|Posted:||May 30, 2017 03:48 PM|
|From:||Representative Stephen McCarter|
|To:||All House members|
|Subject:||100th Anniversary of Public School Employees’ Retirement System (PSERS)|
|July 18th, 2017 will mark the 100th anniversary of the Pennsylvania Public School Employees’ Retirement System (PSERS) which provides retirement benefits to public school employees. Since 1917, the number of individuals PSERS serves has grown from 37,000 to more than 500,000.
The plan is the 32nd largest among United States corporate and public pension plans, and the 20th largest state-sponsored defined benefit public pension fund in the nation. Its assets have grown from $6 billion in 1982 to approximately $52.0 billion as of June 30, 2014.
PSERS has a significant impact on Pennsylvania’s economy. During fiscal year 2015, annual pension disbursements to retirees totaled $6.3 billion. Of this amount 90%, or $5.7 billion, was direct to Pennsylvania residents. Such distributions result in spending, and multiplies through Pennsylvania’s economy into an economic impact of $10.2 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 18, 2017, recognizing how important it has been for so many for a century, and to show support for its continued success.
Introduced as HR383