Harrisburg, PA 17110, USA
1-866-GOPSCOA
social@pscoa.org

Comments on Pension on Senate Floor

Comments on Pension on Senate Floor

Corman – Mentioned about Senator Browne’s accident. Senator Folmer will be picking up for Senator Browne.  Said that they will be moving forward on the work Browne has done on pensions.  Gave history on how we got where we are. Will soon be introducing SB 1.  This will modernize the system – more of a defined contribution system for new employees. This will not touch any current retirees. For current employees: look forward to giving them options and work with them on this.  Protect what current employees have earned so far – but give them options going forward.  It will be introduced this week. Said it will be addressed next week.

 

Costa – Also acknowledged all Browne’s work and well wishes.  Explained what has already been done on changing pensions. Understands the problems before SERS and PSERS.  He has serious concerns with a defined contrition plan with new employees.  He believes it doubles the unfunded liability to 90+ million dollars.  Doesn’t believe it is sustainable. We have to have a conversation going forward.  He said Corman forgot to mention that employees going forward are being asked to solve this problem and it is unfair.  Every time we have a crisis or problem, we look to solve the problem on the backs of works, and is afraid that is what is going to occur here.  He believes once you have a contract, you have a contract going forward and it will have to be decided by the courts.  Disagrees with looking at current employees.  It is clear their benefits would change going forward. They haven’t done anything to warrant that. The question remains whether we can legally do that.  Looks forward to the conversation like what we had in 2010. What’s to flush out the issues with all interested parties in the mix. Looks forward to working with all colleagues to figure out what to do.

 

Corman – discussed the enhancement given back in 2001.  Trying to partner with current employees to give them new benefits they have never had, and how to deal with this issue moving forward through options. Believes it stands legal test. These are not collectively bargained agreements, the pension fund is outside any bargaining agreement. Thinks it is important to move forward on this with a new plan that is a fair proposal. Look forward to Costa and his colleagues comments. It is something that has to happen now and will start next week.

 

Hughes – Let’s be clear – there are 2 major reasons why the pension funds are 1. For 15-17 years the state did not make its appropriate contribution – both D and R contributions, 2 – the financial collapse of 2008/2009.  Whatever we come up with  – better not benefit the people who caused the problem in the first place.  Believes the 401K programs with private managers can benefit from these defined contribution plans.  But more importantly, when are we going to have a vote on the raise of minimum wage in PA.

PSCOA-Small

Robert Storm

Eastern Region Vice President

rstorm@pscoa.org

 www.pscoa.org