Teacher pension 'tsunami' expected across Pennsylvania

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This year, the Pine-Richland School district is contributing $900,000 to state's teacher pension fund.

Three years from now -- and for many years thereafter -- the district expects to pay roughly $7 million annually into the Pennsylvania Public School Employees' Retirement System, known as PSERS.

The dilemma facing Pine-Richland faces each of the state's 501 school districts. A bubble in the number of teachers expected to retire in the next decade and a 30 percent drop in the total value of the fund's assets last year in the souring economy means districts contribute more to the teachers' retirement fund.

School officials in turn are predicting almost certain property tax hikes at a time when many Pennsylvanians have watched the recession slash their 401(k) accounts in half or force their companies to end pension plans entirely.

"This is a financial tsunami, and doing something now does not mean significant relief for years or decades. It's one ugly scenario," said Jay Himes, executive director of the Pennsylvania Association of School Business Officials.

Teacher retirement benefits are mandated by law. Courts have ruled they cannot be reduced.

http://www.pittsburghlive.com/x/pittsburgh...h/s_623405.html

[Niels Bohr 72]

Get rid of pensions and that'll solve most economic problems. Maybe.