|Posted on June 4, 2010 at 9:43 AM|
FROM JOE PARADISE, NSD BUSINESS MANAGER
If the present PSERS formula is unchanged by legislation, which is unlikely, we would have a dramatic increase in costs in 2012-13. This is likely to moderate based on a yet to be developed compromise to reduce new employee benefits, and also change the actuarial formula to spread out the effect of this enormous bump in rates.
However, until then, we have nothing else to go on but that our rate in 2012-13 is proposed to be 29.22% of wages. Since we have NO bargaining unit agreements that could easily determine our salary base at that time, we had to do some estimating.
The data I have is as follows- The estimated cost to the local taxpayer in 2012-13 would be $11.7 Million vs $4.2 million the year before or an increase of $7.5 million. This would equate to an estimated $311 increase in the average tax bill for each homeowner.
Please advise or give me a call if you have any questions.
Joseph V. Paradise, PRSBA