New earnings limit exemption enacted for state retirees


Legislation passed this year by the Maryland General Assembly provides an additional exemption to the earnings limit for reemployed state retirees.

To be eligible for this exemption provided under Senate Bill 1252, a retiree must:

  1. Be retired under the Employees’ or Teachers’ Systems,
  2. Be reemployed by the same unit of Maryland state government from which he or she retired and
  3. Receive reemployment compensation that includes no Maryland state funds

Refunds are available for eligible retirees

Persons who retired on or after October 1, 1994, who were subsequently reemployed by the same Maryland state employer and whose compensation did not include any state funds are entitled to a return of the earnings that were offset by the Maryland State Retirement Agency.

The legislation was signed into law by Governor Lawrence J. Hogan, Jr., on May 8.

Frequently asked questions

Q. Is there a deadline for requesting a return of the earnings that were previously offset by the Retirement Agency?

A. Yes, retroactive request for refunds must be received by the Agency by June 30, 2019.

Q. What should I do if I think the exemption should have applied to me for a prior year’s earnings limitation?

A. Call your employer and ask them to contact the Retirement Agency to obtain a copy of Employer Certification of Exemption from Earnings Limitation for a Reemployed State Retiree Whose Compensation Does not Include any State Funds (Form 931). This form must be signed and dated by the employer’s appointing authority.

Q. In addition to my employer completing and submitting a Form 931 to the Retirement Agency, am I required to provide any additional information?

A. No. Your employer will be required to provide conclusive documentation to show that your compensation does not include any Maryland state funds.

Q. What happens if my exemption is approved?

A. If the Retirement Agency approves the exemption, you will be repaid all money due.

For questions, please contact a Retirement Benefits Specialist at 410-625-5555 or toll-free 1-800-492-5909.