Jun. 08, 2017
HARRISBURG – The state House on Thursday approved legislation to reform Pennsylvania’s pension systems – the State Employees’ Retirement System (SERS) and Public School Employees’ Retirement System (PSERS). The bill now goes to Gov. Tom Wolf, who has indicated he will sign it.
Members of the York County House Republican delegation, state Reps. Seth Grove (R-Dover), Dawn Keefer (R-Dillsburg), Kate Klunk (R-Hanover), Kristin Phillips-Hill (R-York Township), Stan Saylor (R-Red Lion) and Keith Gillespie (R-Hellam) issued the following statement upon passage of the legislation:
“Members of the General Assembly took a major first step this week when we passed in bipartisan fashion much-needed pension reform. Under
Senate Bill 1, future school district employees and state workers, including legislators and judges, hired beginning 2019 would no longer be offered the current defined benefits retirement plan. Instead, they would be offered three new competitive 401(k)-style options: A defined contribution plan and two hybrid plans. Current employees would also have the choice to switch to one of these plans.
“This legislation would also shift the investment risks away from taxpayers while saving billions of dollars. Senate Bill 1 is expected to produce more than $5 billion in savings over the years and reduce costs and fees for investment management by an additional $3 billion or more. With an outstanding pension liability of $62 billion, every penny counts.
“Senate Bill 1 would not impact current employees and retirees, as it honors the promises made to them while protecting the investments they’ve already made. The changes it does make would steer future state workers and school district employees toward the 401(k)-style plans many of their friends and neighbors who work in the private sector rely on to fund their retirements.”
York County House Republican Delegation
Pennsylvania House of Representatives
Media Contact: Greg Gross
717.260.6374
ggross@pahousegop.com