Pension Reform

Public-sector pension costs, both state and municipal, continue to rise across Pennsylvania. The State Employees’ Retirement System (SERS) and the Public School Employees’ Retirement System (PSERS) are Pennsylvania’s two public pensions funds that include more than 800,000 retirees and current workers. Together, SERS and PSERS face a more than $60 billion shortfall – an unfunded liability that will rise rapidly to $70 billion in the next few years according to SERS and PSERS pension liability projections. The magnitude of this obligation will require tax increases and cuts to public and educational investments unless something is done to address the problem.

Municipal pension funds across our region and state are also in crisis. Pennsylvania is home to more than three thousand municipal pension plans many of which are chronically underfunded. In fact, one fourth of all the municipal plans in the country are located in the Commonwealth. Most of these have fewer than ten members. It’s a recipe for high costs and low returns.

The Pennsylvania Economy League of Greater Pittsburgh believes that reforms are needed to state and municipal pension systems in order to maintain the economic competitiveness of the state and the sustainability of our communities.

Learn more by visiting the Coalition for Sustainable Communities

View Recent Communications on Pension Reform