'Day of reckoning' for Pennsylvania public pension plans

From a story by Debra Erdley on the underhanded tactics of Harrisburg politicians:

Pennsylvania increased benefits for state and school employees and lawmakers in 2001, added a cost-of-living raise for retirees in 2002, and then reduced contributions to the funds and spread costs out over a decade to soften the blow of market declines.

Pennsylvania State Education Association spokesman Wythe Keever said 1998 was the last year contributions covered the state's and school districts' shares of the full costs of benefits Pennsylvania's school employees earned that year. He blames projected steep cost increases on that, rather than the benefit boost or market decline.

"What we are saying and continue to say is, our members have done what they were supposed to do. They contributed on average 7.3 percent of their salaries to provide pension funding. The General Assembly needs to understand that the decade of underfunding has created a debt that's now due," Keever said.

Read the full story at the link below:

'Day of reckoning' expected for Pennsylvania public pension plans - Pittsburgh Tribune-Review

Originally posted at TONY PHYRILLAS