Two weeks after Republican lawmakers took the lead on legislation to address Gov. Tom Corbett's pension reform proposal, Chester County Rep. Warren Kampf has proposed twin bills that would simply tackle the issue of defined-contribution plans for new school and state employees.
Comparable to bills he sponsored last session, Kampf has proposed giving current enrollees the option of moving over to the 401(k)-style system.
“The only way to fix this broken system is to start new with a defined-contribution system that lets school districts and state governments plan for the future using definable costs,” he said. “This legislation removes the burden from taxpayers for market fluctuations and the historic mishandling of pension obligations for future employees.”
By placing a harder end date on the defined-benefit system, governments will have the ability to plan for the future, which is something they do not currently have, Kampf said.
Together, the State Employees’ Retirement System and Public School Employees’ Retirement System have an unfunded liability of $47.4 billion.