When the stock market drops, the mandated municipal pension contributions go up to cover the financial loses incurred by decreasing stock values.

Peters Township Manager Michael Silvestri told a joint meeting of the township council and the school board Feb. 1 that he expects the police pension fund to take a "big hit." He hopes the market continues to rebound, but even if the market improves significantly, the township will need to have the balance bolstered by taxpayers' dollars.

In the school district, the teachers' pension fund worries Dan Solomon, business manager. He said he hopes talks in Harrisburg will result in changes in how the contribution system works. Because discussions are held behind closed doors, Solomon said no one knows what, if anything, will change.

In the Peters school district, Solomon told the joint meeting that the mandated contributions "may have been artificially low" for several years at 4 percent. That figure could jump to 30 percent, he said.

"We're looking at millions," Solomon told the group. He tossed out the figure of $2 million a year. An equal amount is contributed by the state. With the state contributing to the teachers' pension in 500 districts across Pennsylvania, the amount to be supplied by the state is staggering.

"I don't know how they could possible do this," Solomon said.

Silvestri said elected state officials can change the legislation.

"The state never acted rationally when it comes to pensions," Silvestri said, with another attendee who could not be identified, saying, "unless it's their pensions."

Silvestri said legislative changes are slow because of continued pressure from the unions. Changes, he said, are mainly to add more benefits.

Solomon said the district continues to save money for the future when the changes are anticipated. Borrowing money to cover pension contributions and for operating expenses is restricted.

"And that's short-term," Solomon said. "And this could be a long-term problem."

When it involves borrowing, the amount obtained is limited and additional amounts must be presented to the residents in a referendum.