Senate Passes Pension Reform

The Pennsylvania Senate, this afternoon, May 13, passed SB 1 which would change the  plans for  those in the Public School Employees’ Retirement System (PSERS) and State Employees’ Retirement System (SERS) into defined contribution ones akin to the 401Ks most of us have. Senate Passes Pension Reform

The vote was 28-19 with Stewart Greenleaf of the 12th District being the only Republican voting nay. Dominic Pileggi of the 9th District, who it was surmised would vote against the bill, wound up supporting it.

Not voting were Pat Browne (R-16) and Anthony Williams (D-8).

The bill was introduced May 8 with Jake Corman (R-34) as the prime sponsor.

It now goes to the House.

The reason for the need is explained in the bill’s first section:

Pennsylvania’s retirement systems, SERS for State employees and PSERS for school employees, together have an unfunded liability of $60,121,184,000. The level of payment by the Commonwealth and school districts required to annually address these amounts is staggering, particularly when other state revenues are reduced due to a struggling economy. The current condition of Pennsylvania’s unfunded system combined with the State’s structural deficit threaten the financial well-being of current and future public employees.

In order to fully fund State pensions systems, economists estimate that contributions will continue to require a significant portion of state revenues. In fiscal year 2015-2016, pension expenditures are expected to exceed $4,800,000,000 and $7,300,000,000 by 2025.

The tax increases that would be required to address increasing pension obligations would place a heavy burden on the citizens of this Commonwealth and hamper the ability to provide them with services vital to the public’s health, safety and welfare. Therefore, it is imperative that the Commonwealth adopt reforms that will maintain the financial health of the Commonwealth and its school districts.

Therefore, the reforms contained in this legislation are intended to use resources judiciously and enable the Commonwealth to provide retirement security for Commonwealth and school employees while reducing the burden on taxpayers.

The reforms of the retirement benefits of Commonwealth and school district employees contained in this act are prospective and will not impact benefits earned from services rendered prior to the effective date of this act

Senate Passes Pension Reform

4 thoughts on “Senate Passes Pension Reform”

  1. $60,121,184,000.? A disgrace!
    Most public school teachers can’t count that high!

  2. “Dominic Pileggi of the 9th District, who it was surmised would vote against the bill, wound up supporting it”.

    Hey! Sounds like Pileggi is getting the message> Think he’ll vote to abolish the state stores?

    1. Charlie,
      Pileggi is running for Judge, Court of Common Pleas in this Primary. Wait until after the primaries to start counting chickens.

  3. The only messages he pays any attention to have pictures of presidents on them.

    the

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