Historic Earnings Moves The Maryland State Retirement and Pension System Funded Ratio Close to 80%
Actuary Says MSRPS’ Funded Ratio Nearly 77%
Baltimore, MD (October 19, 2021) — The Board of Trustees of the Maryland State Retirement and Pension System (MSRPS) today certified the fiscal year 2021 actuarial valuation as presented by its independent actuary, Gabriel Roeder Smith & Co. (GRS). GRS reported that due to the System’s extraordinary earnings of 26.7% for the fiscal year which ended June 30, 2021, its funded ratio has increased to 76.9%, up from 73.6% reported the previous fiscal year. The System is on track to be 80% funded by 2026; 85% funded by 2030; and 100% funded by 2039.
Based on the actuarial valuation, the Board is required to certify to the Governor and the Secretary of the Department of Budget and Management, prior to the upcoming legislative session, the rates to be used to determine the amounts to be paid by the State to each of the several Systems for the next fiscal year. The average state contribution rate increased only by 0.05% of payroll this year.
Reforms enacted by the Maryland General Assembly in 2011 and in subsequent years continue to show positive results for the System and continue to match or, in fact, exceed projections made at the time of the reforms. Required employer contributions for the coming fiscal year of 2023 are projected to be 17.55% of payroll, significantly lower than the 20.03% predicted at the time of the 2011 reforms. As of June 30, 2021, the System’s funded ratio is 76.2%, higher than the 75.1% predicted at the same time and higher than the 72.9% reported last year.