Maryland State Retirement and Pension System, Baltimore, is keeping its assumed rate of return at 7.75%, ignoring its actuary’s recommendation that the $37.1 billion system lower it to 7.5%.
Gabriel, Roeder, Smith had suggested the system reduce the assumed rate but had said a rate between 7.5% and 7.75% “was justified,” said Michael Golden, spokesman for the retirement system.
“The board felt that the way the economy is right now, rebounding from its nadir, they didn’t want to be too hasty in making a change,” said Mr. Golden. “The only change was no change. In this case, that’s a good thing.”