2023 Maryland Statutes › State Personnel and Pensions › Division II - Pensions › Title 30 - Optional Retirement Program › Subtitle 2 - Optional Retirement Program › Section 30-210.1 - Indemnification of Covered Individuals Made Party to Action

(a)    In this section, “covered individual” means an employee of an employing institution with discretionary authority over the management or administration of any of the supplemental retirement plans or the management or disposition of the assets of any of the supplemental retirement plans.
(b)    Subject to the provisions of this section, the State shall indemnify a covered individual who is, or is threatened to be made, a party to an action or proceeding, including an administrative or investigative proceeding, by reason of the covered individual’s service as an employee of an employing institution with discretionary authority over the management or administration of any of the supplemental retirement plans or the management or disposition of the assets of any of the supplemental retirement plans.
(c)    (1)    In this subsection, “expenses” include:
(i)    reasonable attorney’s fees;
(ii)    judgments;
(iii)    fines; and
(iv)    other expenses that were actually and reasonably incurred by the individual in connection with the action or proceeding.
(2)    With respect to a civil, administrative, or investigative action or proceeding, the State shall indemnify a covered individual for the expenses of the action or proceeding if the covered individual acted:
(i)    in good faith; and
(ii)    in a manner the covered individual reasonably believed to be in or not opposed to the best interest of the supplemental retirement plans.
(3)    With respect to a criminal action or proceeding, the State shall indemnify a covered individual for the expenses of the action or proceeding if the covered individual:
(i)    acted in good faith;
(ii)    acted in a manner the covered individual reasonably believed to be in or not opposed to the best interest of the supplemental retirement plans; and
(iii)    did not have reasonable cause to believe that the covered individual’s conduct was unlawful.
(d)    Any termination of an action or proceeding does not, of itself, create a presumption that the covered individual did not meet the standards for indemnification described in subsection (b)(2) and (3) of this section.
(e)    The State may not indemnify:
(1)    a covered individual with respect to an action or proceeding as to which the covered individual was held liable for gross negligence or willful misconduct in the performance of the covered individual’s duty to the supplemental retirement plans; or
(2)    an independent contractor furnishing services to the supplemental retirement plans.
(f)    (1)    The State shall provide insurance for a covered individual eligible for indemnification under this section.
(2)    For the purpose of paragraph (1) of this subsection, the State may provide self-insurance under terms and conditions satisfactory to the State Treasurer.
(3)    A covered individual may not be required to pay amounts attributable to liability described in this section because the State does not provide adequate insurance coverage or otherwise fails to indemnify in accordance with this section.