Rendell's Pension "Fix" Merely Delays Costs


With his 2010-11 budget, Gov. Rendell got around to addressing the looming pension crisis. However, his proposed "fix" - re-amortizing the liabilities over 30 years, then phasing in the increase in employer (re: taxpayer contributions) - merely delays the inevitable, pushing cost onto future generations.

In fact, while Rendell's proposal would lower costs vs. current law for a few years, it would result in substantially higher taxpayer costs in the years to follow (see chart from PSERS below; both scenarios assume 8% annual investment return).

comments powered by Disqus

Media contact:

(O) 717-671-1901

Who are We?

The Commonwealth Foundation is Pennsylvania's free-market think tank.  The Commonwealth Foundation transforms free-market ideas into public policies so all Pennsylvanians can flourish.