For the second year in a row, Maryland’s pension fund missed its target for return on its investment portfolio by a wide mark, earning just 1.16% for the fiscal year that ended June 30 compared to its annual goal of 7.55%. Last year, the fund made 2.68%.
Because of the lagging returns the $45.5 billion fund is apparently worth $300 million less than it was worth June 30 last year, and long-term liabilities are over $20 billion.
Welcome to the fuzzy world of actuarial pension and retirement funding. Depending on the statistics and the way they are manipulated, your retirement accounts may be in fine shape or in the toilet.Read More
Maryland’s $45.8 billion pension fund for state employees and teachers earned 2.68% for the past fiscal year, almost 5 percentage points below its target of 7.65%, but better than benchmark returns for its various asset classes, its Board of Trustees was told Tuesday.Read More
Gov. Larry Hogan Jr. makes it sound like he’s riding to the rescue of Maryland’s underfunded pension program that has been continually “raided” by evil Democratic legislators in Annapolis.
What a bunch of hogwash. It’s pure Hogan hypocrisy.
Hogan’s stance — torpedoing a $68 million education appropriation to the state’s most populous jurisdictions and shifting some of that money into the state pension fund — is based on politics, not policy.Read More
Once again, the House of Delegate took the easy way out of its budget bind — and in the process stuck it to future state workers, teachers and taxpayers.
The Senate is on a glide path that follows that same flawed approach.
Instead of facing up to its fiduciary pension obligations, Annapolis delegates opted to play games, placing at risk the safety of state retirement programs.Read More
The legislature’s staff is recommending that lawmakers make another major change in pension funding, eliminating extra payments into Maryland’s underfunded pension system and returning to full actuarial funding.
The proposal would save $70 million in next year’s budget and $2 billion over the next 10 years. But it would ultimately cost taxpayers $2.5 billion more than current plans for pension contributions in the following 13 years.Read More
Persistent critics of the investment performance of Maryland’s $45 billion pension fund for state teachers and employees are again slamming the fund for failing to match the performance of other state pension systems, even though its 14.4% return was nearly twice as high as the fund’s target.Read More
Good news from the Maryland state retirement agency: investment earnings over the past year ending June 30 rose a strong 14.37 percent. Don’t get too excited: The agency is still digging out of a deep financial hole caused by the Great Recession, poor decisions by former governors and legislators and poor advice from the agency’s consultant. The retirement fund’s health, though, is showing solid improvement.Read More
Maryland’s pension system for state employees and teachers had another strong investment performance for the fiscal year which ended June 30 earning 14.37%, bringing the value of the portfolio to $45.4 billion, a gain of more than $5 billion.
It was the second year in a row of strong performance due to sharp upturns in stocks, according to Chief Investment Officer Melissa Moye. The fund exceeded its target of 7.7% and its market benchmark of 14.16% — what its basket of assets would have been expected to earn.Read More
With minimal debate, the Maryland Senate rejected a half dozen Republican attempts to further trim Gov. Martin O’Malley’s $39 billion budget Wednesday, and gave preliminary approval to the spending plan that will be sent to the House this week.
The Senate Budget and Taxation Committee ultimately cut $492 million from the current budget and O’Malley’s proposal for next year, partly to make up for lowered revenue estimates in both years.Read More
The Senate Budget Committee voted Friday to take $500 million over the next five years from extra payments into the state pension system to balance the budget this year and for the next four.Read More
Much or all of an annual $300 million extra payment into Maryland’s pension system is on the chopping block as Senate budgeters seek to balance Gov. Martin O’Malley’s $39 billion budget at a voting session Friday.Read More
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