Governor Rendell has recently proposed a plan to resolve the pending PSERS crisis. His proposal has two distinct elements. First, the fiscal liabilities faced by PSERS would be re- amortized over 30 years. Second, instead of the massive increases in state and school district contributions over the next three years that are currently projected, the state would require a more gradual increase in contributions. With Rendell's proposal, the state and school districts would face an increase of only 1% of payroll (equal to a 21% increase in the PSERS contribution rate) for the 2010-2011 fiscal year compared to the 3.44% payroll increase (equal to a 72% increase in the PSERS contribution rate) that was already set by PSERS for the 2010-2011 fiscal year. After 2010-2011, school districts and the state would face an annual increase in contributions of no more than 3% under Rendell's pl
an.