Over the last several legislative sessions, we have built a bipartisan consensus to move forward on a public pension reform proposal to address flaws in the current system and protect the taxpayers who foot the bill.
The House passed bipartisan public pension reform via Senate Bill 1071
. This bill passed in the PA House on June 14 by a vote of 136-59.
The bipartisan public pension reform protects the benefits earned by
Highlights of the Pension Reform Plan
Working together with Governor Wolf, the Senate and House, we crafted the Conference Committee Public Pension Reform. Each segment of the plan has been publicly vetted through committee hearings and debate.
. Over the last several legislative sessions, we have built a consensus to move forward on a public pension reform proposal to address flaws in the current system and protect the taxpayers who foot the bill.
• Protects hard-earned benefits
. The plan works to protect the benefits that hard-working Pennsylvanians have already earned. Under this plan, no current employee or retiree would see any changes to his or her plan.
• Delivers competitive benefits
. The Conference Committee Public Pension Reform provides new employees with retirement benefits that are every bit as competitive and desirable as those they would receive in the private sector.
• New workers only
. The historic changes to the public pension systems will apply only to future state and school employees who first begin service on Jan. 1, 2018, or July 1, 2018, respectively.
• Responsibly shrinks the “DB” plan.
In a fiscally responsible manner, the Conference Committee Public Pension Reform narrows the Defined Benefit plan option.
• Introduces a “DC” plan for public employees
. The Conference Committee Public Pension Reform will allow future employees to opt into a “DC-only” plan in lieu of a hybrid plan. A DC component is also a part of the hybrid plan.
• Not a “quick fix.”
The Conference Committee Public Pension Reform would make fundamental changes to ensure we can responsibly meet our statutory obligation to the retirement systems moving forward.
• Taxpayer Protections
. The Conference Committee Public Pension Reform’s changes to Pennsylvania’s public pension systems will provide taxpayers some protection in case of downturns in investment returns.
. Estimated savings are in the billions of dollars and belatedly move our pension system into the 21st century (estimated long-term savings are $2.6 billion over three decades). The savings realized will be plowed back into the unfunded liability of our pension system, resulting in even more savings over time.
• Stops the bleeding
. This plan is step one in implementing meaningful pension reform. Stopping the bleeding from within the current system will help reduce annual taxpayer contributions over time.