City of Baltimore Employee’s and Elected Officials’ Retirement Systems Board of Trustees Information & Application

Two (2) Vacancies 

What is the Employees' Retirement System (ERS)?

The Employees' Retirement System (ERS) is a defined benefit plan that was established by City Ordinance on January 1, 1926, as contained in Article 22 of The Baltimore City Code. The ERS covers regular and permanent employees in the general administrative service of the City and certain non-teacher employees of the Baltimore City Public School System. Uniformed employees of the Fire and Police Departments and elected City Officials are excluded from this plan because they are covered under other City pension plans. The Mayor and City Council have the authority to amend all plans related to administrative and benefit provisions.

Currently the ERS consist of three classes of membership options:

  1. Classes A and C are for qualified employees hired prior to July 1, 2014.  Both ERS Classes A and C are currently closed to new or rehired employees.
  2. The third is Class D for new and rehired employees hired on and after July 1, 2014 who elect to participate in both the ERS and the City's Retirement Savings Plan (RSP), a section 401(a) defined contribution plan.  Essentially, new and re-hires employees will have to choose between two participating options:
  • participate in both the ERS as a Class D member and the RSP (the “hybrid” option); or,
  • participate only in the RSP (the “non-hybrid” option).

Both ERS Class D and the RSP are contributory plans at a rate of 5% respectively.  Under the hybrid/Class D option, members will receive similar benefits as Class C members, except for a lower benefit formula.  As a complement to the lower benefit formula, the City will contribute 3% of pay into an RSP - 401(a) account on behalf of each Class D member.  Under the non-hybrid option, the City contributes 4% of pay on behalf of each member and matches a portion of the member's Deferred Compensation Plan contribution.  Both hybrid and non-hybrid members in the City RSP – 401(a) plan will be responsible for choosing how to invest the City's contribution and, in the case of non-hybrid members, their own contributions.  This will be necessary, regardless of whether they are vested.  

Vesting for Classes A, C & D members is 10 years of membership service.

Vesting for the RSP (401(a)) contributions is 5 years of employment service.

What is the Elected Officials' Retirement Systems (EOS)?

The Elected Officials' Retirement Systems (EOS) is a single employer defined benefit local government retirement plan. It was established on December 5, 1983, by legislation, to cover the Baltimore City Mayor, the Comptroller, and the President and members of the City Council. All System-related administrative and benefit provisions are established by City Ordinance, as contained in Article 22 of the Baltimore City Code, and may be amended only by the Mayor and City Council. By law, the same Board of Trustees that administers the Employees' Retirement System (ERS) also administers the EOS.

BACKGROUND:

  1. The ERS was established to provide retirement, death and disability benefits to certain Baltimore City employees. The ERS began operations on January 1, 1926. The provisions of the ERS are set forth in Article 22, §§ 1-17.2, 42-43 and 46-48 of the Baltimore City Code.
  2. The general administration and responsibility for the proper operation of the ERS and for making effective the applicable provisions of Article 22 are vested in a 7-member Board of Trustees ("Board"). Art. 22, § 5(a). The Board is also the trustee of ERS funds and has the responsibility of investing those funds. Art. 22, § 7(a).
  3. The members of the Board are fiduciaries, and as such are required to discharge their duties solely in the interest of ERS members and beneficiaries and for the exclusive benefit of providing benefits to ERS members and beneficiaries and defraying reasonable expenses of administering the ERS. Art. 22, §§ 5(r) and 7(h).
  4. The Board has the authority to establish, from time to time, rules and regulations for the transaction of its business. Art. 22, § 5(g).
  5. The Elected Officials' Retirement System of the City of Baltimore ("EOS") was established to provide retirement benefits and death and disability benefits to certain elected officials of the City of Baltimore. The EOS began operations on December 1, 1983. The provisions of the EOS are set forth in Article 22, §§ 17A-28, 43 and 46-48 of the Baltimore City Code.
  6. The Board has authority over administration of the EOS and investment of EOS funds to the same extent it has authority over administration of the ERS and investment of ERS funds. Art. 22, § 21(a).
  7. The Retiree Benefit Trust of the City of Baltimore ("OPEB Trust") was established to fund the current payment of health benefits for retired Baltimore City employees and to establish a reserve to pay health benefits for future retirees. The OPEB Trust was effective November 1, 2006.
  8. Effective June 13, 2007, the Director of Finance, then trustee of the OPEB Trust, delegated to the Board the authority to invest OPEB Trust funds consistent with prudent investment practices and to pay invoices to healthcare and other OPEB vendors, under the direction of the City's Bureau of Accounting and Payroll Services.

PURPOSE:

  1. The governance policies are intended to:
    1. Establish rules for the conduct of Board meetings, including rules to ensure compliance with open meetings act requirements;
    2. Establish procedures for the election of Board members and officers;
    3. Establish the scope of duties for Board committees;
    4. Ensure that Board members comply with applicable ethics requirements;
    5. Establish procedures for the selection of investment managers and other service providers;
    6. Establish policies for certain investment categories and other investment matters;
    7. Facilitate effective communications between and among Board members, the Executive Director/CIO, ERS staff, ERS and EOS members and third-parties;
    8. Ensure that Board members are provided sufficient opportunity and assistance to receive training and education necessary for them to carry out their fiduciary duties;
    9. Establish rules pertaining to the process for payment and receipt of ERS and EOS benefits; and
    10. Be subject to review and revision as needed, but at least every three years.
  2. Adoption of the governance policies is intended to facilitate the organized, effective, and prudent functioning of the Board, and to assist the Board members in satisfying their fiduciary duties.
  3. In considering, adopting and periodically reviewing the governance policies, the Board seeks to establish and follow best practices in Board governance.

The Board shall consist of 9 trustees as follows:

  • Ex-officio-Comptroller of the City of Baltimore
  • Ex-Officio-Director of Finance of the City of Baltimore
  • Mayoral Appointee - Four-year Term
    1 of the Mayoral appointees shall possess commercial banking experience or similar financial  experience and may not be an city employee
  • Mayoral Appointee - Four-year Term
    1 of the Mayoral appointees shall possess commercial banking experience or similar financial  experience and may not be an city employee
  • Mayoral Appointee Recommended by City Council President - Four-year Term
  • Mayoral Appointee Recommended by City Council President - Four-year Term
  • Elected by Active Membership - Four-year Term
  • Elected by Active Membership - Four-year Term
  • Elected by Retired Membership - Four-year Term

The current vacancies are BOLDED.

Both appointed and elected trustees serve four-year terms. Appointed trustees continue to serve until replaced by the Mayor, or until the expiration of two consecutive full terms. There are no limitations on the number of terms an elected trustee may serve.

To apply and serve on the City of Baltimore Employee's and Elected Officials' Retirement Systems Board of Trustees, interested individuals must submit the following information. This information can be submitted online, mailed, or hand delivered to:

Mayor's Office of Government Relations
Attention: Karen Stokes
100 North Holliday Street, Room 250
Baltimore, Maryland 21202

Click here to apply for this board.