Teacher Pensions Could Cost Even More Next Year

A budget analysis by the Maryland Department of Legislative Services reveals a $30 million difference between the actual costs of teacher pensions in FY 2017 and a previous estimate.

The local share of teacher pension costs is projected to increase beyond what was envisioned by a 2012 law shifting some of the costs to local governments. The State has been making up the difference between the amounts shifted in 2012 and the actual normal costs of the teachers’ pensions.

The difference between the 2012 estimate and the current estimate of the costs for next year is now $30.5 million.

The $30.5 million is spread across all of Maryland’s 24 local school boards. Montgomery County would absorb a lion’s share however, of almost $9 million.

For more information, see the Department of Legislative Service’s operating budget analysis of the State Retirement Agency.

For more analysis relevant to county governments, see MACo’s State Budget Page.

 

Screenshot 2016-02-16 08.57.28
The difference between 2012 and 2016 teacher pension cost estimates for next year is more than $30 million.

 

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