Apr. 13, 2023

Pennsylvania School Employee Retirement System (PSERS) Chairman, Chris Santa Maria, Terri Sanchez, Executive Director, and Ben Cotton, Chief Investment Officer, and State Employee Retirement System  (SERS) Executive Director, Joseph Torta, James Nolan, Chief Investment Officer, Sara McSurdy, Chief Financial Officer, and Joe Marcucci, Chief Counsel, testified before the House Appropriations Committee. House Republicans focused their questions on the fiscal health of the two systems.  This included understanding the unfunded liabilities, investment costs, and future plans of the systems.

Key Takeaways

House Republicans have led on pension reforms for over a decade. 
While the unfunded liability is still high, we have seen progress in paying it down thanks to the commitment of the General Assembly to continue to pay its obligations in full. 
House Republicans believe the systems can do more to address investment fees in order to reduce management costs. 
House Republicans have concerns that proposed COLA adjustments would add significant costs to the systems and increase the unfunded liability. 

Notable Q&A

Rep. Ann Flood questions SERS and PSERS on the potential impact of COLA adjustments and paying down the unfunded liability faster. 

Rep. John Lawrence asks PSERS about its questionable real estate purchases and its plans moving forward. 

Watch Hearing