Harrisburg, PA — Americans for Prosperity – Pennsylvania is releasing the following statement regarding pension legislation proposed in the State House of Representatives:
“Americans for Prosperity – Pennsylvania is encouraged that lawmakers are aware of the magnitude of the burden placed on Pennsylvania taxpayers by the Commonwealth’s antiquated and unsustainable pension system,” said Anna McCauslin, Director of Policy of Americans for Prosperity – Pennsylvania. “The only meaningful way to reform the system going forward is by putting new hires into a 401k-style defined contribution system. House Bill 1353, currently drafted with printer’s number 1846 would place all new employees into a defined contribution plan. These 401k-style plans will give state employees the same kind of choice and control over their own retirement planning that private sector workers enjoy, and ease the burden on state taxpayers.
“If we are to ensure fiscal stability for future generations, and freedom for future state employees, it is imperative that the state move entirely to the flexibility of a defined contribution plan. Any proposal that retains characteristics of a defined benefit pension system – a system that has resulted in the current $50 billion in unfunded liabilities facing taxpayers – simply does not constitute meaningful reform.”