The Pennsylvania State Employees' Retirement System has cut its investment-profits target to 7.5%, from its previous 8%, in an admission that the bull markets that boosted pension assets in the 1980s and 1990s aren't likely to come back anytime soon. (This is SERS, not the teachers' PSERS fund, as a previous version of this report wrongly stated. Though PSERS faces similar issues.)
The bad news: A lower target means a bigger projected deficit - to be made up with bigger taxpayer "contributions" from state income and sales taxes.

That means the "funded ratio" of future liabilities to investment assets has shrunk from around 69%, to 65%. And the future surcharge on state payroll will rise to 11.5% next year, from zero in the mid-2000s, and up again in future years, until investment markets start zooming up again, or the state changes its pension formulas again.