Stripped Down Pension Bill Moves Out of State Senate Committee

The  state Senate Finance committee has moved a pension reform bill to the floor, after gutting most of Governor Corbett’s proposals.

The stripped down bill was amended to impact only future state and public school employees. Starting in 2015, they would be placed in a defined contribution 401 (a) plan.  The amendment removes all language affecting current employees.  Another amendment exempts state police and corrections officers.

Senator John Eichelberger (R-Blair) says action is needed now to deal with the SERS and PSERs unfunded pension liabilities.

Senator John Blake (D-Lackawanna) does not believe the bill will lead to lower pension costs and thinks it could cost taxpayers more in the long run.

The committee approved the bill by a 6 to 5 vote.

Despite the amendments which removed most of his proposals, Governor Tom Corbett commended the committee for voting SB 922 to the floor. He called the vote a positive step toward reform.

The Governor says he will continue to work with the legislature on other aspects of pension reform.