Pension ‘Reform’ Goes to Governor Rendell
Contact: Nathan Benefield 717.671.1901 | [email protected]
Pension "Reform" Goes to Gov. Rendell
HARRISBURG, PA (11.15.10) — The Commonwealth Foundation expressed disappointment with today’s passage of House Bill 2497, which defers significant pension costs on to future generations while failing to adequately reform the state’s largest defined benefit pension systems.
"We attempted to bring fiscal sanity to the pension discussion, but the reality was that self-interested unions were successful in drowning out the voice of the taxpayers," said Matthew J. Brouillette, president and CEO of the Commonwealth Foundation. "Despite arguments to the contrary, this bill didn’t ‘save’ the taxpayers any money. Taxes will still be going up with this ‘reform’ next year—$646M more just to pay for PSERS and SERS—and every year thereafter. But it did prevent moving new employees into a Defined Contribution plan—a major victory for labor unions like PSEA, AFSCME and SEIU."
"Yet we remain hopeful that a new administration and new legislature will begin the process of fully reforming Harrisburg to protect the taxpayers in the future," said Brouillette. "Many lawmakers voted for HB 2497 as the ‘first step’ to pension reform. We look forward to working with lawmakers who understand this cannot be the final action, and with new leaders who understand the need for real pension reform and controlled spending."
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The Commonwealth Foundation (www.CommonwealthFoundation.org) is an independent, non-profit public policy research and educational institute based in Harrisburg, PA.