State Retirement Agency reports improved returns but funding remains below 80%
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Summary
DLS briefs the Appropriations Committee that the State Retirement Agency produced a 9.83% total-fund return in FY2025 and closed the year with about $73.6 billion in assets and a funded ratio near 73.5%. Analysts recommended concurrence with the governor’s allowance while noting ongoing funding challenges.
Jacob Cash, DLS analyst, presented the State Retirement Agency (SRA) budget and performance metrics to the Appropriations Committee, noting the FY2027 allowance of $67.1 million (about $3 million above the prior year, driven largely by salaries) and a continued reliance on the pension trust for special-fund financing.
Cash reported that the system’s total fund returned 9.83% for fiscal 2025 and that system assets totaled about $73.6 billion at year-end. The analyst said the funded ratio closed fiscal 2025 at 73.5% and had stabilized after declines from its 2021 peak. The analysis also highlighted improved customer-service metrics—call-center wait times, which had been above goals, are now under 30 seconds after staffing and management changes.
Diane Sandoval, the new chief investment officer, told the committee she brings more than 30 years of experience and said she looks forward to working with the legislature and the communities the system serves. "I look to humbly bring that experience to bear as the new chief investment officer for Maryland State Retirement and Pension System," Sandoval said.
Committee members asked about verification of private-fund fees and other audit matters; SRA staff said they use a sampling approach focused on larger quarterly-fee funds and that they concur with the Office of Legislative Audit recommendation to expand verification to a larger group of private-market funds.
Analysts recommended concurrence with the governor’s allowance; no formal vote was recorded in the transcript.
