The Update on the City of Philadelphia’s DROP Program evaluates the financial impact of the Deferred Retirement Option Plan (DROP) since its inception, highlighting a total estimated cost of $277.2 million and its effect on employee retirement ages. The report finds that DROP has increased the average retirement age by 1.7 years but continues to impose significant costs on the pension system.

An Ounce of Prevention: Managing the Ballooning Liability of Philadelphia’s Pension Fund’ examines the City’s pension crisis, highlighting a $2.9 billion unfunded liability and projected cost increases of 76% from FY01 to FY06. The report urges immediate reforms, including adjusting benefit structures and funding policies to improve the pension fund’s health.

The Reversing the Trend of Doing Too Little with Too Much report examines the City’s infrastructure investment shortfalls and growing debt obligations, revealing that long-term liabilities increased by 64% while capital spending declined by 42% from FY01 to FY06. The report recommends debt reduction strategies and prioritizing pay-as-you-go infrastructure investments.

Philadelphia’s Pension System: Reducing Risk and Achieving Fiscal Stability’ assesses the City’s pension challenges, finding that costs as a percentage of payroll have risen from 17.3% in FY91 to 39.2% in FY15, placing significant pressure on the budget. The report recommends mandatory enrollment in a hybrid pension plan for new hires, increased employee contributions, and additional dedicated funding sources.

PICA’s Philadelphia Pension Fund Fact Sheet examines the City’s ongoing efforts to reduce its unfunded pension liability and stabilize pension costs. The report highlights that the City contributed nearly $833 million to the Pension Fund in FY24—four times the normal cost of benefits earned—while projecting the fund to reach 80% funding by FY29 and full funding by FY33.