The Senate Finance Committee today (April 21) approved legislation introduced by Senator Don White designed to provide savings to Pennsylvania’s public pension system by dramatically changing the program available to members of the Pennsylvania General Assembly.
“By changing the pension plan available to legislators, we will set an example and create an environment to enact necessary broader pension reforms for all public employees in the Commonwealth,” said Senator White. “We as legislators cannot in good faith ask public employees to move to a defined benefit program if we are not willing to do the same.”
Senate Bill 401 would convert all members of the Pennsylvania Legislature from a defined benefit pension plan to a defined contribution plan. Senator White’s legislation would make the conversion mandatory for current and future state Senators and Representatives.
“Despite the reforms enacted by Act 120 of 2010, Pennsylvania’s public pension systems remain in great financial distress and the burden on taxpayers is growing exponentially. It is well past time that we face economic reality,” said Senator White. “There has been a fundamental change in pension benefits offered by the private sector to its employees, with most companies offering defined contribution plans and few, if any, providing defined benefit plans. It is only right that we follow suit.”