HB 1031
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
First Reader
House Bill 1031 (Delegate Saab)
Rules and Executive Nominations
General Assembly - Term Limits
This proposed constitutional amendment, if approved by the voters at the next general
election, limits a senator or delegate to three consecutive terms in the same office. A
member filling a vacancy in office is considered to have served a full term if the member
has served more than three years in that office. The amendment does not apply to a person
who has previously been elected to three or more consecutive terms as a senator or delegate
and who is elected to serve a further consecutive term in the same office in the
November 2022 election for the term that begins January 11, 2023.
Fiscal Summary
State Effect: No discernible effect on State pension liabilities or contribution rates, as
discussed below. Revenues are not affected.
Local Effect: None.
Small Business Effect: None.
Analysis
Current Law: Members of the State Senate and the House of Delegates serve four-year
terms. There are no limits on the number of consecutive or total terms they can serve.
Legislative Compensation
The 2018 Resolution of the General Assembly Compensation Commission froze legislative
salaries at their 2018 levels for the 2019-2022 term. The annual salary for the
2019-2022 term is $65,371 for the Presiding Officers and $50,330 for all other members
of the General Assembly. In addition, members each receive $750 annually to be applied
to in-district travel and are reimbursed for their lodging and travel expenses related to their
service as members of the General Assembly. Compensation does not vary according to
years of service.
Membership in the Legislative Pension Plan (LPP) is mandatory for elected members of
the General Assembly. LPP members contribute 7% of their salary for up to 22 years and
three months; contributions are not required beyond that time. They are vested in the plan
after 8 years (two terms). Vested members are eligible for a full-service retirement
allowance upon reaching age 60, if the member has earned creditable service in LPP before
January 14, 2015, or at age 62 if creditable service is earned only after that date, as long as
they are no longer serving in the General Assembly. Their annual retirement allowance is
3% of the salary of a current member of the General Assembly for each year of service
credit but is capped at two-thirds of the salary of a current member.
For the purpose of calculating employer contributions, LPP is combined with the
Employees’ Retirement System, Employees’ Pension System and Correctional Officers’
Retirement System for the annual actuarial valuation. Therefore, employer contributions
for LPP are the same as those for the employees’ combined systems (ECS).
State Expenditures: Compensation for members of the General Assembly does not vary
based on years of service, so the bill has no effect on total compensation.
Full LPP retirement benefits are earned upon reaching 22 years, three months of service in
the General Assembly. Although the proposed amendment would restrict members of the
General Assembly to three consecutive elective terms (12 years), members would still be
able to serve longer if they sat out one term and then were reelected to another term, or if
they moved from one house to the other in consecutive terms. Nevertheless, on average,
members likely earn fewer benefits than they otherwise would by virtue of serving fewer
years in the General Assembly. The reduction in benefit payments is expected to be
minimal and, given that LPP members represent 0.3% of total ECS membership, has no
discernible effect on State pension liabilities or contribution rates.
Additional Information
Prior Introductions: HB 366 of 2020 received a hearing in the House Rules and
Executive Nominations Committee, but no further action was taken. HB 886 of 2018, a
similar bill, received an unfavorable report from the House Rules and Executive
Nominations Committee. Similar legislation was introduced in the 2014, 2016, and 2017
sessions.
HB 1031/ Page 2
Designated Cross File: None.
Information Source(s): Maryland State Board of Elections; Department of Legislative
Services
Fiscal Note History: First Reader - March 9, 2021
rh/mcr
Analysis by: Elizabeth J. Allison Direct Inquiries to:
(410) 946-5510
(301) 970-5510
HB 1031/ Page 3