Issue: Pension Reform

Identifying the issues, influencing legislation and shaping the debate on key education issues

Major School Employee Pension Proposals

Pension Overview -- PSBA Bulletin

Read the article on various pension proposals, including the Tobash plan in the April issue of the PSBA Bulletin

Rep. Glen Grell


Understanding the Issue

Pension reform to dominate 2013-14 legislative agenda 
If not addressed, the pension crisis will have a crippling effect on the state's economy and a devastating impact on local school district budgets. The current system is unsustainable, leaving taxpayers to feel the brunt of staggering increases unless a workable, long-term solution is enacted.

PSBA Postion Paper: Supports SB 1169, P.N 1563 (Sen. Folmer) position paper pdf (December 2013)
PSBA supports Senate Bill 1169, which would effectively remove all future employees of our association from membership eligibility for the Pennsylvania School Employees Retirement System (PSERS).

PSBA Pension Study Committee Report Pension Study PDFPDF (September 2009)
The PSBA Executive Board created an ad hoc Pension Study Committee to examine the rising cost of the Public School Employees' Retirement System (PSERS) and to formulate policy recommendations for the board's consideration.

Pension Committee Summary of Recommendations (updated December 2009)


PSBA Legislative Platform

PSBA's 2013 legislative platform contains two relevant pension planks.  They are as follows:

  • Opposes any legislation that has the effect of increasing the net employer cost and/or the unfunded long-term liabilities of PSERS.  Any increase in the school district portion of the employer contribution rate for any pension plans would be capped at the Act 1 (or successor) index, with the state to fund any remaining employer obligation.
  • Supports legislation that would improve the actuarial soundness of PSERS including, but not limited to: 1) requiring an employer contribution rate floor of at least normal cost; 2) actuarially appropriate adjustments to amortization of gains and losses; 3) limitation of eligibility (4) adjustment of benefit levels; 5) adoption of either a hybrid pension plan or an alternative plan whose effect would be to reduce employer costs over time; and 6) development of additional revenue sources. 

Other Member Resources