HARRISBURG – State Senator Gene Yaw (R-23) today co-sponsored comprehensive legislation designed to modernize the Commonwealth’s retirement systems in order to bring significant updates to the funding, sustainability and fiscal responsibility of the state’s two main pension funds. The Senate proposal is in line with the vast majority of private sector 401k style pension plans.
Senate Bill 1 provides choices for current and future employees to create a pension plan that they tailor to suit their needs. This plan allows employees to benefit when the pension system is meeting its investment expectations, yet shields them when it falls short. Yaw emphasized that this proposal does not reduce in any manner and makes no changes whatsoever to the benefits already earned by existing employees or retirees.
“Senate Bill 1 is a historic plan that reflects the seriousness of the situation we face with pensions,” Yaw said. “The legislation takes the investment risks off of the taxpayers with regards to pensions, while shielding the retirement security of public employees from political risk.”
Currently, the amount of money needed to meet the public pension obligations is unsustainable. This year alone, the Commonwealth faces a $1 billion increase in its pension obligations.
“If we fail to act, we are putting the state’s finances and taxpayers burdens at risk,” Yaw added.
CONTACT: Rita Zielonis, (717) 787-3280