Key Takeaways
- • The Maryland State Retirement and Pension System (SRPS) Investment Committee voted in June 2025 to adopt Responsible Workforce Management Principles for its private equity investments, comprising nine principles that managers are expected to follow.
- • The principles cover fair wages and benefits, compliance with labor laws, the right to organize and collectively bargain, workplace safety, and protections in the event of layoffs, restructurings, or bankruptcies.
- • Comptroller Brooke Lierman, who chairs the Investment Committee, argued the policy supports the system's fiduciary goals because companies with well-treated workers tend to be stronger performers.
- • Maryland's framework follows similar standards adopted by the New York State Common Retirement Fund, the California Public Employees' Retirement System (CalPERS), and the Illinois State Board of Investment.
- • PESP argues that workforce management is a financial risk-management issue, linking poor labor practices to operational disruption, legal liability, reputational damage, and weaker returns.
Summary
In June 2025, the Maryland State Retirement and Pension System (SRPS) Investment Committee voted to adopt Responsible Workforce Management Principles for its private equity investments. The framework contains nine principles that private equity managers are expected to follow, covering a range of workforce protections and rights. According to the source, the system's $82.1 billion investment fund is the basis for the policy, and the framework applies to its private equity allocation, which other coverage describes as roughly $15 billion.
Comptroller Brooke Lierman, who chairs the Investment Committee, said the policy demonstrates the board's commitment to the fiduciary goals of the system. She noted that companies with well-treated workers are better-run and stronger performers, which she said leads to better outcomes for pensioners. The principles emphasize fair wages and benefits, compliance with labor laws, respect for workers' right to organize and collectively bargain, workplace safety, and protections in the event of layoffs, restructurings, or bankruptcies. They mirror standards adopted by the New York State Common Retirement Fund, the California Public Employees' Retirement System, and the Illinois State Board of Investment, reflecting a broader trend among major public pension funds.
The article, published by the Private Equity Stakeholder Project (PESP), frames the policy as both a labor and a financial issue. PESP states that private equity firms own over 29,000 companies and employ 13.3 million U.S. workers, and that private equity-backed companies face a higher risk of bankruptcy, which often results in layoffs. PESP argues that poor labor practices at portfolio companies can lead to operational disruptions, legal liabilities, reputational damage, and weaker financial performance. It cites Deloitte's finding that companies with a workforce risk management program reported better performance, and the Illinois State Board of Investment's 2024 principles, which describe the workforce as a critical asset.
PESP recommends that all investors seeking to mitigate harm to workers and financial and reputational risk adopt labor standards across their private equity portfolios. These include respecting the right to join a union, fair wages, reasonable working hours, paid leave, non-discrimination, safe working conditions, and protections in the event of layoffs. The Maryland principles were published by the Maryland Comptroller in a May 29, 2025 document.
Comptroller Brooke Lierman, who chairs the Investment Committee, said the policy demonstrates the board's commitment to the fiduciary goals of the system. She noted that companies with well-treated workers are better-run and stronger performers, which she said leads to better outcomes for pensioners. The principles emphasize fair wages and benefits, compliance with labor laws, respect for workers' right to organize and collectively bargain, workplace safety, and protections in the event of layoffs, restructurings, or bankruptcies. They mirror standards adopted by the New York State Common Retirement Fund, the California Public Employees' Retirement System, and the Illinois State Board of Investment, reflecting a broader trend among major public pension funds.
The article, published by the Private Equity Stakeholder Project (PESP), frames the policy as both a labor and a financial issue. PESP states that private equity firms own over 29,000 companies and employ 13.3 million U.S. workers, and that private equity-backed companies face a higher risk of bankruptcy, which often results in layoffs. PESP argues that poor labor practices at portfolio companies can lead to operational disruptions, legal liabilities, reputational damage, and weaker financial performance. It cites Deloitte's finding that companies with a workforce risk management program reported better performance, and the Illinois State Board of Investment's 2024 principles, which describe the workforce as a critical asset.
PESP recommends that all investors seeking to mitigate harm to workers and financial and reputational risk adopt labor standards across their private equity portfolios. These include respecting the right to join a union, fair wages, reasonable working hours, paid leave, non-discrimination, safe working conditions, and protections in the event of layoffs. The Maryland principles were published by the Maryland Comptroller in a May 29, 2025 document.
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