Sunday, December 28, 2014

PA, districts to pay $1.2 billion more for teacher pensions

PSERS needs an extra $400 million to pay retired principals, teachers, bus drivers

PA, districts to pay $1.2 billion more for teacher pensions

The "employer contribution" subsidy to the Pennsylvania Public School Employees' Retirement System is jumping from $5.64 for every $100 paid to teachers and other school workers to $8.65 per $100, PSERS said today.

For most of the state, half that increase will be paid by local school districts, where it will force increases in the property tax, budget cuts, or both. The other half - and in Philadelphia, most of the increase - will be financed by state taxpayers.

That works out to an extra $400 million, with the total "employer contribution" rising to $1.2 billion next year, from around $800 million this year.

PSERS expects the rate to zoom again, to more than $12 per $100, next year, and rise above $20 by 2015, unless the General Assembly and Gov. Corbett agree to moderate the increase and boost the deficit between what the pension system owes and what it has invested in stocks, bonds, real estate and other assets.

Joseph N. DiStefano
About this blog

PhillyDeals posts raw drafts and updates of Joseph N. DiStefano's columns and stories about Philly-area finance, investment, commercial real estate, tech, hiring and public spending, which he's been writing since 1989, mostly for the Philadelphia Inquirer.

DiStefano studied economics, history and a little engineering at Penn, taught writing at St. Joe's, and has written the book Comcasted, more than a thousand columns, and thousands of articles, and raised six children with his wife, who is a saint.

Reach Joseph N. at JoeD@phillynews.com or 215 854 5194.

Joseph N. DiStefano
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