Public School Employees' Retirement System of Pennsylvania

Projection of Contribution Rates and Funded Ratios As of June 30, 2009

(The Board at its January 2009 meeting adopted to reduce the interest rate from 8.50% to 8.25% for the June 30, 2008 valuation and to 8.00% thereafter.)

Projected
Fiscal Total Unfunded
Year Appropriation Fiscal Year Pension Employee Employer Unfunded Preliminary Health Total Employer Employer Accrued
Ending Payroll Market Rate Rate Contribution Normal Liability Employer Care Contribution Contribution Funded Liability
June (thousands) of Return Floor Rate Cost Rate Pension Rate Contribution Rate (thousands) Ratio ($ Millions)

2008 $ 12,881,244 (2.82) % 4.00 % 7.25 % 6.68 % (0.24) % 6.44 % 0.69 % 7.13 % 86.0 % $ 9,923.0
2009 12,500,000 (26.54) 4.00 7.29 6.68 (3.37) 3.31 0.76 4.76 79.2 15,739.2
2010 12,899,000 8.00 4.00 7.32 7.35 (3.72) 3.63 0.78 4.78 $ 616,572 73.4 20,898.6

2011 13,510,000 8.00 4.00 7.34 8.08 (0.50) 7.58 0.64 8.22 1,110,522 66.8 27,049.9
2012 13,920,859 8.00 4.00 7.37 8.02 1.85 9.87 0.72 10.59 1,474,219 58.3 35,213.4
2013 14,345,321 8.00 4.00 7.38 8.00 20.50 28.50 0.72 29.22 4,191,703 54.2 40,138.3
2014 14,797,664 8.00 4.00 7.40 7.96 23.42 31.38 0.71 32.09 4,748,570 55.1 40,732.8
2015 15,280,148 8.00 4.00 7.42 7.93 24.97 32.90 0.70 33.60 5,134,130 56.7 40,743.0

2016 15,794,512 8.00 4.00 7.43 7.91 24.68 32.59 0.68 33.27 5,254,834 58.5 40,443.9
2017 16,341,270 8.00 4.00 7.44 7.89 24.18 32.07 0.67 32.74 5,350,132 60.5 39,884.5
2018 16,926,735 8.00 4.00 7.45 7.87 23.54 31.41 0.65 32.06 5,426,711 62.6 39,149.0
2019 17,557,664 8.00 4.00 7.46 7.85 22.78 30.63 0.64 31.27 5,490,282 64.7 38,312.8
2020 18,232,076 8.00 4.00 7.46 7.84 21.97 29.81 0.61 30.42 5,546,198 66.8 37,388.2

2021 18,948,040 8.00 4.00 7.47 7.82 21.15 28.97 0.59 29.56 5,601,041 68.9 36,378.2
2022 19,703,172 8.00 4.00 7.47 7.81 20.35 28.16 0.59 28.75 5,664,662 71.0 35,282.2
2023 20,493,701 8.00 4.00 7.48 7.79 19.57 27.36 0.59 27.95 5,727,989 73.0 34,096.3
2024 21,321,539 8.00 4.00 7.48 7.78 18.81 26.59 0.59 27.18 5,795,194 75.0 32,814.5
2025 22,185,011 8.00 4.00 7.48 7.77 18.08 25.85 0.59 26.44 5,865,717 77.0 31,429.6

2026 23,081,835 8.00 4.00 7.48 7.77 17.38 25.15 0.59 25.74 5,941,264 79.0 29,933.6
2027 24,006,797 8.00 4.00 7.49 7.75 16.71 24.46 0.59 25.05 6,013,703 80.9 28,317.8
2028 24,958,599 8.00 4.00 7.49 7.74 16.07 23.81 0.59 24.40 6,089,898 82.8 26,572.8
2029 25,937,456 8.00 4.00 7.49 7.73 15.46 23.19 0.59 23.78 6,167,927 84.6 24,688.1
2030 26,943,962 8.00 4.00 7.49 7.72 14.88 22.60 0.59 23.19 6,248,305 86.5 22,652.6

2031 27,978,093 8.00 4.00 7.49 7.71 14.33 22.04 0.59 22.63 6,331,442 88.2 20,454.2
2032 29,041,527 8.00 4.00 7.49 7.70 13.81 21.51 0.59 22.10 6,418,177 90.0 18,080.0
2033 30,136,493 8.00 4.00 7.49 7.69 11.18 18.87 0.59 19.46 5,864,562 91.4 16,158.1
2034 31,268,441 8.00 4.00 7.49 7.68 9.89 17.57 0.59 18.16 5,678,349 92.7 14,357.1
2035 32,446,271 8.00 4.00 7.50 7.66 8.57 16.23 0.59 16.82 5,457,463 93.8 12,724.7

2036 33,675,824 8.00 4.00 7.50 7.64 7.42 15.06 0.59 15.65 5,270,266 94.7 11,242.6
2037 34,956,565 8.00 4.00 7.50 7.63 6.11 13.74 0.59 14.33 5,009,276 95.5 10,006.0
2038 36,292,078 8.00 4.00 7.50 7.62 5.67 13.29 0.59 13.88 5,037,340 96.2 8,748.9
2039 37,690,635 8.00 4.00 7.50 7.60 6.45 14.05 0.59 14.64 5,517,909 97.1 7,017.7