If payments to the state teachers' pension fund increase by the amount predicted in 2012-13, North Allegheny will lose everything.

"This will bankrupt not only the district, but also the state," said Maureen Grosheider, school board president.

Last week, the school board passed a resolution stating that a projected 16.4 percent to 28 percent spike in school districts' contribution to the Pennsylvania School Employees' Retirement System would cripple every school district in the state.

In addition, the resolution asks the state Legislature to review the rate increase and amend the laws that will require it.

The problem with the retirement system arose in part because the state and school districts haven't put in enough money. Poor returns on investments also are major contributors to the problem.

In September, the pension fund was down 26.5 percent compared with last year because of investment and other losses.

According to information gathered by Mike Hopkins, North Allegheny's financial services manager, the district will contribute 4.78 percent of all salaries to the fund this school year. After reimbursements from the state, that equals about $1.56 million.

As the rate schedule stands now, the district's contribution jumps to 20 percent in 2012-13, $7.2 million after reimbursement -- an equivalent of 1.802 mills.

In 2013-14, the district's contribution would jump to $7.38 million, 1.846 mills. North Allegheny's portion would decrease slightly in 2014-15 to $7.12 million -- the equivalent of 1.782 mills.

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