Financial Crises

Study of pension reform costing Pennsylvania taxpayers more than $1 million

As Pennsylvania lawmakers continue to debate pension reform, the meter is running. 

Last month, the Corbett administration renewed a contract with Milliman Inc., an actuarial accounting firm based in Seattle, and now plans to spend more as much as $1.1 million for actuarial services. The administration has paid $900,000 to Milliman since 2012 for actuarial analysis of various efforts to change the state's public pension systems, but the renewed contract says "changing circumstances and changing needs" required more actuarial work. 

"They were brought on to do the actuarial analysis of the governor's pension reform plan and provide analysis for all the proposals that are out there," said Jay Pagni, Gov. Tom Corbett's spokesman. 

The administration initially contracted with Milliman in August 2012, then renewed the contract in February 2013 and again in April 2013. The latest renewal was signed last month. 

Pennsylvania's two major pension funds -- the State Employees Retirement System, or SERS, and the Public School Employees Retirement System, or PSERS -- are a combined $49 billion in the red after years of underfunding by the state and investment losses during the recession. 

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