Pension Plan Reform for Police and Fire Fighters
Pension Plan Reform proposed by Rep. Seth Grove (R-York) could save municipalities from the $6 billion in debt, according to supporters.
The reform would only be for police and fire fighters that are newly hired.
“We’re trying to be proactive. We’re trying to save and protect those pensions for current employees and current retirees by trying to restructure our pension system, make it sustainable from now and until the future,” said Grove.
Employees would be required to contribute between 6 and 9% of their salary to their pension while employers would pay 4.5% to employee’s pensions.
“We understand that there are hardworking individuals, men and women, who put their lives at risk in both the police and in fire, and that we have to respect them. In addition, we want to respect the benefits that we have already agreed to for those that have already retired and those existing employees,” said House Majority Leader, Mike Turzai (R-Allegheny).
Currently Pennsylvania’s municipalities have $6.7 billion in unfunded liabilities due to pensions.
The bill would also make pensions not available for binding arbitration.
House Bill 1581 is in the House Local Government Committee.