Shifting teacher pensions jeopardizes education funding

Last week Governor O'Malley discussed plans to shift a portion of the cost of teacher pensions back to the local counties as a way to improve the state budget. Part of the state's argument has been that the pension fund is troubled.

From today's Frederick News-Post:

Teacher pension fund now sustainable

     In its editorial, "Sharing the cost of teacher pensions," The Frederick News-Post states that "many believe" Maryland's pension system is "inarguably unsustainable."

      This conclusion must be challenged in light of last year's legislative session when the pension system underwent major reform. As a result of these reforms, actuaries for the State Retirement and Pension System as well as the General Assembly now project that the system is on a path for sustainability, expected to reach 80 percent funding by fiscal year 2023 and 100 percent funding in fiscal year 2030.

     This was accomplished by increasing state employee contributions to their retirement by 40 percent; reducing benefits for service earned after June 30, 2011; increasing vesting for new employees from five to 10 years; and reducing the annual Cost of Living Adjustment for service earned on and after July 1, 2011.

     To the contrary, the actions of Gov. Martin O'Malley and the General Assembly have provided a state pension system that is sustainable.

R. DEAN KENDERDINE, executive director, Maryland State Retirement and Pension System

Shifting any of the cost of teacher pensions back to the county will do nothing but hurt the counties and their schools systems if the state's broken Maintenance of Effort law is not fixed, ensuring that counties fulfill their obligation to fully fund their school systems. For more information on MOE, go to www.mceanea.org/action/moe.php or www.marylandeducators.org/moe/.