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Senate Co-Sponsorship Memoranda
Senate of Pennsylvania
Session of 2019 - 2020
Regular Session
MEMORANDUM
| Posted: | April 26, 2019 10:36 AM |
|---|---|
| From: | Senator John P. Blake and Sen. Patrick M. Browne |
| To: | All Senate members |
| Subject: | 100th Anniversary of Public School Employees’ Retirement System (PSERS) |
| 2019 will mark the 100th anniversary of the Pennsylvania Public School Employees’ Retirement System (PSERS) which provides retirement benefits to public school employees. Established in 1917 and officially beginning operations in 1919, the number of individuals PSERS serves has grown from 37,000 to more than 500,000. The plan is the 15th largest state-sponsored defined benefit public pension fund in the nation. Its assets have grown from $6 billion in 1982 to approximately $57 billion as of September 30, 2018. PSERS has a significant impact on Pennsylvania’s economy. During fiscal year 2018, annual pension disbursements to retirees totaled $6.6 billion. Of this amount, $6 billion was paid directly to Pennsylvania residents. Such distributions result in spending, and multiplies through Pennsylvania’s economy into an economic impact of $12.7 billion annually according to a national study. As Pennsylvanians face the challenge of retiring securely, a defined benefit as offered by PSERS provides a steady monthly income based on a formula considering a retiree’s earnings and number of years worked. Employees make mandatory contributions into the system throughout their careers. In addition to retirement income security, plans such as PSERS help workers by seating the investment and administrative responsibilities with the employer, thus removing the concern of insufficient time or expertise to manage this critical aspect of life. Please join me in celebrating PSERS 100th anniversary on July 1, 2019, recognizing how important it has been for so many for a century, and to show support for its continued success. |
Introduced as SR130