Unions, Pension Board Unhappy O’Malley Cut $100M In Promised Payment To Retirement Fund

The Board of Trustees of the State Retirement and Pension System, headed by State Treasurer Nancy Kopp, is also opposed to reducing the promised $300 million payment down to $200 million. This delays the goal of funding of the state pensions system at 80% by a full year, from 2024 to 2025. The pension system was 100% funded 12 years ago, but 80% is the accepted standard for public systems.

MarylandReporter.com raised the issue at the governor’s news conference on his proposed budget Wednesday. O’Malley had not mentioned cutting the pension payment in his presentation, even though it is listed as the largest spending reduction he is proposing to balance next year’s budget.

After his explanation of the change, O’Malley was specifically asked if the public employee unions had signed off on the reduction. The video of the Jan. 15 news conference shows O’Malley turning to Chief of Staff John Griffin and Budget Secretary Eloise Foster, and both nod their heads indicating the unions had agreed. (The video is in the video library under Jan. 15, 2014 and the exchange takes place around minute 41.)
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