2013 Maryland Code
STATE PERSONNEL AND PENSIONS
§ 21-118 - State Retirement Agency -- Executive Director

§21-118.

(a) (1) The Board of Trustees shall appoint the Executive Director of the State Retirement Agency.

(2) The Executive Director serves at the pleasure of the Board of Trustees.

(b) The Executive Director shall:

(1) be in charge of the State Retirement Agency;

(2) compile annually a comprehensive budget for submission to the Board of Trustees; and

(3) have the duties and functions that the Board of Trustees may delegate.

(c) (1) The Executive Director shall employ a staff in accordance with the State budget.

(2) Except for employees described in paragraph (3) of this subsection, the employees are skilled service or professional service employees subject to the provisions of this article that govern skilled service or professional service employees.

(3) An employee is in the executive service, management service, or is a special appointment in the State Personnel Management System if:

(i) the employee holds a position that the Executive Director, with the approval of the Board of Trustees, designates as a professional or technical position that involves specialized skill, education, and knowledge; and

(ii) the employee’s labor is predominantly intellectual rather than manual or physical.

(d) The Executive Director and the Chief Investment Officer and staff of the Investment Division of the State Retirement Agency shall comply with the policies that the Board of Trustees prescribes about conflicts of interest and personal investments.

(e) (1) A document that must be executed by or for the Board of Trustees shall be signed:

(i) by the Executive Director of the State Retirement Agency; or

(ii) in the absence or disability of the Executive Director, by another employee whom the Executive Director, with the approval of the Chairman of the Board of Trustees, designates in writing.

(2) If a countersignature is required, with the approval of the Chairman of the Board of Trustees, the Executive Director shall designate those employees of the State Retirement Agency who may sign.

§ 21-118 - 1. Chief Investment Officer.

(a) In general. -- Notwithstanding any other provision of law, on the recommendation of the Executive Director and the Investment Committee, the Board of Trustees shall determine the qualifications and appointment, as well as compensation and leave, for the Chief Investment Officer who shall be the head of the Investment Division.

(b) Considerations. -- In making determinations and appointments under this section, the Executive Director and the Investment Committee shall consider the comparative qualifications, compensation, and leave of employees serving in similar positions and discharging similar duties at comparable public pension funds.

(c) Compensation. -- In addition to the Board of Trustees setting the salary of the Chief Investment Officer under subsection (a) of this section in accordance with the State budget, the Board of Trustees may also award financial incentives to the Chief Investment Officer in accordance with subsection (d) of this section.

(d) Criteria for award of financial incentives. --

(1) On the recommendation of the Investment Committee, the Board of Trustees shall establish criteria for awarding financial incentives to the Chief Investment Officer.

(2) The criteria under paragraph (1) of this subsection shall be based on:

(i) objective benchmarks of investment performance for the assets of the several systems; and

(ii) criteria used by comparable public pension funds awarding financial incentives to chief investment officers.

(3) The Chief Investment Officer may not participate in any deliberations regarding the establishment of criteria under this subsection.

(4) The criteria established under this subsection shall be included in the investment policy manual.

(5) On or before September 1 of each year, the Board of Trustees shall submit to the Joint Committee on Pensions, in accordance with § 2-1246 of the State Government Article, a copy of the most recent criteria established under this section and any financial incentives that were awarded for the previous fiscal year to the Chief Investment Officer.

(e) Compliance of financial incentives. -- The compensation and any financial incentives awarded to the Chief Investment Officer shall be in accordance with the limitations on administrative and operational expenses under § 21-315(c) of this title.

(f) Status. -- The Chief Investment Officer appointed under this section is a State employee and shall be entitled to participate in the Employees' Pension System under Title 23 of this article.

(g) Termination of Chief Investment Officer. -- On the recommendation of either the Investment Committee or the Executive Director and on receiving an affirmative vote from a majority of the Board of Trustees, the Executive Director shall terminate the appointment of the Chief Investment Officer.