The Pennsylvania School Boards Association (PSBA) applauds the recent passage of Senate Bill 1, now Act 5 of 2017, which makes significant changes to reform the state’s troubled pension system for state and school employees. Gov. Tom Wolf signed the legislation into law on June 12, 2017.
“This plan is a positive step forward in enacting meaningful reforms that will reduce employer costs over time,” said PSBA Executive Director Nathan Mains. “Act 5 of 2017 ensures that our schools will have a retirement plan that provides options for future employees in a fair manner that is both competitive and sustainable.”
PSBA has been leading the call for pension reform for more than a decade. In 2006, the association created a pension study commission with statewide representation that reviewed the topic and issued a report with recommendations, many of which are similar to those in Act 5, such as a hybrid system for future employees.
Act 5 of 2017 successfully focuses on the long-term advantages by gradually shifting the investment, inflation and longevity risks away from the state and school districts, thus providing the protection and relief school employers have been asking for.
“This bipartisan legislation offers the state a rare opportunity to make course corrections that will put pension reform on the right path. School districts need this pension cost reduction and a pension system that is built for this century in order to manage their costs and continue to provide the best education possible for our students,” said Mains.
CONTACT: Steve Robinson, Senior Director of Communication, 717-506-2450, ext. 3315