Without higher contributions from workers and taxpayers, Pennsylvania’s public sector pension plans may not be able to pay for their promises.
And if investment returns fail to live up to expectations, the two pension funds could run dry before the end of the next decade.
Those are the startling conclusions drawn by a pair of researchers at the Mercatus Center, an economic think tank based at George Mason University, which examined Pennsylvania’s Public School Employees Retirement System and the State Employees Retirement System.
The center says PSERS has a 31 percent chance of making it to 2030 with sufficient funding to pay for all the retirement benefits promised to current and former workers, while SERS has only a 16 percent chance of making it that long.
A former Monroeville manager will receive $45,000 in back pay in addition to retirement benefits as part of a settlement with the municipality.
In exchange, Lynette McKinney, 48, of Monroeville will drop lawsuits she filed over her termination a year ago, according to the terms of the settlement the Tribune-Review obtained Thursday under a Right-to-Know request. Old National Insurance Co. will pay McKinney $45,000 in back wages and $23,000 to her attorney, Joseph Chivers. Monroeville will pay $7,000 in insurance premiums directly to her.
Council approved the terms of the settlement this month.