For more than 10 years, the state and public schools

have failed to contribute the actuarially required

contribution (ARC).

This, coupled with enhanced pension benefits awarded by Act 9 and the worst recession

since the Great Depression, has created a $53 billion

unfunded liability.

Many members of the state legislature want to change our pension system from a

defined benefit pension plan to a defined contribution plan

(401k).

You have a defined benefit pension, the BEST kind of

pension you can have, because you are guaranteed

a set monthly check.

Your retirement income is determined by how much you contribute and how well your

monies are invested.

A defined contribution pension is a 401k. If you had a 401k in the economic recession we have just experienced, your

retirement savings would have been reduced by 40%.

If the pension systems change to a 401k for newly hired

employees, as many legislators propose, then those newly hired would not be contributing to the

public pension funds, which would cause the funds

eventually to run out of money.

The Pennsylvania Public School Retirement Act became law in July

1917. For 96 years, PSERS has provided reliable, safe pension benefits for all public school employees including

classroom aides, custodial staff, maintenance workers, bus drivers and

attendants, secretaries, administrators, and teachers.