URGENT: Pension vote today!
The House of Representatives will be voting on a Pension “Reform” bill TODAY, currently Senate Bill 1071. The changes in this bill will affect current employees’ future pensions.
Legislators are in their Capitol offices RIGHT NOW and they need to hear from YOU! Call, email and visit legislators and DEMAND that they oppose SB1071.
One of the many changes proposed is that overtime will no longer be included in your pension calculations. Also there is a possibility of your payroll contribution INCREASING if the assumed rate of return is not met. And the biggest proposed change is that Option 4 (lump sum payment) will now be revenue neutral. The 4% current interest rate on Option 4 will no longer apply.
SB1071 is a terrible overhaul to the State’s public pension systems, which would take Pennsylvania from having one of the best pension systems in the country, to having the 3rd worst in the nation.
What’s worse is that the bill would affect both future and CURRENT employees, undermining their retirement security and likely increasing the employee contribution. If the provisions affecting current employees are struck down by the courts as unconstitutional, then the remaining provisions of SB1071 would result in a net additional COST to taxpayers of $2 billion.
SB1071 does not address the unfunded liability, and it does not even provide any immediate savings for the current budget that is being negotiated.