1Directing the Public Employee Retirement Commission, in
2conjunction with the Public School Employees' Retirement
3System and the State Employees' Retirement System, to conduct
4a comprehensive study of the respective State-sponsored
5pension systems.

6WHEREAS, The Public School Employees' Retirement System
7(PSERS) and the State Employees' Retirement System (SERS) are
8responsible for administering pensions for current and retired
9public school employees and State employees; and

10WHEREAS, Reports from PSERS and SERS indicate that, while the
11actions taken by the General Assembly in recent years have
12decreased obligations for future employees, PSERS and SERS have
13a combined $44.233 billion in debt; and

14WHEREAS, The unfunded liability within PSERS is expected to
15reach 25% of total employer payroll costs within the next 15 to
1620 years; and

17WHEREAS, SERS's unfunded liability was $14.7 billion as of
18December 31, 2011; and

19WHEREAS, PSERS and SERS attribute this debt to employer-based

1contributions that do not meet normal costs, investment losses,
2benefit increases without increased funding streams and funding
3changes to extend time to pay down liabilities; and

4WHEREAS, As a result of this debt, employer contributions,
5which are made by the Commonwealth and its school districts, are
6expected to dramatically increase in the coming years; and

7WHEREAS, The PSERS total employer contribution rate is
8expected to reach 30.97% in ten years; and

9WHEREAS, The SERS total employer contribution rate is
10expected to reach 31.92% in the next five years; and

11WHEREAS, The respective contribution rates for PSERS for
12fiscal year 2013-2014 is 16.93% and SERS is 16%; therefore be it

13RESOLVED, That the House of Representatives direct the Public
14Employee Retirement Commission (PERC), in conjunction with the
15Public School Employees' Retirement System (PSERS) and the State
16Employees' Retirement System (SERS), to conduct a comprehensive
17study of the respective State-sponsored pension systems; and be
18it further

19RESOLVED, That the study detail the impact a switch to a
20defined contribution plan, hybrid plan or cash balance plan
21would have on PSERS and SERS for future State and public school
22employees; and be it further

23RESOLVED, That PERC examine legislative action in other
24states that addresses pension-funding issues and determine the
25feasibility and impact these measures would have in this
26Commonwealth; and be it further

27RESOLVED, That PERC examine the average pension disbursal to
28both State and public school retirees and compare it to average
29retirement compensation private-sector employees typically
30received; and be it further

1RESOLVED, That PERC identify strategies that provide for the
2transition of at least some portion or all of the current State
3and public school employees to a defined contribution plan,
4hybrid plan and cash balance plan; and be it further

5RESOLVED, That PERC include any legal ramifications a change
6impacting the retirement compensation of current employees might
7have on the Commonwealth; and be it further

8RESOLVED, That PERC, in conjunction with PSERS and SERS,
9provide recommendations necessary or desirable to decrease the
10unfunded liabilities within PSERS and SERS and lessening
11necessary employer contribution rates; and be it further

12RESOLVED, That PERC report to the House of Representatives
13the result of its studies and recommendations and file the
14report with the Chief Clerk of the House of Representatives not
15later than June 30, 2013.