Response to the Auditor General’s report on SERS and PSERS
from David Fillman, Executive Director of AFSCME Council 13

        I was pleased to read Auditor General Wagner’s September 29 report, in which he noted that SERS and PSERS are “managed effectively and professionally.” I sit on the board of SERS, the State Employees Retirement System, which serves more than 200,000 active and retired participants. SERS' excellent financial stewardship has saved Pennsylvania more than $2 billion in the past decade, placing us in the top 5 percent of pension funds in the nation and earning us prestigious national awards for investment management.
       
        Three years ago, when the Commonwealth faced a $2.5 billion budget deficit, the Budget Office and the Legislature crafted Act 40, legislation that delayed the state's contributions until it regained its financial footing. Since Act 40 was signed into law, the state contributed nothing for one year, 1 percent the next year, 2 percent the following year, and 3 percent this fiscal year.

            Most taxpayers do not realize that Act 40 has saved the Commonwealth $800 million to date. All the while, state employees have continued to pay an average of 6.25 percent of their earnings.

        It made good business sense to postpone the Commonwealth’s contributions in the midst of a $2.5 billion deficit. If the Pennsylvania Legislature acts with foresight and good stewardship, SERS and PSERS will continue to benefit employees, retirees, and taxpayers in the coming decades.

Read a full report at SERS