LA PLATA — The two pension funds Charles County taxpayers back beat their investment targets again this year, but the bill to keep them on track is not shrinking evenly. The Sheriff’s Office plan still has about 81 cents set aside for every dollar it owes, and the county employees’ plan saw its required contribution climb nearly $1 million, driven by pay raises far above what actuaries had assumed.
Consultants laid out the numbers for the Charles County Commissioners at their Oct. 20 annual review. Combined, the two plans held more than $900 million as of June 30.
Sheriff’s Office plan
The Sheriff’s Office Retirement Plan held $523.6 million on June 30, up to about $532 million by Oct. 19, said Alton Fryer, senior consultant with investment adviser Bolton. The plan crossed $500 million this year; Fryer said he remembers when $400 million was a milestone.
| Sheriff’s plan returns | Result |
|---|---|
| Quarter ending June 30 | 6.22% |
| One year | 11.92% |
| 10-year average | 8.79% |
| Assumed return | 7.25% |
The fund is roughly 60% stocks and 40% bonds. Fryer said the one-year and 10-year results both beat the plan’s benchmark. A commitment to private real estate and private equity that commissioners approved earlier in the year was funded after June 30, bringing Charles more in line with Maryland counties whose pensions run $400 million or more, he said.
The funding picture lags the returns. Actuary Michelle Boyle said the plan was 80.9% funded on July 1, 2025, using smoothed asset values, and 82.9% on market value. An accounting measure updated to June 30, 2026, rose to 85.33%.
The county’s actuarially determined contribution for fiscal 2027 is $21.6 million, up from $21.4 million, though it fell as a share of payroll from 40% to 38.8%. Sworn deputies contribute 8% of pay and civilian employees in the plan 7%. Active membership rose from 465 to 471.
Boyle said a five-year experience study is underway this year, reviewing assumptions such as retirement and turnover rates, mortality and the 7.25% return assumption. Any changes would show up in next year’s report.
For comparison, St. Mary’s County’s sheriff’s retirement plan reported an 83% funded ratio in its latest valuation, the Chronicle reported Friday.
County employees’ plan
The Charles County Pension Plan, which covers county employees including emergency medical services staff, ended June 30 at close to $400 million, up from about $353.1 million a year earlier, said Lazaro Guzman, vice president of investment consulting with Empower. It returned 13.5% for the year and has averaged 8.5% over 10 years, against an assumed return of 7.05%.
On paper, the plan is in strong shape. Actuary David Papalardo of Empower said its assets equaled 94% of its accrued liability on the smoothed basis used to set contributions, and 111% of the present value of benefits earned on a market basis. Even under a required, more conservative test that discounts liabilities at investment-grade bond rates, it was 91% funded, which he said would place it near the top of public plans nationally.
The cost is moving the other way. The required contribution for the year rose to $10,295,361, about 11.5% of payroll. Papalardo said the increase of roughly $982,000 came mostly from county pay raises averaging 7%, compared with a 4% long-term assumption. A 3% cost-of-living adjustment for retirees, above the 2.5% assumption, added more. An early-retirement window for up to eight public safety employees over four years added about $125,000.
Papalardo said national salary budgets averaged about 4.7% in 2025 and are expected to run about 4.1% in 2026, making the county’s 7% “a little bit of an outlier.”
Commissioners press for details
Commissioner Gilbert Bowling asked how the county decides where pension money is invested, noting that some individual retirement accounts have earned more than the plan’s long-term average. He said he will request a separate meeting with the consultants, saying pension decisions affect the employee benefit policies the board sets. Guzman said the plan keeps five to 10 years of benefit payments in bonds so it can pay retirees through market swings, and invests the rest more aggressively.
Commissioners also asked about the sheriff’s plan’s unfunded liability and how conservative its investments are compared with other systems. Consultants and county staff said the pension committee, which meets quarterly, aims for a middle-of-the-road mix designed to beat the return assumption with as little volatility as possible.
Updated valuations for both plans as of July 1, 2026, are due at next year’s review. The pension committee will also review September quarter results in the coming weeks.
