New Governor Faces Underfunded State Pension System

As reported in the Baltimore Sun, Maryland’s state employee pension system is adding to budget pressures that the new Governor, Larry Hogan, will confront in his first year in office.  As described,

The $45.4 billion system, which provides monthly benefits to about 143,000 retired teachers, state police, judges and other former employees, is expected to gobble up a growing share of the state’s budget in the coming years. The Maryland State Retirement and Pension System had only about 69 percent of the assets needed to pay for future and current retirees’ pensions in the last fiscal year — well below the at least 80 percent target that many experts consider healthy.

For more information, see the full story from the Baltimore Sun here.

For background, see our previous posts: Advisor Disappointed in Potential Pension Funding Cut, and Governor’s Budget Repeats Cut in Pension Funding.