3 December 2011 0 Comments

Pennsylvania Pensions: Credit Card Maxed Out – Tax Takers v. Tax Makers

Pension calculations are complicated and, frankly, over my head. The information in this fact packed article is not fiscally encouraging. The Taxpayer has to pay; the question is what happens to all this money transferred from tax makers, the productive sector, to the tax takers, the government administrative sector.
Democrats are not engaged.
PaIndependent informs us that it is estimated that the Public School Retirement System and the State Employees Retirement System have an unfunded liability of, at least, #29,000,000,000 and maybe even as high as $100,000,000 and those unfunded liabilities to state government employees, including teachers, have to be paid by The Forgotten Taxpayer.
See also testimony of Jeff Clay, Executive Director of PSERS: “The credit card of the pension system has been maxed,” Clay told the state Senate Finance Committee last week.
“The state this year is contributing $693 million to SERS and $761 million to PSERS. Using current projections, the state will be paying $2.1 billion annually into SERS and $8 billion annually into PSERS by 2035, to make up for a decade of underfunding the plan while also increasing benefits.
According to a new report from the National Bureau of Economic Research, a New York-based research nonprofit, the pension obligation will top $1,500 per household per year in Pennsylvania for the next 30 years.”

 

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