Pennsylvania Republicans: State Pension Reform Is “No. 1 Issue” in 2015

Pennsylvania

Pennsylvania Gov. Tom Wolf, in stark contrast to his predecessor Tom Corbett, has been adamant that he is not on board with any sweeping changes to the state’s pension system – particularly the switch to a 401(k)-style system favored by many of the state’s Republican lawmakers.

But House Republicans re-iterated last week that pension reform remains their “No. 1 issue” going forward.

More from the Citizen’s Voice:

State Rep. Mike Tobash, R-Pottsville, who drafted pension reform legislation in the last House session, said he thinks both houses of the Legislature are ready to deal with the estimated $47 billion to $60 billion debt in the state pension fund.

“The senate has come out and said it is their No. 1 issue,” Tobash said. “I think House Republican leadership feels exactly the same way. This $50 billion-plus debt is crippling us in a number of ways. It is crushing our school districts. If we properly dissect it, and we come forward with a number of bills, we will be better able to answer the problem in the minds of the different stakeholders and really get something accomplished.”

[…]

Tobash said the Legislature is attacking this issue from its multiple points.

“A series of bills being presented attack it from different areas,” he said. “One bill is a straight shift from defined benefit to defined contribution, which is more like the private sector. I think it is an optimum plan we are going to bring to the fore. We also have to look at the expense side.”

[…]

Tobash said legislators are looking at four areas: Existing member concessions, “to help work our way out of this debt, like increasing employee contributions;” the way the state delivers benefits “that are enhanced. Maybe we can ratchet them back a little bit;” early buyouts. “These are people who are vested but not collecting. Maybe we can buy them out and realize some long-term savings,” and finally, dedicated revenue. “I think it is important for analysts to take a look at Pennsylvania and see we have a commitment to pay down this debt.”

Rep. Tobash is the author of legislation, introduced in the last session, that would shift new hires into a 401(k)-style system.

 

Photo credit: “Flag-map of Pennsylvania” by Niagara – Own work from File:Flag of Pennsylvania.svg and File:USA Pennsylvania location map.svgThis vector image was created with Inkscape. Licensed under CC BY-SA 3.0 via Wikimedia Commons – http://commons.wikimedia.org/wiki/File:Flag-map_of_Pennsylvania.svg#mediaviewer/File:Flag-map_of_Pennsylvania.svg

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