Issue: Pension Reform
When new legislation passes, PSBA is seen as the leader in analyzing it and helping members make sense of it.
Act 120 of 2010: Pension Reform |
On Nov. 23, 2010, then-Gov. Edward Rendell signed HB 2497, sponsored by Rep. Dwight Evans (D-Philadelphia), now Act 120 of 2010. The new law maintains the defined benefit plan for new and existing school employees. However, it introduces a shared risk element for all new employees that ties in PSERS’ investment performance to the employee contribution rate. Specifically, the legislation now provides that new employees hired after June 30, 2011, shall pay a shared risk contribution rate equal to 0.5% for every 1% that the actual rate of return is less than the assumed rate. |
Resources and other updates |
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See Education News for pension reform-related articles posted on other news outlets statewide. |
