HARRISBURG PA – Taxpayers and public school employees took another hit last week, The Pennsylvania Independent online news service reported Monday (Sept. 17, 2012), as one of the state’s major public pension systems – which affects the Pottsgrove, Pottstown, and Spring-Ford Area school districts, as well as others – released poorer-than-desired investment returns for the most recent fiscal year.
The state Public School Employees Retirement System, or PSERS, earned 3.4 percent during the fiscal year that ended on June 30. That’s better than many similar funds, The Independent noted, but still well below the 7.5-percent returns built into the pension system’s accounting.
Falling short of that 7.5-percent mark effectively increases the unfunded liability that must be made up in the future by some combination of future investment returns, contributions from workers and tax dollars. School districts are already paying higher pension fund costs, and will for several more years, to help make up for a portion of the shortfall.
With lower-than-expected returns in 2011-12, PSERS unfunded liability will grow larger. At the end of 2011, PSERS had an unfunded liability of about $27 billion.
- Read a story by reporter Eric Boehm, titled “PSERS investments miss mark; unfunded liability will grow” and published Monday by The Independent, here.