Pennsylvania pension system investigating calculation error

HARRISBURG, Pa. — The board of Pennsylvania’s largest public pension system, the Public School Employees’ Retirement System, said it is investigating a consultant’s calculation about the fund’s investment performance last year that is apparently wrong. The calculation — 6.38% growth over the nine years ending last June 30 — was slightly above a 6.36% growth threshold, thus protecting nearly 100,000 active school employees who are retirement system members from seeing a higher risk-sharing contribution rate kick in next July 1. It also hired two law firms, including one to provide guidance on whether and how to recertify the member shared risk contribution rate and another to “conduct a special investigation surrounding the circumstances of the misstatement” of the nine-year investment performance calculation. Of those 256,000 active members, about 94,000 — all hired in 2011 or after — would see their contribution rise if the nine-year growth rate is determined to be below the 6.36% growth rate, a calculation made under the guidelines of a 2010 pension law.