State Retiree Benefits Fact Sheet – Maryland

State Retiree Benefits Fact Sheet – Maryland

Maryland ranks reasonably well among the states in funding its pension system. But at $14.5 billion, the bill coming due for its non-pension retiree benefits is nearly twice what the state owes on its pensions. Maryland has started to put a little money aside ($100 million in the 2007 budget) to pay this bill, but not nearly enough. If the state opts to move toward full funding of its non-pension benefits, putting the money in a qualified trust, actuaries have calculated that it will require $772 million annually compared to the $236 million Maryland paid for current retirees in 2006. By pre-funding this obligation, Maryland could reduce its $14.5 billion obligation to $9 billion.