Major public employee retirement systems in Pennsylvania include the Pennsylvania State Employees Retirement System (SERS), the Pennsylvania Public School Employees Retirement System (PSERS), and the Pennsylvania Municipal Retirement System (PMRS). PA SERS provides benefits for state employees; PSERS provides benefits for school teachers and other school employees, and PMRS administers pension benefits for municipalities that have elected to participate.
Authorizing Statutes
State Employees
Chapter 241 of the Pennsylvania Code establishes the State Employees Retirement System.
The State Employees’ Retirement System of Pennsylvania as established by the act of June 27, 1923 (P. L. 858, No. 331), and codified by the act of June 1, 1959.
Chapter 249 describes SERS administrative procedures including the role of the Board.
Educational Employees
Chapter 215 describes the administrative duties of the Public School Employees Retirement System Board.
Board Composition
Plan
|
Board Size
|
Appointed
|
Elected
|
Plan Members
|
Ex Officio
|
Pennsylvania State ERS
|
11
|
10
|
0
|
6
|
1
|
Pennsylvania Public School ERS
|
15
|
2
|
6
|
5
|
7
|
Contributions
Per the U.S. Census, in FY 2015, employer contributions to Pennsylvania government pension plans were 4.52 percent of all state and local government direct general spending.
Constitutional Protections
No explicit constitutional protection for public pension benefits, but courts protect contractual pension rights based on impairment of contract principles. Kelley v. State Employees' Retirement Bd., 890 A.2d 1173 (Pa. Cmwlth. 2006)(holding retirement code is like a contract for pension benefits and unilateral modifications may not be adverse to a member who has met retirement eligibility requirements), affirmed in part, reversed in part, Kelley v. State Employees' Retirement Bd., 593 Pa. 487, 932 A.2d 61 (Pa. 2007) (holding that exclusion of former legislators from Class AA membership was rationally related to preventing substantial burden on retirement system); Association of Pennsylvania State College Faculties v.State System of Higher Education, 479 A.2d 962 (1984)(unilateral modifications in the retirement system may not be adverse to a member who has met retirement eligibility requirements). (PA CONST., Article 1, §17) Source: Robert Klausner, Esq., State Constitutional Protections for Public Sector Retirement Benefits