I check in on Paul Fisher's blog over at PrideandPromise.com from time to time. He has been terrific on giving updates on PSERS. I headed over there yesterday only to find out that he resigned his school director seat "To regain his first amendment rights". Good to know, however, that he intends to keep the site going.
He added a great article from CapitolWire that analyzes the latest attempts to reform the Pennsylvania State Employees Retirement System. There is still a lot of confusion about what is happening at this level. That article sort of sets the record straight. The fact is that there is still a lot of negotiating to get done. Some people want to pay what we owe sooner than others, but the thing to take away from the negotiations is that nobody thinks there is a magic bullet. The only thing that will significantly change the PSERS cost curve is significantly positive returns on the PSERS portfolio of stocks, bonds, real estate and other investments. PSERS projections are based on 7.5 or 8% annual returns in a diversified portfolio. Like I have said before, if someone ever promises you 8% annual returns, LOCK IT UP because it is almost impossible to do.
Thanks for reading and please be sure to check out the CapitolWire article. It is full of good info as well as all the names of the players in the PSERS reform game.
James
