Another pension reform plan to enter the mix

Author: Jason Gottesman/Thursday, May 7, 2015/Categories: News and Views

Rep. John McGinnis (R-Blair) announced Thursday morning that—much like the Senate Republicans—he will be unveiling his pension reform plan at a news conference next week.

Rep. McGinnis’s House Bill 900 is said to pay off Pennsylvania’s unfunded pension liability over the next 20 years with level funding.

Earlier this year, Rep. McGinnis previewed the legislation by holding a press conference stating any true pension reform that will attack Pennsylvania’s unfunded pension liability will adopt the 2014 Blue Panel on Pension Funding commissioned by the Society of Actuaries.

He said Thursday House Bill 900 will follow along these lines.

“The funding schedule created by House Bill 900 is consistent with the 2014 Blue Ribbon Panel on Public Pension Funding commissioned by the Society of Actuaries,” said Rep. McGinnis in a news release.

“We are on a path to a future financial catastrophe because of the severe underfunding of our state pension systems. Before we spend one dollar on new spending items, we must address expenses not paid for in the past. It is not only a moral imperative at this point, but a major economic one too, as the future of Pennsylvania is on the line.”

In March’s news conference, it was noted that Pennsylvania would have to increase pension funding by $3 billion annually to pay off the unfunded liability in 20 years.

Yesterday, Senate Republicans released additional details of their pension reform plan, which is set to be formally introduced next week as well.

Their plan would move new employees to a defined contribution plan while asking for certain concessions from current employees’ future benefits.

For more background on that plan, CLICK HERE.

Rep. Warren Kampf (R-Chester) has also introduced a pension reform plan in the House that would move new employees to a defined contribution plan.

For more information on that plan, CLICK HERE.