ROCKVILLE, MD (May 6, 2014) – Faced with nearly $700 million in unfunded employee pension liabilities, the Baltimore City Council yesterday took encouraging first steps to protect taxpayers and modernize its pension system, according to the nonpartisan Maryland Public Policy Institute (MPPI).  The Council voted to provide new employees the option of selecting a 401(k)-style retirement plan modeled after private sector plans and required new employees to contribute 5 percent of their salaries to their retirement accounts. Both measures are expected to generate significant savings for City taxpayers.

“Baltimore’s future as a fiscally sustainable city depends on controlling runaway public costs,” said Christopher B. Summers, president of MPPI. “We applaud the City Council and Mayor Rawlings-Blake for crafting a consensus plan that reduces City taxpayer liabilities and contributes to the long-term solvency of City employee pension plans.  More work is required to truly change Baltimore’s fiscal fortunes, but yesterday’s vote is an encouraging first step.” 

About the Maryland Public Policy Institute: Founded in 2001, the Maryland Public Policy Institute is a nonpartisan public policy research and education organization that focuses on state policy issues. The Institute’s mission is to formulate and promote public policies at all levels of government based on principles of free enterprise, limited government, and civil society.

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