WASHINGTON — Maryland Gov. Martin O’Malley on Friday released a pension reform plan to halt the state’s declining pension funding level, which is the lowest among triple-A rated states and has become a concern for rating agencies and investors.

O’Malley warned that without pension changes, the state’s funding-to-liabilities ratio will drop to 59% in fiscal 2012, down from 63% at the end of fiscal 2010 and 95% 10 years ago. Maryland in 2009 had the lowest funding ratio among the eight states rated triple-A by the three major rating agencies, according to data from Loop Capital Markets’ annual report on state pensions in October.

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