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FreedomWorks today urged Pennsylvania Governor Tom Wolf to sign Senate Bill 1 into law to reform public pensions.
With statewide pension funds reporting over $62 billion in unfunded liabilities, residents of the Commonwealth can’t wait for this reform. FreedomWorks President Adam Brandon released the following statement:
“Pennsylvania public teachers are in serious trouble if this reform does not become law soon, before the entire system goes bankrupt. Only one-third of new teachers is projected to become vested in the current system. The creation of a hybrid system will give teachers more flexibility and stability in the long term.
As shown in Detroit, bankruptcy will reduce pension benefits to those who depend on them. We urge Governor Wolf to remember public employees’ precarious position and follow the will of voters by signing SB 1 immediately.”
This bill proposes a “side-by-side” pension program that will ensure stability to public workers while also removing a large burden from the taxpayers. The hybrid system would split the contributions for new employees from the state into a defined component and defined contributions component (similar to a 401k).
SB 1 protects citizens by introducing a record setting shift in taxpayer risk. If it becomes law, Pennsylvania will serve as an example to the rest of the country on how to efficiently reform public pensions in a way that benefits both employees and taxpayers.
FreedomWorks’ activists have sent over 75,000 messages and made over 2,000 phone calls to their state legislators in support of pension reform in Pennsylvania.