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Monday, July 30, 2012
Maryland's $37 billion state retirement and pension system for employees and teachers earned .36% over this period.
Last week CALPERS, the country's largest public pension fund, at $233 billion, reported a return of 1% for the 12-month period ended June 30, 2012.
Interestingly, a basic indexed portfolio invested 55% in SPY (S&P 500), 15% in VEU (global less U.S.), and 30% in AGG (U.S. investment grade bond market) would have returned 2.6% before fees.
The difference between .36% and 2.6% for the $37 billion Maryland pension fund amounts to $828 million. That would go a long ways toward paying Maryland teacher pensions.
I have to agree with Jeff Hooke, Chairman of the Maryland Tax Education Foundation, who said the results "look like a minor disaster for fiscal 2011."
Source: MarylandReporter.com Md. pension system earns close to nothing in past year by Len Lazarick