Capitolwire.com reported Wednesday Gov. Wolf will propose borrowing $3 billion to make an immediate payment against the unfunded liability of the Public School Employees Retirement System.
Wolf expects the $3 billion payment, which is currently prohibited by law, will produce about $10 billion in savings over the next 30 years or so. The PSERS unfunded liability was projected to peak at nearly $42.9 billion at the end of 2018.
During his budget address, Wolf also said he would eliminate what he called the “Wall Street Managers” used to handle state pension accounts saving as much as $200 million annually and reduce the unfunded liability over the next few decades by about $2 billion.In 2011, Republicans in the Senate and House and Gov. Corbett approved a plan-- Senate Bill 1310-- to float up to $4.5 billion in bonds to pay back the federal government the funds it lent to Pennsylvania to pay unemployment compensation. The state then did float a $4 billion bond for this purpose, the largest in state history up until then.