From Representative Kathy Rapp:
This week, I voted to advance Senate Bill 1, which would significantly reform and modernize Pennsylvania’s public employee pension systems that currently face a shortfall of more than $50 billion, to the Senate for concurrence.
Under Senate Bill 1, all new employees who enter either the State Employees’ Retirement System (SERS) or Public School Employees’ Retirement System (PSERS) would be enrolled in a combination of 401(K)-type and cash balance pension plan.
The shortfall was worsened by the “Great Recession” and has become a major concern to the Commonwealth’s school districts, which face skyrocketing costs associated with pensions. Reforming the system will help alleviate future property tax increases.
This plan preserves the Commonwealth’s pension system and does not alter benefits for retirees. This is a responsible solution which will save the state an estimated $11 billion over the course of the next 30 years.
Senate Bill 1 now awaits consideration by Gov. Tom Wolf.