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Maryland Says Software Glitch Double‑Paid Buyout Recipients, Will Pull Back Excess Funds

Officials plan to reverse the excess deposits within two weeks, with corrected payouts scheduled for Nov. 19.

Overview

  • State officials say a file error discovered Oct. 20 led to duplicate payments to 293 participants in the Voluntary Separation Program.
  • Impacted former employees were notified by email and phone to leave the funds untouched because the entire amount will be automatically debited.
  • The administration says altering the payroll mid‑process risked broader disruption, so payments proceeded before recalls were initiated.
  • If money is not returned in full, the state may use leave-balance payouts, standard collections, or tax refund intercepts to recover overpayments.
  • The buyouts are part of a cost‑cutting plan approved by the Board of Public Works, covering 332 departures and more than 500 position eliminations, with projected savings of $10.5 million in FY2026 and $22 million in FY2027.