PSERS – An Emerging Problem

UCFSD has historically been strong financially. And our current administration has done an excellent job navigating through the financial crisis of 2008-2009 without cutting back essential educational programs.

The next threat is now emerging.  Pennsylvania has a significantly under-funded state-run pension program called PSERS (“Peezers”), AKA the Public School Employees Retirement System.   And the program is 40% underfunded.   Pennsylvania’s credit rating was recently downgraded by Fitch, a bond rating agency, largely due to this unfunded pension liability.  See article here.

Although UCFSD did not create this problem, we will be dealing with it for many years to come.  And the impact to our District finances is material and potentially troubling. 

PSERS-logoIn a series of posts I will be looking at the Public School Employees Retirement System (PSERS) and the impact on our District.

  1. What is PSERS?
  2. How are benefits earned ?
  3. How is PSERS funded?
  4. How does pension valuation work?
  5. How bad is the under-funding?
  6. How did this happen?