Bill will act to save pensions in light of lack of funds

Friday, Feb. 20, 2009

It must be sustainable to guarantee that we honor the commitments we made to our teachers and retirees.

I have grave concerns about the sustainability of the current system, and I believe we must begin a dialogue about reforms to protect the benefits retired teachers earned.

Gov. Martin O'Malley's proposed budget shrinks the state's general fund by 1.3 percent.

At the same time, the cost of pensions grows 22 percent.

As a result, programs — including many which directly benefit students in our community — are being slashed by hundreds of millions of dollars.

In other words, we are cutting student programs to absorb pension costs. This is not acceptable for students, teachers or retired teachers. It is not acceptable to me.

Moreover, Maryland's history with pensions is troubling. In 1979, the state closed the old Teachers Retirement System because it was unsustainable. The replacement system provided lower benefits.

To preserve benefits in the current system, we must make sustainability a priority.

With these concerns in mind — protecting the dollars that flow to our classrooms and preserving the integrity of our system — I proposed a modest bill to begin sharing the cost of pensions between state and local governments.

The bill will have no impact on the amount of pension benefits that retired teachers receive; it simply requires local governments gradually to play a small role in how pensions are funded.

My mother and four of my sisters were public school teachers — I believe in the hard work teachers do, and I respect their sacrifice. That's why we must reform our pension system, lest we find ourselves unable to honor the commitments we made to our teachers and retirees.

Sen. Thomas V. Mike Miller Jr. (D),

Chesapeake Beach

The writer is the president of the Maryland Senate, representing Calvert and Prince George's counties.