Pension Crisis About To Explode For Pennsylvania School Districts

School districts across Pennsylvania are getting news that’s unpleasant yet not unexpected.

The Public School Employees Retirement System, or PSERS, last week began sending notices to school districts that their pension costs will climb to 21.4 percent of payroll in the 2014-15 school year.

Even though that total could change a bit before it becomes official at an end-of-year meeting of the PSERS board, it gives a pretty good indication of what school districts are facing.

For historical context, the 21.4 percent figure is the highest rate since at least the 1950s — and it’s quite a jump from the 16.9 percent districts paid this year.

Read more: http://www.pottsmerc.com/general-news/20131204/pension-crisis-about-to-explode-for-pa-school-districts

Pa. Budget Chief Says Pension Reforms Essential

HARRISBURG – Gov. Tom Corbett will “very likely” propose cutting future pension benefits for current school employees and state workers in the state budget plan he will present to lawmakers next week, his chief budget adviser said Monday.

Budget Secretary Charles Zogby, all but confirming a cost-cutting approach that the administration first floated last fall despite questions about its legality, said decisive steps must be taken to rein in taxpayers’ fast-growing share of pension costs.

“We’ve got to pay for our obligations and we need to look at a rebalancing of our pension obligations … if we’re going to meet our needs without inflicting deep cuts elsewhere in the budget,” he said at a Pennsylvania Press Club luncheon.

Read more:  http://readingeagle.com/article.aspx?id=446630