“A penny saved is a penny earned,” one of Philadelphia’s most famous residents is believed to have said. His old home is working to meet the counsel in that maxim. Pennsylvania State Auditor General Eugene DePasquale said on Sept. 21 that the 5th largest U.S. city needs to put more money into its retirement system, which he called “severely distressed.”
According to Philly.com, the city spends $600 million per year on its pension system. An audit of Philadelphia’s retirement system says that is more than it spends on paychecks. The following figures illustrate why:
DePasquale suggests that buying low-fee indec funds and dropping some private investment managers that charge fees as a way to save money and bolster the city’s pension funds.
Philadelphia certainly is not alone in facing pension problems, with the Keystone State itself contending with such challenges.
According to Philly.com, the city spends $600 million per year on its pension system. An audit of Philadelphia’s retirement system says that is more than it spends on paychecks. The following figures illustrate why:
- Employees: current, 27,000; retired, more than 36,000;
- Pensions: for fully qualilfied retirees, up to 80% of highest income while a city employee; for police and fire personnel, 100%;
- Retirement age: city employees, 52; police and fire employees, 40; and
- Pension funding: pension assets per $100, 2001, $77.50; 2014, $45.80.
DePasquale suggests that buying low-fee indec funds and dropping some private investment managers that charge fees as a way to save money and bolster the city’s pension funds.
Philadelphia certainly is not alone in facing pension problems, with the Keystone State itself contending with such challenges.
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