A recent article by Sarah Butrymowicz, with the Hechinger Report, added more detail to the issue of rising state pension costs and the impacts on schools.
The 2018 reforms of Senate Bill 200 imposed new cost increases and an automatic adjustment “trigger” mechanism that is intended to increase contributions without new legislative approval in the event the unfunded liability is not on track to be paid off within 30 years. Per the Hechinger Report article, it seems that PERA is already indicating to their members to expect the automatic adjustment to occur and to anticipate another cost increase. It is likely due to the poor investment returns of 2018, which will be reported in the upcoming annual report.
To learn more about PERA and the issues surrounding the 2018 reforms, read the full CSPR report, “One Step Further On PERA Reform.”