Agenda Item 6C
October 10, 2017
Action
MEMORAND UM
October 6, 2017
TO:
FROM:
County Council
Robert H. Drummer, Senior Legislative Attome
Yfrv;;
f)
SUBJECT:
Action:
Expedited Bill 29-17, Domestic Partner Survivor Benefits - LOSAP -
Employees' Retirement System - Eligibility
Government Operations and Fiscal Policy Committee recommendation (3-0): enact the Bill
as introduced.
Expedited Bill 29-17, Domestic Partner Survivor Benefits - LOSAP - Employees'
Retirement System - Eligibility, sponsored by Lead Sponsor Councilmembers Navarro and Katz
and Council Vice President Riemer, was introduced on September 12, 2017. A public hearing was
held on September 26 and a Government Operations and Fiscal Policy Committee worksession
was held on September 28, 2017.
Bill 29-17 would:
• clarify the definition of a domestic partner for receiving County survivor benefits;
• limit County survivor benefits for a domestic partner of a local fire and rescue
department volunteer to a domestic partner registered with the County on or before
June 27, 2016; and
• limit County survivor benefits for a domestic partner of a County employee under the
County retirement systems to a domestic partner registered with the County on or
before June 27, 2016.
Background
Bill 16-16, enacted by the Council on June 28, 2016 and signed into law by the Executive
on July 7, 2016, repealed the law providing domestic partner benefits for County employees. The
law included a grandfather clause that permitted a County employee receiving domestic partner
benefits on June 27, 2016 to retain those benefits. Although Bill 16-16 repealed the County law
requiring the County to provide the same benefits to a domestic partner that it provides for a
spouse, including widow or widower benefits, the Bill did not remove references to domestic
partner survivor benefits for volunteer firefighters under the Length of Service Awards Program
and County employee survivor benefits under the County retirement laws.
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Expedited Bill 29-17 would limit domestic partner survivor benefits to a person who
registered a domestic partnership with the County on or before June 27, 2016, making these
survivor benefits consistent with the general repeal of domestic partner benefits in Bill 16-16.
0MB estimated that the Bill would have no fiscal or economic impact on the County. See
©9-13.
Public Hearing
There were no speakers at the September 26, 2017 public hearing.
GO Committee Worksession
Linda Herman, Executive Director of the Retirement Plans, represented the Executive Branch.
Robert Drummer, Senior Legislative Attorney, represented the Council staff. The Committee
discussed the purpose of the Bill and recommended (3-0) approval of the Bill as introduced.
Discussion
The general rule established in County Code §33-22(b) was:
Any benefit the County provides for the spouse (including "widow" or other
equivalent term) of a County employee or the spouse's dependents must be
provided, in the same manner and to the same extent, for the domestic partner of a
County employee and the partner's dependents, respectively.
The original purpose of this law was to extend these "marriage benefits" to same sex
couples who were unable to obtain them because same sex marriage was not recognized in
Maryland. Since same sex marriage was recognized in Maryland in 2013 and the Supreme Court
extended the right of a same sex couple to marry throughout the nation in 2015, the original
purpose of the law has evaporated. The extension of domestic partner benefits to opposite sex
couples was an attempt to re-create a level playing field for opposite sex couples who declined to
get married. In 2017, the continuation of the domestic partner benefits is no longer necessary to
ensure that same sex or opposite sex couples can extend benefits to their partner.
Bill 16-16 repealed §33-22 in its entirety as a response to the change in the law permitting
same sex marriage, but provided a grandfather clause for any employee already receiving domestic
partner benefits. While administering this change in law, the County Attorney's Office found that
the references in other Sections of County law to survivor benefits for a domestic partner of a
County employee or a volunteer firefighter had not been similarly changed. Bill 29-17 would
amend these references to domestic partner survivor benefits to be consistent with the grandfather
clause provided in Bill 16-16.
Committee recommendation (3-0):
enact the Bill as introduced.
This packet contains:
Expedited Bill 29-17
Legislative Request Report
Fiscal and Economic Impact Statement
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Expedited Bill No.
~29~-~17 ~-----
Concerning: Domestic Partner Survivor
Benefits - LOSAP - Employees'
Retirement System - Eligibility
4_
Revised: July
24, 2017
Draft No. __
September
20, 2017
Introduced:
March
12 2019
Expires:
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: -'--'N=on~ e"--------
Ch. _ _ , Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Councilmember Navarro and Katz and Council Vice President Riemer
AN EXPEDITED ACT
to:
clarify the definition of a domestic partner for the purpose of receiving County
(1)
survivor benefits;
limit County survivor benefits for a domestic partner of a local fire and rescue
(2)
department volunteer to a domestic partner registered on or before a certain date;
limit County survivor benefits for a domestic partner of a County employee under the
(3)
County retirement systems to a domestic partner registered with the County on or
before a certain date; and
generally amend the laws governing survivor benefits for a domestic partner.
(4)
By amending
Montgomery County Code
Chapter 21, Fire and Rescue Services
Section 21-21
Montgomery County Code
Chapter 33, Personnel and Human Resources
Sections 33-6, 33-35, and 33-113
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
Heading or de.fined term.
Added to existing law by original bill.
Deleted.from existing law by original bill.
Added by amendment.
Deleted.from existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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8<PEDITED BILL NO.
29-17
1
Sections 21-21, 33-6, 33-35, and 33-113 are amended as follows:
21-21. Length of service award program for volunteers.
There is a length of service award program for local fire and rescue departme nt
volunteers.
2
3
4
5
6
7
(a)
[Definition] Definitions.
In
this Section, the following words and phrases
have the following meanings:
[active] Active volunteer
means a local fire and rescue departme nt
volunteer who accumulates at least 50 points in a calendar year under the
point system in subsection (k).
8
9
10
11
12
Domestic partner
means
~
person who was registered as
~
domestic
partner of an active volunteer with the Fire Chief on or before June 27,
2016 in
~
domestic partnership that did not end before the active
voluntee r's death.
*
(
e)
13
14
*
*
15
Survivor's benefit.
(1)
A local fire and rescue department volunteer's surviving spouse or
domestic partner qualifies for a survivor's benefit on the volunteer's
death if:
(A)
the surviving spouse or partner submits an application for
the benefit; and
(B)
the volunteer met the:
(i)
years-of-service requirement for a length of service
benefit under subsection (c ); or
(ii)
requirements for a disability benefit under subsection
(d).
(2)
The volunteer's surviving spouse or domestic partner must receive
a monthly award payment until the spouse's death or remarriage,
16
17
18
19
20
21
22
23
24
25
26
27
0
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EXPEDITED BILL
NO. 29-17
28
or partner's death [or establishment of another domestic
partnership], equal to 50 percent of the:
(A)
length of service benefit for which the volunteer met the
years-of-service requirement; or
(B)
volunteer's disability benefit.
*
*
*
29
30
31
32
33
34
35
36
37
38
39
[(l)
Definition.
In this Section, "domestic partner" or "partner" means a
person whose relationship with the volunteer would meet the
requirements for a domestic partner under Section 33-22 if the volunteer
were a County employee.]
33-6. Definitions.
In this article, the following words and phrases have the following meanings:
Board:
The merit system protection board as described in section 403 of the
county charter.
County employees:
All persons employed by the county regardless of merit
system status.
Domestic partner.
A person who [meets the requirements of Section 33-22] was
registered as the domestic partner of a County employee with the Office of
Human Resources on or before June 27, 2016 in
fl:
domestic partnership that did
not end before the County employe e's death. This definition applies throughout
this Chapter unless otherwise indicated.
*
33-35. Definitions.
In this Article, the following words and phrases have the following meanings:
*
*
*
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
*
*
Domestic partner:
A person who [meets the requirements of Section 33-22] was
registered as the domestic partner of a member with the Office of Human
retirement\bill
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EXPEDITED BILL
No.
29-17
55
56
57
58
59
60
61
62
63
64
65
66
67
Resources on or before June 27, 2016 in£! domestic partnership that did not end
before the member's death.
*
*
*
33-113. Definitions.
In this Division the following words and phrases have the following meanings:
[(a)]
Account balances
means the balance credited to the retirement account of
a participant under the retirement savings plan as of the valuation date preceding
the date of distribution determined without regard to vesting, including:
(
1)
any participant contributions (including contributions picked up by
the County);
(2)
(3)
County contributions; and
rollover contributions.
[(b)]
Board or Board of Investment Trustees
means the Board of Investment
Trustees established under Article III.
[(
c)]
68
69
70
County
means the Montgomery County Government and, when
applicable, any participating agency.
[(d)]
County service
means any period of County employment during which a
participant is:.
(
1)
71
72
73
74
75
76
77
78
in pay status, or
on an approved leave of absence without pay on or after January
(2)
1, 2002.
Domestic partner
means _a person who was registered as the domestic partner of
£! participant with the Office of Human Resources on or before June 27, 2016 in
~
domestic partnership that did not end before the participant's death.
79
[(e)]
Employee
means any eligible elected or appointed County official and
any full-time or career part-time County employee.
[(f)]
80
81
Employee organization
means any organization that:
0
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EXPEDITED BILL
No. 29-17
82
( 1)
(2)
admits employees to membership;
has as a primary purpose the representation of employees m
83
84
85
86
collective bargaining; and
(3)
is certified as an employee organization under applicable law.
[(g)]
Former participant
means any individual with an account balance in the
retirement savings plan who has ceased to be a participant.
[(h)]
Investment manager
means a person or entity who exercises discretion
to
manage all or part of the assets of an institutional investor. The investment
manager is a fiduciary as defined in Section 33-35.
[
(i)]
87
88
89
90
91
92
93
94
95
96
Merit System Protection Board
means the Merit System Protection Board
established in the Charter.
[G)]
Non-public safety employee
means any employee who is not a public
safety employee.
[(k)]
Normal retirement date
means the first day of the month after the month
in which the participant reaches age 62.
97
98
99
[(I)]
Participant
means an employee who is participating in the retirement
savings plan.
[(m)]
Participant's contribution account
means the portion of a participant's
account balances in the retirement savings plan that is attributable to participant
contributions, including contributions picked up by the County, and any gains
or losses attributable to those contributions.
[(n)]
Plan year
means the 12-month period beginning January 1 and ending on
December 31 each year.
[(
o)]
100
101
102
103
104
105
106
Public safety employee
means any employee who is a:
(1)
(2)
sworn officer of the Police Department;
paid firefighter, paid fire officer, or paid rescue service worker of
107
108
the Montgomery County Fire and Rescue Service;
(!)
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EXPEDITED BILL NO.
29-17
109
(3)
(
4)
(
5)
sworn deputy sheriff;
correctional officer; or
County employee who provides services to a correctional facility
11 O
111
112
113
and designated as a public safety employee by the Chief Administrative
Officer.
[(p)]
Regular earnings
means gross pay for actual hours worked, including
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
paid leave, but not including overtime, without reduction for participant
contributions that are picked up under Section 33-116(a), or contributions to any
County deferred compensation plan or statutory fringe benefit program.
If
a
participant is required to take any furlough, as defined in personnel regulations
under Section 33-7(b) or a collective bargaining agreement, regular earnings
must include any amount the participant would have received if the participant
had not been required to take any furlough.
[(q)]
Retirement accounts
means the required participant contributions
account, a County contributions account, and any rollover contributions
account.
[(r)]
Rollover contributions
means that portion of a participant's account
balances in the retirement savings plan that is attributable to any assets
transferred or rolled over to the retirement savings plan from another eligible
retirement plan as defined in the Internal Revenue Code Section 402(c). No
after-tax contributions may be transferred or rolled over into the retirement
savings plan.
[(
s)]
Valuation date
means the last business day of March, June, September,
and December of each plan year, and any other date the Board establishes in a
uniform and nondiscriminatory manner for determining the fair market value of
the assets of the retirement savings plan.
Effective Date.
©
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EXPEDITED BILL
NO. 29-17
136
137
138
The Council declares that this legislation is necessary for the immediate
protection of the public interest. This Act takes effect on the date it becomes law.
139
Approved:
140
Roger Berliner, President, County Council
Date
141
142
Approved:
Isiah Leggett, County Executive
Date
143
144
This is a correct copy ofCouncil action.
Linda M. Lauer, Clerk of the Council
Date
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LEGISLATIVE REQUEST REPORT
Expedited Bill 29-17
Domestic Partner Survivor Benefits
-
LOSAP
-
Employees Retirement System
-
Eligibility
DESCRIPTION:
Expedited Bill 29-17 would limit domestic partner survivor benefits to
a person who registered a domestic partnership with the County on or
before June 27, 2016, making these survivor benefits consistent with
the general repeal of domestic partner benefits in Bill 16-16.
Bill 16-16, enacted by the Council on June 28, 2016 and signed into
law by the Executive on July 7, 2016, repealed the law providing
domestic partner benefits for County employees. The law included a
grandfather clause that permitted a County employee receiving
domestic partner benefits on June 27, 2016 to retain those benefits.
Although Bill 16-16 generally repealed the County law authorizing
domestic partner benefits, the Bill did not remove references to
domestic partner survivor benefits for volunteer firefighters under the
Length of Service Awards Program and County employee survivor
benefits under the County retirement laws.
To ensure that survivor benefits for domestic partners is consistent
with the law governing other County benefits.
Office of Human Resources
To be requested.
To be requested.
To be requested.
To be researched.
Robert H. Drummer, Senior Legislative Attorney
Not applicable.
PROBLEM:
GOALSAN D
OBJECTIVES:
COORDINATION:
FISCAL IMP ACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
None.
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ROCKVILL E, MARYLAND
MEMOR ANDUM
September 25, 2017
TO:
FROM:
Roger Berliner, President, County Council
JenniM#-H ughes, Director, Office of Management and E_u;e:.
t
Alex~::-~ . Espinosa, Director, Department of Financo /-P,t~
FEIS for Expedited Bill 29-17, Domestic Partner Survivor Benefits - LOSAP -
Employees' Retirement System - Eligibility
SUBJECT:
Please find attached the fiscal and economic impact statements for the above-
referenced legislation.
JAH:fz
cc: Bonnie Kirkland, Assistant Chief Adminisq-ative Officer
Lisa Austin, Offices of the County Executive
Joy Nurmi, Special Assistant to the County Executive
Patrick Lacefield, Director, Public Information Office
David Platt, Department of Finance
Dennis Hetman, Department of Finance
Corey Orlosky, Office of Manageme nt and Budget
Felicia Zhang, Office of Manageme nt and Budget
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Fiscal Impact Statement
Council Expedited Bill
29-17,
Domestic Partner Survivor Benefits- LOSAP-E mployees '
Retirement System
-
Eligibility
1. Legislative Summary.
This bill would clarify the definition of a domestic partner for receiving County survivor
benefits, and limit the County survivor benefits for domestic partners of County
employees and local fire and rescue department volunteers to a domestic partner
registered with the County on or before June 27, 2016.
2. An estimate of changes in County revenues and expenditures regardless of whether
the revenues or expenditures are assumed in the recommended or approved budget.
Includes source of information, assumptions, and _methodologies used.
This bill
has
no impact to revenues or expenditures. This bill clarifies the definition of
a
domestic partner, but does not adjust County practice.
It
does not alter the availability of
survivor benefits nor does it adjust
the
amount of the benefit available to
a
joint
annuitant.
3. Revenue and expenditure estimates covering at least the next 6 fiscal years.
See response #2.
4. An actuarial analysis through the entire amortization period for each bill that would
affect retiree pension or group insurance costs.
Not applicable.
5. Later actions that may affect future revenue and expenditures
if
the bill authorizes
future spending.
Not applicable.
6. An estimate of the staff time needed to implement the bill.
Not applicable.
7.
An explanation of how the addition of new staff responsibilities would affect other
duties.
Not applicable.
8. An estimate of costs when an additional appropriation is needed.
Not applicable.
@)
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9. A description of any variable that could affect revenue and cost estimates.
Not applicable.
10. Ranges of revenue or expenditures that are uncertain or difficult to project.
Not applicable.
11.
U
a bill is likely to have no fiscal impact, why that is the case.
The bill would serve to clarify the definition of a domestic partner for receiving certain
survivor benefits, but it does not adjust the benefits themselves.
12. Other fiscal impacts or comments.
Not applicable.
13. The following contributed to and concurred with this analysis:
Corey Orlosky, Office of Management and Budget
Linda Herman, Executive Director, Montgomery County Employee Retirement Plans
Alan Hinde, Volunteer Services Division Chief, Fire and Rescue Services
-f
L.
~
~M
ri.Y;
JAff
Jennifer A. Hughes, Director
Office of Management and Budget
®
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Economic Impact Statement
.
Expedited Bill 29-17, Domestic Partner Survivor Benefits -LOSAP
Employees' Retirement System
-
Eligibility
Background:
This legislation would:
Clarify the definition of a domestic partner for receiving County survivor benefits;
Limit County survivor benefits for a domestic partner of a local fire and rescue
department volunteer to a domestic partner registered with the County on or before June
27, 2016; and
Limit County survivor benefits for a domestic partner of a County employee under the
County retirement systems to a domestic pa~ner registered with the County on or before
June 27, 2016.
1. The sources of information, assumptions, and methodologies used.
Source ofinformation is the Montgomery County Employee Retirement Plans (MCERP).
According to MCERP, there are 82 domestic partners who registered before June 27, 2016,
based on the certification process performed by the County's Office of Human Resources,
and therefore could be eligible for joint and survivor benefits as provided by the Employees'
Retirement System, a defined benefit pension plan. The total amount of the monthly benefit
is determined by a formula defined in the County Code which includes: the years of County
service, retirement group in which the employee participates, the final average salary, and the
benefit option selected at retirement. The employee receives a reduction in their monthly
pension
if
he/she selects to provide a benefit for the domestic partner or spouse based on their
age. However, regardless of the adjustment to whom is considered as the joint annuitant, the
total amount of the monthly benefit does not change. There is no reasonable assumption that
the number of joint annuitants will change. There are no methodologies used in the
preparation of the economic impact statement. The length of service award program
(LOSAP) for a retired local fire and rescue volunteer provides that a surviving spouse or
domestic partner receive 50% of the benefit provided to the volunteer at the time of the
volunteer's death. There is also no reasonable assumption that the dollar amount of survivor
benefits will change.
2. A description of any variable that could affect the economic impact estimates.
There are no economic variables that could affect the economic impact estimates.
3. The Bill's positive or negative effect, if any on employment, spending, savings,
investment, incomes, and property values
in
the County.
Since Bill 29-17 allows a domestic partner of a participant in the County's Employees'
Retirement System or a retired local fire and rescue volunteer a share of the monthly benefit
selected, it will have no economic impact on employment, spending, savings, investment,
incomes, and property values in the County.
Page 1 of2
@
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Economic Impact Statement
Expedited Bill 29-17, Domestic Partner Survivor Benefits- LOSAP-
Employees' Retirement System -Eligibili ty
4.
If
a Bill is likely to have no economic impact, why is that the case?
Please see paragraph #3
5. The following contributed to or concurred with this analysis:
David Platt, and Robert
Hagedoorn, Finance; Linda Herman and Robert Goff, MCERP.
Alexandre
A.
E pinosa, Director
Departmen t
of
Finance
Date
Page 2 of2
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Agenda Item 6C
October 10, 2017
Action
MEMORAND UM
October 6, 2017
TO:
FROM:
County Council
Robert H. Drummer, Senior Legislative Attome
Yfrv;;
f)
SUBJECT:
Action:
Expedited Bill 29-17, Domestic Partner Survivor Benefits - LOSAP -
Employees' Retirement System - Eligibility
Government Operations and Fiscal Policy Committee recommendation (3-0): enact the Bill
as introduced.
Expedited Bill 29-17, Domestic Partner Survivor Benefits - LOSAP - Employees'
Retirement System - Eligibility, sponsored by Lead Sponsor Councilmembers Navarro and Katz
and Council Vice President Riemer, was introduced on September 12, 2017. A public hearing was
held on September 26 and a Government Operations and Fiscal Policy Committee worksession
was held on September 28, 2017.
Bill 29-17 would:
• clarify the definition of a domestic partner for receiving County survivor benefits;
• limit County survivor benefits for a domestic partner of a local fire and rescue
department volunteer to a domestic partner registered with the County on or before
June 27, 2016; and
• limit County survivor benefits for a domestic partner of a County employee under the
County retirement systems to a domestic partner registered with the County on or
before June 27, 2016.
Background
Bill 16-16, enacted by the Council on June 28, 2016 and signed into law by the Executive
on July 7, 2016, repealed the law providing domestic partner benefits for County employees. The
law included a grandfather clause that permitted a County employee receiving domestic partner
benefits on June 27, 2016 to retain those benefits. Although Bill 16-16 repealed the County law
requiring the County to provide the same benefits to a domestic partner that it provides for a
spouse, including widow or widower benefits, the Bill did not remove references to domestic
partner survivor benefits for volunteer firefighters under the Length of Service Awards Program
and County employee survivor benefits under the County retirement laws.
 PDF to HTML - Convert PDF files to HTML files
Expedited Bill 29-17 would limit domestic partner survivor benefits to a person who
registered a domestic partnership with the County on or before June 27, 2016, making these
survivor benefits consistent with the general repeal of domestic partner benefits in Bill 16-16.
0MB estimated that the Bill would have no fiscal or economic impact on the County. See
©9-13.
Public Hearing
There were no speakers at the September 26, 2017 public hearing.
GO Committee Worksession
Linda Herman, Executive Director of the Retirement Plans, represented the Executive Branch.
Robert Drummer, Senior Legislative Attorney, represented the Council staff. The Committee
discussed the purpose of the Bill and recommended (3-0) approval of the Bill as introduced.
Discussion
The general rule established in County Code §33-22(b) was:
Any benefit the County provides for the spouse (including "widow" or other
equivalent term) of a County employee or the spouse's dependents must be
provided, in the same manner and to the same extent, for the domestic partner of a
County employee and the partner's dependents, respectively.
The original purpose of this law was to extend these "marriage benefits" to same sex
couples who were unable to obtain them because same sex marriage was not recognized in
Maryland. Since same sex marriage was recognized in Maryland in 2013 and the Supreme Court
extended the right of a same sex couple to marry throughout the nation in 2015, the original
purpose of the law has evaporated. The extension of domestic partner benefits to opposite sex
couples was an attempt to re-create a level playing field for opposite sex couples who declined to
get married. In 2017, the continuation of the domestic partner benefits is no longer necessary to
ensure that same sex or opposite sex couples can extend benefits to their partner.
Bill 16-16 repealed §33-22 in its entirety as a response to the change in the law permitting
same sex marriage, but provided a grandfather clause for any employee already receiving domestic
partner benefits. While administering this change in law, the County Attorney's Office found that
the references in other Sections of County law to survivor benefits for a domestic partner of a
County employee or a volunteer firefighter had not been similarly changed. Bill 29-17 would
amend these references to domestic partner survivor benefits to be consistent with the grandfather
clause provided in Bill 16-16.
Committee recommendation (3-0):
enact the Bill as introduced.
This packet contains:
Expedited Bill 29-17
Legislative Request Report
Fiscal and Economic Impact Statement
F:\LA W\BILLS\1729 Domestic Partner Survivor Benefits - LOSAP - Retirement\Action Memo.Docx
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8
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Expedited Bill No.
~29~-~17 ~-----
Concerning: Domestic Partner Survivor
Benefits - LOSAP - Employees'
Retirement System - Eligibility
4_
Revised: July
24, 2017
Draft No. __
September
20, 2017
Introduced:
March
12 2019
Expires:
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: -'--'N=on~ e"--------
Ch. _ _ , Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Councilmember Navarro and Katz and Council Vice President Riemer
AN EXPEDITED ACT
to:
clarify the definition of a domestic partner for the purpose of receiving County
(1)
survivor benefits;
limit County survivor benefits for a domestic partner of a local fire and rescue
(2)
department volunteer to a domestic partner registered on or before a certain date;
limit County survivor benefits for a domestic partner of a County employee under the
(3)
County retirement systems to a domestic partner registered with the County on or
before a certain date; and
generally amend the laws governing survivor benefits for a domestic partner.
(4)
By amending
Montgomery County Code
Chapter 21, Fire and Rescue Services
Section 21-21
Montgomery County Code
Chapter 33, Personnel and Human Resources
Sections 33-6, 33-35, and 33-113
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
Heading or de.fined term.
Added to existing law by original bill.
Deleted.from existing law by original bill.
Added by amendment.
Deleted.from existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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8<PEDITED BILL NO.
29-17
1
Sections 21-21, 33-6, 33-35, and 33-113 are amended as follows:
21-21. Length of service award program for volunteers.
There is a length of service award program for local fire and rescue departme nt
volunteers.
2
3
4
5
6
7
(a)
[Definition] Definitions.
In
this Section, the following words and phrases
have the following meanings:
[active] Active volunteer
means a local fire and rescue departme nt
volunteer who accumulates at least 50 points in a calendar year under the
point system in subsection (k).
8
9
10
11
12
Domestic partner
means
~
person who was registered as
~
domestic
partner of an active volunteer with the Fire Chief on or before June 27,
2016 in
~
domestic partnership that did not end before the active
voluntee r's death.
*
(
e)
13
14
*
*
15
Survivor's benefit.
(1)
A local fire and rescue department volunteer's surviving spouse or
domestic partner qualifies for a survivor's benefit on the volunteer's
death if:
(A)
the surviving spouse or partner submits an application for
the benefit; and
(B)
the volunteer met the:
(i)
years-of-service requirement for a length of service
benefit under subsection (c ); or
(ii)
requirements for a disability benefit under subsection
(d).
(2)
The volunteer's surviving spouse or domestic partner must receive
a monthly award payment until the spouse's death or remarriage,
16
17
18
19
20
21
22
23
24
25
26
27
0
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EXPEDITED BILL
NO. 29-17
28
or partner's death [or establishment of another domestic
partnership], equal to 50 percent of the:
(A)
length of service benefit for which the volunteer met the
years-of-service requirement; or
(B)
volunteer's disability benefit.
*
*
*
29
30
31
32
33
34
35
36
37
38
39
[(l)
Definition.
In this Section, "domestic partner" or "partner" means a
person whose relationship with the volunteer would meet the
requirements for a domestic partner under Section 33-22 if the volunteer
were a County employee.]
33-6. Definitions.
In this article, the following words and phrases have the following meanings:
Board:
The merit system protection board as described in section 403 of the
county charter.
County employees:
All persons employed by the county regardless of merit
system status.
Domestic partner.
A person who [meets the requirements of Section 33-22] was
registered as the domestic partner of a County employee with the Office of
Human Resources on or before June 27, 2016 in
fl:
domestic partnership that did
not end before the County employe e's death. This definition applies throughout
this Chapter unless otherwise indicated.
*
33-35. Definitions.
In this Article, the following words and phrases have the following meanings:
*
*
*
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
*
*
Domestic partner:
A person who [meets the requirements of Section 33-22] was
registered as the domestic partner of a member with the Office of Human
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EXPEDITED BILL
No.
29-17
55
56
57
58
59
60
61
62
63
64
65
66
67
Resources on or before June 27, 2016 in£! domestic partnership that did not end
before the member's death.
*
*
*
33-113. Definitions.
In this Division the following words and phrases have the following meanings:
[(a)]
Account balances
means the balance credited to the retirement account of
a participant under the retirement savings plan as of the valuation date preceding
the date of distribution determined without regard to vesting, including:
(
1)
any participant contributions (including contributions picked up by
the County);
(2)
(3)
County contributions; and
rollover contributions.
[(b)]
Board or Board of Investment Trustees
means the Board of Investment
Trustees established under Article III.
[(
c)]
68
69
70
County
means the Montgomery County Government and, when
applicable, any participating agency.
[(d)]
County service
means any period of County employment during which a
participant is:.
(
1)
71
72
73
74
75
76
77
78
in pay status, or
on an approved leave of absence without pay on or after January
(2)
1, 2002.
Domestic partner
means _a person who was registered as the domestic partner of
£! participant with the Office of Human Resources on or before June 27, 2016 in
~
domestic partnership that did not end before the participant's death.
79
[(e)]
Employee
means any eligible elected or appointed County official and
any full-time or career part-time County employee.
[(f)]
80
81
Employee organization
means any organization that:
0
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EXPEDITED BILL
No. 29-17
82
( 1)
(2)
admits employees to membership;
has as a primary purpose the representation of employees m
83
84
85
86
collective bargaining; and
(3)
is certified as an employee organization under applicable law.
[(g)]
Former participant
means any individual with an account balance in the
retirement savings plan who has ceased to be a participant.
[(h)]
Investment manager
means a person or entity who exercises discretion
to
manage all or part of the assets of an institutional investor. The investment
manager is a fiduciary as defined in Section 33-35.
[
(i)]
87
88
89
90
91
92
93
94
95
96
Merit System Protection Board
means the Merit System Protection Board
established in the Charter.
[G)]
Non-public safety employee
means any employee who is not a public
safety employee.
[(k)]
Normal retirement date
means the first day of the month after the month
in which the participant reaches age 62.
97
98
99
[(I)]
Participant
means an employee who is participating in the retirement
savings plan.
[(m)]
Participant's contribution account
means the portion of a participant's
account balances in the retirement savings plan that is attributable to participant
contributions, including contributions picked up by the County, and any gains
or losses attributable to those contributions.
[(n)]
Plan year
means the 12-month period beginning January 1 and ending on
December 31 each year.
[(
o)]
100
101
102
103
104
105
106
Public safety employee
means any employee who is a:
(1)
(2)
sworn officer of the Police Department;
paid firefighter, paid fire officer, or paid rescue service worker of
107
108
the Montgomery County Fire and Rescue Service;
(!)
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EXPEDITED BILL NO.
29-17
109
(3)
(
4)
(
5)
sworn deputy sheriff;
correctional officer; or
County employee who provides services to a correctional facility
11 O
111
112
113
and designated as a public safety employee by the Chief Administrative
Officer.
[(p)]
Regular earnings
means gross pay for actual hours worked, including
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
paid leave, but not including overtime, without reduction for participant
contributions that are picked up under Section 33-116(a), or contributions to any
County deferred compensation plan or statutory fringe benefit program.
If
a
participant is required to take any furlough, as defined in personnel regulations
under Section 33-7(b) or a collective bargaining agreement, regular earnings
must include any amount the participant would have received if the participant
had not been required to take any furlough.
[(q)]
Retirement accounts
means the required participant contributions
account, a County contributions account, and any rollover contributions
account.
[(r)]
Rollover contributions
means that portion of a participant's account
balances in the retirement savings plan that is attributable to any assets
transferred or rolled over to the retirement savings plan from another eligible
retirement plan as defined in the Internal Revenue Code Section 402(c). No
after-tax contributions may be transferred or rolled over into the retirement
savings plan.
[(
s)]
Valuation date
means the last business day of March, June, September,
and December of each plan year, and any other date the Board establishes in a
uniform and nondiscriminatory manner for determining the fair market value of
the assets of the retirement savings plan.
Effective Date.
©
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EXPEDITED BILL
NO. 29-17
136
137
138
The Council declares that this legislation is necessary for the immediate
protection of the public interest. This Act takes effect on the date it becomes law.
139
Approved:
140
Roger Berliner, President, County Council
Date
141
142
Approved:
Isiah Leggett, County Executive
Date
143
144
This is a correct copy ofCouncil action.
Linda M. Lauer, Clerk of the Council
Date
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LEGISLATIVE REQUEST REPORT
Expedited Bill 29-17
Domestic Partner Survivor Benefits
-
LOSAP
-
Employees Retirement System
-
Eligibility
DESCRIPTION:
Expedited Bill 29-17 would limit domestic partner survivor benefits to
a person who registered a domestic partnership with the County on or
before June 27, 2016, making these survivor benefits consistent with
the general repeal of domestic partner benefits in Bill 16-16.
Bill 16-16, enacted by the Council on June 28, 2016 and signed into
law by the Executive on July 7, 2016, repealed the law providing
domestic partner benefits for County employees. The law included a
grandfather clause that permitted a County employee receiving
domestic partner benefits on June 27, 2016 to retain those benefits.
Although Bill 16-16 generally repealed the County law authorizing
domestic partner benefits, the Bill did not remove references to
domestic partner survivor benefits for volunteer firefighters under the
Length of Service Awards Program and County employee survivor
benefits under the County retirement laws.
To ensure that survivor benefits for domestic partners is consistent
with the law governing other County benefits.
Office of Human Resources
To be requested.
To be requested.
To be requested.
To be researched.
Robert H. Drummer, Senior Legislative Attorney
Not applicable.
PROBLEM:
GOALSAN D
OBJECTIVES:
COORDINATION:
FISCAL IMP ACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
None.
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ROCKVILL E, MARYLAND
MEMOR ANDUM
September 25, 2017
TO:
FROM:
Roger Berliner, President, County Council
JenniM#-H ughes, Director, Office of Management and E_u;e:.
t
Alex~::-~ . Espinosa, Director, Department of Financo /-P,t~
FEIS for Expedited Bill 29-17, Domestic Partner Survivor Benefits - LOSAP -
Employees' Retirement System - Eligibility
SUBJECT:
Please find attached the fiscal and economic impact statements for the above-
referenced legislation.
JAH:fz
cc: Bonnie Kirkland, Assistant Chief Adminisq-ative Officer
Lisa Austin, Offices of the County Executive
Joy Nurmi, Special Assistant to the County Executive
Patrick Lacefield, Director, Public Information Office
David Platt, Department of Finance
Dennis Hetman, Department of Finance
Corey Orlosky, Office of Manageme nt and Budget
Felicia Zhang, Office of Manageme nt and Budget
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Fiscal Impact Statement
Council Expedited Bill
29-17,
Domestic Partner Survivor Benefits- LOSAP-E mployees '
Retirement System
-
Eligibility
1. Legislative Summary.
This bill would clarify the definition of a domestic partner for receiving County survivor
benefits, and limit the County survivor benefits for domestic partners of County
employees and local fire and rescue department volunteers to a domestic partner
registered with the County on or before June 27, 2016.
2. An estimate of changes in County revenues and expenditures regardless of whether
the revenues or expenditures are assumed in the recommended or approved budget.
Includes source of information, assumptions, and _methodologies used.
This bill
has
no impact to revenues or expenditures. This bill clarifies the definition of
a
domestic partner, but does not adjust County practice.
It
does not alter the availability of
survivor benefits nor does it adjust
the
amount of the benefit available to
a
joint
annuitant.
3. Revenue and expenditure estimates covering at least the next 6 fiscal years.
See response #2.
4. An actuarial analysis through the entire amortization period for each bill that would
affect retiree pension or group insurance costs.
Not applicable.
5. Later actions that may affect future revenue and expenditures
if
the bill authorizes
future spending.
Not applicable.
6. An estimate of the staff time needed to implement the bill.
Not applicable.
7.
An explanation of how the addition of new staff responsibilities would affect other
duties.
Not applicable.
8. An estimate of costs when an additional appropriation is needed.
Not applicable.
@)
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9. A description of any variable that could affect revenue and cost estimates.
Not applicable.
10. Ranges of revenue or expenditures that are uncertain or difficult to project.
Not applicable.
11.
U
a bill is likely to have no fiscal impact, why that is the case.
The bill would serve to clarify the definition of a domestic partner for receiving certain
survivor benefits, but it does not adjust the benefits themselves.
12. Other fiscal impacts or comments.
Not applicable.
13. The following contributed to and concurred with this analysis:
Corey Orlosky, Office of Management and Budget
Linda Herman, Executive Director, Montgomery County Employee Retirement Plans
Alan Hinde, Volunteer Services Division Chief, Fire and Rescue Services
-f
L.
~
~M
ri.Y;
JAff
Jennifer A. Hughes, Director
Office of Management and Budget
®
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Economic Impact Statement
.
Expedited Bill 29-17, Domestic Partner Survivor Benefits -LOSAP
Employees' Retirement System
-
Eligibility
Background:
This legislation would:
Clarify the definition of a domestic partner for receiving County survivor benefits;
Limit County survivor benefits for a domestic partner of a local fire and rescue
department volunteer to a domestic partner registered with the County on or before June
27, 2016; and
Limit County survivor benefits for a domestic partner of a County employee under the
County retirement systems to a domestic pa~ner registered with the County on or before
June 27, 2016.
1. The sources of information, assumptions, and methodologies used.
Source ofinformation is the Montgomery County Employee Retirement Plans (MCERP).
According to MCERP, there are 82 domestic partners who registered before June 27, 2016,
based on the certification process performed by the County's Office of Human Resources,
and therefore could be eligible for joint and survivor benefits as provided by the Employees'
Retirement System, a defined benefit pension plan. The total amount of the monthly benefit
is determined by a formula defined in the County Code which includes: the years of County
service, retirement group in which the employee participates, the final average salary, and the
benefit option selected at retirement. The employee receives a reduction in their monthly
pension
if
he/she selects to provide a benefit for the domestic partner or spouse based on their
age. However, regardless of the adjustment to whom is considered as the joint annuitant, the
total amount of the monthly benefit does not change. There is no reasonable assumption that
the number of joint annuitants will change. There are no methodologies used in the
preparation of the economic impact statement. The length of service award program
(LOSAP) for a retired local fire and rescue volunteer provides that a surviving spouse or
domestic partner receive 50% of the benefit provided to the volunteer at the time of the
volunteer's death. There is also no reasonable assumption that the dollar amount of survivor
benefits will change.
2. A description of any variable that could affect the economic impact estimates.
There are no economic variables that could affect the economic impact estimates.
3. The Bill's positive or negative effect, if any on employment, spending, savings,
investment, incomes, and property values
in
the County.
Since Bill 29-17 allows a domestic partner of a participant in the County's Employees'
Retirement System or a retired local fire and rescue volunteer a share of the monthly benefit
selected, it will have no economic impact on employment, spending, savings, investment,
incomes, and property values in the County.
Page 1 of2
@
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Economic Impact Statement
Expedited Bill 29-17, Domestic Partner Survivor Benefits- LOSAP-
Employees' Retirement System -Eligibili ty
4.
If
a Bill is likely to have no economic impact, why is that the case?
Please see paragraph #3
5. The following contributed to or concurred with this analysis:
David Platt, and Robert
Hagedoorn, Finance; Linda Herman and Robert Goff, MCERP.
Alexandre
A.
E pinosa, Director
Departmen t
of
Finance
Date
Page 2 of2