2013 Maryland Code
STATE PERSONNEL AND PENSIONS
§ 21-125 - Actuary

§21-125.

(a) The Board of Trustees shall designate an actuary who shall:

(1) give technical advice to the Board of Trustees on the operation of the funds of the several systems; and

(2) perform other related duties that the Board of Trustees requires.

(b) (1) On the basis of actuarial assumptions that the Board of Trustees adopts, each year the actuary shall make a valuation of the assets and liabilities of the funds of the several systems.

(2) Each year the Board of Trustees shall certify to the Secretary of Budget and Management and to the Governor the rates of employer contributions.

(3) For purposes of actuarial valuation, the Board of Trustees may adopt a generally accepted method for determining the value of the assets held by the several systems.

(4) For general ledger accounting and financial reporting, the Board of Trustees shall use generally accepted accounting principles.

(c) (1) At least once in each 5-year period, the actuary shall make:

(i) actuarial investigations into the compensation, mortality, and service experience of the participants of each of the several systems; and

(ii) a valuation of the assets and liabilities of the funds of each of the several systems.

(2) The Board of Trustees shall:

(i) review the results of the investigations and valuations of the actuary; and

(ii) adopt the actuarial assumptions for each of the several systems as the Board of Trustees considers necessary.

§ 21-125 - 1. Actuarial study of State system and comparison to other systems by actuarial consulting firm

(a) In general. -- Beginning on or before September 1, 2008, and every 5 years thereafter, the Joint Committee on Pensions shall commission an actuarial consulting firm to conduct a study of the several systems in addition to the actuarial investigation and valuation performed by the actuary under § 21-125 of this subtitle and a comparison of the several systems with other similarly situated public pension plans.

(b) Consideration of certain issues. -- The actuarial consulting firm shall consider the following issues with regard to the several systems and other similarly situated public pension plans:

(1) the funding status of the State Retirement and Pension System, including its current unfunded accrued liability;

(2) the composition of the several systems, including:

(i) the number of active members, retirees, disability retirees, and beneficiaries of all retirees;

(ii) the average annual salaries of the active members in the various plans in the State Retirement and Pension System;

(iii) the average annual benefits of the retirees and beneficiaries of the State Retirement and Pension System; and

(iv) the average age, life expectancy, and years of service of active members retiring from the various plans in the State Retirement and Pension System; and

(3) the benefit levels provided by the various State systems, including a comparison of member contribution rates and the accrual rates.

(c) Reporting. -- The findings of the actuarial consulting firm shall be submitted to the Joint Committee on Pensions on or before December 31, of the year of study, in accordance with § 2-1246 of the State Government Article.