While the fiscal fire is raging across Pennsylvania, Rep. Eli Evankovich’s pension reform proposal begins to extinguish the flames that threaten to consume the commonwealth. We’ve been on record for years with a five-step solution to the pension crisis.
Rep. Evankovich’s bill would place all future lawmakers and their staff into a defined contribution plan similar to the 401(k) plans common in the private sector. Currently, state teachers and government employees are under a defined-benefit plan that guarantees benefits based on salary and years of service.
Currently, taxpayer contributions for our two statewide pension plans, PSERS and SERS, are projected to increase from $1.7 billion in 2011-12 to more than $6.1 billion in 2016-17— a 257% increase. Evankovich’s bill, along with bills introduced by Rep. Krieger, Rep. Petri and Rep. Boyd are a step in the right direction, as are Gov. Corbett’s now numerous statements of concern about pensions.
EDITORS NOTE: This post originally implied Rep. Evankovich’s bill would require public school teachers and state employees to enroll in a defined contribution plan.