Plan

Montgomery County Employees Retirement System

State

Maryland

Funded Ratio

85.3%

Assets

$4.78B

Members

13,806

Health Grade: B — Adequately funded — meeting most funding benchmarks

FY2023 data Grade B Public Plans Database

Montgomery County Employees Retirement System

Funded ratio, unfunded liability, member counts, ARC coverage, and 23-year financial history for Montgomery County Employees Retirement System — sourced from the Public Plans Database (Boston College CRR) and cross-checked against actuarial valuations.

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By Kiznis Studio Editorial · June 2026 · Maryland · Municipal Plan · Data through FY2023

Financial Health Grade

Adequately funded — meeting most funding benchmarks

Funded Ratio

85.3%

actuarial assets / liabilities

Unfunded Liability

$822M

actuarial shortfall

Total Members

13,806

active + retired + vested

1-Year Return

9.2%

net investment return

0.8pp vs 5-yr avg

5-Year Avg Return

8.4%

annualized, net of fees

ARC Payment

29.7%

of actuarially required contribution

How Montgomery County Employees Retirement System Funded Ratio Compares

Plan Funded Ratio 85.3%

National avg

A ratio of 85.3% compared against the national public-pension average of 73.5%.

Healthy Threshold

Plans above 80% are generally considered adequately funded by NASRA standards.

Participant Composition

The active-to-retiree ratio is a leading indicator of long-term plan sustainability — plans with more retirees than active contributors face mounting cash-flow pressure as benefit payments outpace incoming contributions.

Investment Policy Mix

Public pension plans report their asset allocation in Form 5500 Schedule H Part I disclosures. Equity-heavy mixes capture market upside but introduce volatility; fixed-income tilts protect funded status during downturns at the cost of long-run return.

Historical Funded Ratio

Year	Funded Ratio	Assets	Unfunded	Members
2024	85.3%	N/A	N/A	N/A
2023	83.9%	$4.78B	$920M	13,806
2022	85.8%	$4.84B	$802M	13,431
2021	82.1%	$5.30B	$1.15B	13,435
2020	80.6%	$4.33B	$1.04B	13,340
2019	81.6%	$4.32B	$975M	13,106
2018	81.4%	$4.15B	$951M	12,961
2017	81.1%	$3.93B	$915M	12,611
2016	87.3%	$3.64B	$530M	12,256
2015	86.8%	$3.66B	$556M	12,228
2014	85.2%	$3.65B	$633M	12,081
2013	82.8%	$3.18B	$661M	11,754
2012	83.3%	$2.94B	$589M	11,791
2011	87.0%	$2.90B	$433M	11,625
2010	87.7%	$2.44B	$343M	11,753
2009	86.0%	$2.15B	$349M	10,843
2008	93.2%	$2.62B	$191M	10,871
2007	93.4%	$2.71B	$192M	11,086
2006	93.0%	$2.31B	$174M	10,695
2005	93.2%	$2.14B	$156M	10,674

What the Data Says About Montgomery County Employees Retirement System

Montgomery County Employees Retirement System reports a funded ratio of 85.3% as of fiscal year 2023, earning a financial health grade of B in the Public Plans Database. The plan holds $4.78B in market assets against an unfunded liability of $822M. As a Municipal plan operating under Maryland sponsorship, it covers 13,806 members (6,229 active contributors, 6,809 retirees drawing benefits). These figures aggregate from Form 5500 filings submitted to the Department of Labor and actuarial valuations reported through NASRA.

A funded ratio above 80% signals that Montgomery County Employees Retirement System has substantial assets to meet projected obligations, placing it above the national public-pension average of roughly 72–75%. Employer contributions covered 29.7% of the Annual Required Contribution in the most recent reporting cycle, while the plan posted a 5-year average investment return of 8.4%. The relationship between contribution adequacy and investment performance determines whether the unfunded liability narrows or expands year over year.

For Maryland taxpayers and plan members, the $822M unfunded gap represents the actuarial shortfall that must eventually be closed through a combination of contributions, investment returns, or benefit modifications. Unlike private-sector pensions governed by ERISA and backstopped by the PBGC, public plans like Montgomery County Employees Retirement System rely on the full faith and credit of Maryland — meaning funding shortfalls flow through to state and local budgets rather than a federal insurance program. This information summarizes official Public Plans Database disclosures and is provided for research and educational purposes only. It is not financial, legal, or retirement-planning advice; active and retired members with specific benefit questions should consult their plan administrator directly.

Membership

6,229

Active Members

6,809

Retirees

13,806

Total Members

Plan Details

Plan Type: Municipal
State: Maryland
Market Assets: $4.78B
ARC Payment: 29.7%

Source: Public Plans Database (PPD)
Boston College CRR / NASRA

Other Maryland Plans

All Maryland plans →

Related Resources

Pension Guides

Frequently Asked Questions

Is Montgomery County Employees Retirement System fully funded?

Montgomery County Employees Retirement System has a funded ratio of 85.3% as of FY2023, earning a health grade of B. A funded ratio of 100% means the plan has enough assets to cover all projected liabilities. Ratios above 80% are generally considered adequately funded; ratios below 60% indicate significant underfunding and risk to future benefits.

What happens if Montgomery County Employees Retirement System runs out of money?

Public pension plans like Montgomery County Employees Retirement System are backed by the sponsoring government entity — in this case Maryland. If a plan's assets are insufficient, the state or local government is typically required to make up the difference through increased contributions, benefit adjustments, or tax measures. Unlike private pensions, public pensions are not insured by the PBGC, but they do carry the full faith and credit of the sponsoring government.

What does a funded ratio of 85.3% mean?

A funded ratio of 85.3% means that Montgomery County Employees Retirement System currently has assets equal to 85.3% of its projected benefit obligations. The unfunded liability — the gap between assets and liabilities — stands at $822M. This is considered adequately funded.

How does Montgomery County Employees Retirement System compare to other public pensions?

Montgomery County Employees Retirement System is a Municipal plan in Maryland serving 13,806 members. Nationally, the average funded ratio for public pension plans tracked by the Public Plans Database is approximately 72–75%. Montgomery County Employees Retirement System's funded ratio of 85.3% places it above the national average, reflecting strong fiscal management.

How many members does Montgomery County Employees Retirement System have?

Montgomery County Employees Retirement System covers 13,806 total members, including 6,229 active employees and 6,809 retirees currently receiving benefits. The ratio of active members to retirees is a key indicator of plan sustainability — when the number of retirees grows relative to active contributors, funding pressure increases.

What is the ARC payment percentage for Montgomery County Employees Retirement System?

Montgomery County Employees Retirement System pays 29.7% of its Annual Required Contribution (ARC). Consistently underpaying the ARC accelerates the growth of unfunded liabilities and places future benefits at greater risk. Employer contribution patterns are tracked annually in the Public Plans Database.

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Data sourced from official Public Plans Database and actuarial valuations from federal and state pension systems. See our methodology for details. Retrieved and formatted by Kiznis Studio Editorial

Disclaimer: This information is provided for informational purposes only and does not constitute professional advice. Data is sourced from the Public Plans Database (PPD). Consult a qualified professional before making decisions based on this data.

Read our methodology — how this data is sourced, computed, and verified.

All federal data sources used on this page

U.S. Census Bureau ACS — demographic + housing + income data. census.gov/programs-surveys/acs
BLS Occupational Employment and Wage Statistics (OEWS) — wage + employment by occupation. bls.gov/oes
BEA Regional Economic Accounts — GDP + personal income by state/metro. bea.gov/data/regional
U.S. Census Bureau County Business Patterns — establishment + employment by industry. census.gov/cbp
IRS Statistics of Income (SOI) — tax-return aggregate data. irs.gov/statistics
data.gov — U.S. federal open-data portal — discovery layer for additional federal sources. data.gov