Roughly $1 out of every $8 Maryland pays in pension benefits will go to Montgomery County teachers in fiscal 2011, as promised increases in salary and benefits have almost tripled teacher pension costs in the past decade. Ballooning teacher pensions will cost Maryland roughly $924 million in fiscal 2011, up from $348 million in 2002. Maryland’s total pension contributions — including state employees, police, judges, lawmakers and teachers — will add up to $1.4 billion for fiscal 2011, with Montgomery teachers getting roughly $181 million of that.
| Maryland’s pension problem | |||
| State contribution: | |||
| » State employee pensions: $343 million | |||
| » Teacher pensions: $924 million | |||
| » Other (state police, judges, legislators): $103 million | |||
| Total: $1.4 billion | |||
| Teacher retirement costs by county: | |||
| County | Teachers | Cost per student | Total cost |
| Montgomery | 16,672 | $1,229 | $181.5 million |
| Prince George’s | 13,246 | $1,057 | $133.5 million |
| Baltimore | 11,291 | $927 | $99.7 million |
Montgomery is the largest of 24 school systems in Maryland, with 17,533 teachers who earn an average of roughly $70,000 annually — which is about $10,000 more the average teacher salary in the state.
Neighboring Prince George’s County is the second-largest system with roughly 3,000 fewer teachers who earn $6,000 less on average.
The rising cost of teacher pensions has been a scourge on the state’s ailing pension system for years, and legislative analysts predict the problem will only get worse.
Maryland had been underfunding its pension system for years when in 2006, lawmakers passed hefty benefits increases — including a retroactive bump for state employees costing $1.9 billion and teacher pay raises that more than doubled retirement costs over five years.
Looking ahead, the state’s teacher pension payments are expected to grow 10 percent annually and its benefits contributions will grow 8 percent annually, while general fund revenues — responsible for all teacher pensions and 60 percent of their health benefits — will increase only 5 percent annually through 2015, according to Warren Deschenaux, the state’s chief budget analyst.
The state being responsible for paying full teacher benefits is relatively unusual, according to Maryland’s principal policy analyst, Michael Rubenstein.
He said Maryland is one of only three states that doesn’t share teacher pensions costs with counties. Calls for comment went unreturned because state offices were closed since Tuesday for a furlough day and two holidays.
The state Senate last year passed a measure that would have gradually shifted a portion of pension costs onto counties, but the House shelved the bill and ordered a commission to study alternatives.
The state-appointed group, which has been meeting since September, is expected to decide on recommendations to the General Assembly this week.
