures undertaken by the Board shall include the use of the Maryland Teachers and State Employees Supplemental Retirement Plans’ website, the Office of State Procurement website, and the State’s electronic procurement system, whenever required, to provide notice to a broad and varied range of potential providers about the investment advisor and fund manager services opportunities afforded by the Maryland Teachers and State Employees Supplemental Retirement Plans.</text> </level> </level> <level label="3"> <text>In consultation with the Governor’s Office of Small, Minority, and Women Business Affairs, the Board shall identify entities that have been certified by the State Department of Transportation as minority business enterprises as qualified minority business enterprises in order to help the Maryland Teachers and State Employees Supplemental Retirement Plans achieve the objective for greater use of minority business enterprises for investment advisor and fund manager services.</text> </level> <level label="4"> <text>On or before September 1 each year, the Board shall submit a report to the Governor’s Office of Small, Minority, and Women Business Affairs and, subject to § 2–1257 of the State Government Article, the General Assembly on:</text> <level label="i"> <text>the identity of the minority business enterprise investment advisor and fund manager services firms used by the Board in the immediately preceding fiscal year;</text> </level> <level label="ii"> <text>the percentage and dollar value of the assets that are under the control of the Board that are under the investment control of minority business enterprise investment advisor and fund manager services firms for each allocated asset class; and</text> </level> <level label="iii"> <text>the measures the Board undertook in the immediately preceding fiscal year in accordance with paragraph (2)(ii) of this subsection.</text> </level> </level> </level> </section> <section article="gsp" article_name="State Personnel and Pensions" number="35-401" title_number="35" title_name="Supplemental Retirement Plans" subtitle_number="4" subtitle_name="Tax Sheltered Annuity Plan"> <text>There is a tax sheltered annuity plan for eligible participants as allowed by § 403(b) of the Internal Revenue Code.</text> </section> <section article="gsp" article_name="State Personnel and Pensions" number="35-402" title_number="35" title_name="Supplemental Retirement Plans" subtitle_number="4" subtitle_name="Tax Sheltered Annuity Plan"> <text>An individual is eligible to participate in the tax sheltered annuity plan if the individual:</text> <level label="1"> <text>is eligible for coverage under § 403(b) of the Internal Revenue Code; and</text> </level> <level label="2"> <text>is an officer or employee of:</text> <level label="i"> <text>this State; or</text> </level> <level label="ii"> <text>any other governmental entity in this State, including a county board of education.</text> </level> </level> </section> <section article="gsp" article_name="State Personnel and Pensions" number="35-403" title_number="35" title_name="Supplemental Retirement Plans" subtitle_number="4" subtitle_name="Tax Sheltered Annuity Plan"> <text>Subject to the conditions that the Board may set and in accordance with a contract between the participant and the employer, a participant may have contributions made to the tax sheltered annuity plan on the participant’s behalf by a salary reduction or in place of a salary increase.</text> </section> <section article="gsp" article_name="State Personnel and Pensions" number="35-404" title_number="35" title_name="Supplemental Retirement Plans" subtitle_number="4" subtitle_name="Tax Sheltered Annuity Plan"> <text>This section does not prohibit a county board of education from adopting a plan for its employees that qualifies under § 403(b) of the Internal Revenue Code.</text> </section> <section article="gsp" article_name="State Personnel and Pensions" number="35-501" title_number="35" title_name="Supplemental Retirement Plans" subtitle_number="5" subtitle_name="Salary Reduction Savings Plan"> <level label="a"> <text>There is a salary reduction savings plan for eligible participants as allowed by § 401(k) of the Internal Revenue Code.</text> </level> <level label="b"> <text>The Board shall obtain approval from the Internal Revenue Service for the salary reduction savings plan.</text> </level> </section> <section article="gsp" article_name="State Personnel and Pensions" number="35-502" title_number="35" title_name="Supplemental Retirement Plans" subtitle_number="5" subtitle_name="Salary Reduction Savings Plan"> <text>An individual is eligible to participate in the salary reduction savings plan if the individual is:</text> <level label="1"> <text>an officer of this State; or</text> </level> <level label="2"> <text>an employee of this State, including a contractual employee.</text> </level> </section> <section article="gsp" article_name="State Personnel and Pensions" number="35-601" title_number="35" title_name="Supplemental Retirement Plans" subtitle_number="6" subtitle_name="Deferred Compensation Plan"> <text>There is a deferred compensation plan for eligible participants as allowed by § 457 of the Internal Revenue Code.</text> </section> <section article="gsp" article_name="State Personnel and Pensions" number="35-602" title_number="35" title_name="Supplemental Retirement Plans" subtitle_number="6" subtitle_name="Deferred Compensation Plan"> <text>An individual is eligible to participate in the deferred compensation plan if the individual is:</text> <level label="1"> <text>an officer of this State;</text> </level> <level label="2"> <text>an employee of this State, including a contractual employee;</text> </level> <level label="3"> <text>an employee of the Northeast Maryland Waste Disposal Authority;</text> </level> <level label="4"> <text>an independent contractor who performs service under § 21–304(c) of the Education Article; or</text> </level> <level label="5"> <text>an employee of the Maryland Small Business Retirement Savings Board who has been determined by the Board to be an eligible employee under the federal Internal Revenue Code.</text> </level> </section> <section article="gsp" article_name="State Personnel and Pensions" number="35-701" title_number="35" title_name="Supplemental Retirement Plans" subtitle_number="7" subtitle_name="Defined Contribution Plan"> <text>There is a Defined Contribution Plan for eligible participants as allowed by § 401(a) of the Internal Revenue Code.</text> </section> <section article="gsp" article_name="State Personnel and Pensions" number="35-702" title_number="35" title_name="Supplemental Retirement Plans" subtitle_number="7" subtitle_name="Defined Contribution Plan"> <text>An individual is eligible to participate in the Defined Contribution Plan if the individual is an eligible employee as defined in § 32-101 of this article.</text> </section>