A last-ditch agreement between the Keystone state’s Democratic governor, Tom Wolf, and Republican legislators to reform the state’s pension plans failed by a three-vote margin last week, and the legislature is expected to kick the can into 2017.
Garnering only 99 of the 102 votes needed for approval, SB 1071 died in the state House of Representatives. The bill would have required new employees, beginning in 2018, to choose among three options that would have mandated varying participation levels in a new statewide defined contribution plan. It had been estimated that the plan would have saved the state $2.6 billion over 32 years, and it featured language that would have preserved school districts’ ability to offer 403(b) plans of their own at the local level.
Expect a remarkably similar bill to drop in January at the start of the new legislative session.
Ray Harmon, Esq. is Government Affairs Counsel to NTSA.
Garnering only 99 of the 102 votes needed for approval, SB 1071 died in the state House of Representatives. The bill would have required new employees, beginning in 2018, to choose among three options that would have mandated varying participation levels in a new statewide defined contribution plan. It had been estimated that the plan would have saved the state $2.6 billion over 32 years, and it featured language that would have preserved school districts’ ability to offer 403(b) plans of their own at the local level.
Expect a remarkably similar bill to drop in January at the start of the new legislative session.
Ray Harmon, Esq. is Government Affairs Counsel to NTSA.
- Log in to post comments