This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Pa. Budget Office Releases Keystone Pension Report

State Faces $41 Billion in Pension Unfunded Liability, Increasing Pension Contributions

HARRISBURG, Pa., Nov. 26, 2012 /PRNewswire-USNewswire/ -- Gov. Tom Corbett's Budget Office released the Keystone Pension Report today, providing a comprehensive overview of Pennsylvania's public pensions and demonstrating the impact pension contributions and unfunded liabilities have on the state's budget.

The report outlines the current pension situation facing Pennsylvania, identifies factors that have contributed to Pennsylvania's pension crisis, and offers a framework for considering structural redesign and reform of the pension system to ensure long-term stability of the plans.

"Absent meaningful structural pension reform, the state's General Fund budget is on a very predictable path that will force a choice between either fully funding pension obligations or making cuts to the core functions of government," Budget Secretary Charles B. Zogby said. "With a clear understanding of the crisis and the challenges we confront, it is imperative that Pennsylvania find a workable solution."

Contributing factors to today's pension crisis include previously instituted expansions to retiree and member benefits, nearly a decade of state and school district underfunding of contributions, and less-than-expected investment returns. As a result, both the State Employees Retirement System (SERS) and the Pennsylvania School Employees Retirement System (PSERS) pension programs are less than 68 percent funded. A healthy pension funding ratio is about 80 percent funded.

In addition to the unfunded status of the pension systems, the report describes the growing nature of required employer contributions needed to fund the current cost of the pension benefits, as well as addresses the unfunded liability. Contributions are expected to rise significantly in the coming decade, reducing the state's ability to pay for mandated programs and services like medical assistance, public education, public safety, roads and bridges.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,242.73 -144.48 -0.83%
S&P 500 2,015.22 -14.33 -0.71%
NASDAQ 4,667.5230 -13.9740 -0.30%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs