QUOTE (UncommonSense @ May 24 2009, 09:14 AM)
Do I recall correctly that back some time ago, then Gov. Ridge allowed the school districts to cut the amount they contibuted to the pension fund? A cut even before 9/11 etc. It would be interesting to see the historical data of contribution rates, payout rates and rates of return back 30 years at least.
This day of reckoning should have come years ago. Because the state matches school district contributions, rendell and the legislature have "fixed" the problem (short term) three times by just assuming the stock market would get better. Every fix has just put the problem off a few years and made it worse.
Teachers do contribute, but the problem is that it is a defined benefit (as opoosed to a defined contribution) plan. This means teachers and legislators get an 8.5% return every year whether the investments made or lost money.