Posts Tagged 'Retirement'

Shifting pension costs to local government recommended by Benefits commission

The Public Employees’ and Retirees’ Benefit Sustainability Commission is a bi-partisan group established by Governor O’Malley.  Their charge is to study and make recommendations on how manage the rising costs of health and retirement benefits for state workers, including teachers and librarians in Maryland.

On Monday, the commission voted on several recommendations.  The recommendation with the biggest impact for libraries is to push 50% of the pension costs back to the local boards of education and libraries, to be phased in over 3 years.  It appears that a recommendation to have the state help fund social security costs will be used to offset the local government’s increase in pension costs, but the details are unclear.  Another recommendation is to study the feasibility of adopting a Hybrid Cash Balance pension plan, which would combine a 401 (k) plan with the existing traditional pension plan.

See today’s Maryland Reporter article for further explanation of all of the recommendations.

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Pension bills introduced in General Assembly

Two bills have been filed in the Maryland General Assembly dealing with pensions.

  • SB 959 – Senator Miller has filed the same bill as last year.  This bill would push a portion of the teacher pensions back on the counties.
  • HB 1374 – This bill would allow state employees to voluntarily leave the state pension system for a joint contribution system modeled after private industry.

Both bills are unlikely to make progress this year because it is an election year.  The counties and the school systems, as well as libraries, are monitoring these bills closely.

For more details, including the text of the bills, search for the bill number on the Maryland General Assembly’s web site.


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