Maryland Teachers & State Employees Supplemental Retirement Plans

The meeting included several key discussions and actions. The Plan Administrator's Report covered the successful migration from Nationwide, noting minor data challenges regarding employment records that are being resolved. Proposed plan document changes, based on the SECURE 2.0 Act, were presented, including adjustments to in-service withdrawal ages and loan default periods. Quarterly financial highlights were reviewed, showing an asset balance of $6.3 billion. Empower representatives addressed trustee inquiries regarding data quality, Required Minimum Distributions (RMDs), and investment utilization. Furthermore, Empower detailed an SEC settlement related to compensation structure disclosures, which did not result in participant harm. The Board unanimously approved amendments to the 457(b), 401(k), 403(b), and 401(a) Plans. The Investment Committee recommended and the Board approved several investment changes, including transferring stable value investments to T. Rowe Price Building Block trusts, mapping the S&P 500 Index Fund to Empower's zero-fee index fund, and mapping the Mid Cap Growth CIT to the Janus Henderson Enterprise Collective Fund. The Finance Report noted a projected year-to-date surplus despite an audit delay related to MBE participation requirements. The Member Services report detailed outreach efforts, including a Virtual Savings Symposium. Finally, the Board voted to defer the legislative proposal for New Employee Automatic Enrollment until the 2027 Legislative Session.

Key discussion topics for this meeting included the Administrator's Report detailing Q4 2025 performance from Empower Retirement, LLC. The Investment Committee Report covered the minutes from a prior meeting and a progress summary from a recent meeting. A primary action item was the Board's vote on the Investment Committee's recommendation to add the Parnassus Core Equity Institutional Fund to the Watchlist. Additional information reports covered the Investment Contract Pool Stable Value Fund Manager's Report from T. Rowe Price, and the Fiduciary Investment Review and Firm Performance Review for Q4 2025 from Wealthspire Retirement Advisory. Board staff reports included updates on Finance and Member Services. The Board also addressed compliance requirements for reviewing and approving closed session minutes.

This Statement of Investment Policy outlines the guidelines for the Maryland State Employees Supplemental Retirement Plans, serving as a roadmap for managing long-term retirement savings vehicles. It details investment categories, establishes objectives and performance standards for each, and sets forth procedures for reporting, monitoring, and evaluating investment options. Key areas include defining investment categories like Cash Equivalent, Bond, Balanced, Lifecycle/Target Date, and various equity types, alongside considerations for Environmental, Social, and Governance (ESG) factors, selection criteria, and exempt procurement policies. The plan aims to provide participants with diverse options to structure investment strategies aligned with their individual return objectives and risk tolerances.

The Board of Trustees conducted a recorded vote to close the meeting session. The statutory authority cited for closing the session included consulting with counsel to obtain legal advice on MSRP procurement processes and pending or potential litigation claim matters, and to review and vote to approve the minutes of the Closed Session Board Meeting of August 18, 2025. The reasons for closing the session were to protect attorney-client privilege and the ability to confidentially brief the Board on litigation claims.

Key discussions included the welcome of a new Trustee, Raquel M. Coombs. The Plan Administrator's Report covered the MSRP 2026 Strategic Plan and Required Minimum Distribution (RMD) Update. The Board was set to vote on amendments to the 457(b), 401(k), 403(b), and 401(a) Plans. The Executive Committee Report provided minutes from a prior meeting, and the Board was asked to ratify an action to reject all proposals for the Defined Contribution Plans Audit Services solicitation and repost it later, subject to Department of General Services approval. The Investment Committee Report was presented, followed by a Stable Value Fund Manager's Report, which included proposed changes to the ICP Investment Policy Guidelines for Board approval. The Investment Advisor also presented updates to the Statement of Investment Policy for approval. Reports from the Audit Committee and Board Staff (Finance and Member Services) were also included on the agenda.