Gov. Unions Block Pension Reform

Lawmakers may have agreed on a no-new-taxes budget, but the cost drivers behind this year’s budget shortfall and Pennsylvania’s annual budget crisis remain unchanged. Chief among those cost drivers is the state’s ailing pension system, with our pension plans more than $50 billion in debt and warnings from all three bond rating agencies. 

With such a serious fiscal crisis why has nothing been done? The answer lies with public sector union CEOs who have for years denied a pension crisis, supported underfunded pensions for teachers and state workers, and lobbied against any reform.

The PSEA, for example, sent over-the-top emails to teachers saying a new pension reform proposal is “a new attack on YOUR retirement security,” and claiming it unfairly targets women, playing off absurd “war on women” demagoguery. The PSEA also sent mail to retirees claiming falsely that proposed reforms take away their pensions. 

In fact, for years leaders of both PSEA and AFSCME denied there was any problem with pensions.

In contrast to this misinformation campaign, our pension debt is a triple threat to Pennsylvania’s future and could lead to teacher layoffs, fewer government services, and retiree pension benefit cuts.

Increases in school pension costs are equal to the salary of 33,000 teachers, which means one in three teachers could be laid off. That is the equivalent of a family of four facing a tax increase of $900 annually to just to make up the payments for pension debt.

Pension reform is about protecting state employees, taxpayers, and future teachers and state workers. As long as government unions are permitted to campaign against it using taxpayer resources, all Pennsylvanians will suffer.