Jun. 30, 2015

HARRISBURG – On Tuesday, the state House approved 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, Rep. Rosemary M. Brown (R-Monroe/Pike) said. After the vote, Brown made the following statement:

“Ever-rising pension costs are one of the primary cost drivers behind property taxes, and today’s commonsense reforms to the pension system will help deliver some relief to property taxpayers. That is why I voted ‘yes’ to this legislation and have been working for its implementation for the past several years.

“Currently, the state faces a more than $50 billion public pension debt due to the funding shortfall between its two public pension systems: the State Employees’ Retirement System (SERS) and the Public School Employees’ Retirement System (PSERS). Not only is this a massive debt that will take years to overcome, but without the type of reforms included in this legislation, it is a debt that would only continue to increase. By controlling future costs while keeping the promises made to current enrollees and retirees, the state and school districts will be able to better plan to meet their outstanding obligations.

“This legislation preserves the pension benefits of current enrollees and retirees while also providing a fair retirement benefit to all future employees. It will also save taxpayers approximately $10 billion while providing a more predictable, sustainable cost structure.

“Although changes are always difficult, this legislation is the right and responsible thing to do to ensure that we can provide retirement benefits in the future, as well as the relief taxpayers and homeowners deserve.”

Senate Bill 1, sponsored by Senate Majority Leader Jake Corman (R-Centre), has been sent to the governor for his consideration.

Visit PAHouseGOP.com for the latest public pension reform information. For more information about this legislation, or any state-related issue, contact Brown’s district office in East Stroudsburg located at 696 Seven Bridge Road, Suite 101, by calling 570-420-8301. Information can also be found on online at RepBrown.com or Facebook.com/RepRosemaryBrown.

Representative Rosemary M. Brown
189th District
Pennsylvania House of Representatives

Media Contact: Krisinda Corbin
RepBrown.com / Facebook.com/RepRosemaryBrown