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In the discussion thread: Corman's 2017-18 budget priorites [View all]

Response to wcast (Reply #1)

Mon Jan 9, 2017, 07:59 AM

2. Interesting

I have teachers in the family here in PA and I don't think any of them ever withdrew their contributions before collecting a pension. The reason pensions can continue to pay out is that employee/employer contributions are pooled and invested to provide enough returns, along with current employee/er contritubtions, to pay benefits. There is just no way a pension system can survive if everyone opts to withdraw their contribution and still collect a pension. It's nonsensical.

I'm part of the pre-Reagan federal civil service retirement system. Had I withdrawn my contributions, I wouldn't be getting a pension today. I know in private industry pensions, you can take either a lump sum or a pension, but not both.

I know that school boards were allowed to lower their contributions in the 90s because PSERS was actually over 100% fully funded and many of them did. Of course understanding the stock market goes both up and down didn't seem to factor into any decisions made back then.

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DeminPennswoods Jan 2017 OP
wcast Jan 2017 #1
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