HARRISBURG, Pa. (AP) — A potential $140 million surplus in state reimbursements for Pennsylvania's school district pension costs should be plowed back into the pension system to help cover the mushrooming taxpayer share of the costs, Democratic leaders in the Pennsylvania Senate said Monday.

The Public School Employees' Retirement System has reported that shrinking school-district payrolls left $69 million in state reimbursement funds unspent in the year that ended June 30. Officials say the trend appears to be continuing this year and that the surplus could double by the end of the current fiscal year.

The state reimburses school districts for an average 56 percent of their pension contribution and, if payrolls shrink, so do the reimbursements.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.