The foundation of your retirement is at risk: Be ready to protect your future

The economy may be recovering, but the system that funds your retirement income is facing some serious threats.

You may not give your pension much thought because it’s a long time away, or you simply take for granted that you will have a comfortable retirement, but it’s time to pay attention and be ready to act.

Every PSEA member is needed to speak up and protect the benefits you have earned. 

The pension system is funded with your money. Every time a new school employee begins his or her career, it’s with the understanding that along with a regular paycheck and benefits, the Pennsylvania Public School Employees’ Retirement System (PSERS) will administer and pay a pension after that employee retires.

This defined benefit pension plan is an important promise that Pennsylvania makes to its public school employees; it is a promise worth protecting.

PSERS is the agency that administers and pays out pensions for retired school employees. Due to a combination of factors, school districts and the state will need to significantly increase their contributions to the fund. That means the state and school districts will look for ways to raise those funds or cut retirement costs.

Legislators are considering introducing bills that would close off PSERS to new hires, putting them into a new pension plan with inadequate benefits covering all state, school and municipal employees. The General Assembly is expected to begin debating the issue this fall.

There is concern that potential changes to the system could reduce benefits for future employees. Changes to the system would gradually weaken and reduce support for PSERS and undermine support for school employees remaining in the present system. It also is possible that this could significantly deter consideration of future cost-of-living enhancements.

While the pension and retirement benefits of current employees might not be changed today, you will need the support of new members to protect the administration and integrity of the system. You will need these new members to support PSERS and make sure there are proper levels of employer contributions to the system. 

The fight ahead will be difficult, but PSEA is ready. PSEA has been researching and preparing for the Employer Contribution Rate “spike” for several years. PSEA Government Relations has stayed in close contact with legislators on this issue, but when the time comes - PSEA members’ 191,000 voices will be critical to protecting our pension system. 

“As a union, PSEA will protect and defend benefits of current and future members,” PSEA President Jim Testerman said. “As details emerge, we will be asking all members to speak out and make sure the system remains strong for generations to come. I am asking each of you to be ready to answer the call when the time comes.”

For more information about the PSERS pension system and for updates, visit www.psea.org/pensions.