Maryland Gov. Larry Hogan said Thursday he will make an additional contribution toward the state's unfunded pension liability.
The $45.7 billion Maryland State Retirement & Pension System, Baltimore, was allotted $75 million by state legislators to address underfunding in fiscal year 2016. Mr. Hogan intends to commit an additional $75 million, either in a supplement to the fiscal 2016 budget or as part of his 2017 budget proposal in January 2016.
Under a package of reforms enacted in 2011, state officials agreed to contribute an additional $300 million per year beyond the annual required contribution to reach 80% funding by 2023, but successive legislative sessions have reduced the annual commitments.
Mr. Hogan criticized what he called “damaging, budgetary gimmicks” that diverted funds originally committed to address pension underfunding. “The state still faces $18.7 billion in unfunded pension liabilities, following $625 million in cuts to pension contributions in the last few years,” Mr. Hogan said in a statement. Following the General Assembly's recommendation “would be shortsighted and irresponsible, and I was elected to end this very type of reckless budgeting and governing,” he said.
