Quigley Joins General Assembly in Voting for Pension Reform
HARRISBURG – On June 30 in the state House, Rep. Tom Quigley (R-Montgomery) voted in favor of
Senate Bill 1, a public pension reform measure that would establish a hybrid 401(k)-style and cash balance plan for
future state and school employees.
In the absence of substantial reform, taxpayers will be forced to fund the out-of-control pension system for public school and state employees when school districts raise property taxes.
“Failing to address the most important issue facing school and state budgets will only result in the financial burden growing exponentially. If we don’t make serious changes to the pension system, already-high property taxes will skyrocket when school districts use taxpayers’ money to pay their pension bills.”
Senate Bill 1 would create a hybrid 401(k)-style and cash balance plan for current and future employees. All legislators would be moved to the plan upon election or re-election. The plan provides for the adjustment of employees contributions upward and downward, depending on the system’s return on investments. The plan brings public sector employees’ pensions in line with what many taxpayers in the private sector enjoy, enabling employees to anticipate their retirement without fear.
“The pension problem is two-fold for the taxpayers. Not only does failing to achieve pension reform result in higher property taxes for taxpayers because they become responsible for pension costs, but they will also pay more in taxes for the state’s higher interest rates as a result of the negative impact on the Commonwealth’s credit rating,” Quigley explained.
As Senate Bill 1 was passed in the House, it now goes back to the Senate for concurrence before going to the governor for his signature.
Representative Tom Quigley
146th Legislative District
Pennsylvania House of Representatives
Media Contact: Alison Evans
717.260.6206
aevans@pahousegop.com
RepTomQuigley.com / Facebook.com/RepTomQuigley