Thousands of Pennsylvania teachers will have to pay more in contributions starting in July.
Thousands of Pennsylvania teachers will have to pay more in contribution rates beginning in July after the board of the $62 billion Pennsylvania Public School Employees’ Retirement System (PSERS) voted Monday to recertify the employee contribution rates it originally approved at its December meeting.
At that December meeting, the board’s general investment consultant and another firm said the retirement system’s nine-year performance figure was 6.38%, which was just above the 6.36% threshold that, under state law, triggers additional contributions.
However, during a meeting in March, management informed the board of errors in the data used to perform the calculation that were found by its investment consultant. As a result, the board ordered a review of all performance data to identify any additional errors.
Pennsylvania PSERS Hires Verus Investments in Emergency Move institutionalinvestor.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from institutionalinvestor.com Daily Mail and Mail on Sunday newspapers.
PennPSERS taps Verus for oversight consulting services amid probe
PennPSERS taps Verus for oversight consulting services amid probe
Verus Investments to provide interim investment oversight consulting services, while the $64.2 billion pension system is under both internal and federal investigations. The purpose of the contract is to provide additional advisory capability as we navigate additional work as a result of the special investigation that the audit committee is overseeing, said Frank Ryan, chairman of the PennPSERS audit committee, in a statement. Mr. Ryan added that no personnel changes have been made whatsoever at PennPSERS.
On April 8, PennPSERS confirmed that a federal investigation had been launched into the state pension plan after the board had discovered an error in its reported investment figures.
PSERS revises investment returns and, in turn, will increase teacher pension contributions
Updated 10:29 PM;
Today 9:13 PM
Pennsylvania s Public School Employees Retirement System on Friday set the employer contribution rate that taxpayers will pay at 34.51% of school employees pay, which increases the total bill by $100 million. But the good news is it is a smaller increase than once thought.
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Pennsylvania’s largest public pension system, in the midst of an FBI probe of its operations, revised its investment performance returns, which in turn will increase how much money thousands of educators contribute to their retirements.
In December, the Pennsylvania Public School Employees’ Retirement System board kept employee contribution rates flat based on the slimmest of margins.
PennPSERS boosts employee contribution rates after reporting error
Pennsylvania Capital buliding in Harrisburg.
Pennsylvania Public School Employees Retirement System, Harrisburg, revised its investment performance returns, which will lead to an increase in employee contribution rates.
In December, the $64.2 billion PennPSERS board reported a net annualized return of 6.38% for the nine years ended June 30, slightly above the 6.36% threshold for triggering additional contributions.
But in March, the board had discovered an error in its reported investment figures and announced that a special investigation was being conducted.
So, at a meeting held Monday, the board voted to certify that the plan s actual nine-year performance was 6.34%, below the threshold and therefore triggering additional employee contributions beginning July 1.