The debate over how to address the problems facing the Keystone State’s pension woes appears deadlocked. But try, try again — a bill has been reintroduced in the state House of Representatives in the wake of a recent veto of pension reform legislation.
Ray Harmon, Government Affairs Counsel for NTSA, reports that Gov. Tom Wolf (D) and the Republican leadership in the legislature consider addressing that system’s unfunded liability a top priority, but that the meeting of the minds ends there — the legislators seek to reform the system as well and make it more affordable to the state. “The pension issue is taking a back seat to the budget — which the governor also vetoed, and right out of the gate — but both issues are deeply connected and both have to be resolved. They’re just caught between two political philosophies right now,” Harmon says.
Wolf on July 9 vetoed Senate Bill 1, a measure intended to reform the pension system. But just one month later, another proposal has been reintroduced in the Pennsylvania House. Rep. Mike Tobash’s (R-Schuylkill Haven) bill, H.B, 1499, would cut the defined benefit component of the plan and replace it with a defined contribution plan; over a certain level of compensation, the DB plan would cease and the DC component would take over. The plan would only apply to new state employees.
Of the bill, Tobash said, "While there might not be significant savings from the plan for the current fiscal year’s yet-to-be finished budget, plan design change needs to happen as soon as possible to stop the bleeding of the unfunded liability…We didn’t get into the problem overnight and we aren’t going to get out of it overnight, but it’s time to establish a plan that’s sustainable and adequate for future employees that will not have us getting in this mess again and lend assistance to getting out of debt.”
It is unclear whether Wolf would sign the bill if it is sent to him by the legislature.
Ray Harmon, Government Affairs Counsel for NTSA, reports that Gov. Tom Wolf (D) and the Republican leadership in the legislature consider addressing that system’s unfunded liability a top priority, but that the meeting of the minds ends there — the legislators seek to reform the system as well and make it more affordable to the state. “The pension issue is taking a back seat to the budget — which the governor also vetoed, and right out of the gate — but both issues are deeply connected and both have to be resolved. They’re just caught between two political philosophies right now,” Harmon says.
Wolf on July 9 vetoed Senate Bill 1, a measure intended to reform the pension system. But just one month later, another proposal has been reintroduced in the Pennsylvania House. Rep. Mike Tobash’s (R-Schuylkill Haven) bill, H.B, 1499, would cut the defined benefit component of the plan and replace it with a defined contribution plan; over a certain level of compensation, the DB plan would cease and the DC component would take over. The plan would only apply to new state employees.
Of the bill, Tobash said, "While there might not be significant savings from the plan for the current fiscal year’s yet-to-be finished budget, plan design change needs to happen as soon as possible to stop the bleeding of the unfunded liability…We didn’t get into the problem overnight and we aren’t going to get out of it overnight, but it’s time to establish a plan that’s sustainable and adequate for future employees that will not have us getting in this mess again and lend assistance to getting out of debt.”
It is unclear whether Wolf would sign the bill if it is sent to him by the legislature.
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