Md. House Committee Holds Hearing On Pensions
ANNAPOLIS, Md. (AP) — A proposal to increase Maryland state employees’ pension contribution rate from 5 percent to 7 percent is getting a hearing before a House of Delegates committee.
The House Appropriations Committee will discuss the proposal on Tuesday.
Gov. Martin O’Malley is proposing changes to address $19 billion in unfunded pension liabilities.
With increased contributions from employees and the state, O’Malley has said Maryland’s funding of the system would rise from 64 percent to 80 percent by 2023. Experts in the field say healthy pension systems are at least 80 percent funded.
The proposal also includes tighter eligibility criteria, with vesting beginning at 10 years instead of 5 years.
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