Jun. 09, 2017
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HARRISBURG – The state House on Wednesday sent to Gov. Tom Wolf legislation that would result in historic, much-needed reforms to Pennsylvania’s public pension systems. Among other things,
Senate Bill 1 would provide significant savings for taxpayers and eliminate the existing pure defined benefit retirement plan option for new state and school district employees hires, beginning in 2019.
State Rep. Matt Gabler (R-Clearfield/Elk) issued the following statement after passage of the bill:
“The General Assembly has two major obligations when it comes to Pennsylvania’s public pension systems - good stewardship of taxpayer dollars and respect for the promises made to retirees and current participants in our retirement systems. Senate Bill 1 honors both of those obligations.
“No one regards Senate Bill 1 as the perfect solution to our pension problem. What it is, however, is a step we must take if we expect to solve that problem. The legislation would save taxpayers more than $5 billion, and the reduction in costs and fees for investment management is estimated to save another $3 billion. Depending on the choices made by future hires, additional savings of between $5-$20 billion could be realized.
“From an employee standpoint, Senate Bill 1 protects the benefits that hard-working Pennsylvanians have already earned. The only possible change for current participants in PSERS (Public School Employees Retirement System) and SERS (State Employee retirement System) is they now will have the option of participating in one of the new plans that will be rolled out in 2019.
“Admittedly, Senate Bill 1 does not directly address the significant unfunded liability that currently exists with our pension plans. That is an issue we will continue to address through proper payment of our bills each year. Today's legislation will go a long way toward protecting taxpayers against future issues that could make our pension problem even worse. Enacting this bill into law will be a major step forward in ensuring our pension system becomes truly sustainable and fiscally responsible. I look forward to continuing to advocate for positive solutions to all of our state's challenges that will protect taxpayers today and for generations to come.”
Questions about this legislation or any state-related matter may be directed to Gabler’s DuBois office at (814) 375-4688, his St. Marys office at (814) 781-6301 or Clearfield office at (814) 765-0593.
Representative Matt Gabler
75th District
Pennsylvania House of Representatives
Media Contact: Scott Little
717.260.6137
slittle@pahousegop.com
RepGabler.com /
Facebook.com/RepGabler