Jun. 30, 2015
HARRISBURG – In a historic step aimed at proactively tackling the state’s largest economic challenge to date, Rep. Jim Christiana (R-Beaver/Washington) today joined a majority of his House colleagues in support of
Senate Bill 1, which seeks to reform Pennsylvania’s two public pension systems.
Pennsylvania has two public pension systems, the State Employees’ Retirement System (SERS) and the Public School Employees’ Retirement System (PSERS). Currently, the state is facing a $53 billion funding shortfall between the two systems, a massive debt that will take decades to overcome.
“The systemic problems associated with defined benefit plans are bankrupting the Commonwealth and threatening to crowd out funding for important programs that help our students and seniors, and put Pennsylvanians back to work.”
Senate Bill 1 would establish a hybrid defined contribution/cash balance plan for future state and school employees, as opposed to the current defined benefit plans that SERS and PSERS have.
“We need to reform these broken systems and release the chokehold they have on our General Fund, allowing our economy to breathe,” Christiana said. “If the governor does not sign this key reform along with the no-tax-increase budget we are sending to his desk today, he’s not fulfilling his duty to the taxpayers of Pennsylvania.”
Christiana stressed the legislation does not affect benefits already earned by current employees and retirees.
“We have a responsibility to live up to the promises made to current workers and retirees, but we can’t ignore the fact that our current systems are becoming a growing financial burden on our schools and taxpayers” Christiana said. “Senate Bill 1 is certainly not a cure-all, but it represents a significant first step toward ensuring we are able to meet our obligations to past, current and future state employees and teachers.”
Additionally, the reform plan moves all members of the General Assembly over to a defined contribution/cash balance hybrid plan upon election/re-election to a term that begins after Dec. 31, 2015.
“There is no better way to restore public trust in the Legislature than to include reforms to our own individual pension plans,” said Christiana. “It’s time for political leaders in this state to show real leadership, lead by example and put our taxpayers first.”
Representative Jim Christiana
15th Legislative District
Pennsylvania House of Representatives
Media Contact: Abbey Haslam
717.260.6222
ahaslam@pahousegop.com
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