Pa. House passes bill to rescue state pension systems

November 16, 2010|By Angela Couloumbis and Dan Hardy, Inquirer Staff Writers
  • Rep. Dwight Evans , others protested a GOP amendment.

HARRISBURG - The state House of Representatives took a step Monday to defuse Pennsylvania's pension bomb.

The House approved a bill aimed at addressing the skyrocketing retirement costs of state and public-school employees, including legislators and teachers.

The so-called pension-reform bill would spread payments into the two pension systems over additional years, boost the retirement age for future employees, and give them the option of either contributing more to the plan or having their benefits trimmed.

Gov. Rendell, who has said he would sign the measure, estimated that the bill would save the state $16 billion in pension payments over the next 25 years.

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"We can complain that this bill doesn't go far enough," said Rep. Glen Grell (R., Cumberland), who helped craft the measure, "or we can approve this bill, scale back the overly generous pension plans for all employees, and stop the bleeding."

The House, acting in the waning hours of its 2009-10 session, also took final action on a number of other measures. The Senate has already passed the pension bill, so it goes straight to Rendell's desk.

Debate on the legislation Monday centered on a Republican-backed amendment that the Senate had tacked onto the bill establishing an Independent Fiscal Office to act as a watchdog over legislative and executive-branch spending.

Some House members, including Rep. Dwight Evans (D., Philadelphia), had argued that the Senate move violated the so-called single-subject rule of the state constitution by adding that amendment. That, in turn, would have left the measure open to legal challenge, they said.

But a majority of House members in both parties disagreed and approved the pension bill by a 165-31 vote. Evans was among those voting "aye," despite his expressions of concern about its constitutionality.

Pennsylvania's largest teachers union swiftly applauded the bill's passage, even though it cut some benefits for future employees.

In a statement after the vote, James Testerman, president of the Pennsylvania State Education Association (PSEA), said: "Compromising and agreeing to changes to our pension system has been tough, but PSEA realizes that this legislation resolves the pension crisis in a responsible manner and over time will save the taxpayers billions of dollars."

Testerman added: "It also keeps the promise of a secure retirement for current and future workers."

Reaction from the Pennsylvania School Boards Association was more muted.

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