Gov. Wolf proposed a new “compromise” on pensions and the budget last week, according to news reports.
Here is what that compromise includes:
- A defined contribution plan for new employees, but only on salary greater than $100,000—this applies to a small portion of salary for about 5 percent of employees. Everyone under that level (and all salary below $100,000) would remain in the current defined-benefit pension plan.
- Provisions against pension spiking, changes to “lump sum withdrawal calculations” and shared risk provisions, similar to those in SB 1 (the pension reform bill vetoed by Gov. Wolf).
- Wolf’s original plan to borrow $3 billion in pension obligation bonds, paid off at the cost of $5.5 billion over 30 years to invest in the stock market—a plan panned by Pittsburgh Mayor Bill Peduto.
- Wolf’s original plan to keep the government monopoly on state liquor stores, but “modernize” them—which would include raising prices on consumers.
- Wolf’s original spending plan.
- Wolf’s original plan to increase the income tax.
- Wolf’s original plan to increase the sales tax.
- Wolf’s original plan to tax day care, nursing home care, funerals, college meal plans, and dozens of other items.
- Wolf’s plan to tax natural gas, resulting in higher energy costs on consumers.
- Wolf’s original plan to retroactively increase taxes on bank savings.
- Wolf’s original plan to increase taxes on tobacco and e-cigarettes.
You can tell your lawmakers what you think of this compromise plan here.