2018 News
Maryland State Retirement & Pension System Earns 8.06% net of fees on Investments in FY 2018
Exceeds 7.50% assumed rate of return
The Board of Trustees of the Maryland State Retirement and Pension System today announced that its portfolio returned 8.06 percent, net of fees, on investments for the fiscal year that ended June 30, 2018—exceeding the 7.50 percent assumed actuarial return rate. The fund’s performance raised the system’s assets to $51.9 billion, an increase of $2.8 billion over last year.
New earnings limit exemption enacted for state retirees
Legislation passed this year by the Maryland General Assembly provides an additional exemption to the earnings limit for reemployed state retirees.
To be eligible for this exemption provided under Senate Bill 1252, a retiree must:
- Be retired under the Employees’ or Teachers’ Systems,
- Be reemployed by the same unit of Maryland state government from which he or she retired and
- Receive reemployment compensation that includes no Maryland state funds
Refunds are available for eligible retirees
“Think Tank’s” recent work of fiction
By Andrew Palmer, Chief Investment Officer
The Maryland Public Policy Institute (MPPI) recently published a report criticizing the level of management fees, transparency and asset allocation of the Maryland State Retirement and Pension System (System), as well as other state pension plans. Unfortunately, and consistent with past analyses, the report is poorly constructed, using inaccurate data, flawed methodologies and erroneous assumptions, leading to conclusions that have no practical application to the management of the System’s assets.
Special BOT Election-Active Employees’ System
A special election will be conducted in Spring 2018 for a seat on the Board of Trustees of the Maryland State Retirement and Pension System to fill an Employees’ System representative vacancy. The seat is open to active members of the Employees’ System only, and both active and retired members of the Employees’ system will be eligible to vote.
Each potential candidate must obtain the signatures and dates of birth of 500 persons who are eligible to vote in the election. Signatures must be on official nomination petitions.
Federal tax reform may affect your January benefit
January benefit payments will reflect new federal tax withholding rates enacted as part of the federal Tax Cuts and Jobs Act of 2017. The tax reform bill was signed into law in December. To change your federal or Maryland state tax withholding, click here to access a Federal and Maryland State Tax Withholding Request (Form 766) and follow the instructions printed on the form.
Maryland State Retirement and Pension System Call for Nominations Public Member, Investment Committee
The Board of Trustees of the Maryland State Retirement and Pension System is calling for nominations for a public member to serve as an unpaid advisor to the retirement system’s Investment Committee for a three-year term beginning July 1, 2018. The term of the incumbent public member is due to expire on June 30, 2018.