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Pennsylvania Association of School Business Officials
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Smart Business + Informed Decisions = Great Schools
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PSERS Information
PSERS Certification of 2010-2011 Employer Contribution Rate
The PSERS Press Release on the 2010-2011 Employer Contribution Rate (ECR) can be found at: http://www.pasbo.org/PSERSCertificationof2010-11EmployerContributionRate.pdf
The PSERS Board of Trustees met on December 11, 2009 to certify the ECR for the next fiscal year beginning on July 1, 2010. The Board certified a rate of 8.22%, up from the 2009-2010 rate of 4.78%.
The PSERS “Projection of Contribution Rates and Funded Ratios As of June 30, 2009,” can be found at http://www.psers.state.pa.us/press/pension_funding_issues/pdf/Rate%20projection.pdf
This chart will provide information on the previous rates from the 2007-2008 fiscal year (7.13%) through the 2010-2011 fiscal year (8.22%) and will provide information on the projected rates through the fiscal year 2038-2039. It can be determined through this chart that the projected ECR for the “spike year” of 2012-2013 of 29.22% is not the highest projected rate. Instead 2012-2013 becomes, as Jay Himes, CAE, PASBO Executive Director has termed a “launch” in his January 27, 2010, testimony on Public School Employee Pensions to the Senate Finance Committee. (This testimony can be read at: http://www.pasbo.org/Uploads/SenateFinance_1_28_10.pdf.) The ECR continues to increase reaching a maximum in 2016-2017 of 32.74%, but the projected decline is gradual with an ECR still above 30% for the 2019-2020 fiscal year at 30.42%.
Among the other related resources that can be found on the PSERS website are: Pension Funding “Rate Spike Resources at: http://www.psers.state.pa.us/press/pension_funding_issues/index.html
Links within the above document will take you to a wealth of other resources including:
Employer Contribution Rate Fact Sheet http://www.psers.state.pa.us/press/pension_funding_issues/pdf/FY%202010-2011%20ECR%20fact%20sheet%20Final%201211009.pdf
History of PSERS Contribution Rate from 1955 to 2010 http://www.psers.state.pa.us/press/pension_funding_issues/pdf/ERC%20and%20EE%201955%20TO%202010%20REVISED%20.pdf.
At the PASBO Board of Directors meeting held on September 24, 2009, the Board unanimously approved the establishment of a PASBO Retirement Reform Task Force and named Immediate Past President Charles E. Peterson, Jr., PRSBA, as Chair. The Task Force charge is to develop and analyze changes in the Retirement Code that will help to reduce the huge Employer Contribution Rate (ECR) increases beginning in 2010-11. The Task Force must balance the need to establish a reasonable ECR in the short term with the need to sustain a fiscally viable and stable Public School Employees Retirement System in the long term. In addition, the Task Force must address future efficiencies in the retirement system in order to reduce costs to schools and taxpayers. The Task Force will recommend a set of Retirement Code changes to the PASBO Board of Directors that, when adopted, will become our position on PSERS reform legislation.
The task force will also need to create an educational plan to reach out to PASBO members, state policy makers and other stakeholders to make sure there is a full and complete understanding of the fiscal implications of whatever reform occurs.
The PSERS Press Release on the 2010-2011 Employer Contribution Rate (ECR) can be found at: http://www.pasbo.org/PSERSCertificationof2010-11EmployerContributionRate.pdf
The PSERS Board of Trustees met on December 11, 2009 to certify the ECR for the next fiscal year beginning on July 1, 2010. The Board certified a rate of 8.22%, up from the 2009-2010 rate of 4.78%.
The PSERS “Projection of Contribution Rates and Funded Ratios As of June 30, 2009,” can be found at http://www.psers.state.pa.us/press/pension_funding_issues/pdf/Rate%20projection.pdf
This chart will provide information on the previous rates from the 2007-2008 fiscal year (7.13%) through the 2010-2011 fiscal year (8.22%) and will provide information on the projected rates through the fiscal year 2038-2039. It can be determined through this chart that the projected ECR for the “spike year” of 2012-2013 of 29.22% is not the highest projected rate. Instead 2012-2013 becomes, as Jay Himes, CAE, PASBO Executive Director has termed a “launch” in his January 27, 2010, testimony on Public School Employee Pensions to the Senate Finance Committee. (This testimony can be read at: http://www.pasbo.org/Uploads/SenateFinance_1_28_10.pdf.) The ECR continues to increase reaching a maximum in 2016-2017 of 32.74%, but the projected decline is gradual with an ECR still above 30% for the 2019-2020 fiscal year at 30.42%.
Among the other related resources that can be found on the PSERS website are: Pension Funding “Rate Spike Resources at: http://www.psers.state.pa.us/press/pension_funding_issues/index.html
Links within the above document will take you to a wealth of other resources including:
Employer Contribution Rate Fact Sheet http://www.psers.state.pa.us/press/pension_funding_issues/pdf/FY%202010-2011%20ECR%20fact%20sheet%20Final%201211009.pdf
History of PSERS Contribution Rate from 1955 to 2010 http://www.psers.state.pa.us/press/pension_funding_issues/pdf/ERC%20and%20EE%201955%20TO%202010%20REVISED%20.pdf.
At the PASBO Board of Directors meeting held on September 24, 2009, the Board unanimously approved the establishment of a PASBO Retirement Reform Task Force and named Immediate Past President Charles E. Peterson, Jr., PRSBA, as Chair. The Task Force charge is to develop and analyze changes in the Retirement Code that will help to reduce the huge Employer Contribution Rate (ECR) increases beginning in 2010-11. The Task Force must balance the need to establish a reasonable ECR in the short term with the need to sustain a fiscally viable and stable Public School Employees Retirement System in the long term. In addition, the Task Force must address future efficiencies in the retirement system in order to reduce costs to schools and taxpayers. The Task Force will recommend a set of Retirement Code changes to the PASBO Board of Directors that, when adopted, will become our position on PSERS reform legislation.
The task force will also need to create an educational plan to reach out to PASBO members, state policy makers and other stakeholders to make sure there is a full and complete understanding of the fiscal implications of whatever reform occurs.