State Retirement and Pension System – Forfeiture of Benefits

SB 388 would require forfeiture of retirement benefits for certain public employees in Maryland who are convicted of specific crimes committed while performing their duties. It directly affects members of state police, law enforcement, teachers, correctional officers, and judges' retirement systems if convicted of qualifying crimes under Maryland Criminal Law sections 3-303, 3-304, 3-309, or 3-310. The bill establishes automatic forfeiture of retirement benefits upon final conviction, with a limited process allowing a public employee to file for partial payment within one year via court claim. Exceptions include reversals if the Internal Revenue Service determines forfeiture would invalidate the tax-qualified status of retirement systems. The law applies only to service earned on or after July 1, 2025.