For immediate release:
June 27, 2025  

Contact: Katherine Morris
kmorris@sra.state.md.us

BALTIMORE, MD – The Maryland State Retirement and Pension System (SRPS) Board of Trustees has formally adopted a set of Responsible Workforce Management Principles to guide investment decisions in its private equity portfolio. The vote, held during the Board’s June 17 meeting, builds upon the Investment Committee’s May 29 recommendation and reflects a growing recognition that sound workforce practices and long-term investment performance are closely aligned.

The $70 billion SRPS portfolio includes approximately $15 billion in private equity investments. The newly adopted framework establishes expectations for private equity managers to incorporate workforce considerations – including health and safety protections, fair compensation, benefits, and employee retention – into their operational strategies.

“The Board’s action affirms that responsible investment is smart investment,” said Executive Director Martin Noven. “By encouraging our private equity partners to uphold strong workforce practices, we support both long-term value creation and our fiduciary duty to members.”

The Responsible Workforce Management Principles provide a structured lens for evaluating private equity managers’ alignment with SRPS values, where transparency and oversight mechanisms differ from those in public markets. The adoption also positions Maryland among a small but growing group of public pension systems alongside New York State and CalPERS leading on workforce accountability in private markets.

“Prioritizing fair wages, safe workplaces, and employee development gives businesses a competitive advantage that benefits their bottom line and delivers strong returns for shareholders,” Comptroller Brooke E. Lierman said.  “It is important that our pension system is investing with companies that support the well-being of employees in ways that deliver long-term value for our dedicated public servants who are relying on a strong performance to fund their retirements.”

As institutional investors increasingly seek ways to mitigate risk and enhance sustainability, Maryland’s move reflects a forward-looking approach to private market oversight.

“As stewards of Maryland’s public retirement assets, we must ensure that our investment approach reflects both fiscal responsibility and values-based leadership,” said Maryland State Treasurer Dereck E. Davis. “These principles strike the right balance, reinforcing the importance of worker dignity while enhancing long-term portfolio strength.”

The principles will be implemented in collaboration with the System’s investment staff and consultants, and will inform future manager selection, engagement and reporting practices.

The Maryland State Retirement Agency is charged with the fiduciary responsibility for properly administering the retirement and pension allowances of nearly 168,000 retirees and beneficiaries, as well as the future benefits for more than 245,000 active and former members. These groups include state government employees, teachers, law enforcement personnel, legislators, judges and local government employees and firefighters whose employers have elected to participate in the system.  

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