"Everything you need to know about how the NFT ignores facts and distorts the truth in their presentation is exemplified in the slide “Why it may not come to pass”
Their very first bullet point notes that fiscal 2011 was an “exceptional” year for investment returns, suggesting that the PSERS actuarial assessments will go down and the impact to taxpayers will be minimized.
If you have a Jeopardy buzzer to signify a wrong answer, press it now . . .
FACT: Just a few weeks ago, the employer contribution estimates (percent of payroll) posted on the PSERS website listed the following through 2021:
2012/2013 – 12.19%
2013/2014 – 16.69%.
2014/2015 – 21.18%.
2015/2016 – 23.66%.
2016/2017 – 24.50%.
2017/2018 – 25.27%.
2018/2019 – 26.24%.
2019/2020 – 26.26%.
2020/2021 – 26.26%
FACT: If you calculate the contribution above against the current rate of 8.65%, based on an annual payroll of $50,202,220 (assuming no salary increases), by the year 2021, Neshaminy and PA taxpayers will have paid an additional $62.5 million to fund PSERS.
FACT: Since the time the board calculated these numbers and when the NFT issued its presentation, the state has amended its employer contribution estimates and those numbers HAVE GONE UP, NOT DOWN.
The following employer contributions are now posted on the PSERS website following their December update:
2012/2013 – 12.36%.
2013/2014 – 16.75%.
2014/2015 – 21.25%.
2015/2016 – 25.56%.
2016/2017 – 26.26%.
2017/2018 – 26.80%.
2018/2019 – 27.53%.
2019/2020 – 28.04%.
2020/2021 – 27.76%
FACT: If you calculate the updated contributions above against the current rate of 8.65%, based on an annual payroll of $50,202,220 (assuming no salary increases), by the year 2021, Neshaminy and PA taxpayers will have paid an additional $67.5 million to fund PSERS.
Despite the NFT’s hopes that the tax impact of PSERS will go down, it is actually heading in the complete opposite direction to the tune of another $5 million.
The current PSERS employer contribution estimates can be found on page 2 of this document posted to the PSERS website: http://www.psers.state.pa.us/content/pfr/resources/fact.pdf
Finally, insurance savings estimated by the NFT are grossly overstated. Their salary estimates do not include retro pay, or the educational movement increases written into their proposals.
Minimal savings result from retirees since they continue to receive free health care and a $27,500 retirement bonus.
If the NFT had given up their demand for retro payments for the last four years and also education credits, then we are closer to settling a contract. However, if not, then this presentation was all smoke and mirrors."
