Pennsylvania Auditor General Eugene DePasquale has released the results of an audit of the public school employees retirement system, which covered the period from July 1st 2013 to March 31st of this year.
One of the glaring findings involved fees paid to manage the fund’s investments, 416 million dollars in 2016 alone. Depasquale says, 17 years ago the system was in solid financial shape.
“In 2000 the public school employees retirement system was actually over funded by 24 percent and remained 100 percent funded until 2003. As of June 30th 2016, the fund was down to 57.3 percent funded, with an unfunded liability of 43 billion in assets and of 49.3 billion invested.”
Depasquale says, one of the 37 recommendations is to help people understand how the fee structure works. He adds, right now it’s too complicated and some fees are not explained.