Pennsylvania Teachers Pension: Solvency Alert

If you are one of the 500,000 teachers who depend on the Pennsylvania Public School Employees Retirement System (PSERS), your retirement security is mathematically at risk. The fund operates with a funding ratio of only 56.8%—well below the 80% threshold considered healthy.

What This Means for Your Retirement

A funding ratio of 56.8% means that for every $1.00 the fund owes you in retirement, it currently holds only $0.57 in assets. The remaining gap must come from:

• Future investment returns (increasingly unlikely at 7%+ return assumptions)
• Increased taxpayer contributions (politically difficult in Pennsylvania)
• Benefit cuts to retirees (the most mathematically likely outcome)

The Pennsylvania Inflation Factor

Even if your nominal pension remains intact, Pennsylvania's local inflation rate of 4.0% is eroding purchasing power faster than standard COLA adjustments. A fixed $2,650/month payment today buys significantly less by 2034.

Wealth Protection Strategy for Pennsylvania Teachers

Smart teachers in Pennsylvania are not waiting for political solutions. They are:

1. Maximizing 457(b) or 403(b) contributions to build a personal safety net outside the pension system
2. Opening a Self-Directed IRA with physical precious metals (per IRS Code 408(m)(3)) for counterparty-free diversification
3. Requesting pension buy-out analysis if offered by Pennsylvania Public School Employees Retirement System (PSERS)
4. Consulting a fee-only fiduciary advisor (not a commission-based salesperson)