The Pennsylvania Public School Employees’ Retirement System (PSERS) says Alan Van Noord plans to retire as chief investment officer in June, as Gov. Tom Corbett presses to reduce the state's relatively generous retirement guarantees for more than 200,000 retirees and around 275,000 current school employees.
Van Noord, who earned $296,000 last year, a fraction of what private-sector fund bosses collect, steps down as PSERS and the smaller SERS state employees' retirement fund face deficits between the assets they have saved from investments, taxpayers and employee payroll deductions and their future obligations to pay the relatively generous benefits guaranteed by past governors and the General Assembly.
The move also comes as PSERS is preparing its yearly "budget book" to submit to legislators.
Legislators have struggled to reduce PSERS deficit growth by forcing increases in school district property tax contributions and paying more in state General Fund subsidies. Gov. Corbett says he wants to limit future retirement, and put future retirees on worker-directed 401-k type plans instead of guaranteed pensions, as a way of keeping future deficits from growing.