Pa. Teacher Pension Agency Says Outlook Worsens
HARRISBURG, Pa. (AP) - Pennsylvania's public school pension fund says school districts should try to start saving for an expected increase in costs starting in 2012.
The Public School Employees Retirement System announced Friday that the amount of payroll that school districts and the state will have to contribute that year is now expected to be more than 16 percent, up from earlier projections of about 11 percent.
The system's board of trustees says next year's employer contribution rate will be just under 5 percent, fractionally higher than the current year's.
Pension system officials say planning could lessen the impact of the dramatic increase expected to hit in four years.
The pension fund's investment portfolio was $55 billion at the end of September.