Maryland’s $37 billion state retirement and pension system for employees and teachers earned only .36% on its investments in the fiscal year that ended June 30.
This is far below the 7.75% that is the system’s target. “The last 12 months presented a challenging environment for investors, particularly in international equity,” said chief investment officer Melissa Moye. “Most of the system’s assets added value to the fund, offsetting the negative impact of public equity for the year.”
Most of the asset categories in the fund, from cash to real estate, had positive earnings of 3% to 8%. But publicly traded stocks, which represent 42% of the portfolio, were down almost 7%.
Results “a minor disaster” says one analyst
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Publishers Notes: At the public hearing for Wicomico's Budget it was specifically mentioned the condition of the Maryland State Pension fund - and guess what - the Pension Fund custodians have used a 7.75% projection in their spreadsheet forcast when actually - they only earned .36%. And if the truth were known - their real estate asset portion of the fund that they used to project the .36% rate of return is more than likely bogus. The record reveals that they actually lost 7% on 42% of their stock portfolio.
If anyone in the private sector fudged numbers like that they would be sent to San Quinton. I hope Matt Macarello knows first hand of these financial shenangans.
DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
13 comments:
This is why the State of Md. has turned half the pension funding over to the counties because under O'Malley they spent out of it, or was poorly managed.
Get this through your head. If you work for local or state government, you are NOT going to get your pension. I'll repeat. You are NOT going to see your pension. It's gone. You are being lied to everyday.
And still you sit there, voting for whichever liar says he is going to take care of you when you get old. No one is coming to save you.
The whole thing goes KaPut when the return isn't 8%. It is underfunded and not giving the return needed...ding, ding, ding. Houston we have a problem.
The basic problem is the plan is a defined benefit rather that a defined contribution.
Look all of you better stop complaining and get rid of the DRMOCRATES in office. No more to say except they have no checks and balances!
And you think the Republicans can make it any better? Look- it is mathematically impossible to save the system as it is right now. No amount of taxes either raised or lowered can fix this. The problem is the very idea of the public pension itself- it needs to go away. They need to pick a a year, say 2014- and after that completely CUT OFF everyone forever.
I use the term "leader" in state government loosely. The so-called, friend appointed "leaders" are a pact that protect themselves, their "pact-croonies" (friends) then lie to the very people who are actually doing the work with less and less every year. One only has to look at some local state agencies to see this played out everyday. Not what you know but who you know. Regarding pensions, the "leaders" have their monies protected the poor working soul wasn't given that opportunity.
It is a ponzi scheme - only this ponzi scheme is sanctioned by your State Government.
I was at the Wicomico County budget hearing and I heard about the unfunded OPEB - (Other Post Employment Retirement & Benefits Account). The State of Maryland is underfunded by BILLIONS - I REPEAT BILLIONS!!!
Why the custodians of this account are allowed to squander even more is beyond me. I hope Matt Maciarello burns their asses and sends them all to the slammer.
How many warnings does Fitch, Moody's, and S&P have to issue to the State of Maryland?
All three of the major credit rating agencies have issued repeated warnings - and still - the trustees do nothing but squander even more money.
Can someone please explain to me how this plundering is allowed to continue.
I do not understand why the MSM are ignoring the pension subject.
The Daily Times and WBOC have not said anything about the poor status of these accounts. Even though I have read about them by the Benefits & Sustainability Commission in their 2011 report - I am amazed that the MSM have ignored these subjects also.
I understand perfectly why the MSM is ignoring the pension/ social security/ medicaid time bombs...if the general populace knew how bad it really was going to get, there would be pitchforks and torches in Washington. Then again, maybe not. The Olympics are on. There's episodes of Kardashians to watch. Yawn and go back to sleep.
Still, notice that they MSM is VERY careful NOT to show you pictures of the unrest in Greece or Spain.
Let's cut out social security while we are at it. Stop the checks now so the younger people don't continue to contribute to a ponzi scheme. What do you think?
It's called 'kicking the can down the road' and leave it to the next administration to address the crisis.
I've seen it time and time again. Case-in-point - look at he Postal Service's pension predicament.
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