Pennsylvania's underperforming pension funds need new investment approach, state warns
Pennsylvania needs a new investment office with better strategies to replace the underperforming offices that manage state and public school pension plans, a commission tasked with recommending changes to the retirement systems with a combined deficit of $75 billion told lawmakers Thursday.
A single office would help the State (SERS) and Public School (PSERS) Employees' Retirement Systems cut investment costs, boost pension profits, and reduce pension expenses that currently eat up more than 10 percent of the state budget, according to a new report from the commission.
The bipartisan, five-man Pennsylvania Public Pension Management and Asset Investment Review Commission, headed by State Rep. Mike Tobash, (R., Schuylkill Haven) also urged the state (aided by local school districts) to continue paying more than 30 cents into the pensions, for every dollar paid in wages, as the state’s “employer contribution” to help erase past deficits. Tobash said that's 10 times what private business typically spends on retirements.
Under Govs. Tom Ridge and Ed Rendell, the state had cut its pension funding even as legislators, teachers, state troopers and other public workers retired in larger numbers, with bigger pensions, and lived longer than projected — saddling future taxpayers with growing costs.
Read more: https://www.post-gazette.com/news/education/2018/12/20/Pennsylvania-pension-funds-investment-state-employees-teachers-unions/stories/201812200129