Lancaster County Republican Sen. Mike Brubaker's pension reform bill, Senate Bill 922, cleared the Senate Finance Committee on Wednesday.
The bill, which now goes to the Senate Appropriations Committee, would create a defined-contribution plan, or 401(a) plan, for new hires of Pennsylvania’s two public-sector retirement systems in 2015. The amended bill also would make participation in the new plan mandatory for current legislators, the governor, attorney general, auditor general and treasurer upon re-election and the judiciary upon retention.
The original bill included changes to future benefits of current employees and also contained language that reduced, in the short-term, annual increase in the employer contribution limit. However, all language pertaining to current employees and collars was removed through Brubaker’s amendment. Brubaker said he recognized that a compromise was necessary to gain a favorable vote out of the committee.
The state’s unfunded pension liability is more than $47 billion.