York County House Republicans Issue Statement on Passage of Historic Pension Legislation - Senate Bill 1 awaits governor’s signature
6/30/2015
HARRISBURGSenate Bill 1, a historic piece of pension reform legislation endorsed by both chambers of the General Assembly, is a step closer to becoming law in Pennsylvania. The bill, which would shift state and public school employees hired after Jan. 1 2016, from a defined benefit plan to a hybrid 401(k)-style and cash balance plan, was passed today by the House on a predominantly party-line vote. It now goes to the state Senate for concurrence on amendments made in the House State Government Committee and is expected to be voted tonight.

The York County House Republican delegation, made up of state Reps. Keith Gillespie
(R-Hellam), Seth Grove (R-Dover), Kate Klunk (R-Hanover), Kristin Phillips-Hill (R-York Township), Mike Regan (R-Dillsburg) and Stan Saylor (R-Red Lion), issued the following statement after the House vote:

“We look forward to our Senate colleagues taking up Senate Bill 1 and sending it to Gov. Tom Wolf so he can sign it into law. When he does, the state Legislature will be forced to lead by example, a goal we should all be striving to pursue. Enacting Senate Bill 1 will require legislators who are current participants in the defined benefit pension plan to be moved to a defined contribution plan if they run for office again and are successful (all future General Assembly members will only have the hybrid 401(k)-style and cash balance plan option). They will be treated as ‘new employees’ and moved to the same retirement system as future state and public school employees.

“Contrary to reports being circulated, passage of Senate Bill 1 will not impact current retirees. If anything, the new law will secure their benefits going forward, as well as those of current employees. It will also not flip any of those same current employees into the new retirement system, as has been rumored. While there will be minimal changes to the benefits of these employees, the changes are being made purely for the solvency of the entire system.

“Finally, Senate Bill 1 removes the state Legislature from having any role in administering the system and places that responsibility solely in the hands of the individual retiree. In the past, the current defined benefit plan has been subjected to legislative manipulation for political purposes. This problem is inherent to public defined benefit plans. By shifting to a hybrid defined contribution/cash balance plan, the bill shields pension plan investments and administration from political pressures and gives individual employees more control over their investments. It is their money, and participants in this 401(k)-style system would have the final say in how that money is invested.”

York County House Republican Delegation
Pennsylvania House of Representatives

Media Contact: Scott Little
717.260.6137
slittle@pahousegop.com
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