3838

JOINT RESOLUTIONS

System, and other State public retirement systems now
have assets of over $1,200,000,000, making these pension
funds one of the largest accumulations of capital in
Maryland; and

WHEREAS, Approximately 120,000 persons, or three
percent of the State's population, are members of the
various State Retirement Systems; and

WHEREAS, The funding level, the level of benefits,
the cost, the understanding by members of their benefits,
and the general operation of the systems all are complex,
vitally important and have not been the subject of recent
legislative review; and

WHEREAS, The actuarial methods and assumptions
utilized by the systems have a substantial impact on its
cost and soundness and have not been the subject of
thorough legislative review for over 20 years; and

WHEREAS, The "accrued liability" of the systems is
substantial, and the State also funds a large portion of
retirement benefits on a pay—as—you—go basis which has
significant potential for growth, contributing to a need
to review the cost and funding of the systems; and

WHEREAS, After the two major retirement systems were
begun, Social Security coverage has been provided for the
members and the combination of Social Security and
Retirement System benefits now costs more than 20 percent
of each member's salary, including a substantial
after—tax contribution by the members; and

WHEREAS, The integration of Social Security benefits
and retirement benefits, and the relationship between
total retirement benefits, including Social Security, and
current salary levels should be reviewed; and

WHEREAS, Reports of data on the systems are more
than two years old at the time of publication and not
widely available; and

WHEREAS, The statutory provisions for the systems
are scattered throughout the Maryland Code and are
duplicative, complex and confusing; and

WHEREAS, The Boards of Trustees of the systems
occupy positions of most extreme responsibility for the
management of one of Maryland's largest accumulations of
capital and most extremely sensitive responsibility for
providing the essential needs of life for a large number
of people; and

WHEREAS, The Boards of Trustees should be given all