Harris Shields Taxpayers from Escalating Taxes and Votes for Public Pension Reform
HARRISBURG – On June 30 in the state House, Rep. Adam Harris (R-Franklin/Juniata/Mifflin) voted in favor of
Senate Bill 1, a public pension reform measure that would establish a hybrid 401(k)-style and cash balance plan for future state and school employees.
Currently, the unfunded pension liability is more than $53 billion. Without substantial reform, taxpayers will be required to fund the out-of-control pension system for public school and state employees when school districts raise property taxes.
“Not addressing this problem will debilitate the Commonwealth as the pension debt begins to grow. Taxpayers will only grow wearier trying to pay such an enormous bill,” Harris said. “That’s why I believe, as an elected representative, it’s important for me to lead by example. Like all legislators, I will be moved to the plan that all future employees and elected officials will enjoy if I am re-elected. A serious problem demands a serious solution.”
Senate Bill 1 would create a hybrid 401(k)-style and cash balance plan for current and future employees that would save $10 billion. All legislators would be moved to the plan upon election or re-election. Current public school and state employees would largely keep their current pension plans; however, their final average salary would be calculated in a manner intended to prevent artificial spiking of retirement compensation, and the portion of lump sum retirement payments derived from future service would be adjusted to eliminate an interest rate bonus provided under current law. The plan brings public sector employees’ pensions in line with what many taxpayers in the private sector enjoy, enabling employees to anticipate their retirement without fear.
“Not only does failing to achieve pension reform jeopardize the security that has been promised to millions of Commonwealth residents during their golden years, it also negatively impacts business growth,” Harris explained. “Job creators need to have confidence that taxes will remain consistent and that Pennsylvania will continue to provide core services to businesses and their employees.”
As Senate Bill 1 was passed in the House, it now goes back to the Senate for concurrence before going to the governor for his signature.
Representative Adam Harris
82nd District
Pennsylvania House of Representatives
Media Contact: Alison Evans
717.260.6206
aevans@pahousegop.com
RepAdamHarris.com