James Votes for Public Pension Reform Measure Headed to Governor to Be Signed Into Law
HARRISBURG – State Rep. Lee James (R-Venango/Buter)
today in Harrisburg voted for a public pension reform bill that would
save taxpayers billions of dollars while protecting the pension benefits
of current teachers, state workers and retirees.
“This reform would reduce costs for taxpayers and strengthen the pension
systems so they can deliver the promised benefits to current workers
and retirees,” James said. “Pennsylvania’s public pension systems are
currently going further into debt. We need to take action to protect
taxpayers and also ensure these plans can meet the needs of workers and
retirees.”
Pennsylvania operates two public pension systems – one for state
workers, and the other for public school teachers and employees. The
systems currently are $62.7 billion in debt.
The public pension reform bill would only affect state workers and
school employees hired beginning in 2019. It would not affect benefits
earned by current public workers or retirees.
State workers and school employees hired beginning in 2019 will be
permitted to choose among several competitive retirement benefit plans
similar to ones offered in the private sector.
“Current workers and retirees would receive the pension benefits they
have been promised,” James said. “The new retirement options would only
be mandatory for people hired beginning in 2019.”
State court decisions prevent the Legislature from altering pension
benefits already earned by state workers and school employees.
“The Legislature and governor cannot and this bill does not change
pension benefits for current workers or retirees,” James said. “We are
working to return the pension systems to adequate funding levels so they
can provide the benefits promised to current workers and retirees while
also reducing the long-term burden the pension systems place on
taxpayers.”
Current employees would be able to choose whether to remain in the
existing pension system or take advantage of one of the new retirement
plans.
The bill, which received bipartisan support in the House, was previously
approved by the state Senate and now heads to the governor’s desk to be
signed into law.
Representative Lee James
64th Legislative District
Pennsylvania House of Representatives
Media Contact: Dan Massing
717.772.9845
dmassing@pahousegop.com
RepJames.com /
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