Pension Reform Promises Fair,
Sustainable Retirement for State Workers
Protects New Employees’ Retirements from Political Manipulation
Last night, the Pennsylvania Legislature sent a monumental public pension reform measure to Gov. Wolf’s desk that gives new state employees and school teachers a hybrid defined contribution and cash balance retirement plan.
“Pennsylvania’s public servants deserve more than uncertainty and political gimmicks when it comes to their retirement planning,” commented Matthew J. Brouillette, president and CEO of the Commonwealth Foundation. “This bill helps stops the bleeding in a system already $53 billion in debt by providing a 401(k)-style retirement plan to new employees, giving them stability, portability, and protection from underfunding.
“You just can’t argue with the math: pension payments from school districts have increased by $2 billion over the past six years, amounting to a $600 tax increase per Pennsylvania homeowner.”
“It’s time to give new public employees greater control over their financial futures and stop holding them hostage to political posturing,” Brouillette added. “We commend the House and Senate for taking this crucial step to address the pension crisis and for leading by example through putting themselves in the same plan offered to public employees.”
“Governor Wolf should see this as an opportunity to safeguard public employees’ retirements, avoid piling up more debt that our kids will eventually pay, and get politics out of pensions.”
Brouillette and other Commonwealth Foundation experts are available for comment today. Please contact me at 717-671-1901 or firstname.lastname@example.org to schedule an interview.
Senior Communications Officer