More than 400,000 former and current state employees depend on the Maryland Pension Fund for a secure retirement, yet the system faces $19 billion in unfunded liabilities.  The Maryland Public Policy Institute’s key recommendations for pension reform are:

1. Reduce or eliminate the estimated $500 million Maryland pays financial management firms to manage the State’s pension investments.
2. Shift a portion of the State’s pension assets to low-cost, passively managed index investments designed to match an asset class benchmark.
3. Transition future state employees to 401(k)-style defined contribution plans similar to those offered to private sector employees.