Maryland

Overview

The Maryland State Retirement and Pension System administers pension and other benefits for most public employees in the state, including public school teachers, state employees, and employees of school districts and political subdivisions that have elected to participate. Overall the system is comprised of the following groups:
  • Correctional Officer's Retirement System
  • Employees' Pension System
  • Employees' Retirement System
  • Judges' Retirement System
  • Legislative Pension Plan
  • Local Fire and Police System
  • Law Enforcement Officers' Pension System
  • State Police Retirement System
  • Teachers' Pension System
  • Teachers' Retirement System

Plan Design

Defined benefit plans serve as the primary retirement benefit for substantially all public employees in Maryland.

According to the US Government Accountability Office, 93 percent of employees of state and local government in Maryland participate in Social Security.

Access plan design detail

Authorizing Statutes and Board Structure

MD State Personnel and Pensions Code § 21-101 establishes the State Retirement and Pension System. § 21-104 establishes the Board of Trustees, which consists of 15 members. 

Details regarding the composition of these and other retirement boards is accessible via the Retirement and Investment Board Characteristics search tool located at the bottom of this page.

Fiduciary Duty/Prudence Standard

Title 21, Section 2 of the Maryland Statutes refers to the fiduciary responsibilities of the State Retirement and Pension System. According to § 21-203, 

A fiduciary shall discharge the fiduciary's duties with respect to the several systems solely in the interest of the participants and as follows:

  1. for the exclusive purposes of providing benefits to the participants and for reasonable expenses of administering the several systems;
  2. with the care, skill, prudence, and diligence under the circumstances then prevailing, that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims;
  3. by diversifying the investments of the several systems so as to minimize the risk of large losses, unless under the circumstances it is clearly prudent not to do so;
  4. in accordance with the laws governing the several systems; and
  5. in accordance with the documents and instruments governing the several systems to the extent that the documents and instruments are consistent with this subtitle.

Legal Protections of Retirement Benefits

No explicit constitutional protection for public pension benefits, but courts protect against impairment of contract rights. See Davis v. Mayor and Alderman of City of Annapolis, 635 A.2d 36 (Md. App. 1994)(recognizing that MD follows majority view that pension benefits are contractual, but "under certain circumstances, the government may unilaterally modify them so long as the changes do not adversely alter the benefits, or if the benefits are adversely altered, they are replaced with comparable benefits.); City of Frederick v. Quinn, 371 A.2d 724 (Md. 1977); Andrews v. Anne Arundel County, 931 F.Supp. 1255 (D.Md. 1996)(diminution of pension benefits was a substantial impairment; county failed to make sufficient showing that means adopted to maintain actuarial soundness was least drastic available). Source: Robert Klausner, Esq., State Constitutional Protections for Public Sector Retirement Benefits

See also the following search tools:

Retirement System Account Interest Policies Economic Actuarial Assumptions Retirement and Investment Board Characteristics
Information about interest rates applied to account balances of inactive plan participants Assumed rates of investment return and inflation Composition and characteristics of public retirement and investment oversight boards
Mortality Assumptions Plan Design Features Post-retirement Employment Policies
Public retirement system actuarial assumptions for mortality Numerous elements of retirement plan design Policies governing return-to-work for retirement system annuitants

More Data

Flag of Maryland (November 25, 1904)

Population (2024) 6,263,220

Maryland public pension statistics,
per U.S. Census Bureau as of FY 2024

Assets

$97.6 billion

Active Members

271,734

Annuitants

235,327

Benefits Paid

$6.9 billion

Employee Contributions

$1.4 billion

Employer Contributions

$3.8 billion

Systems

One state system that accounts for 74 percent of assets and 76 percent of public pension plan participants in the state. The Census Bureau also reports 79 local systems.

More Data

Other Resources


Become A Member

Becoming a member of NASRA offers a unique opportunity to join a community committed to the sound, efficient, and innovative stewardship of public retirement systems. Membership connects you with a network of professionals and experts, providing valuable insights into managing public retirement systems with a focus on sustainability and risk-averse strategies.

By joining NASRA, you gain the tools and resources to enhance the management of public retirement systems, ensuring their long-term success and reliability for generations to come.


 

What's New at NASRA: Balancing Stability and Sustainability: A Closer Look at Public Pension Contribution Policies

How public employers fund their pension plans has long-term implications for fiscal health and retirement security. NASRA’s latest publication explores the two primary models used across the nation—variable-rate and fixed-rate employer contribution policies—and how public pension systems are adapting these models to navigate evolving fiscal and demographic challenges.