Saturday, August 23, 2014
Inquirer Daily News

PA teachers' pension fund wants billions more from taxpayers

$20 billion off the books since last year

PA teachers' pension fund wants billions more from taxpayers

The Pennsylvania Public School Employees' Retirement Fund said today its "plan net assets" used for calculating future pension subsidies shrank to $43 billion at June 30, from $63 billion a year ago.

As a result, PSERS is calling for an 8.22% payroll surcharge on all school payrolls in 2010-11, to be financed by state taxpayers and local property taxpayers, up from this year's 4.78% levy.

Put another way, PSERS wants $1.1 billion next year, up from $617 Million this year, to supplement investment profits and payroll deductions taken from school workers' checks, so it can pay around $5 billion in annual pensions to retired school workers and administrators.

That's going to mean either local property tax increases, plus more money from the state's pinched revenues; or some quick legislating to postpone the problem once again.

PSERS also says the surcharge should go up to 29% of payroll, or more than $4 billion, in 2012-13.

Read more from PSERS here.

 

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.

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