Pa.'s largest pension plan admits making an 'error' that may have benefited teachers at taxpayers'

[TexasTowelie]

Pa.’s largest pension plan admits making an ‘error’ that may have benefited teachers at taxpayers’ expense


The board of Pennsylvania’s giant public-school pension fund on Friday voted to hire an outside law firm to investigate an error in a December financial decision that may have cost taxpayers at least $25 million in fund payments — while wrongly sparing 100,000 school employees from paying more for their pensions.

The unanimous vote followed a 3 1/3-hour closed-door meeting of the 14-member PSERS board as it explored whether it erred in a crucial meeting in December in which members concluded the fund had just barely met a key financial target for investments.

If it made such a mistake, the error could make a big difference in whether some teachers have to pay more out of their paychecks to support their pensions.

In a reform imposed by the legislature and governor, the fund adopted a so-called “risk-sharing” rule some years ago that requires educators and staff to pay extra if PSERS fails to meet its investment return target.

Read more: https://www.inquirer.com/business/psers-pa-pension-school-employees-taxpayers-20210313.html