BALTIMORE, MD — The Maryland State Retirement and Pension System (SRPS) reported to its Board of Trustees today that the System generated a 6.93% return for fiscal year ending June 30, 2024, topping its actuarial rate of return by 13 basis points and beating its policy benchmark by 59 basis points. This latest return demonstrates the agency’s track record of consistently meeting or exceeding its benchmarks for long term performance.   

“I am pleased the System earned its actuarial target rate of return for the fiscal year and over the last five years,” said SRPS Chief Investment Officer, Andrew Palmer. “Our strategic mix of public and private market investments has enabled the System to earn the target return over time, participating in strong public market environments, such as fiscal year 2024, and providing a level of protection during difficult times through the more stable private market valuation practices. I am also pleased with our implementation of the asset allocation policy, with more than 60% of plan assets exceeding their respective benchmarks for the past year, and over 90% of System assets outperforming benchmarks over the last five years.”

The relative performance of pension plans for fiscal year 2024 was determined by the proportion of public market and private equity, the regional mix of public equity, the type and size of bond portfolios and the allocation to real assets. In Maryland, the System’s long-term strategic benchmark is designed to be competitive over longer periods with lower volatility.

“The more than 420,000 Marylanders we serve deserve to retire with dignity, knowing they are financially secure,” said SRPS Executive Director, Martin Noven. “As fiduciaries, the best interests of our members guide our investment decisions, and we sustain the trust of those we serve by delivering a well-funded portfolio. Our strong returns this year reflect our steady progress toward achieving full funding to keep the promises made to our members.”

Maryland’s State Retirement and Pension System continues to post consistently strong long term performance outcomes. Moreover, because the strategic portfolio exhibits lower volatility along the way, it accumulates more assets for the System during a volatile period characterized by high inflation, rising interest rates and geopolitical uncertainty.

“Consistent with our fiduciary responsibilities, the Board’s investment strategies are designed to create long term value and secure the financial future of our participants,” said State Treasurer Dereck E. Davis, Chair of the Maryland State Retirement and Pension System Board of Trustees. “Our goal is to give Marylanders the financial security they have come to expect and deserve.”

Benchmarks are set by the Board of Trustees, which directs the management of the System’s $68 billion investment portfolio. The returns of asset classes and the System’s total portfolio are measured against the benchmarks, which identifies the contribution or loss caused by manager performance and tactical asset allocation decisions.