![[photo, 120 East Baltimore St., Baltimore, Maryland]](/msa/mdmanual/25ind/images/1198-1-07314b.jpg)
The State's earliest retirement system began in 1927 when the Teachers' Retirement System was established by the General Assembly (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).
120 East Baltimore St., Baltimore, Maryland, August 2015. Photo by Diane F. Evartt.
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.
Funds for the State Retirement and Pension System derive from contributions received from employees and employers participating in the System's retirement and pension plans, and from the investment of the System's assets.
In 1982, the Board of Trustees for the State Retirement and Pension System was created by the General Assembly (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.
Fifteen members constitute the Board of Trustees. Twelve serve four-year terms. Of these, seven are appointed by the Governor, and five are elected by the members and beneficiaries of the State Employees', State Police and Teachers' pension and retirement systems. Three serve ex officio. (Chapters 534 & 535, Acts of 2013; Code State Personnel and Pensions Article, secs. 21-104 through 21-127).
The Board of Trustees is assisted by the Climate Advisory Panel and five committees: Administrative; Audit; Compensation and Staffing; Corporate Governance and Securities Litigation; and Investment.
ADMINISTRATIVE COMMITTEE
Chosen by the Board of Trustees, the Committee has seven members.
AUDIT COMMITTEE
The Committee is composed of five members chosen by the Board of Trustees. A majority must have financial or management experience.
COMPENSATION & STAFFING COMMITTEE
In order to attract and retain top financial workers, the Committee makes recommendations to the Board of Trustees, the Executive Director, and the Investment Committee regarding the type, number and qualifications for positions within the Investment Division, as well as the objective criteria for determining compensation and any financial incentives for the Chief Investment Officer and positions within the Investment Division.
The Compensation and Staffing Committee will issue a report with its recommendations at least once every four years, a shorter timeframe of every five years that was required of its predecessor, the Objective Criteria Committee.
CORPORATE GOVERNANCE & SECURITIES LITIGATION COMMITTEE
The Committee advises the Board on public policy and on issues related to corporate governance, including statutory mandates; the integrity of capital markets and market participants; and changes to proxy voting guidelines of the System. The Committee also considers and selects and/or ratify the hiring and termination of the corporate governance consultants, including the proxy monitoring and voting services.
As needed, the Committee provides recommendations to the Board on securities litigation matters, including whether the State Retirement and Pension System should seek lead plaintiff status in a securities class action lawsuit, opt out of a class action settlement, or file a separate securities-related action. The Committee also advises the Investment Division and the Office of Attorney General on issues arising during litigation.
INVESTMENT COMMITTEE
The Investment 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).
The Executive Director is appointed by the Board of Trustees (Code State Personnel and Pensions Article, secs. 21-117 through 21-123).
Under the Agency are the Business Operations Office and four Divisions: Finance; Information Systems; Investment; and Retirement Administration. The Agency also oversees Communications; Equal Employment Opportunity and Outreach; Internal Audit; and Legislative Affairs.
In addition to media relations, the unit manages communications with: General Assembly, System members and retirees, member associations, and general public. Communications provides information about goals and policies of Board of Trustees, functions and procedures of Agency, and rights and benefits of the State Retirement and Pension System.
The Division is responsible for monitoring the receipt of employee and employer contributions due from State agencies and universities, local boards of education, and other participating governmental units.
Under the Division are six main units: Budget; Fiscal Accounting; General Accounting; Office Services; Procurement and Contracts; and Records Management.
RECORDS MANAGEMENT
The Division designs, maintains and supports automated management information systems and enhancements to systems. Critical to the work of the State Retirement Agency is its Maryland Pension Administration System which calculates and processes retirement and pension benefits for retirees and beneficiaries, as well as contributions from current members.
Under Information Systems are two units: Cybersecurity Operations; and IT Infrastructure and Production Operations.
BOARD OF TRUSTEES
CLIMATE ADVISORY PANEL
Created by the Board of Trustees in December 2024, the Climate Advisory Panel advises the Board on climate-related investment risks.
The Administrative Committee originated as the Executive Committee and received its present name in 2004. The Committee reviews the governance practices of the Board of Trustees and makes recommendations to the Board regarding the operation and organization of the State Retirement Agency. The Committee also assists in the analysis and approval of the Agency's annual budget request and legislative proposals. In addition, the Committee monitors implementation of: the Agency's long-range strategic plan; the annual business plan; service quality standards; and certain litigation matters involving the System.
For the Board of Trustees, the Audit Committee oversees preparation of the Comprehensive Annual Financial Report and the periodic assessment of retirement system risk management. The Committee also monitors the conduct of external audits of System financial statements, internal audits of Agency operations, and audits of local government employers.
The origins of the Compensation and Staffing Committee trace back to the Objective Criteria Committee, which was created by the General Assembly in July 2018 (Chapter 727, Acts of 2018). In June 2025, the Compensation and Staffing Committee replaced the Objective Criteria Committee (Chapter 773, Acts of 2015).
In March 2004, the Corporate Governance Committee was created as a subcommittee of the Investment Committee. In October 2009, it was reconstituted as a standing committee to advise the Board of Trustees on matters of corporate governance and proxy voting. In December 2020, it merged with the Securities Litigation Committee to form the Corporate Governance and Securities Litigation Committee.
Providing advice to the three boards of trustees of the respective retirement systems, the Investment Committee first was authorized by the General Assembly in 1958 as the Investment Advisory Committee (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).
STATE RETIREMENT AGENCY
An agency of the Board of Trustees, the State Retirement Agency administers the several State pension systems.
COMMUNICATIONS
Communications originally organized as the External Affairs Division in February 2010. It was renamed in June 2024.
BUSINESS OPERATIONS OFFICE
Under the Business Operations Office is Systems Development.
SYSTEMS DEVELOPMENT
Formerly under Information Systems, Systems Development moved under the Business Operations Office by June 2026.
FINANCE DIVISION
As Fiscal Affairs, the Finance Division began, and became the Fiscal Affairs Division by 1994. It adopted its current name in 1996.
On October 1, 2017, the State Retirement and Pension System instituted a program for continual, economical and efficient management of its records. The System's Records Officer develops and oversees the program, and serves as liaison to the Records Management Division of theDepartment of General Services, and to the State Archives (Chapter 539, Acts of 2017; Code State Government Article, secs. 10-608 through 10-611).
INFORMATION SYSTEMS
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.
INVESTMENT DIVISION
In 1982, the Investment Division originated when the General Assembly created the State Investment Agency under the State Retirement and Pension System (Chapter 506, Acts of 1982). Functions of the State Investment Agency reorganized through the Investment Division under the State Retirement Agency in 1988 (Chapter 698, Acts of 1988).
The Division invests, manages, controls, and performs investment accounting functions for the Retirement Accumulation and Annuity Savings Funds of the System (Code State Personnel and Pensions Article, sec. 21-122).
Three units come under the Division: Emerging Managers, Durable Capital, and Governance Excellence; Private Markets; and Public Markets.
EMERGING MANAGERS, DURABLE CAPITAL, & GOVERNANCE EXCELLENCE (EDGE)
PRIVATE MARKETS
PUBLIC MARKETS
The Division oversees three units: Benefits Processing; Data Control; and Special Projects.
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Emerging Managers, Durable Capital, and Governance Excellence is responsible for Compliance, and Corporate Governance.
Private Markets oversees Accounting; Private Credit; Private Equity; Public Equity; and Real Assets.
Within Public Markets are Absolute Return Portfolio; Dynamic Asset Allocation and Risk Management; Operations; Public Equity; and Rates/Credit.
RETIREMENT ADMINISTRATION DIVISION
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.
DEPUTY EXECUTIVE DIRECTOR
Under the Deputy Executive Director are Human Resources; and Member and Employer Services.
MEMBER & EMPLOYER SERVICES
Two units fall under Member and Employer Services: Employer Services; and Member Services.
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