1988 The technical corrections bill amending the U.S. Tax Reform Act was passed. This provided tax relief for members of the System on pre- 1983 member contribution withdrawals.
1989 Act 112 provided a cost-of-living increase starting January 1, 1989 for all annuitants who retired on or before July 1, 1987. Assets topped $14 billion making PSERS the 14th largest public pension fund nationwide, with investment income of $1 billion for the year. Active membership was 195,000. Retirees numbered 96,000.
1990 The 100,000th annuitant was added to the payroll. Internal investments marked its beginning with expansion of the investment division.
1991 Assets reached $19.1 billion with an investment income for the year of $1.2 billion. Retirees numbered 103,000, and active members numbered 202,000.
Act 23 was passed which brought about:
- Change in funding period lowering the contribution rate
- Credit for activated military leave
- Credit for forced maternity leave
- Credit for Cadet Nurse Corps service
- Number of days a retiree may return to school service without loss of benefit increased from 75 to 95 days
- Premium assistance for health insurance
- Group health insurance plan expansion to include pre-Medicare retirees
- Legislators became voting members of the Board
- Certain staff salaries set by the Board
- Expanded investment authority
1992 Act 186, the Mellow Bill, provided a retirement incentive, 10% additional service for members 55 and older.
PSERS initiated internal trading operations. In addition, the Health Care Premium Assistance Program began. For the 10th consecutive year, PSERS received the Government Financial Officers Association award for excellence in financial reporting.
1993 Assets reached $22.7 billion with a total revenue of $3.5 billion. The employer contribution rate was reduced to 13.17 percent of payroll. A health insurance administrator began to implement the provisions of Act 23 of 1991 which allowed about 34,000 retirees up to $55 a month insurance premium assistance. The number of retirees increased to 113,000. Most new retirees took advantage of the "Mellow Bill" incentives. A new publication went to all retirees, called the PSERS Retired Member Handbook.
1994 Assets reached $25 billion. More than $1 billion was paid out in benefits. The System celebrated its 75th anniversary with a Diamond Jubilee program at the Forum. For the 11th consecutive year, the PSERS Component Unit Financial Report received the prestigious Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association of the United States and Canada. The System was also one of 13 recipients of the Public Pension Principles 1993 Achievement Award from the Public Pension Coordinating Council.
Act 29 of 1994 provisions:
- The PSERS Board of Trustees was given increased authority to invest the Fund as "prudent persons."
- Granted a cost-of-living adjustment for most retirees.
- Extended the "30 and out" window until July 1, 1997, retroactive to July 1, 1993. Extended the "Mellow Bill" incentives to include those who terminated service between May 15, 1992 and July 1, 1992 previous dates were limited to July l, 1992 until August 31, 1993).
- Allowed eligible members to elect to eliminate the "frozen annuity."
- Allowed members over normal retirement age to apply for a disability benefit.
- Instituted employer contributions ratio changes.
- Granted premium assistance to members who terminated employment on or after their 62nd birthday with at least 15 years of service.
1995 Assets reached $30 billion as the staff prepared for an agency-wide conversion to the PSERS Business System, known as PBS, a sweeping new process for serving the membership.
1996 PSERS headquarters building was still in recovery from an October 1995 crane accident that damaged the top floor of the building. No one was injured but all fifth floor employees were relocated to other floors for most of 1996.