ANNAPOLIS – Maryland counties would pay 50 percent of teacher retirement costs — now paid for entirely by the state — and state employees would need to work a decade longer to receive retirement health benefits, under new recommendations from a state-appointed commission.
Members of the state’s pension commission — a group charged with recommending reforms to the retirement system by January — voted on the proposals and other cost-saving measures on Monday.
The expense-shifting proposal would be implemented over three years, costing the counties roughly $412 million by 2016.
Montgomery and Prince George’s counties, which house Maryland’s largest schools systems, would pick up 35 percent of the tab.
The commission also recommended that the state save roughly $100 million in retiree health expenses by cutting benefits, tweaking eligibility requirements and reducing state contributions.
Employees would have to work for the state for 15 years — an increase of 10 years — to receive health coverage during retirement, according to the recommendations. To benefit from the state’s highest contribution levels, retirees must earn 25 years of service — a change from the current 16-year requirement.
