Millard Announces Passage of Necessary Pension Reform
Plan protects current employees and ensures future budget stability

HARRISBURG – Rep. David Millard (R-Berwick) today joined the majority of his colleagues in the House in passing needed reform of the state’s public pension systems. Currently, the State Employees' Retirement System (SERS) and the Public School Employees' Retirement System (PSERS) have a joint unfunded liability of more than $50 billion.

“Without reform, the public pension systems will cripple state and local governments and the benefits earned by current state employees, teachers and retirees will be in jeopardy,” Millard said. “Only four years ago, public pension costs took up three percent of the state budget. Four years from now, that number will jump to ten percent, and continue to climb.”

Under the pension reform plan, Senate Bill 1, state employees, first hired on or after Jan. 1, 2016 and school employees first hired on or after July 1, 2016, will be assigned a hybrid 401(k)-style and cash balance plan. Senate Bill 1 does not take away any benefits already earned by current employees or impact the pension benefits of current retirees.

“The plan passed today protects those public servants who are facing this crisis with us at no fault of their own, but also ensures sustainability for future generations,” Millard said. “And, as we look to future state workers to adopt this new retirement system, under this plan, legislators like myself, will lead by example.”

All members of the General Assembly and elected officials will also be moved to the hybrid 401(k)-style and cash balance plan upon election or re-election to a term that begins after Dec. 31, 2015. Future state police, state law enforcement officers and corrections officers are exempt from the hybrid 401(k)-style and cash balance plan under Senate Bill 1, and will remain on their current benefits plan

To address abuses that lead to the “spiking” of pension calculations, the plan also revises the benefits calculation, which will now factor in a state employee’s five-year final average salary.

“Without reform, not only are Pennsylvanians at risk for massive tax increases, but money that could have been dedicated to our schools and communities, will continue to fund a broken system. Taxpayers cannot afford the status quo.”

Senate Bill 1 is now headed back to the Senate for concurrence before going to the governor’s desk for a signature.

Representative David Millard
109th District
Pennsylvania House of Representatives
Media Contact: Morgan Wagner
(717) 260-6281 /
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