Report: Maryland Pension Fund Misses its Mark Again
ROCKVILLE, MD (August 15, 2016) – A new report estimates Maryland’s $45.5 billion pension fund failed to meet its investment return goal by a wide margin for the second consecutive year. Due to its poor investment strategy, the Maryland State Retirement & Pension System’s (System) unfunded liabilities now total an estimated $20 billion.
In a report released late Friday, August 12, the System reported earning just 1.16 percent for the recently concluded 2016 fiscal year, not even close to its 7.55 percent target. The System’s 10-year investment return now stands at a meager 4.85 percent. In addition, the Maryland Public Policy Institute estimates that the System pays up to $590 million annually to Wall Street investors to manage its assets. View the study at mdpolicy.org.
“If sound investing were an Olympic sport, Maryland’s pension fund managers would fail to qualify by a wide margin,” said Christopher B. Summers, president of the Institute. “Not only does the System consistently fail to meet its own investment targets, but it pays exorbitant amounts to Wall Street advisors in exchange for these poor returns. Maryland’s hardworking state employees and retirees, who have been promised a secure retirement, deserve better than a Wall Street fleecing.”
According to Marylandreporter.com, Maryland’s pension system provides retirement benefits for more than 148,000 retirees, beneficiaries as well as future benefits for more than 246,000 active and former members.