Maryland’s pension system posted a 13.19% net investment return in fiscal 2026, well above its actuarial target and adding another year of positive long-term performance for the $82.1 billion fund.

The Maryland State Retirement and Pension System announced the results this week. The 13.19% return for the fiscal year ending June 30 exceeded the System’s 6.80% actuarial target by 6.39 percentage points.

The fund tracked its investment benchmark much more closely, outperforming it by 3 basis points. The System uses its policy benchmark to measure investment performance and the effects of asset allocation.

Longer-term returns also remain above benchmark. Over the past 10 years, the System generated an annualized net return of 8.25%, beating its policy benchmark by 48 basis points annually.

The results matter for the State and local governments that participate in the pension system. Investment performance affects the System’s long-term financial health and can help control the employer contributions required to fund retirement benefits.

Counties have a particular interest in those costs after the State shifted a larger share of teacher pension costs onto local governments beginning in fiscal 2026. Strong investment returns help support the overall pension system, although contribution rates depend on long-term investment performance, liabilities, actuarial assumptions, and other factors.

The System provides retirement benefits for more than 177,000 retirees and beneficiaries and manages future benefits for more than 250,000 active and former members, including teachers, State and local government employees, law enforcement personnel, and firefighters.

Visit the Maryland State Retirement and Pension System website for more information.