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School board weighs asking state to assume $2.3 million in teacher pension costs

March 11, 2024 | Bermudian Springs SD, School Districts, Pennsylvania


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School board weighs asking state to assume $2.3 million in teacher pension costs
Members of the Bermudian Springs School District board debated whether to back a resolution asking the state to assume the district's share of Public School Employees' Retirement System (PSERS) contributions, a change board members estimated would move about $2.3 million in retirement costs from local budgets to the state while leaving teachers' benefits intact.

A board speaker summarized a letter from Toren and a co-sponsor memo tied to Representative Napoleon Nelson, saying the proposal would "place the full responsibility to address our unfunded educators pension system on the shoulders of the legislature and the state general fund." The speaker recounted that PSERS faces a multi‑billion shortfall and framed the proposal as a cost shift, not a cut to employee benefits.

Board members described the current funding split as roughly 50/50. One member explained the district's full retirement expense is about $4.6 million and that the district currently receives roughly $2.3 million from the state, leaving an estimated $2.3 million local share that the resolution would ask the state to assume. "Technically our full retirement expense is 4.6 million but we get 2.3 from the state," a board member said.

Several members expressed support for the concept but raised concerns about how the resolution is worded. One speaker said the idea "is a wonderful idea" in principle but warned that some of the draft language—specifically words such as "burden" or "liability"—could send the wrong message about the value of PSERS and educators. That board member suggested substituting "obligation" for "burden" to avoid implying that teacher benefits are a detriment to the district's mission.

No formal vote took place. Board members noted the resolution was to appear on the agenda for a vote at the next meeting and that further revision of the language could follow. The discussion also touched on broader budget implications and uncertainty about how potential state action would affect local tax levies.

The board did not adopt a position at the meeting; members said they would continue reviewing the co-sponsor memo and the draft resolution before any formal action.

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