Pension reform likely before end of June

Pension reform likely before end of June

The House took its first look at the Senate pension reform bill Tuesday and two House Republicans in charge of making sure the legislation gets passed prognosticated that a major pension reform bill will likely pass within the confines of the budget cycle.

“I think ultimately we’re going to get pension reform done as part of this budget,” said House Majority Leader Dave Reed (R-Indiana). “Whether that occurs in mid-June, late-June, who knows, that’s yet to be determined.”

Tuesday, June 2, 2015/Author: Jason Gottesman
Categories: News and Views
House and Senate advance defined contribution pension bills

House and Senate advance defined contribution pension bills

Though different in substance, both the House and Senate were active Tuesday in moving bills designed to dramatically reform Pennsylvania’s state-run public employee pension systems.

Furthest along in the process is Senate Bill 1, the Senate Republican caucus’s pension reform plan that would move new employees to a 401(k)-like pension plan and alter the future benefits of current employees by requiring a higher employee contribution or rolling their defined benefit plan structure back to that of pre-Act 9-levels.

After making its way through the Senate Finance Committee yesterday, the legislation was considered Tuesday morning by the Public Employee Retirement Commission.

There, an actuarial note to the legislation was approved that showed the bill could save anywhere between $8 billion and $18 billion depending on which analysis is used.

Tuesday, May 12, 2015/Author: Jason Gottesman
Categories: News and Views
Fixing pensions: varied opinions with common threads

Fixing pensions: varied opinions with common threads

A House hearing Tuesday brought together experts from academia, actuarial firms, public sector employee unions, and pension management firms to discuss what needs to be done to fix the Commonwealth’s looming—if not present—pension problem.

While all the different testifiers brought their unique perspectives to the issue—especially as to whether a change in pension benefit plan design is needed—one common thread was found among all who spoke on the issue: the Commonwealth’s unfunded pension liability will not disappear without more money being thrown at the problem.

“A plan design change is not enough to deal with the unfunded liability,” said House State Government Committee Chairman Daryl Metcalfe (R-Butler), whose committee convened Tuesday’s hearing.

“We have to bite the bullet and deal with the current underfunding. There’s no easy answer,” he told The PLS Reporter

Tuesday, March 24, 2015/Author: Jason Gottesman
Categories: News and Views
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