House Local Government Committee Votes to Amend Grove’s Municipal Pension Reform Bill
HARRISBURG – The House Local Government Committee voted Wednesday to amend House Bill 1581, which was authored by Rep. Seth Grove (R-York) and seeks to reform municipal pensions.

“At a time when we are debating overhauls to the pension system for state employees, we cannot ignore glaring issues with municipal pensions across the Commonwealth,” Grove said. “Municipal pensions currently have a shortfall of more than $2 billion, putting a massive strain on local government services, especially in our state’s urban areas.”

As originally written, the legislation would apply to public safety employees hired in townships and boroughs across the state, with the exception of Philadelphia. Current employees would maintain their existing retirement benefits; however those benefits would be frozen at their current level. The legislation would establish retirement plans for workers hired after January 1, 2013, combining elements of defined contribution and defined benefit plans.

However, the bill was amended to make it application to only “distressed” pension plans with a funding ratio of less than 70 percent. Further amendments call for the creation of a reserve fund once the pension plans are fully funded to ensure employees receive interest payments and the plans shall be administered by the Pennsylvania Municipal Retirement System (PMRS).

“This amendment moves the ball forward to addressing failed municipal pension plans. Working with York City Mayor Kim Bracey has shown me the importance of helping our distressed municipalities and ensure their viable financial future. I will continue to work with all stakeholders to find an equitable solution”

For more information on Grove’s legislative goals, visit or

Representative Seth Grove
196th District
Pennsylvania House of Representatives

Media Contact: Nick Ruffner
717.260.6258 /

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