Jun. 30, 2015
HARRISBURG – Noting the large impact that public pension costs have on local property taxes, Rep. Lee James (R-Venango/Butler) today voted for a bill that would reform Pennsylvania’s public pension systems and save taxpayers money.
“These reforms will honor our obligations to workers while defending taxpayers against looming pension cost increases,” said James.
The reform would place future state workers and school employees in a defined-contribution retirement plan, similar to retirement savings plans offered in the private sector.
Current retirees from the state pension systems would not be affected by the reform proposal.
Legislators would be some of the first people affected by these reforms. Beginning with the next two-year legislative term, which will begin in December 2016, all state legislators will be moved from the current pension plan to a new defined-contribution plan. They will retain any pension benefits they earned under the current system, but would earn any new benefits under the new plan.
Many private-sector employers provide defined-contribution plans, like 401(k) retirement accounts.
“These are necessary changes to help increase the long-term stability of the Commonwealth’s public pension systems,” said James. “We want to ensure these retirement benefits are available to workers and more affordable for taxpayers.”
Senate Bill 1 now heads back to the state Senate for consideration.
Residents can learn more about James by visiting his website at
RepJames.com and following him on Facebook at
Facebook.com/RepJames.
Representative Lee James
64th Legislative District
Pennsylvania House of Representatives
Media Contact: Dan Massing
717.772.9845
dmassing@pahousegop.com
RepJames.com / Facebook.com/RepLeeJames