Under one Board of Trustees, the State Retirement and Pension System consolidates the Pension System for Employees of the State of Maryland and the Employees' Retirement System, the Pension System for Teachers of the State of Maryland and the Teachers' Retirement System, and the State Police Retirement System. Prior to this consolidation, retirement and pension systems functioned separately. The earliest began in 1927 when the Teachers' Retirement System was established (Chapter 344, Acts of 1927). The Employees' Retirement System formed in 1941 (Chapter 377, Acts of 1941). Thereafter, the State Police Retirement System started in 1949 (Chapter 349, Acts of 1949). In 1970, these three systems were placed under the Department of Personnel. In 1979, the Pension System for Employees of the State of Maryland, and the Pension System for Teachers of the State of Maryland were created (Chapters 23, 24, Acts of 1979). From these systems, the Maryland State Retirement and Pension Systems formed in 1982. When the pension law was recodified in 1994, the Maryland State Retirement and Pension Systems was renamed the State Retirement and Pension System (Chapter 6, Acts of 1994).
The Board of Trustees for the State Retirement and Pension System was created in 1982 (Chapter 506, Acts of 1982). The Board establishes rules and regulations to administer the several pension systems and manage pension funds. On matters concerning the operation of the pension funds in the System, the Board selects an actuary as its technical adviser. From the Board, each member and beneficiary receives a summary of the System's annual report and of the individual's vested benefits.
To arrange and evaluate all medical examinations required under the laws of the several pension systems and to investigate all applications for disability retirement, the Board designates one or more medical boards. The boards each are composed of three physicians ineligible to participate in these pension systems.
The Board of Trustees has fourteen members. Nine are elected or appointed members who serve four-year terms. Five serve ex officio. Two trustees represent each of the State retirement funds; one represents the interests of participating local governments; and two represent the public. Trustees representing the Employees', State Police and Teachers' Systems are elected by the members and beneficiaries of their respective systems. The Governor appoints the trustees representing the interests of local governments and the public (Code State Personnel and Pensions Article, secs. 21-101 through 21-127).
Under the Agency are four Divisions: Finance; Information Systems; Investment; and Retirement Administration.
FINANCE DIVISION
INFORMATION SYSTEMS
INVESTMENT DIVISION
RETIREMENT ADMINISTRATION DIVISION
BOARD OF TRUSTEES
INVESTMENT COMMITTEE
The Investment Committee was first authorized in 1958 as the Investment Advisory Committee, providing advice to the three boards of trustees of the respective retirement systems (Chapter 70, Acts of 1958). The Committee reformed as the State Investment Council in 1982 (Chapter 506, Acts of 1982). In 1988, it reorganized under its present name (Chapter 698, Acts of 1988). The Committee reviews all investment programs to ensure compliance with policies of the Board of Trustees and advises the Board on all matters pertaining to investment programs. The Committee also advises the Board on preparation and maintenance of an investment operations manual and any additional bonding of employees of the State Retirement Agency. From its membership, the Board of Trustees annually appoints the Investment Committee (Code State Personnel and Pensions Article, secs. 21-114 through 21-116).STATE RETIREMENT AGENCY
An agency of the Board of Trustees, the State Retirement Agency administers the several State pension systems. The Executive Director is appointed by the Board (Code State Personnel and Pensions Article, secs. 21-117 through 21-123).
The Finance Division began as Fiscal Affairs, and became the Fiscal Affairs Division by 1994. It adopted its current name in 1996. The Division is responsible for accounting and financial reporting, and budget administration and procurement.
Information Systems started as Data Processing. In July 1993, it reformed as Systems Development within the State Retirement Agency and reorganized under its present name in 1995. The division designs and implements automated management information systems and enhancements to systems.
The Investment Division originated in 1982 as the State Investment Agency under the State Retirement and Pension System (Chapter 506, Acts of 1982). In 1988, functions of the State Investment Agency were reorganized through the Investment Division under the State Retirement Agency (Chapter 698, Acts of 1988). The Division invests, manages, and controls the Retirement Accumulation and Annuity Savings Funds of the System.
Under the State Retirement Agency, the Retirement Administration Division formed in 1988. The Division pays benefits to retirees, and administers employee contributions. Retirement counseling is provided to individuals and in group sessions.
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