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Montgomery County Council approves change moving key pension investment decisions to investment trustees
Summary
The council approved Bill 28‑24, shifting authority to set the assumed investment rate of return and certain actuarial decisions from the Chief Administrative Officer to the Board of Investment Trustees (BIT) with technical amendments clarifying the CRHBT’s role; the measure passed unanimously among members present.
The Montgomery County Council voted to approve Bill 28‑24 on final reading, transferring authority to set the assumed investment rate of return for the county retirement trust from the Chief Administrative Officer to the Board of Investment Trustees.
The bill, which the Government Operations and Fiscal Policy Committee recommended for enactment with amendments, also clarifies roles between the CAO, the Board of Investment Trustees (BIT) and the Consolidated Retiree Health Benefits Trust (CRHBT). Council staff proposed a technical amendment explicitly recognizing CRHBT authority to determine investment return assumptions and allowing county-funded agencies to select and retain actuaries for their portions of the trust fund.
Committee chair Keith Stewart, who led a year-and‑a‑half review and credited an Office of Legislative Oversight report, said the changes are meant to align the county’s practices with “best practices” and to broaden decisionmaking beyond a single official. “We are moving from having the concentration of decision making in the hands of one person to expanding it to the board,” Stewart said.
The county executive’s representatives and Finance Director Mike Covey urged caution. Covey told the council the retirement system is “nearly fully funded at over 95%” and manages about $8,000,000,000 in combined assets. He warned that shifting actuarial authority to a part‑time volunteer board could introduce fiscal risk, noting a hypothetical: a quarter‑percentage point reduction in the assumed investment rate of return could increase the county’s budgetary required contribution by roughly $15,000,000 in the first year and raise actuarial accrued liability by an estimated $134,000,000 over time.
Councilmembers pressed staff to confirm that the BIT includes government representatives and can meet more frequently than its minimum schedule. Office of Legislative Oversight staff and council staff described BIT membership as including ex‑officio government officials, appointed trustees and employee representatives, and said the board may call additional meetings when necessary.
After debate the council adopted the GO Committee recommendation with the technical amendment and approved the bill by roll call. The president announced the vote was unanimous among present members (10 yes; Councilmember Balcom was absent).
Votes at a glance • Bill 28‑24 (retirement governance): Moved by Councilmember Keith Stewart; second by Councilmember Lorraine Sales. Roll call approved — unanimous among members present (10 yes, 1 absent). • Executive Order 208‑25 (Wheaton property disposition): Approved by voice/hand vote during the meeting’s action portion. • Bill 2‑26 (Green Bank uses), Bill 6‑26 (EMST reimbursement uses), Bill 11‑26 (LOSAP increases): Each approved during this session (see separate articles for details).
What happens next: The law will take effect per the county’s statutory schedule unless the legislation specifies an expedited effective date.
