Committee hears Bill 26-0211 to extend city retirement eligibility to museum workers

The Baltimore City Labor and Workforce Committee on June 22 heard testimony on Bill 26-0211, a measure to make certain employees of the Baltimore Museum of Art and the Walters Art Museum eligible to join the city's Employees' Retirement System (ERS). Sponsor Councilman James Torrance said the proposal is "about you and your future," and urged the committee to work with unions, the ERS and city agencies on implementation.

The bill would allow museum staff hired after July 1, 2014, to elect into the city's post-reform retirement options, including a hybrid plan that guarantees some retirement income, according to testimony. Torrance said he favors an Aug. 1 effective date, a 150-day window for the one-time election, and clarified that prior service credits would be handled through purchase mechanisms so that employees could receive credit for earlier museum service.

Why it matters: Supporters said the change would help recruit and retain museum staff and restore retirement security for employees rehired after the 2014 reforms. Denise Gilmore, legislative and political director for AFSCME Maryland Council 3, told the committee the bill would allow Walters and BMA staff to "have an option, within the RSP, to elect to do a hybrid or non-hybrid plan" and restore guaranteed retirement income for many workers. Union witnesses described years of low savings, turnover and lost institutional knowledge among post-2014 hires.

Agency concerns: The Law Department and Finance Department flagged legal and fiscal issues with the draft. Hillary Rulli, speaking for the Law Department, said the bill as written could "open up the previously closed pension system to the Walters employees and that would be an equal protection issue as well as a tax issue" and offered legal assistance if the sponsor amends the bill. Bob Sename, deputy finance director, urged a full actuarial cost analysis before action and warned the addition could produce a "significant cost" and set a precedent that other quasi-city agencies might seek to join the city system.

Numbers and mechanics discussed: Finance estimated "a little bit over 200" employees potentially eligible; ERS staff provided a more specific split of about 118 employees at the Baltimore Museum of Art and 95 at the Walters Art Museum who were hired on or after 07/01/2014. ERS representatives explained that service that predates any chosen effective date would need to be purchased by the employee and employer and noted approximate contribution rates discussed in the hearing: roughly 5% from employees and about 2.04% from employers to purchase prior service credit.

Responses from the sponsor: Torrance said some provisions of the original draft could be removed because current IRS-recognized rollover mechanisms address part of the issue and said he intends to work with ERS and the administration on a rewrite; he also said he expected actuarial numbers and amended language by Aug. 1.

Public testimony: Workers and union leaders urged passage. Gregory Bailey, a senior objects conservator at the Walters and chapter chair of Walters Workers United (AFSCME Local 930), said the bill would "rectify the situation for myself and my colleagues" who face years of lost retirement savings. Anna Clarkson, a librarian and archivist at the Walters, described turnover among post-2014 hires and called the measure "life changing" for staff and the museums.

What happened next: The committee heard reports and public testimony but did not vote on the bill; the sponsor and agencies said they expect to return with amendments and an actuarial study by Aug. 1.

Next steps: The sponsor requested time to produce revisions and for ERS and the actuary to provide cost estimates; the committee recessed and will consider the amended language and actuarial analysis once available.