2014 News


MSRA Takes on Latest MPPI Analysis

Those who in the past have claimed that our assumed rate of return of 7.7% was too high, now criticize us for having earned 14.4% in the most recent fiscal year. The latest report published by The Maryland Public Policy Institute makes several mischaracterizations about the Maryland State Retirement and Pension System that warrant clarification. The report begins by describing Maryland’s investment performance for the year ending June 30, 2014 as sub-par. Over this time period, the fund earned a return of +14.37% net of fees, exceeding the actuarial assumed rate of return of 7.70%.


Employer Pension Subsidy Reduced – No Effect on Employee’s Net Income

You may have noticed on your state employee pay stub that the employer paid pension subsidy has been reduced. For those of you confused by “employer paid pension subsidy” this is the amount your employer is contributing towards your pension. Whether this subsidy increases or decreases, please understand that it has no impact on your annual earnable compensation. It so happens that this recent reduction is due to the action taken by the Maryland General Assembly during the 2014 legislative session that reduced the state’s supplemental contribution into the retirement and pension trust.


Eligible Retirees to Receive 1.465% COLA Beginning July 2014

Eligible retirees and beneficiaries of the Maryland State Retirement and Pension System will receive a 1.465% increase in their retirement payment in July 2014 as the annual cost-of-living adjustment (COLA) takes effect. Since this year’s COLA rate does not exceed the system limit or cap in place for retirees of the Pension System, all eligible retirees will receive the full COLA applied to their monthly benefit payable July 31, 2014.

Members who retired after July 1, 2013 are not eligible for a COLA until they have been retired one full year as of July 1.