Teachers and other employees of the School District of Philadelphia receive their retirement benefits from the Pennsylvania state retirement plan for schools, which includes both a defined-benefit pension plan and a modest retiree health benefit. The cost of the former is expected to rise quite substantially and, as this technical analysis will show, presents a daunting burden for the district in the near future. This report analyzes and projects the future retirement obligations in Philadelphia and highlights the nature and scale of the pension-funding problem. [For the summary report, see ED598726.]