SB 270 Maryland Senate · 2025 Regular Session

Board of Trustees of the Maryland Teachers and State Employees Supplemental Retirement Plans - Automatic Enrollment

SB 270 requires Maryland's State Board of Trustees to automatically enroll new state employees hired on or after January 1, 2026, into supplemental retirement plans. Employees are enrolled by default, with employers deducting the minimum contribution amount from wages unless the employee opts out within 90 days of their first automatic deduction. The bill mandates that employees receive clear notice explaining their enrollment terms, contribution options, and rights to adjust or stop contributions within the 90-day window. It applies only to new hires starting in 2026, not current employees, and takes effect October 1, 2025.

Issues: ✓ Labor & Employment

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2025

Committee Review

Mar 2025

Senate Passage

Mar 2025

House of Delegates Passage

Governor

Introduced Jan 9, 2025 Last action Mar 19, 2025

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What changed between versions

First - Board of Trustees of the Maryland Teachers and State Employees Supplemental Retirement Plans - Automatic Enrollment → Third - Board of Trustees of the Maryland Teachers and State Employees Supplemental Retirement Plans - Automatic Enrollment · 5 edits

MODERATE

This bill was amended to clarify that certain employing institutions can choose which supplemental retirement plan to use for automatic enrollment, while maintaining the requirement that eligible employers must deduct contributions unless employees opt out. The changes also add a $25 maximum contribution limit and require virtual or in-person counseling appointments for employees enrolled under automatic enrollment.

Scope change

The bill now explicitly authorizes certain employing institutions to select which supplemental retirement plan to use for automatic enrollment, expanding the scope of institutions that can participate in this program.

REQUIREMENT

Added a $25 maximum limit on the amount that can be automatically deducted from employees' wages for retirement plan contributions.

Requires employers to offer employees a virtual or in-person counseling appointment to discuss the retirement plan and how to discontinue participation.

ELIGIBILITY

Added provision allowing certain employing institutions to automatically enroll employees into a supplemental retirement plan of their choice.

DEFINITION

Modified the definition of automatic enrollment arrangement to clarify the requirements for eligible employers and institutions.

TECHNICAL

Added explanatory notes about how the bill marks additions, deletions, and amendments to existing law.

Floor votes · Senate Mar 1, 2025

How they voted

43–0

Passed · 3 other

Total votes 46

Mar 1, 2025

D Democratic33

30 Yea 3

90% Yea

R Republican13

13 Yea

100% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 17, 2025

Committee

Referred Appropriations

lower

Mar 17, 2025

Upper · Passed

Third Reading Passed

upper

Mar 17, 2025

Upper · Passed

Favorable with Amendments {

upper

Mar 17, 2025

Upper · Passed

Favorable with Amendments Report by Budget and Taxation

upper

Mar 1, 2025

Senate · Passed

Senate Vote: pass (43-0-3)

senate

Jan 9, 2025

Committee

First Reading Budget and Taxation

upper

1 primary · 0 co-sponsors