State Senator Andy Harris Press Release

State Senator Andy Harris Introduces Legislation to End Special Pensions for Elected Officials, Deny Pensions to Convicted Legislators

Legislation would aid state's long-term fiscal health by moving to a defined benefit system

ANNAPOLIS—State Senator Andy Harris today introduced legislation that would overhaul the public pension plans for elected officials in the General Assembly, which is separate and more generous than the state public employees' plan, by moving from a "defined benefit" to a "defined contribution" plan. The legislation is projected to save the state taxpayers approximately $750,000 a year. It would bring legislators' pensions in line with what the majority of Marylanders receive from private employers. Maryland's current public pension system is actuarially unsound to the tune of $32 billion, with a current deficit of $2 billion.

Elected officials' pensions have received significant attention in recent months with public outcries on the pension benefits (which are defined benefit plans) that Baltimore County Councilman Vincent Gardina will receive after five terms as a part-time county councilmember and the $83,000 a year pension that disgraced former Baltimore City Mayor Sheila Dixon will receive following her guilty judgment in court by a city jury on embezzlement charges.

The legislation would set up a pension plan for legislators similar to what most private employers offer through 401k plans. It will be offered as an amendment to the Compensation Commission legislation for pay raises for public officials. A second amendment would deny pension benefits to any legislator convicted of a felony committed during their term in office.

"Marylanders have been disgusted lately with what they rightfully see as golden parachutes for elected officials, even when they've been convicted of a crime," Harris said. "This legislation would begin to treat elected officials just like the constituents they serve and provide significant cost-savings for taxpayers in the process. One need only look to our own underfunded state employee pension system, or to the American auto industry to see that 'defined benefit' plans have a disastrous effect on long-term viability and fiscal health. Changing to a defined contribution plan is the right thing to do and will provide pensions for elected officials that are no more generous than what most hard-working Marylander taxpayers receive when they retire. I urge my colleagues to get behind this legislation that will help the Maryland General Assembly start getting Maryland's fiscal house in order by getting its own pension plan in order. As elected officials, we need to provide good leadership in a time when the public's trust in their public officials is at an all time low."